Bain Capital: Outback Steakhouse Case Solution & Answer

Bain Capital: Outback Steakhouse

Forecasting of Revenue

As shown in the graph, the revenue of the Corporation increases from 2011 to 2015. With the enhancement in marketing, managing of debt, and understanding of other factors, the company can grow more in the future.

Strategic Analysis

SWOT Analysis

The SWOT analysis comprises the strengths, Weaknesses, Opportunities, and Threats of the company or firm. The Outback’s Bain faced various up and downs during the economic crisis, but they still have the efficiency in competing with their rivals while having some areas that the company should focus on.

Strengths

Strengths are the resources and the capabilities of the company that has leverage to create the market value for the company to compete with its rivals. So that is why strengths play an essential role in sustaining the company’s marketplace.

The strength of the Bain: Outback steak House are as under:

• The company has a strong brand image and a versatile product portfolio that enable the company to target the domestic market.
• The company has a strong relationship with suppliers. It has strong supply chain management, which helps the company leverage the supply of products and the expertise of supply chain partners.
• Bain Capital: Outback steak house has the advantage of being a first-mover in numerous sectors while having expertise in Marketing, acquisition, and entrepreneurial financing that help the company solve various complicated marketing problems.
• The company can compete with its rivals in the global market because of its qualitative and superior services, strong brand, and adhesive customers.
• The company has unique expertise in financing and marketing strategies that help launch various new products into the market because it has a successful track record.

Weakness

Here are certain areas where the company should improve, help it compete with its rivals, and build a robust marketplace compared to the other companies.

• Although the company has a strong balance sheet, the company has a low return on investment.
• The company lacks diversity to grow in the domestic market and compete with its rivals in the international market.
• The company needs to improve the inventory management and the cash cycle because it lacks management in both the cash cycle and the inventory.
• The company has to focus on the interest of the external stakeholders and improve project management, which helps the company empower public relations and customer repercussions.
• The company’s backend process has integrated technology that could not harness the power of the technology in the frontend process.

Opportunities

The company has the strength that helps the company to diversify its market and compete with its rivals. The opportunities for the company are as under;

• The company has the opportunity to diversify its market by building collaborations with various brands because the growth of the market size increases at the rate of a brisk pace. At the same time, the inundation of the customers leads to the evolution of the market into consumer preferences.
• The social media-oriented business or E-commerce business helps the company target their customers and build a strong PR that can build a robust marketplace.
• The company should focus on those products that have a booming market which helps the company increase the revenue and customer market by increasing the stander of their products.
• Companies have a lucrative opportunity in the global market through which the company can buy the market shares.

Threats

The threats that can affect the company to growth in the domestic or international markets are as under;

• They risk disrupting their market because of the components of the increased charge for working in the established market due to environmental procedures and the high environmental taxes imposed by the government.
• Due to the geopolitical factors of rising protectionism, Brexit and Forex can affect economic activity, economic health, and the company’s marketplace.
• The fast-changing of environmental regulations and the pressure imposed by the NGOs and GOs can affect the revenue and brand representation of the company.
• The entrance of various local and international companies by using e-commerce and social media base platforms into the market can build vast and tough competition for the company.

Pestle Analysis

Various macro-environmental factors affect the company’s business, including political factors, Economic, Social, Technological, Environmental, and Legal Factors.

In 2007 the Outback Steakhouse was purchased by the Bain Capital, but due to the economic collapse in 2008, the company could meet its loan covenants.

Political Factors

The political factors that influence the business of the company are as under:

Political Governance System

The country has a stable political system which helps Bain Capital: Outbreak Steakhouse design the marketing strategies to improve the company’s business.

Democratic Institutions that Regulate the Democracy

The strength of the democratic institutions should be improved for the transparency and stable political environment, which help reduce corruption and improve the transparency in the country. At the same time, the company has a transparent environment that shows improvement in the business…..

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