External Environment Essay

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Assignment Two: Evaluating a Company’s External Environment Strategic Management July 19, 2011 Introduction Success factors are those elements that determine whether a company succeeds or fails in a given industry, and they may vary greatly by industry. The reason for identifying success factors is that it will help lead you to areas where you can establish competitive advantages. Understanding what is working in the overall industry is an important component of effective strategic planning. Outback Steakhouse strategy was to create a dining experience complete with high quality food and service, and generous portions at moderate prices (Gaunlett, 2007). Other strategic elements include serving dinner exclusively at most locations which allowed Outback Steakhouse managers and employees to enjoy a quality of life not experienced in traditional restaurant experiences. Opening daily at 4:00pm, Outback has experienced the lowest employee turnover rate in the industry which helped to keep training and employee replacement costs down. Understanding what promotes growth are the major underlying causes of the changes in the industry and nature of competition. The purpose of this assignment is to identify common driving forces and key success factors for the restaurants such as Outback Steakhouse or Carrabba’s Italian Grill. Based on Table 3.2, the most common driving forces for restaurants such as Outback Steakhouse or Carrabba’s Italian Grill which was purchased by Outback steakhouse to expand its holdings primarily through a joint venture partnership to cash in on the growing casual dining market would be the changes in cost and efficiency, emerging new internet capabilities, marketing innovation, changing societal concerns attitudes, increasing globalization, and production innovation . Outback steakhouse and Carrabba’s Italian Grill restaurants may use the

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