Developing Business Strategy for Wendy's: SWOT Analysis, Cost Leadership, Diversification and ROI

Running head: BUSINESS STRATEGY (MANAGEMENT)
Business Strategy (Management)
Student’s name:
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BUSINESS STRATEGY (MANAGEMENT)
Table of Contents
1. Developing SWOT Analysis of Wendy’s...................................................................................2
2. Business Strategy Report.............................................................................................................3
A. Executive summary.....................................................................................................................3
B. Vision, mission, and values statement of Wendy’s....................................................................5
C. Justifying the analytical tools used in developing a strategy......................................................6
D. Detailed SWOT analysis.............................................................................................................6
E. Discussing the plan for maintaining a competitive advantage....................................................7
F. Discussing the implications of competing in international markets............................................8
G. Discussing a diversification strategy..........................................................................................9
H. Discussing one ethical consideration........................................................................................10
I. Discussing planned execution of the strategy............................................................................10
J. Discussing ROI of business strategy..........................................................................................11
k. The conclusion of business strategy..........................................................................................14
Reference List................................................................................................................................15

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BUSINESS STRATEGY (MANAGEMENT)
1. Developing SWOT Analysis of Wendy’s
Wendy’s is the restaurant chain with having more than 6,500 locations worldwide.
Wendy was established in the year 1969 and it has it headquarter in Ohio, the USA
(Wendys.com, 2018). Wendy’s is famous for the hamburgers, salads, chicken sandwich, French
fries, breakfast sandwich and frozen dessert.
SWOT analysis
Strengths
 Wendy’s strength is the organization’s
continuous development in the
restaurant industry as the organization
is trying to do international expansion
(at present it is present in 30 countries)
 High-quality products served
 The strong brand image in the industry
 Extensive experience in the industry
and heavy presence in the USA and
Canada area
 Use of technology in order to provide a
better consumer experience
Weaknesses
 Wendy can face issue due to
overdependence in the Western market
as it has its 93% market in the Western
markets
 It has been facing a steady drop in
revenue since there has been almost
40% drop in the revenue
 It has been planning to do international
expansion; however, the growth is too
slow
 Wendy’s is too much dependent on
franchisees as it has more than 90%
franchisee
Opportunities
 Wendy’s can find the growth in the
Threats
 Fast food restaurant industry is full of

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BUSINESS STRATEGY (MANAGEMENT)
Asian market as India and China are the
fastest growing economy
 Economic growth has brought new
opportunity for the global brand
 Food choice innovation can bring
opportunity for Wendy’s
 The organization can use digital
technology and AI to improve the
customer experience
competition and the competitors are
Burger King and McDonald's
 Legal and regulatory pressure are there
due to food safety and labor
 Geopolitical disruption can hamper the
growth of the organization
 Rising cause of labor and raw materials
Table 1: SWOT analysis of Wendy’s
(Source: Self-developed)
2. Business Strategy Report
A. Executive summary
This report is strived to focus on developing the business strategy of Wendy's, a fast food
chain organisation that mainly works in North America. Wendy's is willing to expand the
business in Africa and Asian countries. The SWOT analysis of Wendy's has been developed in
this report. The strengths of the organization are to have its store in the USA and in Canada
mainly. It has been in the industry for a long time; therefore, it has experience in the industry. It
works to develop the technologies so that it can provide extreme customer satisfaction. In this
regard, cost leadership strategy has been prescribed to have a competitive advantage in the