Book: Franchising and licensing: Two powerful ways to grow your business in any
ID: 459854 • Letter: B
Question
Book: Franchising and licensing: Two powerful ways to grow your business in any economy (4th ed.)
Chapter 14 – Management and Leadership Issues in Building a Successful Franchising Organization
Wendy’s is a good case study for change management and change of leadership. Read the two articles to learn more about the leadership issues with top management and how Wendy’s addressed the problems. You will soon realize that not only is it important to have a solid management team at the top, but also a succession plan in place.
McDonald’s has also seen a turn-around of sales for their stores – based on changes in management and view of the consumer.
While considering the Wendy’s story, can you think of any other fast food chains or retail stores that you think should consider a change in top management – based on your view of the company from a consumer perspective? Explain.
http://www.slate.com/articles/business/the_pivot/2012/10/where_s_the_beef_how_wendy_s_1980s_turnaround_changed_the_fast_food_business_.html
http://cnnfn.cnn.com/1999/12/20/companies/wendys/
Explanation / Answer
Wendy’s story is really a motivational factor to many upcoming and existing business endeavours. Their stores was facing a serious bankruptcy issues once due to lack of understanding of requirement and poor menu that could able to attract the customers. Wendys bounce back with the strategy of making the system more compact and more on customer demand basis. They re defined their operations style and incorporate menu as per the customer preference and taste, Advertisement lead by Dave Thomas was very effective and innovative to attract more customers to the stores.
The change management aspects of Wendy took time to execute, but they hit the result finally. One another fast food that coming into mind is Subway. Subway has become the world’s most ubiquitous restaurant chain, but recently started declining in their sales growth continuously on years..
One of the main reason for the dip in sales growth is lack of change management and innovation. Wendys success story can be used in Subway as well as they required a detailed study to understand the customer requirement and to fulfil them based on the preference. Subway for long years following the same operational practise and now its their time to have a re modelling.