MBAD 271-Strategic ManagementMBAD 271-Strategic Management

OpportunitiesOpportunities

Global ExpansionGlobal Expansion

Mass customizationMass customization

Upscale “boutique” storesUpscale “boutique” stores

Inter/intra-group mergersInter/intra-group mergers

ThreatsThreats

CommoditizationCommoditization

Consumer concerns about nutritional dataConsumer concerns about nutritional data

Government action (Los Angeles)Government action (Los Angeles)

Regional/Boutique StoresRegional/Boutique Stores

External Factors FrameworkExternal Factors FrameworkCritical Success FactorsCritical Success Factors Importance WeightImportance Weight

(Percentage)(Percentage)

Performance RatingPerformance Rating

(1-4)(1-4)

Weighted ScoreWeighted Score

(% X Rating)(% X Rating)OpportunitiesOpportunities

1. Globalization1. Globalization 2020 33 .6.6

2. Mergers/Acqusitions2. Mergers/Acqusitions 1515 22 .3.3

3. Mass Customization3. Mass Customization 1010 11 .1.1

4. Boutique Stores4. Boutique Stores 55 11 .05.05

ThreatsThreats

1. Health Concerns1. Health Concerns 2020 11 .2.2

2. Government Action2. Government Action 1515 22 .3.3

3. Commoditization3. Commoditization 1010 44 .4.4

4. Regional/Boutique Stores4. Regional/Boutique Stores 55 22 .1.1

TotalTotal 100%100% 2.052.05

Competitive Factors FrameworkCompetitive Factors FrameworkCritical Success Critical Success

FactorsFactorsImportance Importance

WeightWeightMcDonald’sMcDonald’s Wendy’sWendy’s Burger KingBurger King Yum BrandsYum Brands

Rtg.Rtg. ScoreScore Rtg.Rtg. ScoreScore Rtg. Rtg. ScoreScore Rtg.Rtg. ScoreScore

OpportunitiesOpportunities

1. Globalization1. Globalization 20%20% 44 .08.08 22 .04.04 22 .04.04 33 .06.06

2. 2. Mergers/AcquisitionsMergers/Acquisitions

15%15% 22 .03.03 22 .03.03 22 .03.03 33 .45.45

3. Mass 3. Mass CustomizationCustomization

10%10% 11 .1.1 11 .1.1 11 .1.1 11 .1.1

4. Boutique Stores4. Boutique Stores 5%5% 22 .1.1 11 .05.05 11 .05.05 11 .05.05

ThreatsThreats

1. Health Concerns1. Health Concerns 20%20% 33 .6.6 22 .4.4 22 .4.4 22 .4.4

2. Government Action2. Government Action 15%15% 11 .15.15 11 .15.15 11 .15.15 11 .15.15

3. Commoditazation3. Commoditazation 10%10% 44 .4.4 44 .4.4 44 .4.4 44 .4.4

4. Regional/ Boutique 4. Regional/ Boutique StoresStores

5%5% 11 .05.05 11 .05.05 22 .1.1 11 .05.05

TotalTotal 100%100% 2.52.5 1.851.85 1.91.9 2.22.2

Value ChainValue Chain AnalysisAnalysisThe Value ChainThe Value Chain

Firm Firm InfrastructureInfrastructure

Financing, legal support, general management, accounting, quality controlFinancing, legal support, general management, accounting, quality control

Human Human RecoursesRecourses

Recruiting, training, developmentRecruiting, training, development

Technology Technology DevelopmentDevelopment

Design of Design of ordering/scheduling ordering/scheduling software, potential JIT software, potential JIT delivery system for delivery system for goodsgoods

Design of terminals, Design of terminals, design of procedures, design of procedures, quality control quality control procedures, wireless procedures, wireless thermostat monitoring & thermostat monitoring & control, card payment control, card payment terminalsterminals

Back kitchen monitors, Back kitchen monitors, order timing, better order timing, better equipment for drive equipment for drive through, remote call through, remote call center for drive-thru center for drive-thru orderingordering

Market research, new Market research, new product introduction, product introduction, sales & forecasting sales & forecasting systemssystems

Service manuals, Service manuals, training videos, training videos, customer feedback customer feedback systemssystems

ProcurementProcurement Transportation, local Transportation, local sourcing for fresh sourcing for fresh vegetables and salads, vegetables and salads, site maintenance site maintenance contractors, restaurant contractors, restaurant suppliessupplies

Food, paper goods, real Food, paper goods, real estate, cooking estate, cooking equipment, energy, equipment, energy, eRestaraunt services & eRestaraunt services & inventory applicationsinventory applications

Restaurant supplies, Restaurant supplies, computer services, computer services, waste disposal and waste disposal and POS operationsPOS operations

Advertising- Radio, TV, Advertising- Radio, TV, newspaper & internetnewspaper & internet

Replacement parts for Replacement parts for equipment, service equipment, service contractorscontractors

Storage of raw Storage of raw materials, inspectionmaterials, inspection

Food creation, cooking, Food creation, cooking, maintenance, maintenance, cleanliness and hygiene cleanliness and hygiene controls, controls, communications communications infrastructure and infrastructure and trainingtraining

Order processing, drive Order processing, drive through window, through window, shippingshipping

Advertising, brand Advertising, brand marketing, cupons, marketing, cupons, store decoration, new store decoration, new item creation, media item creation, media promotionspromotions

Customer call center for Customer call center for complaints, service complaints, service cards, communicationscards, communications

Inbound Inbound LogisticsLogistics

OperationsOperations Outbound Outbound LogisticsLogistics

Marketing Marketing and Salesand Sales

ServiceService

What is the Key Component?What is the Key Component?

Operations?Operations?

OutboundOutbound Logistics?Logistics?

The Value NetThe Value Net

WENDYS

Suppliers

Meat Suppliers

Veggie Suppliers

Restaurant Supplies Distributors

Equipment Manufacturers

Customers

Customers eating at fast food restaraunts

Families

Companies

Complementors

Coca Cola

Nestle

Hinez

Hasbro

Movie Studios

Government Regulators

Competitors

McDonald’s

Burger King

YUM Brands

(-)(-)

(+) (+)

Value AnalysisValue Analysis

Company

Key Activities:

Outbound Logistics

Business Design Elements:

Brands/ Customer Selection

Suppliers

Meat Suppliers

Veggie Suppliers

Restaurant Supplies Distributors

Equipment Manufacturers

Complementors

Coca Cola

Nestle

Hinez

Hasbro

Movie Studios

Government Regulators

Competitors

McDonald’s

Burger King

YUM Brands

Customers

Customers eating at fast food restaurants

Families

Companies

ForcesForces

SUBSTITUTES

RIVALRYSUPPLIER POWER

COMPLEMENTOR POWER

CUSTOMER POWER

NEW ENTRANTS

THREAT OF NEW COMPETITORS

Forces: Threat of New CompetitorsForces: Threat of New Competitors SUBSTITUTESSUBSTITUTES NEW ENTRANTSNEW ENTRANTS

DRIVERDRIVERNumber, Quality, Number, Quality,

Availability-Availability- Wendy’s clearly Wendy’s clearly has many substitutes in it’s has many substitutes in it’s industryindustry

Price-Performance- Price-Performance- Wendy’s must be aware of Wendy’s must be aware of competitor prices in order to competitor prices in order to stay competitivestay competitive

Switching Costs-Switching Costs- This refers This refers to costs associated with to costs associated with switching suppliers. As the switching suppliers. As the only difference is the amount only difference is the amount of gas necessary to drive to of gas necessary to drive to the restaurant, and all the restaurant, and all competitors have many competitors have many locations, this is effectively locations, this is effectively zero.zero.

RATINGRATING DRIVERDRIVERScale Capital required-Scale Capital required- This is clearly This is clearly

an important factor, as Wendy’s needs to an important factor, as Wendy’s needs to maintain strong economies of scale. maintain strong economies of scale. Efficiency production and cost reduction Efficiency production and cost reduction are crucial for Wendy’s competitive are crucial for Wendy’s competitive strategy.strategy.

Technology, Patents-Technology, Patents- This is another This is another vital factor for Wendy’s as Wendy’s food vital factor for Wendy’s as Wendy’s food preparation is unique from other preparation is unique from other competitorscompetitors

Customer loyalty, branding-Customer loyalty, branding- Customer loyalty will help Wendy’s retain Customer loyalty will help Wendy’s retain a customer base and fend off a customer base and fend off competition.competition.

Raw Materials-Raw Materials- Wendy’s needs to Wendy’s needs to secure the most cost-effective raw secure the most cost-effective raw materials in order to maintain efficiencies materials in order to maintain efficiencies and remain competitive.and remain competitive.

Market Saturation-Market Saturation- This factor may This factor may serve Wendy’s well as the market for fast serve Wendy’s well as the market for fast food is clearly saturated, thereby food is clearly saturated, thereby increasing the barriers to entry.increasing the barriers to entry.

RATINGRATING

Forces: Suppliers, RivalryForces: Suppliers, Rivalry SUPPLIERSSUPPLIERS RIVALRYRIVALRY

DRIVERDRIVER

Number, Size, Number, Size, Concentration-Concentration- Plenty of Plenty of suppliers. Wendy’s has suppliers. Wendy’s has plenty of options to switch plenty of options to switch from one supplier to from one supplier to anotheranother

Raw materials Raw materials differentiation-differentiation- This may This may be important for Wendy’s be important for Wendy’s as the differentiation of as the differentiation of supplies may help Wendy’s supplies may help Wendy’s maintain a differentiated maintain a differentiated product line.product line.

RATINGRATING DRIVERDRIVERNumber of Competitors-Number of Competitors-

Wendy’s has formidable Wendy’s has formidable competitioncompetition

Equality-Equality- Wendy’s tends to share Wendy’s tends to share certain similarities to other fast certain similarities to other fast food chains, thereby increasing food chains, thereby increasing competitive pressurescompetitive pressures

Demand, pricing-Demand, pricing- High pricing High pricing pressures to remain competitive as pressures to remain competitive as well as high market demand.well as high market demand.

M & A activities-M & A activities- This is crucial This is crucial for Wendy’s as Yum brands (Pizza for Wendy’s as Yum brands (Pizza Hut) and McDonald’s (Boston Hut) and McDonald’s (Boston Market) continue their M & A Market) continue their M & A activities activities *UPDATE*-*UPDATE*- Wendy’s has Wendy’s has merged with Arby’s .merged with Arby’s .

RATINGRATING

Forces: Customer, Complementor PowerForces: Customer, Complementor Power CUSTOMER POWERCUSTOMER POWER COMPLEMENTOR POWERCOMPLEMENTOR POWER

DRIVERDRIVERNumber, size, concentration-Number, size, concentration-

Customer concentration in a Customer concentration in a certain market segment will certain market segment will increase competitive pressures on increase competitive pressures on Wendy’s.Wendy’s.

Information- Information- Customers are Customers are always smart shoppers, they always smart shoppers, they always know what they are looking always know what they are looking for. They are also well aware of for. They are also well aware of pricing differences.pricing differences.

Differentiation-Differentiation- Wendy’s needs Wendy’s needs to differentiate its products to to differentiate its products to accommodate customers’ different accommodate customers’ different tastes and preferences.tastes and preferences.

Customer Loyalty-Customer Loyalty- This is This is crucial for Wendy’s as customer crucial for Wendy’s as customer retention via differentiated product retention via differentiated product lines and competitive pricing will lines and competitive pricing will boost Wendy’s market positionboost Wendy’s market position

RATINGRATING DRIVERDRIVERSaturation of alliances-Saturation of alliances- Many of the Many of the

competitors have the same or similar competitors have the same or similar alliances with the complementor (e.g. alliances with the complementor (e.g. Coca Cola) or their rival (e.g. Pepsi). As Coca Cola) or their rival (e.g. Pepsi). As it is relatively simple to obtain the it is relatively simple to obtain the product, the complementors have product, the complementors have relatively little power in this respect.relatively little power in this respect.

Centrality, equality-Centrality, equality- Contracts Contracts between fast food restaurants and between fast food restaurants and complementors are relatively simple and complementors are relatively simple and commoditized. There is little power here.commoditized. There is little power here.

Scope differentiation-Scope differentiation- As As complementor power rises, scope complementor power rises, scope differentiation decreases. As such, differentiation decreases. As such, Wendy’s needs to always maintain a Wendy’s needs to always maintain a certain level of differentiation to avoid certain level of differentiation to avoid increases complementor power.increases complementor power.

National Diversity-National Diversity- A nationally A nationally diverse market makes it difficult for diverse market makes it difficult for Wendy’s to maintain a uniform strategy. Wendy’s to maintain a uniform strategy. It will need to adopt different strategies to It will need to adopt different strategies to help compete with regional and local fast help compete with regional and local fast food chains.food chains.

RATINGRATING

Forces: Our ratingsForces: Our ratings

1: Rivalry1: Rivalry

2: Customer Power2: Customer Power

3: Substitutes3: Substitutes

4: New Entrants4: New Entrants

5: Supplier Power5: Supplier Power

6: Complementor Power6: Complementor Power

Quality/Price ProfileQuality/Price ProfileQuality ProfileQuality Profile

Quality AttributesQuality Attributes Importance WeightsImportance Weights Quality Performance ScoresQuality Performance Scores

Wendy’sWendy’s McDonald’sMcDonald’s Burger KingBurger King Yum BrandsYum Brands

TasteTaste 30%30% 6.666.66 55 4.664.66 5.335.33

Quality of FoodQuality of Food 30%30% 6.666.66 55 4.664.66 5.335.33

LocationLocation 5%5% 1.91.9 8.78.7 3.23.2 1010

Speed of ServiceSpeed of Service 15%15% 55 4.334.33 3.663.66 44

Kid-FriendlyKid-Friendly 20%20% 66 1010 88 77

100%100%

Price ProfilePrice Profile

Price AttributesPrice Attributes Importance WeightsImportance Weights Price Performance ScoresPrice Performance Scores

Wendy’sWendy’s McDonald’sMcDonald’s Burger KingBurger King Yum BrandsYum Brands

MealsMeals 30%30% 9.359.35 8.18.1 7.77.7 44

SandwichesSandwiches 30%30% 8.78.7 88 7.67.6 1010

DrinksDrinks 20%20% 1010 8.28.2 7.87.8 8.78.7

SidesSides 20%20% 5.85.8 6.66.6 5.55.5 1010

100%100%

Value MapValue Map

Strategic Group Mapping AnalysisStrategic Group Mapping Analysis

Customer Value RatingCustomer Value Rating

Customer ValueCustomer Value

Price SatisfactionPrice Satisfaction QualityQuality RatingRating % Advantage% Advantage

FirmFirm RatioRatio WeightWeight RatioRatio WeightWeight (wtd ave)(wtd ave) (Disadvantage)(Disadvantage)

Wendy’sWendy’s 1.131.13 xx 45%45% ++ 1.141.14 xx 55%55% == 1.141.14 14%14%

McDonaldsMcDonalds .99.99 xx 45%45% ++ 1.071.07 xx 55%55% == 1.031.03 3%3%

Burger KingBurger King .90.90 xx 45%45% ++ 0.850.85 XX 55%55% == 0.870.87 -13%-13%

Yum Yum BrandsBrands

1.051.05 xx 45%45% ++ 1.011.01 xx 55%55% == 1.031.03 3%3%

SCM SophisticationSCM Sophistication

SC DesignSC Design

What MattersWhat Matters

Political & Socio-Cultural

Trends•Player Mapping Analysis

•Issue Mapping Analysis

•Issue Saliency Analysis

Technological Trends•Player Mapping Analysis

•Life Cycle Analysis

•Battle Analysis

•Trajectory Mapping Analysis

International Trends

•Integration-Responsiveness Grid Analysis

•International Evolution Analysis

Economic & Demographic

Trends•Correlation Analysis

•Demographic Analysis

Competition Trends

•Industry & Alliance Evolution Analyses

•4-Arenas Analysis

•Strategic Inflection Point Analysis

Company Suppliers

Competitors

Complementors

Customers

Profit Zone AnalysisProfit Zone AnalysisDimensionDimension CaseCase

Customer Customer SelectionSelection

Single people under age 34Single people under age 34

families with dependent childrenfamilies with dependent children

working people under tight budgetworking people under tight budget

students students

Value Value CaptureCapture

Customers’ willingness to payCustomers’ willingness to pay

Offer value menu to target the critical 18-34 year-old customerOffer value menu to target the critical 18-34 year-old customer

Establish beverages as a "destination" as well as a meal accompaniment.Establish beverages as a "destination" as well as a meal accompaniment.

Introduce a "Total Customer Feedback System" for improved customer service.Introduce a "Total Customer Feedback System" for improved customer service.

Emphasizing its use of fresh meats and saladsEmphasizing its use of fresh meats and salads

Focus on hamburgers, a specialization Wendy’s holdsFocus on hamburgers, a specialization Wendy’s holds

Innovate and introduce new productsInnovate and introduce new products

Involve more in local community events and charity work Involve more in local community events and charity work

Lower Operating costsLower Operating costs

Offer choice of premium and low cost menu choices in the menu to compensate for lower marginsOffer choice of premium and low cost menu choices in the menu to compensate for lower margins

Elevate the customer experience by improving the hiring and retention of Wendy's employees while Elevate the customer experience by improving the hiring and retention of Wendy's employees while reducing turnover, improving training, and generating savings at the store level.reducing turnover, improving training, and generating savings at the store level.

Improve the overall health of Wendy's system by re-franchising, as well as acquiring and re-imaging Improve the overall health of Wendy's system by re-franchising, as well as acquiring and re-imaging franchise restaurants with potential for future re-franchising.franchise restaurants with potential for future re-franchising.

Adopt more ‘green’ practices to reduce costsAdopt more ‘green’ practices to reduce costs

Profit Zone Analysis, continuedProfit Zone Analysis, continuedDimensionDimension CaseCase

Value Value CaptureCapture

Decrease Input costsDecrease Input costs

Push for green purchasing with eco-friendly suppliers whose products have reduced environmental Push for green purchasing with eco-friendly suppliers whose products have reduced environmental impact in any part of their life cycleimpact in any part of their life cycle

Reduce water and energy consumption, automate transaction processing, lower product testing costs, Reduce water and energy consumption, automate transaction processing, lower product testing costs, legal and professional fees and bonus expenseslegal and professional fees and bonus expenses

Conserve energy costs by using renewable sources such as wind, solar, hydroelectricConserve energy costs by using renewable sources such as wind, solar, hydroelectric

Recycle of paper, cardboard, metal, and plasticRecycle of paper, cardboard, metal, and plastic

Upgrade kitchen equipment and introduce new ovens to increase efficiency and lower operating costsUpgrade kitchen equipment and introduce new ovens to increase efficiency and lower operating costs

Establish buying alliances with preferred suppliers to consolidate purchasing and benefit from volume Establish buying alliances with preferred suppliers to consolidate purchasing and benefit from volume discountsdiscounts

Increase the size of the pieIncrease the size of the pie

Grow share of the premium hamburger marketGrow share of the premium hamburger market

Re-energize Wendy's Late Night business and capture afternoon and evening snack opportunitiesRe-energize Wendy's Late Night business and capture afternoon and evening snack opportunities

Continue to leverage the Wendy's brand and optimize our facilities by offering a new day-part to Continue to leverage the Wendy's brand and optimize our facilities by offering a new day-part to consumers who exhibit a demand for a better, high-quality breakfast.consumers who exhibit a demand for a better, high-quality breakfast.

Re-image restaurants by using a systematic capital reinvestment process and disciplined approach.Re-image restaurants by using a systematic capital reinvestment process and disciplined approach.

Launch marketing campaigns to create awareness about measures taken to address significant health Launch marketing campaigns to create awareness about measures taken to address significant health concerns to labor, environmental, and ethics violationsconcerns to labor, environmental, and ethics violations

Use complementor products to attract new businessUse complementor products to attract new business

Get into real estate opportunities as part of franchisee buildingGet into real estate opportunities as part of franchisee building

Limit Direct CompetitionLimit Direct Competition

Offer store promotion discounts and launch ad campaigns toOffer store promotion discounts and launch ad campaigns to lure customers away from new local lure customers away from new local competitorscompetitors

Get into exclusivity agreement with suppliers to gain competitive advantageGet into exclusivity agreement with suppliers to gain competitive advantage

Profit Zone Analysis, continuedProfit Zone Analysis, continuedDimensionDimension CaseCase

Strategic Strategic LeversLevers

Innovation Leadership with respect to hamburgersInnovation Leadership with respect to hamburgers

Control of costs & Improving Operational efficienciesControl of costs & Improving Operational efficiencies

Customer relationshipsCustomer relationships

Product development leadProduct development lead

Quality leadershipQuality leadership

Environmental and social responsibilityEnvironmental and social responsibility

ScopeScope Offer fresh, high quality ingredients for hamburgersOffer fresh, high quality ingredients for hamburgers

Utmost customer service and satisfactionUtmost customer service and satisfaction

Increased efficiency and operational excellenceIncreased efficiency and operational excellence

Business Design OutcomesBusiness Design Outcomes

Return on SalesReturn on Sales Profit GrowthProfit Growth Asset EffeciencyAsset Effeciency Strategic Lever Strategic Lever RatingRating

Market Value/ Market Value/ SalesSales

McDonald’sMcDonald’s 18%18% 40%40% .68.68 99 30X30X

Burger KingBurger King 14%14% 36%36% .65.65 88 23X23X

Yum BrandsYum Brands 12%12% 30%30% .76.76 77 20X20X

Wendy’sWendy’s 9%9% 28%28% .60.60 77 14X14X

Industry EvolutionIndustry Evolution

Maturity StageMaturity Stage

– Stable industry, clear boundariesStable industry, clear boundaries

– Vigorous competitionVigorous competition

– Not much collaborationNot much collaboration

Four Arenas AnalysisFour Arenas Analysis

Hypercompetition taking place vigorously Hypercompetition taking place vigorously across all four Arenasacross all four Arenas

Price/Perceived Quality has reached Price/Perceived Quality has reached ultimate valueultimate value

Timing/Know-how tends to take advantage Timing/Know-how tends to take advantage of “first follower” status (lowers risk)of “first follower” status (lowers risk)

Potential for Vertical IntegrationPotential for Vertical Integration

Four Arenas- ContinuedFour Arenas- Continued

Strongholds-Oligopolistic bargain, strong Strongholds-Oligopolistic bargain, strong barriers to entry, potential in non-core barriers to entry, potential in non-core marketmarket

No hesitation to throttle entrants No hesitation to throttle entrants (McDonalds/Chick-fil-A)(McDonalds/Chick-fil-A)

Deep Pockets- Primarily reliant on driving Deep Pockets- Primarily reliant on driving out other firms, costs/scale used.out other firms, costs/scale used.

Strategic Inflection Point AnalysisStrategic Inflection Point Analysis

Potential strategic inflection points Potential strategic inflection points regarding:regarding:– Potential increase in customer concern for Potential increase in customer concern for

better nutrition (change in substitutes)better nutrition (change in substitutes)– Race to gain market share/brand equity in Race to gain market share/brand equity in

overseas markets (change in group rivalry)overseas markets (change in group rivalry)– Potential need to lobby government to avoid Potential need to lobby government to avoid

damaging legislation (change in damaging legislation (change in complementors)complementors)

Technological TrendsTechnological Trends

Potential use of internet for order-ahead Potential use of internet for order-ahead (JIT delivery)(JIT delivery)

Increasingly sophisticated SCM software Increasingly sophisticated SCM software to cut coststo cut costs

Otherwise technology is relatively stable Otherwise technology is relatively stable (Specific Stage)(Specific Stage)

International TrendsInternational Trends

Key Triggers- Domestic Market Saturation, Key Triggers- Domestic Market Saturation, Movement overseas of domestic Movement overseas of domestic customers, Sourcing opportunitiescustomers, Sourcing opportunities

IR-Grid Analysis- Group = International IR-Grid Analysis- Group = International companies (Low Pressure for local companies (Low Pressure for local responsiveness, Low Pressure for Global responsiveness, Low Pressure for Global Integration)Integration)

Political & Socio-Cultural TrendsPolitical & Socio-Cultural Trends

Company- Offers corporate social performance and political activities

Suppliers(Policy Makers)

FDA

Congress

Customers(Social Actors)

Activists

Community Groups

(Political)

ComplementorsPro-Business Legislators

Lobyists

(Political)

CompetitorsLA Government

Supersize Me

(-)(-)

(+) (+)

Corporate Political Advantage Process

Social Legitimacy Process

Political & S/C Trends, Cont.Political & S/C Trends, Cont.

Salient/Probable issues:Salient/Probable issues:– Potential for necessity of food labeling (FDA) Potential for necessity of food labeling (FDA)

(Low Priority)(Low Priority)

– Potential spread of Los Angeles ruling to Potential spread of Los Angeles ruling to other cities/communities (Medium Priority)other cities/communities (Medium Priority)

– Increasing customer demand for healthier Increasing customer demand for healthier food (High Priority)food (High Priority)

Critical Success FactorsCritical Success Factors

1) Pursue Vigorous Overseas Expansion1) Pursue Vigorous Overseas Expansion

2) Continue to pursue/market healthy fare2) Continue to pursue/market healthy fare

3) Maintain market research w/r/t new menu 3) Maintain market research w/r/t new menu itemsitems

4) Maintain vigilance for merger/vertical 4) Maintain vigilance for merger/vertical integration possibilitiesintegration possibilities

Threats and Opportunities, ReduxThreats and Opportunities, Redux

Global ExpansionGlobal Expansion CommoditizationCommoditization

Mass CustomizationMass CustomizationConsumer concerns Consumer concerns

about nutritional about nutritional datadata

More upscale More upscale “boutique” stores“boutique” stores

Government Action Government Action (Los Angeles)(Los Angeles)

Inter/Intra group Inter/Intra group mergersmergers

Regional/ Boutique Regional/ Boutique storesstores