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Wendys A Plan For International Expansion Case Solution

Solution Id Length Case Author Case Publisher
2056 680 Words (4 Pages) Fabrizio Di Muro Ivey Publishing : W18477
This solution includes: A Word File A Word File

Wendy’s was a fast-food chain that was facing tough competition and saturation in the US market. Expanding further into the international market was an option to increase growth. However, the company had previously made many investments in foreign countries such as Singapore, Hong Kong, Japan, and Argentina and had to close the outlets. The company has reopened in Singapore in 2009 but had to close all its outlets again by 2015. The reason identified was an economic slowdown, which resulted in meager growth. The problem is to identify two countries for expansion based on the analysis of the growth potential of the fast-food industry in that country.

Following questions are answered in this case study solution:

  1. Define and state the problem specifically.

  2. Decide on the measurable short-term objective and the company’s long-term goal in this case.

  3. State the facts of the case and analyze how they played a part in the problem.

  4. Write two or three alternative solutions to the problem and evaluate the advantages and disadvantages of each.

  5. Choose the best solution and recommend the action you can support with evidence.

Case Study Questions Answers

2. Decide on the measurable short-term objective and the company’s long-term goal in this case.

The measurable short-term objective for Wendy’s is to increase the number of international outlets by at least 100 outlets, 50 in each country chosen for expansion. However, the increase in the number of outlets is not an indication of the growth of the company, as proven by the long history of international expansions and closures because of economic slowdown and other reasons not mentioned in the case. The long-term objective is to sustain profitable operations in the country that Wendy's has expanded to, and grow sales and profitability of the company. 

3. State the facts of the case and analyze how they played a part in the problem.

In 2011, Wendy’s replaced its iconic hamburger with a new product offering. The factor that differentiated the fast-food chain from the competition was replaced. The reason for the change is not mentioned; however, it could have been an important part of the issue. 

Another fact was the franchising agreement, which included the price to be decided by the franchise. This could have resulted in the customers noting the difference in pricing and not opting for Wendy’s. Pricing should have been controlled by Wendy’s for maintaining uniformity and developing trust with the customer.

4. Write two or three alternative solutions to the problem and evaluate the advantages and disadvantages of each.

Exhibit 3 indicates a scale of the ease of doing business in a country. Previously, Wendy’s had expanded to Russia.

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