Socio-cultural factors that could affect fast foods is the aversion to eating beef in countries such as India and different taste preferences of different cultures such as the preference for spicy foods in Korea. Wendy’s has to become sensitive to different culinary cultures and accommodate these in its innovative menu and serviceculture. Technological factors that affect fast foods are the popularity of online ordering and innovative kitchen equipment. Wendy’s has to consider these factors in developing its customer-driven strategy.
Our writers will create one from scratch for
Legal factors affectingfast foodcompanies include employee obligations under labor laws, consumer obligations under consumer protection and contract laws, and investor obligations under corporation law. By understanding and complying with all its legal obligations, Wendy’s can prevent costly litigation. Environmental factors, considered as a broad term, affecting the fastfoodindustry include waste management, environmental protection, and community welfare.
Wendy’s has to continuously improve on its corporate socialresponsibilityand community programs to enhance the value of its brands. V. Internal Audit: The internal audit identifies the factors within the company that affects its performance and requires consideration in strategy development.
1. Strengths and Weaknesses
Wendy’s has a number of strengths that supports its competitive position. One is a strong brand name encompassing healthy fast food as the distinguishing factor.
By embedding its mission statement in its brandcommunication, Wendy’s is able to consolidate its marketing activities and outcomes. Another is the ability to provide fresh and high quality food at low prices, which distinguishes the company from its competitors. However, Wendy’s also has weaknesses. One is its slightly higher cost structure relative to its competitors (Hoovers), particularly McDonalds, by focusing on healthy and fresh food ingredients and preparation practices that could affect price flexibility.
Another is the easy replication of its differentiation strategy, which means it has to continue augmenting itshealthfast food mission to ensure distinction.
Wendy’s has various assets for carrying out its activities. Its physical resources comprise store buildings placed in key locations, equipment for food storage and preparation, and its website at www. wendys. com as part of its technological resource. These physical resources support the current level of operations of Wendy’s. Expansion through the establishment of new stores would mean acquisition of physical resources. Also Describe sources of internal and externalfinancefor a selected business
The website is the encompassing resource because it covers all the stores by providing information on menu, nutritional value of food, store locations and contact numbers, and other information valuable to consumers. However, Wendy’s is yet to develop the transactional use of its website as an order site coordinated with its different stores. This comprises an area requiring development similar to McDonalds and Burger King. The human resources of Wendy’s make-up a valuable resource in supporting its service oriented strategy. Read about
McDonalds Ansoff Matrix
The dynamic pace in the workplace provides employees with flexibility in schedule and opportunities forcareerdevelopment asmotivationfor performance. (Wendy’s International Inc.)
Wendy’s has to continue improving the workenvironmentto shorten turnover rates compared to McDonalds and Burger King. The organizational resources of Wendy’s including its structure, strategic values, patents and trademarks support its brand equity. Wendy’s has to further augment brand equity through differentiation since McDonalds and Burger King as equally strong and popu