Nurul Hamiza Bt Mohamad

2016651772

HM2416C

OUTBACK STEAKHOUSE IN KOREA

Five categories of firm resources and capabilities:

1. Financial resources

2. Physical resources : such as land, buildings, equipment, locations, and access to raw
materials.

3. Human Resources

4. Knowledge and learning.

5. General organizational resources

VIEW OF THE FIRM OUTBACK STEAKHOUSE IN KOREA

Outback Steakhouse operates restaurants in eighteen different countries, but it focus

only on Korea. It is one of casual dining chains that have recorded a notable success in
the international market. Outback Steakhouse Korea, which has been operating in Korea
since 1997, has recorded the highest growth rate and opened the most outlets among the
firm’s eighteen international markets (Outback Steakhouse 2004).

Human resources as the key concern of restaurant operators and managers. The
critical success factors for the Korean operation fell into the following categories:
Decentralized organization, Strong training programs, Innovative human resource
management (including generous pay and benefits), Flexibility in marketing strategies,
Custom menus and operations, a judicious blend of Korean and American business
culture, Competitive service strategies (including a money-back guarantee), Innovative
site selection, and a close relationship of franchisor and franchisee.

Competitive strategies’ success for Outback Steakhouse at Korea are strategic

planning that covered all aspects of restaurant operations, from site selection to menu
development, integration of resources and capacities from the American chain into
Outback Steakhouse Korea based on Korean culture, consumers, and employees and
tailoring service standards and procedures to meet Asian consumers’ needs and
expectations.

THE FRAMEWORK

The framework show the interconnection between the resources. Beginning with
financial, From financial the restaurant can hire the managers and employees and can
do the best training for them to know the company well. Outback Steakhouse Korea
developed a rigorous training program for employees at all levels. It is designed to
familiarize employees with the company’s culture, the program is geared to help trainees
understand the firm’s operations, human resources, and customer service aspects.
Those employees are more likely to learn better and innovate if train them well with use
financial resources. Compared to competitor who have financial constraints. Financial is
the main sources for outback steakhouse Korea.

Next is Physical. The physical assets and processes are the resources people usually
observe before all the others. Outback steakhouse Korea minimized the number of
headquarters staff and shifted key activities and responsibilities such as site selection,
contracting with suppliers, and training to the firm’s eight regional operating partners and
the managing partner of each outlet. It is to minimizes the costs of headquarters. Location
is important for a service organization which is the ways for a firm uses its physical
resources to generate customer value. As same as financial resources, physical
resources, which are tangible because they can be seen and touched. It tend to be
reproducible and relatively easy to imitate.

Moreover, third resources is Knowledge and Learning is intangible resources that

cannot be touch or seen. Outback Steakhouse Korea face no danger of outdated
knowledge, given its constant work to adapt and invent menu items,such knowledge that
they used is the issue of The Kakadu short rib steak, for instance, which has become the
most popular menu item, was developed based on a combination of Kalbi steak, which is
a Korean dish, and a typical Outback steak. Based on the recipes, the firm controls the
portion sizes of typical menu items according to the Korean market’s demands. Since
Koreans prefer less meat than Americans do, so they make a small portion for Koreans.
To ensure consistent quality of beef, the firm uses only imported Australian beef. It is
knowledge that they had used. It takes innovative thinking and experimentation.

Fourth resources is Human resources. Outback Steakhouse Korea’s human

resources is clearly its most valuable asset. The company developed and implemented a
number of innovative human resources strategies, such as promotion and internal hiring,
unlike most of the other resource categories. It encourage employee satisfaction and
retention.

The last category of resources are general organizational resources such as

brand, reputation, and strong stakeholder relationships. Outback Steak Korea value of
the brand and the importance of relationship between America and Korea through
blending American business culture and it is between franchisor and franchisee
relationship. Based on loyalty and learn culture between two different country, it makes
the brand become strong.
RESOURCES AND CAPABILITIES AT OUTBACK STEAKHOUSE KOREA

Knowledge and Learning Human

• Constant work to adapt and invent
menu items, such as The Kakadu
short rib steak, for instance, which
has become the most popular menu
item
• Innovative human resources
strategies,
• Customized and rigorous training
program

• Blending Western and Korean

cultures.
 Financial
•Restaurant can hire the managers and
employees.
• Business performance based on salary

Physical General Organizational

•Minimized the number of
headquarters staff and shifted key
activities and responsibilities such
as site selection, contracting with
suppliers, and training.
• Decentralized organizational
system
• Brand, reputation, and strong
stakeholder relationships
• Relationship between America and
Korea through blending American
business culture
• Loyalty and learn culture between
two different country