- Please read the case and analyze it by answering these case analysis questions.
- You may answer each case discussion question in each paragraph and separate different paragraphs for different questions. You don’t have to copy the discussion questions in your answer.
- Although quantity is not quality, however I do not accept 1-2 sentence answers to each question. Please make a thorough case analysis, post 300 to 500 words’ case analysis (roughly 1.5-3 pages double spaced with12-font), and post it in the text entry format online.
The Wendy’s Company (Wendy’s) is one of America’s most iconic fast food chains. Founded by Dave Thomas in Columbus, Ohio, in 1969, it is currently the third-largest hamburger chain in the United States.
Wendy’s has a strong presence in the United States, but not in foreign markets, despite a long history of international expansion. Wendy’s first foray into global markets occurred in 1976, when the company opened a restaurant in Canada. Since then, Wendy’s has opened restaurants in many foreign countries including Germany, Mexico, New Zealand, Indonesia, Greece, Turkey, Guatemala, and Italy. Wendy’s has at times struggled in the global arena, with failed ventures in Argentina, South Korea, Hong Kong, Russia, and Singapore. While Wendy’s is operating in 32 countries, it has only 637 restaurants operating outside of the United States.
This case deals with the international expansion plans of a fast food giant. Wendy’s international presence is poor, and growth in domestic markets is difficult to achieve as fast food is no longer growing in the United States. Further, the company faces fierce competition from competitors in both the fast food industry and the fast-casual dinning industry. However, there is high growth potential in a number of international markets. In May 2018, the company’s chief executive officer, Todd A. Penegor, needs to determine which foreign market(s) to target as well as
Case Discussion Questions:
- What impact (if any) could Wendy’s prior failures in international markets have on its current expansion effort?
- What challenges or issues might Wendy’s face in making a significant expansion into Africa?
- Using the marketing mix (i.e., product, price, place, promotion), determine what changes Wendy’s might have to make to its operations if it opens restaurants in the foreign markets highlighted in the case.
- Imagine that Wendy’s will open 1000 restaurants in a foreign market(s). Which foreign market(s) would you suggest it enter, and how many restaurants would you suggest it open in each market?