institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. (Hitt, Ireland, & Hoskisson, 2001). As a veteran restaurant company, Darden has acquired valuable working knowledge of the business and its challenges. In order to continue moving forward, Darden needs to follow in the footsteps of Marriott and leverage its brand and knowledge for competitive advantage. Marriotts eight offerings run from full service hotels to ExecuStay properties to Residence Inns. Marriott has provided consumers with several different levels and types of products. Not only does this enable Marriott to dominate a market, but it also enables different properties to share resources, which saves the company money. By opening a Red Lobster, Olive Garden, Smokey Bones, and Bahama Breeze in the same market, Darden can do the same thing. Several Darden restaurants in the same market can share services such as cleaning, linens, and training, which will result in cost savings. This would also enable Darden to improve its bargaining power with its suppliers. Suppliers include food, internal supplies and maintenance work. Money saved internally will lead to greater profits for the company. Global Landscape FactorsAnother external environmental factor is the changing global landscape. The global segment, which includes relevant new global markets, existing ones that are changing, important international political events, and critical cultural and institutional characteristics of global markets, provides an opportunity for Darden Restaurants, Inc. (Johnson & Outcalt, 2000). While it is more comfortable to maintain the status quo, the global economy is changing and Darden needs to quickly and aggressively expand into new territories, such as Canada. According to the 1999 fourth quarter issue of the publication Services Indicators, Canadians spent a higher proportion of thei...
