Wendy's Case Study
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila GRADUATE SCHOOL OF MANAGEMENT
CASE ANALYSIS – WENDY’S INTERNATIONAL 2007
I. VIEWPOINT: Chief Executive Officer and President - Ms. Kerrii B. Anderson
II. TIME CONTEXT: Second Quarter of 2007 III. PROBLEM STATEMENT
Operating income of Wendy’s dropped from US$215.8MM in 2004 to US$40.3MM in 2006. IV. STATEMENT OF THE OBJECTIVES
To increase Wendy’s operating income by as much as 12% by end 2009.
V. AREAS OF CONSIDERATIONS
Strengths * Brand Names and Trademark * Cost & Operational efficiency * New product development * No. 1 in consumer taste test and * Healthy food selections and freshness
Weaknesses * Domestic and International market penetration * Menu Diversity * New product development * Training and Management * Innovation and Technology * Several company-owned restaurant
Opportunities * International market penetration * Franchising * Innovation and Technology * Regional/Country Menu Diversity
Threats * Strong competition * Commoditization – lower prices from competitor * Consumer concerns about nutritional content * Increase in price of raw materials * Government action * Expansion of competitors * More menu offerings from competitors
VI. ALTERNATIVE COURSES OF ACTION (ACA)
ACA 1
Reduced & sell company owned restaurant and increase franchising
ACA 2
Introduce New Product
ACA 3
Strengthen Franchise Commitment
VII. ANALYSIS
ACA 1 | ACA 2 | ACA 3 | Advantages | Disadvantages | Advantages | Disadvantages | Advantages | Disadvantages | More fund | Possible lay –off | additional revenue | - funding | Better ambience for the customer | funding | Extra fund can be used in product development | | create job opportunity | - uncertainty whether the public buy
(University of the City of Manila)
Intramuros, Manila GRADUATE SCHOOL OF MANAGEMENT
CASE ANALYSIS – WENDY’S INTERNATIONAL 2007
I. VIEWPOINT: Chief Executive Officer and President - Ms. Kerrii B. Anderson
II. TIME CONTEXT: Second Quarter of 2007 III. PROBLEM STATEMENT
Operating income of Wendy’s dropped from US$215.8MM in 2004 to US$40.3MM in 2006. IV. STATEMENT OF THE OBJECTIVES
To increase Wendy’s operating income by as much as 12% by end 2009.
V. AREAS OF CONSIDERATIONS
Strengths * Brand Names and Trademark * Cost & Operational efficiency * New product development * No. 1 in consumer taste test and * Healthy food selections and freshness
Weaknesses * Domestic and International market penetration * Menu Diversity * New product development * Training and Management * Innovation and Technology * Several company-owned restaurant
Opportunities * International market penetration * Franchising * Innovation and Technology * Regional/Country Menu Diversity
Threats * Strong competition * Commoditization – lower prices from competitor * Consumer concerns about nutritional content * Increase in price of raw materials * Government action * Expansion of competitors * More menu offerings from competitors
VI. ALTERNATIVE COURSES OF ACTION (ACA)
ACA 1
Reduced & sell company owned restaurant and increase franchising
ACA 2
Introduce New Product
ACA 3
Strengthen Franchise Commitment
VII. ANALYSIS
ACA 1 | ACA 2 | ACA 3 | Advantages | Disadvantages | Advantages | Disadvantages | Advantages | Disadvantages | More fund | Possible lay –off | additional revenue | - funding | Better ambience for the customer | funding | Extra fund can be used in product development | | create job opportunity | - uncertainty whether the public buy