I. Long-term Objective Statement
A. Statement
1. The sales revenue for Wendy’s will increase by 25% over the next four years.
B. Justification
1. Wendy’s sales have been projected to rise by 25% with the initial opening of more of its outlets and franchises in the Asian market. The Indian and Chinese markets offer a great potential to Wendy’s as a global fast food chain (The Wendy's Company, 2014). The revenue will further be boosted with more introduction of healthy foods in Wendy’s menu in all it franchises (Hitt, Ireland, & Hoskisson, 2007). Healthy eating has emerged as a key determinant and selling point in the food industry with Wendy’s capitalizing on it effectively. The introduction of Wendy’s Fresca product line further accentuates the viability of this projection.
II. Strategic Alternatives and Choice
A. Three Alternative Strategies
1. Three strategies for Wendy’s:
- Increase in number of Wendy’s outlets in the Asian market.
- Introduction of more healthy foods
- Product customization
2. Justification:
- Increase in number of Wendy’s outlets in Asia
The expansion of Wendy’s market in Asia will ensure that it taps into global market niches. The company will be able to venture into the emerging market segments such as the youth, the corporate and families. This is cemented by the fact that Wendy’s still maintains its spot as one of the top three fast-food chains globally.
- Introduction of more healthy foods/products.
Wendy’s has already implemented this strategy already by introduction of salads in all its outlets. However, healthier products are essential in order to tap into the emerging health-conscious market segment.
- Product Customization.
Wendy’s to adapt its products to meet the consumer needs in its traditional markets. This can be ensured through the analysis of various market segments and pinpointing what appeals to these markets.
B. Identification of the Strategic Choice Using QSP Matrix
Strategy Reccomendation
As evidently shown by the QSP matrix, the recommended strategy is the Wendy’s penetration into the larger Asian market. Wendy’s competitive prices and diversified products will be able to attract many consumers in these markets as compared to a number of its competitors that already have a head-start in these markets. Just like in other markets, the company will have franchises that will have indigenous individuals as owners. These affiliates and franchisees will further employ local community members to ensure that Wendy’s brand adopts a localized feel for its new markets (The Wendy's Company, 2014). The outlets will further incorporate indigenous Asian meals into Wendy’s menu with a “Wendy’s twist” to ensure that it appeals to all market segments (Hitt, Ireland, & Hoskisson, 2007). The strategy will make Wendy’s a force to reckon with in the continent of Asia while at the same time advancing its global business social obligations mission to impact on various global societies.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: Competitiveness and globalization. Mason, OH: Thomson/South-Western.
The Wendy's Company. (2014, December 1). Investor Dashboard. Retrieved from https://www.wendys.com/en-us/about-wendys/investor-dashboard
