This section should include information on the specific scenario relating to the selected organization that is exploring a foreign direct investment opportunity in the allocated country. Nando’s has quickly become one of the world’s most popular chicken restaurants. Originally founded in South Africa by Robert Brozin and Fernando Duarte. It’s now spanned over 40 countries including Australia. This report will discuss how and if Nando’s could expand its domain in the Australian food and beverage industry. To do this I will be covering P.
E.S.T.L.E and Porters five forces model.
Nando’s presence in the Australian fast food market is particularly prominent. As of 2015, 264 branches were open in the country. With a population of 23.12 million people, this means there is a Nando’s for every 87,000 people.
Australia is a federal country made up of six states. Both Melbourne and Sydney were denied as the capital and Canberra was subsequently built to be the capital. The population is an estimated 24 million as of 2017 (https://www.informationplanet.com.au/countries/australia) and ranks 18th for GDP in the world in 2017. (http://uk.businessinsider.com/the-richest-countries-in-the-world-2017-3/#30-japan-gdp-per-capita-38893-31732-1) meaning Australia’s economic performance is doing particularly well when the cost of living and inflation is taken into account. However, since March 2017 growth was less than 0.3% due to the decrease in exports particularly from the resource industry. Nonetheless, the national level of disposable income per person has increased this year. The significance of this is shown in the increase in consumption in the country. It has reached $243348 million Australian dollars by the second quarter of 2017 which is the highest value it’s ever been.
Social- with the increase in disposable income for the Australian citizens they would be more inclined to spend more money on takeout food. This would be a good time for Nando’s to expand to give potential consumers a reason to choose them over other places.