Competitive forces analysis and organizational resources in strategic advantage

¶ … Strategy Order

Organizational Effectiveness & Strategy in Darden Restaurant Group

Darden Restaurant group is the world's largest company-owned and managed full-service restaurant company which includes Red Lobster, Olive Garden, Bahama Breeze, LongHorn Steakhouse, Seasons 52, and The Capital Grille. Since 1995, Darden Restaurant Incorporation has been in operation, and the name Darden came from William Darden when he found and opened their first Red Lobster, which is a seafood restaurant, in Lakeland Florida 43 years ago. After being acquired by General Mills for many years, Darden decided to be a separate publicly held company, and the company went from six restaurants in 1970 to approximately 680 restaurants in North America by the end of 2008 (Richmond, 2008, pp. 1-57). Furthermore, in order to stay aggressive and on top in the food industry, Darden uses operational effectiveness and strategies in order to be a strong contender as they are.

After reviewing the 2010 Financial Report for Darden Restaurant Inc., when looking at their rivalries, they focus on their effectiveness in their financial performance with two key factors which include "same-restaurant sales" and "restaurant earnings" (2010). Same-sales comprise a yearly assessment of each era's sales amounts for establishments open at least 18 months, counting newly obtained eateries, regardless of when they were purchased. Next, Darden considers restaurant earnings which are the restaurant-level success that consists of their sales, less restaurant-level charge of sales, promotion, and decline. The increase in guests and the average they spend when dining at one of the restaurants is impacted by the changes in their menus' prices and by the variety of menu items sold, so for each type of restaurant owned by Darden, they collect daily sales numbers and frequently examine the guest traffic calculations and the blend of menu items sold to assist in improved menu charges, product contributions, and promotional approaches. Darden looks at same-restaurant guest counts as a calculation of the long-term well-being of the establishment, while raising the typical check and menu combinations may add more appreciably to near-term productivity. They focus on matching their fees and product offerings with other proposals to create sustainable same-restaurant sales expansion with their eateries that have been open 18 months or longer because this gives ample amount of time to have a stabilize level of sales (Darden Restaurants Inc. 2010).

Darden is not as concerned with the threat of new restaurants as much as they are worried about the overall success of some of the restaurants they have that struggle, such as their restaurants Bahama Breeze and Smokey Bones. Furthermore Clarence Otis, the CEO of Darden, stated that the company is also considering purchasing a mid-sized chain of restaurants that can hold noteworthy prospects to increase and supplement Darden's development (Lockyer 2007). Furthermore, according to Darden, in their in depth analysis and outlook online in "Supplier Diversity" they admit that they thrive on the chance to augment multiplicity among their suppliers because they believe their merchant base should reflect their consumer and worker populations, and their plan is to center on women and minority owned industries which they deem as the main driver following their hard work to bring about consciousness and openings within their trader system. Within the past year, Darden has increased the locations in which they get supplies from by 12%, and since they are one of the world's largest seafood purchasers, they realize how much of an influence they are in the industry and look to exceed their numbers each year (Darden 2010).

Currently, Darden is looking at a new opportunity as a buyer in the lobster market since they are largest buyer of lobster in North America, and they feel that by setting up overseas lobster farms to raise their own rock and spine lobsters because they are easier to raise and can be taken care of on aqua farms because they can be grown in large groups and take less time to mature notes author Dan MacLeod of the Maine Observer. MacLeod reported that the Orlando Sentinel reported that "the farms could be a game-changer to the lobster industry," (MacLeod, 2010). Furthermore Darden continues to look for new ways to add services and products to reduce their risk of having to substitute when these products, services, and suppliers are unavailable. In an analysis on Darden and its competitors from a Wiki Analysis, the company recently declared that they would look at expanding to college properties and airports where there will be more of a mix in their restaurants with Oliver Garden and Red Lobster will be at the same location (2011).