Case Analysis of Wendy's

1. What, if any, changes do you see in Wendy's mission?Initially, Wendy's mission was to establish a niche for itself in the hamburger segment of the fast food industry in the Ohio region. The company also wanted to establish a reputation for itself as a highquality fast food organization. As of 1972, the company's mission changed to that of becoming a national chain, continuing to emphasize operations in the hamburger segment of the fast food industry, and continuing to emphasize highquality for its product.By the end of the decade of the 1970s, Wendy's had again expanded its mission; this time to become an international fast food chain, again, continuing to emphasize operations in the hamburger segment of the fast food industry, and continuing to emphasize highquality for its product. During the 1980s, Wendy's expanded its mission beyond the confines of the hamburger segment of the fast food industry. Initially, this expansion of mission was manifested through extending the product line in its hamburger restaurants. Later, however, a separate chain of fast food restaurants was first acquired, and then expanded, to enable the company to compete directly in the chicken segment of the fast food industry. The extension of the firm's mission in the 1980s to include products not directly associated with the hamburger segment of the fast food industry

1 2did not alter that part of its mission which committed the

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. For the 1980s, however, Wendy's changed it grand strategy in these two contexts. First, the company opted for expanded product offerings in its hamburger restaurants. While this new strategy did not place Wendy's in direct competition with McDonald's and Burger King at every product level in the hamburger segment of the fast food industry, it most certainly did expand the scope of its product competition in this segment of the industry. Second, Wendy's opted to move into the chicken segment of the fast food industry in the 1980s. This grand strategy was quite different from that of either McDonald's or Burger King, which, in each instance, opted to compete for the fast food chicken trade through expanded product offerings in their hamburger restaurants. I agree with the company's combination of grand strategies for the 1980s, because it has permitted the company to continue to attain overall revenue growth, and overall profit growth. It is true that the rate of increase in total revenues has trended generally downward (refer to Table 1 on the following page); however, as the revenue base grows, it becomes increasingly difficult to maintain earlier levels of percentage growth. Additionally, the company did reverse the
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Approximate Word count = 1226
Approximate Pages = 5 (250 words per page)

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