South African Company: Strategy To Enter Thailand

South African Company
Strategy to Enter Thailand
Jana Schumann
Ola Halees
Varun Kurup
Mohamed Ibrahim Berte
History
What this name is about?
• Founded in 1987, now operates in 34 countries on five continents
• Casual Dining Restaurant Chain
• Portuguese/ African Theme
• Specializes in Chicken Dishes with either lemon and herbs, mild,
medium, hot, or extra hot Peri-Peri marinades and sauces
• Peri-Peri (African Bird’s Eye Chili)
• Also serves, burgers, pitas, salads, wings, wraps, and more
Values Ethics:
• Pride, Passion, Courage, Integrity, & Family
• Genuine, fun approach to life, relax, community
involvement
•In going to Thailand company will maintain Ethics Code
Organizational structure
Company structure
Totally Independent Franchises:

• Branch managers, report to only 1 Regional Manager
• 80% of Franchisee is the Nando’s company culture
• 20% of Franchisee accommodates the local culture
• Import Nando’s Intellectual property (sauces and packaging)
• Nando’s Company takes percentage of Franchisee’s sales
– 5% to cover marketing costs
– 5% to cover corporate profit share
Thailand Culture
Social
⁻ Respect Hierarchical relationships
⁻ Family ties
⁻ Like getting together in groups.
Food habits
⁻ Balance of sweet, sour, hot, salty, and (optional) bitter

⁻ Known for being spicy
⁻ Balance, detail, and variety are important in cooking
⁻ Rice, Chicken and Seafood are frequent ingredients in Thai food
Management
⁻ High Power Distance Society (need a visible leader)

⁻ Collectivism Nature (priority on group interest and equality)
⁻ High Uncertainty Avoidance (need directions and clear structure)
Start at Bangkok the Capital
• Business will begin in one city

• Bangkok the capital:
– Better potential market for Nando’s because of big shopping malls
and main streets
– People there are more willing to accept foreign culture
• Most of the other cities are either :
– Small,
– Far away, or
– Tourism places
• Restaurants would be inside hotels or resorts
• Doesn’t fit Nando’s brand
• Nando’s is not an expensive restaurant
Why Thailand will welcome Nandos?
Reputation
As a restaurant specialized in chicken, and since most Asian-Thai people
prefer chicken over other meat, this can be a very strong point for
Nando’s to succeed. Nando’s gains its reputation for being famous in most
areas of the world from its Peri-Peri secret sauce recipe.
Quality
Remain the same good quality, but with some Thai adjustments to menu.
Pricing
The pricing is suitable and since it is not an expensive place, anyone can
dine in and enjoy whether they are Locals or Tourists.
Adapting to Thai Culture
Legal issues as Foreign Company
• In the vast majority of cases, the company must be "majority owned" by
Thais, in terms of shareholders (at least 51%).
• You must maintain a ratio of local Thais to foreigners regarding full-time
employment (usually 4:1 but depends on your business).
• An issue that everyone must deal with is that the rules, instructions and
forms are all in the Thai language. Everything that is submitted to the
government is in Thai, so finding a trustworthy and experienced business
Thai partner is crucial.
Franchise
• Local investor and local branch manager aided by permanent company
trainer to assist in keeping the Nando’s brand consistent.
• The right to use and operate under the Nando's name and concept.
• Assistance with restaurant site selection and evaluation.
• Initial legal costs incurred in conclusion of the Franchise Agreement;
• Initial pre-opening/launch assistance.
Adapting to Thai Culture
• Adapting the Menu which can be done by adding the jasmine rice
as side dish, also adding Papaya salad to the salad menus, adding
more of sweet and sour sauces as well as: curry, (Shrimp-garlic)
paste, Turmeric, Thai basil, and coconut milk flavor.
• Will server alcohol and guest can also bring alcohol with them.
• Nando’s will change the fluid and busy atmosphere which we
have else where in the world by providing a server to take the
food orders, arrange the cutlery, and serve the food at the table.
• Introduce home delivery system and reservation system in the
Thailand market.
• To attract the families we will also set up a couple of big halls
where family events can be organized.
• Vegetarian dishes will also be added to our menu to attract the
health conscious Thai’s.
Promotions
• Build up good relationships with your local press and use these contacts
to get regular coverage for our business.
• We will be also part of the events like Samui Food and Product Fair, H.M.
The King's Birthday event which is very close to people, Pattaya Chinese
New and so on.
• We also run promotion events like “Buy 1 set and get 50% off on the
2nd Thai set” , “Buy for yourself and get it free for one child” and so on
to induce people to try out the different dishes.
• We will increase our online presence and also start advertising in local
print media and television channels.
• We will organize social events in coordination with “Good Will group
foundation” an organization with a mission to improve the quality of life
of young disadvantaged Thai women
Staffing and training
Staffing
Local Staff (Ratio must be 4:1 for local vs. foreign)
-- Less costly
-- Improves relations with Government
-- Improves Locals perception of company
Training
Practical and Theoretical Training
Franchisee have 3 months of training
Staff have a non-less than 6 weeks training course
Trainer also comes to work with local franchise, stays permanently

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South African Company

Strategy to Enter Thailand

Totally Independent Franchises:

⁻ Balance of sweet, sour, hot, salty, and (optional) bitter

⁻ High Power Distance Society (need a visible leader)

• Business will begin in one city

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