Wendy’s Analysis Khalid Al-Ajmi



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Wendy’s Analysis

Khalid Al-Ajmi

Neil Commerce

Terrell Matthews

Anil K Cheerla


MBAD 271: Strategic Management

Professor Gary Bojes




Table of Contents

Executive Summary 3

Background 4

Mission Statement 4

Vision Statement 4

Analysis of Strengths: 5

Strength 1 5

Strength 2 6

Strength 3 7

Analysis of Weaknesses 8

Weakness 1 8

Weakness 2 9

Weakness 3 10

Summary of Strengths and Weaknesses 11

Internal Factors Framework 12

Scope: 14

Distinctive Competencies: 14

Competitive Advantage: 14

SWOT Analysis Matrix: 15

Internal-External Matrix: 17

Grand Strategy Matrix: 18

SPACE Matrix Analysis: 19

PARTS Analysis: 21

Count Summary Analysis: 22

Further Analysis 23

The Strategy 23

The Strategy Map 24

Financial Perspective 24

Customer Perspective 25

Internal Perspective (Operations) 26

Learning and Growth Perspective 27

Appendix 1-Strategy Map 29

Appendix 2- Balanced Scorecard 30


Executive Summary

Wendy’s historically has fared very well within the fast-food industry; they have led or been the front runners in a number of key areas that are of extreme importance to customers. However, while Wendy’s has excelled since inception and been a key member in the big four of the fast-food industry inclusive of Wendy’s, McDonalds, Burger King, and YUM Brands, there are a number of area’s that Wendy’s could improved upon and areas of focus the company should examine more deeply in order to create stronger barriers of entry, to gain more market share, and to ensure that they can continue to grow, expand, and remain relevant even during economic hard times as the world and particularly their industry becomes more globalized. Wendy’s at this time however is in the process of refocusing on its core business function which is providing quality hamburgers and meals. Wendy’s currently has merged with Arby’s and recently spun off their interest in Tim Horton’s and sold their interest in Baja Fresh, two focus on the two brands and providing quality food and excellent service. The purpose of this report is to develop a SWOT analysis (to aid in identifying strategies to be undertaken by the company), Strategy Map (to guide in the implementation of these strategies) and Balanced Score Card (to measure the successful implementation of these strategies). These will provide the framework for highlighting the firm’s opportunities and weaknesses while also pointing out how the firm can improve and integrate their operations and customer service with respect to financial, customer, and learning and growth perspectives.

The recent acquisition of Arby’s by Wendy’s will further enhance the potential for economic value added vis – a – vis the current strategy followed by Wendy’s. The niche market provided by Arby’s, i.e. roast beef sandwiches, will provide a broader menu base and further diversify the current menu line. Wendy’s current strategy is one that adheres to high quality offerings as well as competitive service. That's a platform Wendy’s can continue to build upon to differentiate itself from the competitors. Quality is Wendy’s platform and the Wendy’s icon stands for wholesome authenticity and honest quality. Wendy’s has never compromised on quality by slashing prices to cheapen the value of products and tarnish its image. Wendy’s is known for its Wendy's superior quality and great-tasting products.

When compared to the competition, Wendy’s distinguishes itself by strictly adhering to its core competency, i.e. old – fashioned hamburgers. In other words, it does not experiment with new offerings and randomly diversify its menu line unless the offerings create economic value added or enhance the current menu line. Moreover, although Wendy’s global expansion and market share growth efforts trail the competition, its brand name, service quality, and ultimately the food quality help Wendy’s maintain its overall competitiveness and market positioning. The three core elements of Wendy’s/Arby’s strategy in terms of scope, distinctive competencies, and competitive advantage will help one further understand the nature of Wendy’s strategy as well as draw conclusions as to how Wendy’s manages its enterprise.


Background

Wendy’s now known as the Wendy’s/Arby’s Group after the recent merger of the two companies now comprises the third largest quick service restaurant company and is comprised of the two brands Wendy’s and Arby’s, generate about $12 billion in system wide sales and comprise over 10,000 restaurants. The industry as whole is dominated by what is termed the “big four” which comprises McDonalds, Burger King, Wendy’s/Arby’s Group, and Yum Brands. Currently, McDonalds has gained the most attention among businesses within the quick service industry which is shown through their strong advantage in market penetration as well as total revenue, while the Wendy’s has been generally recognized as the leader in quality and customer service.

Wendy’s started out as a single store in downtown Columbus, Ohio and from inception was born placing utmost importance on providing quality so much in fact that founder Dave Thomas put the phrase “quality is in our recipe” was placed in their logoi. Today, there are approximately 6,600 Wendy’s restaurants in operation in the United States and in 21 other countries and territoriesii. Wendy’s has seen slow but steady growth but financially and intuitionally, since their start in 1969 by reaching the milestones of going public in September of 1976, going global in 1988, and reaching 5000 stores by march of 1997.

Mission Statement

Wendy's Mission Statement is, "Do the Right Thing!" By doing the right thing, it incorporates People Excellence within its culture. Applaud your people. Model the behavior you want. Involve others. Grow leaders. Yield -- be flexible. We at Wendy's strive every day to uphold and implement the standards and morals that our founder, Dave Thomas, instilled in the Wendy's name: Doing it "Dave's Way!" "Here we never cut corners!" We, along with Dave, truly believe we are the "Employer of Choice," and you will, too.





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