Managing Capability Nandos | Executive Summary

Managing Capability Nandos Executive SummaryThis report aims to describe and evaluate capabilities it will use the resource found view to examine them in more detail and the importance of them. After this the report will then evaluate Nandos resources and capabilities and will discuss ways in which these may possibly submit to a rivalrous emolument. Subsequent to this it will go on to divulge using an assortment of analytical frameworks associated with Nandos to investigate in more detail the combative advantage they have over their competition. After this it will ascertain how the management of Nandos is able to develop and manage these capabilities.IntroductionThis report will be based around Nandos the restaurant chain. Nandos whose food, along with wacky advertising campaigns has captured the hearts of thousands of beloved customers. The origins of Nandos pile be traced back to South Africa where the first restaurant opened in 1987, with Portuguese style food an ingrained idea within the business basing their menu around chicken has afforded them the chance to gain a substantial back in their chosen trade. It has had rapid expansion overseas seeing triumph in many of the 25 countries they ope roll, although it has not been successful everywhere they laid their eggs.(REFERENCE IN HERE) In order to comprehend the strategy as well capabilities the companies let, it is essential to look at all the pieces of the Nandos puzzle, this report will do this by force on real life examples of how Nandos have utilised resources and capabilities, in addition will be using analytical frameworks to support findings and present go on understanding. mental imagery Based ViewThe resource-based view of strategy conjoins both resources and capabilities together concede states that it is the principle foundations of strategy along with correct understanding and implementation of these argon a households key basis to profitability. (Grant 2007)Grant deems it importan t to distinguish between resources and the capabilities of a devoted resources are, The productive assets owned by the firm whereas capabilities are what the firm can do (Grant 2007). One of the foremost sources of profitability is the competitive advantage in their market place. Establishing competitive advantage can be achieved through the development and deployment of resources and capabilities, and thus has contract the primary goal for strategy.(Grant Page 124).Furthermore, Grant affirms that if external environment alters drastically, this in turn could have an effect on the markets an organisation operates in then the posit for a secure basis of internal resources and capabilities becomes of utmost importance an formed within the firm (Grant Book). This strong assortment of resources and capabilities can utilised by the firm to exploit different markets in which these capabilities could complement, instead of allowing the market in which they operate along with customers to control how they should go about doing business, barely supporting the significance of competitive advantage in a market, as well as the need to possess this.Resources and Capabilities as a source of hawkish AdvantageResources are delimitate as the productive assets of a business, these consist of tangible, intangible and human (k at presentledge) (Grant, 2007).Resources and Capabilities as Sources of Competitive AdvantageResources are the productive assets, both tangible (such as funds and plant), intangible (technology, reputation culture) and human (skills, capacity for communication and collaboration motivation), in control by the organisation (Grant, 2007).Capabilities are defined as the things a firm can do (2007, p. 130-131), these capabilities are formed by a firms capacity to utilize and deploy their resources for a desired end result Helfat Lieberman (2002 p.135 quoted in Grant 2007). The RBV of competitive advantage is born out of having a capability or resource that has the two following conditions scarcity relevance. This advantage however is only recyclable and an advantage if it is durable, hard to imitate and replicate by other firms (Grant, 2007). In Appendix 1 the tangible, intangible and human resources of JnJ have been identified, along with their capabilities, I shall now define what a nerve centre and dynamic capability is with few brief examples of JnJs taken from the resources in the table. I shall then go on to show linkages further and ultimately if and how they provide JnJ with a competitive advantage, part 3 will go onto use frameworks to evaluate further if these are in fact sustainable.The nature of competitive adavantage is formed through a cpabilitiy or resource which have two conditions there relevancy and there scarcity The benefits from these resources and capabilities depend not fairish on their ability to establish a competitive advantage but also on how long that advantage can be sustained (BOOK 2009). as well as it is dependent on how resilient the companys capabilities are as well as if a rival company can replicate specific capabilities. Figure 1 shows Nandos tangible,intangible and human resources identified, as well as their current capabilities, this report will now analyse what a core and dynamic capability is, including certain relevant examples related to Nandos from Figure 1. After this, I will go onto discuss in depth the linkages and how they may be able to present Nandos with effective advantage over their competition, following on from this, I will then utitlise certain frameworks and analyse and determine whether these are sustainable or not.Grant believes that Capabilities can be defined as either core or distinctive, the differences between the two is core are the main fundamental capabilities a company must possess to compete in the chosen market, whereas distinctive are the capabilities which spate the company from the competition, giving them a competitive advanta ge.(Grant 2009) I will now look further into Nandos capabilities with reference to their capabilities in forms of core an distinctive.It is capability that is the essence of superior performanceIn order for Nandos or any company for that matter, to inhabit in a position that is both profitable and sustainable is a very hard thing to do. The understanding of their capabilities is imperative, as if they dont understand them then they could find themselves out of the market or even worse out of business.Capabilities are split up into to two different sectiosnScarce capabilities are widely available in their chosen market. If this is the reason in Nandos chosen market then there is no real chance of gaining a larger segment of the market, they have to give the customer something sweet and different. Another factor is the relevance of these capabilities to the company and chosen market, as if they are not giving the target market what they want then they cant stay competitive, for exa mple Nandos is established as a company who solely serve chicken, but whats to say people go and eat at KFC as they scantily serve chicken as well, its the taste and quality of the food which keeps customers coming back, as well as Nandos unique restaurant experience which is relevant to the market they are in.When we apply this to Nandos they have a specific part of the company that they focus everything around and thats chicken, they only serve chicken on their menu, which in some areas could be beneficial as no other large company is dedicated to that type of menu other than KFC but theres is Kentucky fried chicken and they are a fast food restaurant rather than Nandos established as a restaurant/takeaway so they arent in direct completion in their markets.ConclusionAcquisition of GBK over the last few monthsTangibleIntangibleHumanFinancial ( bills, securtities, borrowing capacity)Physical(plant, equipment, land, mineral reserves)Technology (patents, copy refines,trade secrets) record (brands, relationships)CultureSkills/Know-howCapacity for communication and collaborationMotivationOrganisational CapabilitiesStrategyIndustry key factors success factorsCompetitive AdvantageNandos SWOT AnalysisStrengthsAdvantages of proposition?Capabilities?Competitive advantages?USPs (unique selling points)?Resources, Assets, People?Experience, knowledge, data?Financial reserves, likely returns?Marketing reach, distribution, awareness?Innovative aspects?Location and geographical?Price, value, quality?Accreditations, qualifications, certifications?Processes, systems, IT, communications?Cultural, attitudinal, behavioural?Management cover, chronological succession?WeaknessesDisadvantages of proposition?Gaps in capabilities?Lack of competitive strength?Reputation, presence and reach?Financials?Own known vulnerabilities?Timescales, deadlines and pressures?Cashflow, start-up cash-drain?Continuity, supply chain robustness?Effects on core activities, distraction?Reliability of da ta, plan predictability?Morale, commitment, leadership?Accreditations, etc?Processes and systems, etc?Management cover, succession?OpportunitiesMarket developments?Competitors vulnerabilities?Industry or lifestyle trends?Technology development and innovation?Global influences? rising markets, vertical, horizontal?Niche target markets?Geographical, export, import?New USPs?Tactics surprise, major contracts, etc?Business and product development?Information and research?Partnerships, agencies, distribution?Volumes, production, economies?Seasonal, weather, fashion influences?Threats governmental effects?Legislative effects?Environmental effects?IT developments?Competitor intentions various?Market demand?New technologies, services, ideas?Vital contracts and partners?Sustaining internal capabilities?Obstacles faced?Insurmountable weaknesses? going away of key staff?Sustainable financial backing?Economy home, abroad?Seasonality, weather effects?Department AreasFinance Return On Investmen tCash FlowReturn on Capital EmployedFinancial Results (Quarterly/Yearly) Internal Business ProcessesNumber of activities per functionDuplicate activities across functionsProcess alignment (is the right process in the right department?)Process bottlenecksProcess automationLearning GrowthIs there the correct level of expertise for the job?Employee turnoverJob satisfaction culture/Learning opportunitiesCustomerDelivery performance to customerQuality performance for customerCustomer satisfaction rateCustomer percentage of marketCustomer retention ratehttp//www.businessballs.com/balanced_scorecard.htm