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Strategic Management
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Presented By: Aspassia Hassan Rehab Abou Elmagd Engy Hodieb Supervised By: Dr. Heba El Dahshan

HOME 4/30/2012

Wendy’s International Strategic management

TABLE OF CONTENTS I. Current Situation A. Current performance B. Strategic Posture Company profile 2 Company mission & vision 3 Company objectives…………………………………………………………………………………. ….…3 Company Strategies…………………………………………………………………………………….…4 II. Strategic Managers Executive Officers 5 Board of Directors 5 Field of Operations Management 6 III. External Environment 7-12 Natural Environment Error: Reference source not found Societal Environment 7-8 Task Environment Error: Reference source not found9-11 IV. Internal Environment 13-16 Corporate Structure Error: Reference source not found Corporate Culture 13 Corporate Resources 13-15 V. Analysis of Strategic Factors……………………………………………………………….… 17-22
Matrix Tools.......................................................................................................................................................23-26

VI. Strategic Alternatives & Recommended Strategy Strategic Alternatives 27-29
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Wendy’s International Strategic management

Recommended Strategy

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VII. Implementation 29 VIII. Evaluation & Control References 30

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Wendy’s International Strategic management

I.

Curent Situation

A. Current performance

Wendy’s operates internationally with a combination of company-owned and franchised restaurants. Its total revenues declined from $ 2.5 million in 2004 to $ 2.45 million in 2005 and $ 2.43 million in 2006. This decline is evident in company-owned and franchised restaurants. Company profile Dave Thomas opened our first Wendy's restaurant in 1969 in Columbus, Ohio. He opened the door to a new gold standard in quality food. When other restaurants were using frozen beef and mass-producing food, Dave developed an innovative method to prepare fresh, made-to-order hamburgers. Every day, we honor his legacy and continue to live through his values by using select, premium ingredients and serving food that's made fresh with every order. Key dates  1969: Dave Thomas opens the first Wendy's restaurant in downtown Columbus, Ohio  1972: Wendy's franchising begins.  1975: First international restaurant opens in Canada.  1976: Wendy's International, Inc. goes public  1977: Company begins national television advertising.  1978: The 1,000th Wendy's opens in Springfield, Tennessee.  1979: Salad bars are added to Wendy's restaurants.  1981: Thomas makes his first appearance as Wendy's advertising spokesperson.  1984: Famous and award-winning "Where's the Beef?" ad campaign is run.  1986: James W. Near becomes president and COO and launches a major reorganization.  1989: Thomas begins another stint as advertising spokesperson; the Super Value Menu debuts.  1995: Wendy's International acquires Tim Horton's, a Canadian coffee and baked goods chain.

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B. Wendy's International acquires a 45 percent stake in Café Express.  2002: Dave Thomas dies. Ohio. we will build on this tradition by bringing even greater variety. (6) Our philosophy is to provide for the needs of all our customers while creating a safe workplace for all employees.000th Wendy's restaurant opens in Columbus. Company vision Our vision is to become the number one fast food restaurant in the world. (5) Our company is committed to expanding and growing profits in order to sustain recognition while protecting the environment. (3) As we look ahead. more nutritious foods along with fresher menu choices into our restaurants. (2) Wendy’s has a long tradition of meeting ever-changing consumer tastes and items. (1) As a global company. Company Objectives Page 5 .Wendy’s International Strategic management  1997: The 5. higher quality. (4) Wendy’s strives to continuously produce quality foods through food science technology and research. Strategic Posture Company mission Wendy’s believes the most important issue in the restaurant business is to take care of our customers.  2002: Wendy’s Acquires Baja Fresh  2004: 35th Anniversary of Wendy's  2006: Wendy’s Spins off Tim Horton’ and Sells Baja Fresh. our goal is to provide our customers with the most enjoyable dining experience possible and be the quality leader in everything we do.

Company Strategies Revitalizing the Wendy’s Brand: Our evolving media Strategy To help us restage our brand and build on the positive sales momentum we Experienced at the end of 2006. In early 2007. we will continue our recent focus on integrating our Message with a younger audience. we will allocate 35 to 40 percent of our advertising budget to our core Hamburger business. is an Area of tremendous opportunity. we hired two new advertising agencies. including higher quality. As our marketing message evolves. which is nearly double what it has been in recent years. which is the core hamburger user. Saatchi &Saatchi. We are Confident these efforts will help we stand out from the competition.Wendy’s International Strategic management Maintaining its strong corporate culture based on the values established by Wendy’s founder Dave Thomas. Both agencies have earned a Reputation for innovation and creativity. great Taste and fresh – never frozen – ground Beef. Driving compelling Page 6 . Our advertising will emphasize more clearly our points of differentiation from our Competition. and they excel at creating marketing Approaches for established brands that Connect with consumers. prompting our Core customers to visit us more often and Bringing new people into our restaurants. During2007. and kirshenbaum bond + partners. We Believe the 18-to-34-year-old demographic. increasing our market share and helping us reclaim our leadership position in the Hamburger category. juicy and multiple-flavor) sandwiches. We will also look to capitalize on the Overall trend in indulgent (large.

The key to this goal is producing same-store Sales growth of at least 3 to 4 percent.0% in 2007. physically repositioning our in store Personnel and reducing opening labor via the implementation of on-line preparation. Included In this group is a new operations function Known as Inspection Services that consists of Experienced QSC (Quality Service and Cleanliness) Managers.Wendy’s International Strategic management Economics through Improved store-level margins we recognize that our restaurant margins in recent years have lagged both the quick service Restaurant industry and those of our Franchisees. who are implementing A formalized process for more thorough Restaurant and food safety evaluations. We expect these efforts to significantly improve our customer service and our bottom line. from a base of 8. We have set a goal to aggressively improve our company-operated restaurant margins in2007. with Transaction and check growth. as were growing sales. In an effort to close these gaps. labor. We believe we can achieve our labor-reduction Goals by reducing manager hours in our Restaurants. Most significantly. store expenses.8% to 13. We have also created a new Restaurant Services group to improve system-wide Operations processes and standards. However. Controllable and field operations. we also established cost-cutting Targets for food. Page 7 . Our goal is to improve company-operated restaurant Margins in a range of 12.9% in 2006. we believe we can realize significant savings through the implementation of new cash management processes that will Increase the amount of time store managers Spend in our restaurants.

Kkerri B. International Senior Vice President. 12. Anderson 3. Senior V. 11. 9. President. Austin James C Hartenstein Neil G. Keller 6. Thomas F.West Region Senior Vice President. Catherwood Jeffrey M. 2. Kirwan Page 8 . Edward L.Wendy’s International Strategic management I. G. Jr. Operations. president & Chief Marketing Officer 47 Senior Vice President. Lester John N. Operations-North Region 7. Jr. William E. Ann B. Jack Scuessler. Rowden 47 49 37 45 55 66 Chief Executive Officer & president Chief Operations Officer Executive Vice president & treasurer Executive Vice president Executive V. cava Leon M. 5. Operations. Counsel & Secretary Executive V. 4. Secretary 8. Strategic Managers Executive Officers Kerrii Anderson became Wendy’s CEO in November 2006 when her predecessor. Brendan P. Kerrii B. president. Janet Hill 5. Crane 4.Canada Senior Vice President. Chairman 2. G. 6. James V. Peters Tom Spero Board of Directors 1. operations-South Region Senior Vice President. retired after six straight quarters of declining sales. Anderson . 1. Controller & Assist. David J. Near Jonathan F. 10. Pickett. Foley. 3.McCorkle. Ian B.

Senior Vice President.Senior Vice President. James C. International 3. Oran 12. Stuart I. Thompson Field Operations Management 1. Lauer 8.Senior Vice President. Tom Spero . The total sums shows that McDonald’s is the best out of the four But this doesn’t stand true as all these values are on the basis of own judgment. Lester 4.Senior Vice President. Randolph Lewis 10. Jerry W. Millar 11.Senior Vice President. Peter H. Operations – Canada . David P. Rothschild 13. Austin . Operations – South Region 2. Neil G. John N. Operations – West Region . Hartenstein . Peters 5. Operations – North Region Critical Success Factors This matrix shows the major competitors of Wendy’s.Wendy’s International Strategic management 7. Levin 9. James F. Edward L. John R. Page 9 .

4 2 3 0 .1 8 3 0 .0 9 2 0 .1 8 F in an c ia l p o s itio n 0 .1 2 Page 10 .3 6 3 0 .06 3 0 .0 9 3 0 .4 2 3 0 .2 4 3 0 .1 8 S k ill ed lab o r 0 .06 3 0 .0 6 1 .09 2 0 .06 3 0 .1 8 3 0 .14 3 0 .1 2 3 0 .17 2 0 .0 6 C u s to m e r L o y alty 0 .03 3 0 .06 2 0 .0 9 3 0 .4 2 M ar k e tin g & a d v e r tis in g 0 .16 3 0 .07 2 .0 9 2 0 .1 7 4 0 .1 8 3 0 .1 8 4 0 .6 C om p e titiv e p r ic e 0 .15 2 0 .4 8 3 0 .1 2 3 0 .1 8 2 0 .4 8 3 0 .1 2 2 0 .3 2 0 .3 3 3 .4 8 3 0 .1 8 2 0 .3 4 1 0 .4 8 G lob al ex p a n s io n 0 .Wendy’s International Strategic management W en d y BKC M CD YUM C riti ca l s u c c e s s fac to rs e ig h t R a tin g w ei g h t ed s c o re a tin g w eig h te d s c oR at in g w e ig h te d s c o R eatin g w e ig h te d s c o r e W R re r M ar k e t s h a r e 0 .1 8 1 0 .5 1 F oo d v a r ie ty 0 .1 8 R ep u ta tio n & g o o d im a g e 0 .1 8 E xp e rt m an a g em en t 0 .6 4 0 .1 8 4 0 .0 6 1 0 .4 2 3 0 .6 8 3 0 .09 2 0 .1 8 3 0 .1 8 2 0 .3 4 0 .6 5 2 .2 7 Q u ality & h e a lth y foo d 0 .4 7 3 .1 8 1 0 .

B. The Company does not believe that such regulations will have a material effect on its capital expenditures. state and local regulations have been adopted which affect the discharge of materials into the environment or which otherwise relate to the protection of the environment. including interest rates and other government policies impacting land and construction costs and the cost and availability of borrowed funds. The Company’s principal sources of energy for its operations are electricity and natural gas. and the availability of management and hourly employees also affect restaurant operations and administrative expenses. (o) The Canadian dollar is getting a stronger exchange rate resulting in higher EPS from 0. Factors such as inflation. To date.(o) - 2- Technological Page 11 . Social Environment “PEST” 1- Economic - Burger King is closing more than 180 stores in 2006. Natural Environment Environment and Energy Various federal. External Environment A. the supply of energy available to the Company has been sufficient to maintain normal operations. The ability of the Company and its franchisees to finance new restaurant development. labor and benefit costs. food costs.(o) Burger King's market share dropped from 15. improvements and additions to existing restaurants.95% in 2006 (o). and the acquisition of restaurants from and sale of restaurants to franchisees is affected by economic conditions. The Company cannot predict the effect of future environmental legislation or regulations.15 in 2005.03% in 2000 to 10. earnings or competitive position. legal claims.Wendy’s International Strategic management III.11 in 2004 to 0.

Wendy’s International Strategic management The quick-service restaurant industry is affected by changes in international. The Company has complied with requirements of this type in all applicable jurisdictions. some states have enacted. The Company cannot predict the effect on its operations. 4- Political – Legal “Government Regulations”. together with rules promulgated by the Federal Trade Commission. regional. consumer preferences and spending patterns. - A number of states have enacted legislation which. particularly on its relationship with franchisees.(o) 3Sociocultural The US Department of Agriculture states that consumption of eating out has risen 3. consumer perceptions of food safety. demographic trends. and others have considered. affects companies involved in franchising. and local economic conditions. legislation which governs the termination or non-renewal of a franchise agreement and other aspects of the franchise relationship. weather.6 percent from 1990 to 2005(o). (T) Page 12 . traffic patterns. the type. of future enactment of additional legislation. national. Much of the legislation and rules adopted have been aimed at requiring detailed disclosure to a prospective franchisee and periodic registration by the franchisor with state administrative agencies. number and location of competing restaurants. and the effects of war or terrorist activities and any governmental responses there. (T) - The United States Congress has also considered legislation of this nature. (T) - Additionally.

Wendy’s International Strategic management Task Environment Page 13 .

Wendy’s International Strategic management Rivalry (high)  Wendy’s direct competitors are McDonald’s. all of whom are much larger thanks Wendy’s in their fast food restaurant business. (Threat)  Each of its flagship brands also dominates the segment with the differentiation strategy it pursues. This is in contrast to Wendy’s strategy of positioning itself as a niche player. “Top 50 Employers for women”. Its sales in 2006 were $ 16. With a total of about 31700 restaurants worldwide. ( Threat) Bargaining power of buyers (high)  Each of its flagship brands also dominates the segment with the differentiation strategy it pursues. and other’s countries (US) ( Threat)  YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held worldwide. the United Kingdom. ( Threat)  Rivalry will always be there for Wendy’s since there are more than 10 fast food companies in the world selling the same products. This is in contrast to Wendy’s strategy of positioning itself as a niche player.”40 Best companies for diversity” and “30 hottest franchises for 2006”. Burger king and Yum brands. ( Threat)  YUM is on the path to building a global business through aggressive international expansion. Even though MCD has experienced considerable challenges overseas leading to the sale of its restaurants in Latin America. ( Threat)  MCD is the largest player in size and global reach.1 billion. ( Threat) Page 14 . ( Threat)  When MacDonald’s and burger king copied Wendy’s by adding varieties to their menu the rivalry was intensified but Wendy’s ended up losing . ( Threat)  YUM is proud of its commitment to diversity and a good work environment as it continuous to be recognized among” Top 50 Employers for minorities”.

there are no switching costs. Wendy’s lost their market share by 1%.Wendy’s International Strategic management  Wendy’s have millions of buyers worldwide and if at any onetime anything prompts them to collectively change their preferences in Wendy’s products then the demand would be widely affected.( Threat)  The fact that Wendy’s rivals offer homogenous products gives a chance for customers to have a say in what price they are going to buy and where from. (o) This is what happened to Wendy’s when the leaders of the industry (MacDonald and burger king) changed their strategies. (Threat) Page 15 .USAToday (2006) since customers thought MacDonald’s and burger king were giving better deals. (Threat)   Another point which gives them some powers is the fact that. This means that a buyer can buy from any restaurant what he aspires and there won’t be any extra charges on it or he won’t lose out on anything.

This may be important for Wendy’s as the differentiation of supplies may help Wendy’s maintain a differentiated product line. Quality. Availability-Wendy’s clearly has many substitutes in its industry. so Wendy’s must be aware of competitor prices in order to stay competitive.Wendy’s International Strategic management Bargaining of suppliers (Low)  Number. (Threat)  BKC offers a variety of burgers. Wendy’s and its rivals offer homogenous products which make fast-food a highly competitive industry. Size. Page 16 . Most of the companies have adopted the cost leadership strategy so that they can be able to compete amply. Concentration-Plenty of suppliers. Substitute products are those that fulfill the same generic importance as that of the current product. All in all Wendy’s is well known for its diverse menu which I believe they can still make something out of it. This has indeed resulted to companies giving very low prices to their products. chicken sandwiches. breakfast items and compete directly with MCD. (Threat)  Number. Wendy has been caught up this milieu and now its suffering. Wendy’s has plenty of options to switch from one supplier to another Wendy’s suppliers of food stuffs don’t have much of the bargaining power since these products can be bought from a variety of other suppliers. The products that MacDonald’s and burger king offer are substitutes to those of Wendy’s. (o)  Raw materials differentiation. These companies have attractive packages thus making consumers to prefer them rather than Wendy’s. (o) Threat of substitutes (high)  MCD seeks to follow a cost leadership strategy by aggressively expanding and saturating the market place through value –priced menu items.

Wendy’s been ranked as the 7th most powerful brand in fast-food. (o)  Established brand name is very important in an industry . there is bound to be several competitors trying to get a bite in the multi-billion industry of fast food.Wendy’s International Strategic management Threat of Entry barriers (low)  Each of YUM flagship brands also dominates the segment with the differentiation strategy it pursues. ( Threat)  Market Saturation-This factor may serve Wendy’s well as the market for fast food is clearly saturated. This makes it extremely hard for small companies to survive in the industry. thereby increasing the barriers to entry. (o) EFAS Page 17 . This been the case a big company like Wendy’s enjoys economies of scale thus cutting some costs in production. (o)  With the recent globalization. millward brown (2006) shows that consumers preference to Wendy’s brands. This is in contrast to Wendy’s strategy of positioning itself as a niche player. Thus any new threat entrant will find it very difficult to compete.

With a total of about 31700 restaurants worldwide. 8.3 0.3 0.fat oils as of June 2007. 4. This introduction can bring about the increase of sales eg sales been boosted up to an approximation of $160000 per store.MCD is the largest player in size and global reach. This is in contrast to Wendy’s strategy of positioning itself as a niche player.Another potential thr eat is the price war s in the fast food industry.03 4 2 3 3 3 0. Page 18 .MCD is doing ver y well financially even though it does still use trans-fat oils in an unhealthy m anner. 3. Most companies seem to be copying each other in their endeavour to gain market share and this has resulted to price wars e. breakfast items and compete directly with MCD.32 0. all of whom are much larger thanks Wendy’s in their fast food restaurant business. The rates suggest that the company can improve on their performance by an adequate increase in sales.YUM is proud of its commitment to diversity and a good work environment as it continuous to be recognized among” Top 50 Employers for minorities”. 10. However there is still enough room for improvement because the highest total weighted average score would be 4. 4.15 0. Burger king and Yum brands. 2. 2. 6.04 0.77 which is greater than the industry average score that is 2.BKC offers a variety of bur gers.Wendy has a great opportunity of incor porating breakfast m enu among other products like in their restaurants thus m aking a nam e for itself in the morning.18 0. 3.06 0.Wendy’s International Strategic management Key External Factors Weight Rating 1-4 weighted score Poor response Average response Above average Superior Opportunities 1.02 0.An additional opportunity is that Wendy’s can expand internationally given that it has huge capital to increase its franchise.MCD seeks to follow a cost leadership strategy by aggressively expanding and saturating the m arket place through value –priced menu items. 5.77 The EFAS comment: The above weighted average score has come out to be 2.This can happen again anytime therefore posing as a threat to Wendy’s. 0.YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held wor ldwide.04 0.05 0.06 0. in 2002.08 0.12 0. 0.04 2.g.05 0.Criticism made against Wendy’s food e.72 0.16 0.09 Threats 1.15 0.Wendy’s direct com petitors are McDonald’s.04 0. are the kind of threats that Wendy’s is facing.08 0.12 0.0. like that of Anna Ayala claim ing that the food she was sold to was having a human finger in it. Its sales in 2006 wer e $ 16.g.1 0.YUM is on the path to building a global business through aggressive international expansion.12 0.”40 Best companies for diversity” and “30 hottest franchises for 2006”.McDonald’s were unsuccessful with their spicy chicken sandwich. 9.03 0.These restaurants are still used trans.02 1 3 3 2 2 3 2 2 3 2 2 0. “Top 50 Employers for women”.04 0.1 billion.5. 5.Each of its flagship brands also dominates the segment with the differentiationstrategy it pursues.16 0.1 0. chicken sandwiches. 7.

soft drinks and other on-alcoholic beverages and kids meals. service and cleanliness and make recommendations to assist incompliance with Company specifications. In addition. Corporate Structure  Wendy’s risk management team has faired well in managing its forgiein exchange exposure (S)  Wendy’s operates using the geographic – based divisional structure. preparation and service. which are prepared to order with the customer’s choice of condiments. including quality. Wendy’s menu also includes chicken nuggets. Wendy’s closed several of its restaurants because of the fraudulent claims filed by a customer in march2005 claiming that she found a fingertip in her chili bought at a Wendy’s restaurant in San Jose. desserts. chili. (s) C. but the division heads don’t have the title of president. field visits are made by Company personnel who review operations. Internal Environment A.(W) B. Operations  Each Wendy’s restaurant offers a relatively standard menu featuring hamburgers and filet of chicken breast sandwiches. In the case of franchisees.(S)  The Company strives to maintain quality and uniformity throughout all restaurants by publishing detailed specifications for food products. (S) Page 19 . Corporate Resources 1.Wendy’s International Strategic management III. the restaurants sell a variety of promotional products on limited basis. baked and French fried potatoes. Corporate Culture  Regarding the quality key. prepared salads. California. (w)  Wendy’s was the first to demonstrate its commitment to provide healthy food choices in August 2006. by continual in-service training of employees and by field visits from Company supervisors.

independent distributors purchase certain products directly from approved suppliers and then store and sell them to local company and franchised restaurants. (S)  The New Bakery Co. At December 31. the Bakery does not manufacture or sell any other products. However.(S) 4- Purchasing The Company and its franchisees have not experienced any material shortages of food. fixtures or other products which are necessary to restaurant operations.(s)  2- Research and Development  The Company engages in research and development on an ongoing basis. While research and development operations are considered to be of prime importance to the Company. These programs help assure availability of products and provide quantity discounts. the Company has arranged for volume purchases of many of these products. At the present time.Wendy’s International Strategic management  Generally. of Ohio. newspapers. the Bakery supplied640 restaurants operated by the Company and 2.340 restaurants operated by franchisees. equipment. These advantages are available both to the Company and to its franchisees. fixtures or other products which are necessary to  Page 20 . Inc. and to a lesser extent for outside parties. the internet and a variety of promotional campaigns. radio. 2006. (W) It was the first in the industry to introduce the convenience of a drive through window in 1970. quality control and efficient distribution. amounts expended for these activities are generally not deemed material. a wholly-owned subsidiary of the Company.(W) 3- Marketing  The Company participates in two advertising funds established to collect and administer funds contributed for use in advertising through television. (W)  The Company and its franchisees have not experienced any material shortages of food. The Company anticipates no such shortages of products and alternate suppliers are available. to its Wendy’s franchisees. is a producer of buns for Wendy’s restaurants. (“Bakery”). testing new products and procedures for possible introduction into the Company’s systems. the Company does not sell food or supplies. equipment.(W)  Under the purchasing arrangements. other than sandwich buns and kids’ meal toys.

See a downward trend since 2006.Finance Factors Current Ratio  Over the 5 year period.  Wendy’s current ratio was at .Information Systems The Company makes available through its internet website (www.  Wendy’s currently has the lowest current ratio of all the benchmark companies Page 21 . The Company anticipates no such shortages of products and alternate suppliers are available. current ratio for Wendy’s peaked of 1.Wendy’s International Strategic management restaurant operations.76 for 2008.  This .66 in 2006 .wendysinvest.76 current ratio can affect Wendy’s ability to secure short-term financing from both creditors and investors.com) (S)  6. (S) 5.

◦ ◦ ◦ ◦ Food prices.  Most years there was an above average return for other companies.000.Wendy’s International Strategic management Return on Equity  Wendy’s was highest in 2005 and 2006. Wendy’s saw about a 6% drop in ROE from 2006. competition Must control cost Utilize economies of scale  Overall McDonalds and Sonic had some of the highest returns Page 22 . Wendy’s reported a loss of $480.  In 2007.  In 2008. Return on Sales  Wendy’s is volatile. fresh never frozen Low margins.

02 0. W endy’s w as vo ted num ber 1 in co nsum er taste tests and brand aw areness. A a result. 8.Follo ing w a w e of lay av offs and cost cutting.W endy ’s w as the first to dem onstrate its com itm m ent to prov iding healthy fo od choices in A ugust 2006. due to the fact that it com ands large brand aw m areness. w hich can be attested by the m ergers w ith other com panies like T im H rto o n’s.Wendy’s International Strategic management IFAS K Internal Factors ey Strenghts 1. 2005.24 0.07 1 2 1 0.g. W s endy’s closed several o its f restaurants.A recently as A s pril 2007.06 4 0.04 1 0.24 0. ow after the death of D ave w ho w as the founder of W endy ’s.18 9.06 3 0.4 b n in 2006 illio w prim as arilyfueled byrevenue losses in the U m S arket.07 4. in 1997 they had 5000 stores and by 2001 they had opened another 1000 stores. w hen it anno unced that it w ould voluntarily sw itch to using healthy oils in the preparation of m of its foo item ost d s. 2006." 6. the 99 cent value menu in the 1998 and the super b in the late 1980.08 0. 2.28 0.07 4 0.18 0. W endy's lost their opinion leader w ho helped to create "TO A M .32 Page 23 .Even though W endy ’s m arket share is small.1 in m anaging is fo reign exchange 0.08 0. This 0.U sales declined w S ith the occurrence of unfortunate events.04 0. M inor St. It w n as the first in the industry to introduce the convenience o a “driv f e through w indow ” in the 1970.2 0. W endy ’s 2006 to $94 m illion as the com pany closed 199 restaurants during the year.05 0.04 0.05 4 0. The num ber of restaurant clo sures during 2004. Says Khan (2004) W endy’s definitely has a huge goo ill dw since its quality pro ducts and serv ices are w ell know n in m ore than 20 countries. and fraudulent claim s filed b a y custom er in M arch 2005 claim ing that she found a fingertip in her chili b ought at a W endy’s restaurant in San Jo se. W endy ’s closed 162 franchises and 37 com pany ned -ow restaurants.06 3 0.05 0. ’s elo resulting in the recent poor as the m ain w eakness as it’s 0. net incom e dropped 58 percent in 0.G oodw ill can be said to be a good reputation that a com pany holds.08 2 3 0. such as the gay and lesbian boy tt in 1997. U rm nifo ity exists am ong all the restaurants.04 2. 's S 3.06 4 0.In 2006. the com pany w as unable to com up w e ith good advertising campaign to draw custom ers to their restaurants thus this w eakness contributed to ineffectiv adv e ertisem ents.W endy ’s w rkforce o has go od and reputable experience in the fast food industry .16 0. 5. risk m anagem ent team has fared it ho lds w ell a unique positio n in the industry 0.W endy current strategyonly focuses on U & Canada. 3.02 1 2 2 0.04 0. the tragic massacre co of W endy ’s in 2000. 8.W endy’s total w orldw ide sales decline fro m $2.5 billion in 2004 to $ 2. Califo rnia. 7.Another core strength is that W endy’s hav e strong capital foundation.06 4 0. a total o f 199 o approxim r ately 3 percent of the 6673 restaurants held.24 W eight R ating 1-4 w eigh score ted M ajor W .24 0. ar W eakn esses 1.W endy ’s exposure. 7. 5. 6.The m anagem ent also are reluctant to change hence perform ance of W endy’s.W endy ’s strengths can be attributed to the quality and services they render to their custom ers.Since the passing of D e Thom av as in 2002.H ever. This enables them to expand internatio nally at a m oderate rate e. This actually should be classified through this that W endy has been slowin dev ping newproducts. 2. they are ab to m le aintain qualityand goo services to their custom d ers. M inor W .2 0.08 0.W endy’s is credited w ith being the first o several fronts. can be attested by the good performance over the years thus m aking this to be strength. co ntinual in-service training o f employ ees is practiced and operations mo nitored by co mpany personnel w ho give reco endations mm to assist in com pliance w ith custom ers specifications. For this reason I have to classify it as one of its strengths.04 1 1 0. W ith all these put into practice. 4. M ajor St.

This introduction can bring about the increase of sales eg sales been boosted up to an approximation of $160000 per store. 4. Its sales in 2006 were $ 16. An additional opportunity is that Wendy’s can expand internationally given that it has huge capital to increase its franchise.Wendy’s International Strategic management The IFAS comment The above weighted average score which is 2. 2. With a total of about 31700 restaurants worldwide. The company needs to work upon solutions to improve its predicament. Strategic Alternatives & Recommended strategy SWOT Analysis External Audit Opportunities 1.fat oils as of June 2007. These restaurants are still used trans. MCD is doing very well financially even though it does still use trans-fat oils in an unhealthy manner. 5. Wendy’s direct competitors are McDonald’s.32 shows that company's internal position is weaker than its score should be since it is below industry average score which is 2. IV. Burger king and Yum brands.5. MCD is the largest player in size and global reach.1 billion. 2. McDonald’s were unsuccessful with their spicy chicken sandwich. 3. 3. Page 24 . Threats 1. all of whom are much larger thanks Wendy’s in their fast food restaurant business. Wendy has a great opportunity of incorporating breakfast menu among other products like in their restaurants thus making a name for itself in the morning. YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held worldwide.

Wendy’s International Strategic management 4. are the kind of threats that Wendy’s is facing. Wendy’s was the first to demonstrate its commitment to providing healthy food choices in August 2006. Wendy’s is credited with being the first on several fronts. . 3. Even though Wendy’s market share is small. 5. 8. Page 25 2. Criticism made against Wendy’s food e. BKC offers a variety of burgers.This can happen again anytime therefore posing as a threat to Wendy’s. be copying each other in their endeavor to gain market share and this has resulted to price wars e. “Top 50 Employers for women”. 7. YUM is on the path to building a global business through aggressive international expansion. 10. the 99 cent value menu in the 1998 and the super bar in the late 1980.g. MCD seeks to follow a cost leadership strategy by aggressively expanding and saturating the market place through value –priced menu items. As recently as April 2007.g. 9. 5. breakfast items and compete directly with MCD. YUM is proud of its commitment to diversity and a good work environment as it continuous to be recognized among” Top 50 Employers for minorities”. 6. chicken sandwiches. Wendy’s was voted number 1 in consumer taste tests and brand awareness. in 2002. Each of its flagship brands also dominates the segment with the differentiation strategy it pursues. It was the first in the industry to introduce the convenience of a “drive through window” in the 1970. it holds a unique position in the industry due to the fact that it commands large brand awareness. like that of Anna Ayala claiming that the food she was sold to was having a human finger in it. This is in contrast to Wendy’s strategy of positioning itself as a niche player. Most companies seem to Internal Audit Strengths 1.”40 Best companies for diversity” and “30 hottest franchises for 2006”. Another potential threat is the price wars in the fast food industry. Wendy’s risk management team has fared well in managing is foreign exchange exposure. 4. when it announced that it would voluntarily switch to using healthy oils in the preparation of most of its food items.

With all these put into practice. 9. This enables them to expand internationally at a moderate rate e. 8. This can be attested by the good performance over the years thus making this to be strength.Wendy’s International Strategic management 6. Page 26 . 7.g. Goodwill can be said to be a good reputation that a company holds. Wendy’s workforce has good and reputable experience in the fast food industry. which can be attested by the mergers with other companies like Tim Horton’s. Uniformity exists among all the restaurants. Wendy’s strengths can be attributed to the quality and services they render to their customers. in 1997 they had 5000 stores and by 2001 they had opened another 1000 stores. Another core strength is that Wendy’s have strong capital foundation. For this reason I have to classify it as one of its strengths. Says Khan (2004) Wendy’s definitely has a huge goodwill since its quality products and services are well known in more than 20 countries. they are able to maintain quality and good services to their customers. continual in-service training of employees is practiced and operations monitored by company personnel who give recommendations to assist in compliance with customers specifications.

This actually should be classified as the main weakness as it’s through this that Wendy’s has been slow in developing new products. In 2006. As a result. 2006. 2005. Wendy's current strategy only focuses on US & Canada. 8. Wendy’s closed 162 franchises and 37 company-owned restaurants. 4. 7.4 billion in 2006 was primarily fueled by revenue losses in the US market. after the death of Dave who was the founder of Wendy’s. a total of 199 or approximately 3 percent of the 6673 restaurants held. the tragic massacre of Wendy’s in 2000. 2. Wendy's lost their opinion leader who helped to create "TOMA. Following a wave of layoffs and cost cutting. The management also are reluctant to change hence resulting in the recent poor performance of Wendy’s. Page 27 ." However. Since the passing of Dave Thomas in 2002. such as the gay and lesbian boycott in 1997. California. US sales declined with the occurrence of unfortunate events. Wendy’s net income dropped 58 percent in 2006 to$94 million as the company closed 199 restaurants during the year.5 billion in 2004 to $ 2. 6. Wendy’s closed several of its restaurants. Wendy’s total worldwide sales decline from $2. the company was unable to come up with good advertising campaign to draw customers to their restaurants thus this weakness contributed to ineffective advertisements.Wendy’s International Strategic management Weaknesses 1. and fraudulent claims filed by a customer in March 2005 claiming that she found a fingertip in her chili bought at a Wendy’s restaurant in San Jose. 5. The number of restaurant closures during 2004. 3.

Its sales in 2006 were $ 16. T5. T2.g. T5  Open new Wendy’s franchises stores in the Latin America. T3. which can be attested by the mergers with other companies like Tim Horton’s. the United Kingdom. T2. This enables them to expand internationally at a moderate rate e. TWOS ST S7. Even though MCD has experienced considerable challenges overseas leading to the sale of its restaurants in Latin America. in 1997 they had 5000 stores and by 2001 they had opened another 1000 stores. With a total of about 31700 restaurants worldwide. MCD is the largest player in size and global reach.  Recommended strategy: Market development S7. T3.Wendy’s International Strategic management . and other’s countries (US).1 billion. YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held worldwide. Another core strength is that Wendy’s have strong capital foundation. United Kingdom & other countries in Asia & Africa to gain market share in the fast food industry through aggressive international expansion. YUM is on the path to building a global business through aggressive international expansion Page 28 .

1 billion. O2. YUM is on the path to building a global business through aggressive international expansion. Wendy’s was the first to demonstrate its commitment to providing healthy food choices in August 2006. Its sales in 2006 were $ 16. Wendy's current strategy only focuses on US & Canada. T3. Even though MCD has experienced considerable challenges overseas leading to the sale of its restaurants in Latin America. Goodwill can be said to be a good reputation that a company holds. the United Kingdom.  Promote a healthier menu for Breakfast. These restaurants are still used trans. YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held worldwide. market penetration S1. With a total of about 31700 restaurants worldwide. MCD is the largest player in size and global reach. T4. O2. “Top 50 Employers for women”.fat oils as of June 2007. O3. T4. when it announced that it would voluntarily switch to using healthy oils in the 3. YUM is proud of its commitment to diversity and a good work environment as it continuous to be recognized among” Top 50 Employers for minorities”. T3. T2.”40 Best companies for diversity” and “30 hottest franchises for 2006”.  Recommended strategy: Market development S8. T5  Expand global operations over next three years. YUM is ranked 262 among the fortune 500 companies and is considered the largest in the industry in the number of locations held worldwide. T5. For this reason I have to classify it as one of its strengths. Meals and late night snacks by coming up with an advertising campaign relying on celebrities  Recommended strategy:. T3. WT W5. O3. T3. T2. T5  Wendy will take advantage of its good reputation to increase its market share by expanding globally. T5. MCD is doing very well financially even though it does still use trans-fat oils in an unhealthy manner. and other’s countries (US).Wendy’s International Strategic management S8. Says Khan (2004) Wendy’s definitely has a huge goodwill since its quality products and services are well known in more than 20 countries. Page 29 . SO S1.  Recommended strategy: Market development W5. YUM is on the path to building a global business through aggressive international expansion.

and operations innovation for developing new products  Recommended strategy: Product development S65. O5. Goodwill can be said to be a good reputation that a company holds. W3.Wendy’s International Strategic management S6. strategic insights. Wendy’s strengths can be attributed to the quality and services they render to their customers. the good image and reputation of Wendy will help a lot in this case as we as the capital foundation. S8. which can be attested by the mergers with other companies like Tim Horton’s. WO W1.  Recommended strategy: Market development S7. An additional opportunity is that Wendy’s can expand internationally given that it has huge capital to increase its franchise. Wendy’s will increase its sales revenue. W4. S9. Another core strength is that Wendy’s have strong capital foundation. Wendy’s workforce has good and reputable experience in the fast food industry. Wendy’s total worldwide sales decline from $2. they are able to maintain quality and good services to their customer. Says Khan (2004) Wendy’s definitely has a huge goodwill since its quality products and services are well known in more than 20 countries. S8. S7. O5  Wendy will take advantage of its capital and expand globally.4 billion in 2006 was primarily fueled by revenue losses in the US market. This can be attested by the good performance over the years thus making this to be strength. This enables them to expand internationally at a moderate rate e. O4. Uniformity exists among all the restaurants. Following a wave of layoffs and cost cutting. O4  Continuing on developing its staff & on enhancing product variety to satisfy customers’ needs & tastes & gaining customers’ loyalty. S9. With all these put into practice. This introduction can bring about the increase of sales eg sales been boosted up to an approximation of $160000 per store. in 1997 they had 5000 stores and by 2001 they had opened another 1000 stores. Page 30 . Wendy has a great opportunity of incorporating breakfast menu among other products like in their restaurants thus making a name for itself in the morning. continual in-service training of employees is practiced and operations monitored by company personnel who give recommendations to assist in compliance with customers specifications. W3.g. Wendy’s net income dropped 58 percent in 2006 to$94 million as the company closed 199 restaurants during the year.5 billion in 2004 to $ 2. by doing this. Preparation of most of its food items. For this reason I have to classify it as one of its strengths.  Recommended strategy: Market development W1.  Expanding the research and development function. O5  Focusing on expanding globally in other countries outside the states.

2006. Intensive Market Penetration Strategy.Wendy’s International Strategic management W4. The number of restaurant closures during 2004. This introduction can bring about the increase of sales eg sales been boosted up to an approximation of $160000 per store. Intensive Product Development Strategy. a total of 199 or approximately 3 percent of the 6673 restaurants held. 1. 2. Intensive Product Development Strategy. In 2006. Page 31 . 2. 1. O4  Launching a direct marketing campaign for Wendy’s new breakfast menu by capitalizing on its brand awareness and good reputation. Detailed descriptions of strategies SO Strategies ST Strategies WO Strategies WT Strategies 1. Intensive Market Development Strategy. W8. Wendy has a great opportunity of incorporating breakfast menu among other products like in their restaurants thus making a name for itself in the morning. 1. Wendy’s closed 162 franchises and 37 company-owned restaurants.  Recommended strategy: Market Penetration. O4. This actually should be classified as the main weakness as it’s through this that Wendy’s has been slow in developing new products. 2005. this will be a good chance for product variety and increasing sales. Intensive Market Development Strategy. Product development W8. The management also are reluctant to change hence resulting in the recent poor performance of Wendy’s. An additional opportunity is that Wendy’s can expand internationally given that it has huge capital to increase its franchise. Intensive Market Development Strategy. O5.

5 x c Page 32 C pared to thewh ind try om ole us .5 -3 -2 -6 -1 -3 T otal Y A iss ore=-1.Wendy’s International Strategic management The Space Matrix Strategy Internal s teg d ens (s tra ic im ion ource : IF S E treng &We th aknes ) s C p om etitiveadvan e tag Market share Product quality custom loyalty er Control over suppliers & distributors ( Averag CA) e -3 -1 -2 -2 -2 Ex rn s te al trategic Dim ion (sourc ens e: EF opportunitie & T E s hreats) In s s gth du try tren Growth Potential Financial stability Ease of entry into market resource utilization (IS A ) verag e 3 3 6 4 4 C pared to m m om y ajor com etitors nc arkv usm y c petitors p /be hm ers an om T otal XAx s is core=2 In rn fina ial p ition(s te al nc os ourc IF e: E S g tren th&W ne ) eak ss finan cial MarketCap revenue price earning Earning per share ( S Average F) Ex rn s te al trategic Dim ion (sourc ens e: EF opportunitie & T E s hreats) env ironm enta s l tability risk involved into business price range of competing products competitive pressure barriers to entry into market (ES Av ) erage 2 2 1 1 1.

i. I am not well acquainted with my internal perspectives. This position means critical internal weaknesses and many external opportunities. FS Conservative 6 5 4 3 2 1 Aggressive CA -6 -5 -4 -3 -2 -1 -1 -2 -3 -4 -5 -6 ES 1 2 3 4 5 6 IS Defensive Competitive Page 33 . This means the organization is competing in a very changing environment.e.Wendy’s International Strategic management Competitive position : the arrow is placed between two external dimensions.e. i. I have good opportunities but I do not know how to take advantage of it.

market penetration. Page 34 . Furthermore the company should look into continuous product development. it need to now also consider entering into new markets as well. market and product development.Wendy’s International Strategic management Grand Strategy Matrix Quadrant 2 The Grand strategy matrix tells us that Wendy’s should pursue a strategy which includes horizontal integration.

5. I need to stabilize my self in this bundle and avoid going down to the third bundle and this stabilization is through the intensive strategies. Divisions that fall into cell 5 can be managed best with Hold and Maintain Strategies which are Market Penetration and Product Development. Wendy’s is should focus on penetrating on new markets and work on research and development as well. i. IFE Scores Average 2-2.99 Page 35 . 7 is called: Hold and Upgrade "hold& maintain".e.99 Strong 3-4 High 3-4 Weak 1-1. because the weakest position in this bundle is average and not weak.Wendy’s International Strategic management IE Matrix Strategy Hold & Upgrade This second bundle that covers cells#3. The scores of Wendy’s fall in cell V of the IE Matrix. then I have to sustain this average position and try to upgrade the situation.99 I IV VII II V VIII III VI IX EFE Scores Medium 2-2.99 Low 1-1.

• Recommended strategy: Product development  Focusing on expanding globally in other countries outside the states. Meals and late night snacks by Coming up with an advertising campaign. • Recommended strategy: product development  Continuing on developing its staff & on enhancing product variety to satisfy customers’ needs & tastes & gaining customers’ loyalty. • Recommended strategy: Product development  Display on all food packaging and in all restaurants that we use non-trans fat oils to cook our foods& Continue to focus on providing customers healthier food options and not just expanding the menu. Market Penetration X X X X X 4 Market Penetration X X X X 4 Market Development X X X X 4 Product Development Concentric Diversification Conglomerate Diversification Horizontal Diversification Retrenchment Divestiture Liquidation Cost leadership Differentiation Cost Focus Differentiation Focus 0 0 0 0 0 0 0 0 0 Page 36 . the good image and reputation of Wendy will help a lot in this case as well as the capital foundation. a mass advertising relying on celebrities • Recommended strategy: Market penetration  Expanding the research and development function. this will be a good chance for product variety Forward Integration 0 andIntegrationsales.Wendy’s International Strategic management Matrix Analysis Possible Strategies  Promote a healthier menu for Breakfast. by doing this. and operations innovation for developing new products. strategic insights. Wendy’s will increase its sales revenue. • Recommended strategy: Market development SW OT Alternative Strategies SPACE GRAND COUNT  Launching a direct marketing campaign for Wendy’sIE breakfast menu by capitalizing new analysis on its brand awareness and good reputation. increasing 0 Backward X 2 Horizontal Integration • Recommended strategy: Product development.

6. 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W eak nes s es 1.0 6 3 0.Fo llowinga wave o f lay o ffs and cos t cuttin g. related divers ification) (mark et development) divers ification) W eight 0 .08 0. 3.02 __ ___ _ __ ___ _ _ __ ___ _ __ ___ 1." 6.2 1 4 0. 2006.W en dy’swas th e firs t to demo ns trate co mmitmen t o p ro vidingh ealthy food its choicesin A ugu s t2006. 0. 7.W end y’ss treng thscan be attribu tedto the q u alityand s erv icesthey ren derto th eir cus tomers U niformityexis ts amon gall the res taurantsc ontinu aln -s erv icetrainingof . s a res u lt. 7.th e 99 o 0.0 6 3 0.06 are wellkn o wnin mo reth an 20coun tries F orthis reas onI hav eto clas s ifyit as o ne of .Then umb erof res taurant 3 h clo s ures du ring 2004. expan din tern ation ally t a mo derateratee. .2 1 3 0 . 4.05 cent value menu in th e 1998 and the s u per b ar in the late 1980.California.2 3 _ ___ __ _ ___ __ _ _ __ __ _ _ __ __ 1.2 0. 2.18 3 0 .06 4 0 .0 6 3 0. 3. th ey are able to maintain quality and go o d s ervices to th eir cus to mers .A s recentlyas A p ril2007. its s tren gths . it’s th ro ugh th is th at W en dy’s has been s lo w in dev elo ping n ew pro d ucts .0 6 3 0.1 4 __ __ __ __ 3 _ _ __ _ _ __ 0 . 5. Focus ing on expanding globally in development function.06 emp lo yeesis p racticedand o peratio nsmo nito redby co mp anyp ers on nelw h o g iv e recommendationto as s is tin co mp lian ce s with cus tomers p ecificationsW ithall th es e s .W en dy ’snet incomed ropp ed58 0.1 5 4 0. i 0.2 1 ___ _ ___ _ 3 _ __ _ _ __ _ 0.Say s Kh an (2004)W end y’sdefin itelyhas a hu gego odwills inceits q ualityp rodu ctsand s erv ices 0.g.W end y’stotalworldwide alesdeclinefro m$2.In 2006. 2.06 This can b e attes tedb y the go od perfo rmance v er th e y ears thu s makin gth is to b e o s tren gth.2 4 2 0 .A no ther o res treng this th atW endy ’sh av es tro ngcapitalfoun dation. (product development & development . (mark et penetration.05 3 0 .t h e compan y a was u nab leto co me u p with g o od adv ertis in gcampaig nto draw cus tomersto their res tau rants th us this weakn es s con trib uted to ineffectiv e ad vertis emen ts .W en dy ’sris k manag ementt eam h as fared well in managingis foreig n exch an g e expos ure.06 healthy oils in the p rep aration of mo s t o f its foo d items .04 __ ___ _ _ __ ___ _ __ ___ __ _ __ _ _ ___ __ _ _ __ __ 0.18 3 0 . 0. put in to practice. s trategic ins ights .US s ales declinedwith th e o ccurrence f u nfortunate o events .21 0.

4 8 0 .1 b illio n . wh o m are mu ch larg er th an ks W en d y ’s in th eir fas t fo o d res tau ran t b u s in es s .Each o f its flag s h ipb ran d sals o d o min atesth e s eg men twith th e d ifferen tiatio n s trateg yit p u rs u es T h is is in co n tras t o W en d y ’ss trate g yo f p o s itio n in g elfa s a .1 0 .3 0 . 8. 5.A n o th er o ten tial reatis th e p ricewars in th e fas tfo o din d u s tryM o s tco mp an ies p th .6 9 2 .1 6 ______ 0 .1 8 0 .0 6 0 .0 8 0 .A n ad d ition al p p o rtu n itys th a tW en d y ’s exp an din tern atio n ally iv enth at it o i can g h as h u g e cap ital to in creas e its fran ch is e.Criticis m eag ain s tW en d y ’sfo o de.”40 es tco mp an ieso rd iv ers ity ” d“30h o tte s tfran ch is es o r f B f an f 2006”.0 5 0 .0 2 _____ _____ _____ _____ _____ _____ 2 .W en d y h as a g reat o p p o rtu n ity f in co rp o ratin g reakfas tmen u amo n g o th er o b p ro d u ctslike in th eirres tau ran ts u s makin ga n amefo r its elfin th e mo rn in g T h is th .3 2 0 . 10-YUMis p ro u do f its co mmitmento d iv ers ityan d a g o o dwo rken v iro n menas it t t co n tin u o u sto b e rec o g n izedamo n g ”T o p 50 Emp lo y ersfo r min o rities ”.1 8 0 .4 1 Page 38 .0 4 _____ _____ _____ _____ _____ _____ 0 .YUM is o n th e p athto b u ild in ga g lo b alb u s in es sth ro u g hag g res s iv e tern atio n al in exp an s io n .1 5 0 .M cDo n ald ’s were u n s u cces s fu l with th eir s p icy ch icken s an d wich . 2.2 4 0 .1 8 3 0 .1 2 ______ 3 4 4 4 ______ 3 ______ 0 . 4.5 4 3 0 .1 2 ______ 3 3 3 4 ______ 4 ______ 0 .0 3 3 4 4 ______ 0 .3 0 .1 5 ______ 0 .T h es e res tau ran ts are s till u s ed tran s .3 0 . Threats 1-W en d y ’s irectco mp etito rs re M cDo n ald ’sBu rg erkin g an d Yu m b ran d s .1 0 .in 2002. Its s ales in 2006 were $ 16. 7.1 6 0 .2 4 0 .g .4 2 4 .M CDis d o in gv erywellfin an cially enth o u g hit d o ess tillu s e tran s -fato ils in an ev u n h ealth y ma n n er.1 6 ______ 0 . s eemto b e co p y in geach o th erin th eiren d eav o u t o g ain markets h arean d th is h as r res u ltedto p ricewars e.1 6 ______ 0 . 3.BKCo ffersa v arietyo f b u rg ers c h ic kens an d wich esb.Wendy’s International Strategic management QSPM-Cont.5 4 0 .2 4 0 . S TAS 0 .like th ato f A n n aA y a laclaimin g at th e mad th fo o d s h e was s o ld to was h av in ga h u ma nfin g erin it.0 2 _____ _____ _____ _____ _____ _____ 0 .Th is an h ap p enag ainan y time erefo re o s in gas a c th p th reat to W en d y ’s .2 0 .4 6 3 .5 4 3 0 . its n ich e p lay er.M CD s eeks to fo llo wa co s t le ad ers h ips trateg yb y ag g res s iv ely xp an d in gan d e s atu ratin g th e market p lace th ro u g h v alu e – p riced men u items . 5.M CDis th e larg es tp lay erin s ize an d g lo b alreach . To p 50 “ Emp lo y erso rwo men ” .2 ______ 3 3 3 ______ 0 .0 4 ______ 3 3 3 4 ______ 3 ______ 0 .2 2 2 .1 6 0 . in tro d u ctio n b rin g ab o u tth e in creas eo f s ales eg s ale s b een b o o s tedu p to an can ap p ro ximatio n o f $160000 p e r s to re. d irec tly with M CD.0 5 0 . 2. 4.all o f d a . re akfas titemsan d co mp ete .6 4 0 .5 2 4 .4 8 0 .1 5 0 . 9.0 3 0 .fat o ils a s o f Ju n e 2007.1 5 ______ 4 3 3 ______ 0 .W ith a to tal o f ab o u t 31700 res tau ran ts wo rld wid e. are th e kin d o f th reats th at W en d y ’s is facin g . O pportunities 1. 3.YUMis ran ked262amo n gth efo rtu n e500co mp an ie a n dis co n s id ered elarg es tin s th th e in d u s try in th e n u mb er o f lo c atio n s h eld wo rld wid e. 6.g .0 4 0 .

increasing efficiency. This was one of its main characteristics they used to proud themselves with thus they should try and win it back. Individual leadership through management positions must place a significant amount of detail on ensuring proper and timely delivery of supplies. and offering superior customer service.  Wendy’s has wide access to capital and it can use its capital to capture new markets. Eventually it is bound to attract the younger generation and cope with the recent developments in the industry. then the management should strive to rejuvenate its main brands. This will enable the company to be viewed as new and still maintaining the same quality of its products.Wendy’s International Strategic management Recommendations  Since Wendy’s is a multi-national company . VII. South America etc. There are some countries that their economies are coming up fast and Wendy’s need to invest in these economies. reducing waste. are coming up swiftly and Wendy can capitalize on them. the management should implement a broad target that will counter attack it competitors  Since Wendy’s was known for its quality and freshness of its products. Something like breakfast menu introduction is bound to bring a lot of revenue and so why not introduce it? Using this capital Wendy’s can also proceed to expand internationally to untapped market. This can only be done by continuous improvement and this means funding more of the research and development and also taking their employee for refresher course. efficient distribution channels and highly skilled and experienced worker force.with large access to capital. This means the day to day operations must place an emphasis on maintaining fresh ingredients. and an Page 39 . a strategy has been developed that will recapture Wendy’s core essence of operations by creating and emphasizing providing quality products.  Wendy’s should also increase its funds in research and development. hiring competent and resourceful workers. Implementation Based on Wendy’s vision and mission statements combined with a brief SWOT analysis of their strengths and weaknesses. Countries like the former soviet states. In the early days Wendy’s used to be the leader of innovation before it was overtaken by MacDonald’s. South Africa. There are numerous ways to accomplish these task but they must be ingrained from the top and communicated down and laterally as well.

day to day operations are Page 40 . confidence.Wendy’s International Strategic management adequate amount of supervision and training for employees so that conducted with precision. and in a superior manner.

increasing presence overseas. Wendy’s need to worry about strengthening their learning and growth programs for managers and employees. global sales will remain critical for providing Wendy’s with additional revenue and penetrating the market deeper to create stronger brand identity. there also needs to be a heavy amount of attention given to initiatives such as developing new products. Page 41 . finding a successful way to do will be key as retention of good and competent managers and employees will help ensure greater operational efficiency and thus greater customer service and better quality food. Especially with the current economic hardships throughout the United States right now and the weak US dollar. Lastly. Wendy’s further needs to attempt to gain greater market share needs to develop new products and offer more selection of products.Wendy’s International Strategic management VIII. Evaluation and Control While there needs to be a keen and significant amount of emphasis placed on operations and customer service as these two areas are seen as providing the backbone of providing quality products and service. offering greater diversity of products. and creating better management programs which will need to come down through corporate policy. The second point of emphasis for Wendy’s should be on increasing market share through global expansion. There are numerous ways Wendy’s could go about doing this however.

blogspot.scribd. 4.wendys. South Africa.com 3.pdf 6.Wendy’s International Strategic management References 1. www.com/doc/87076459/Wendy-s Page 42 .com 2.com/doc/76881937/Wendys-Andrew Kok. www.scribd. www. http://library. http://kairugithinji.html 5. http://www.corporate-ir. University of Johannesburg.aboutwendy.net/library/67/675/67548/items/307435/2006AR.com/#!/2009/07/swotand-porters-five-forces-of-wendys.

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