Wendys Hamburgers Business - Case Study Example

Wendys Hamburgers Case Study Dave Thomas is a true entrepreneur as he has such entrepreneurial traits as: independence; desire to control his lifeand business; responsibility; flexibility; open mindedness; passion to do what he loves; optimism and innovation. The fact that Dave Thomas was a franchisee owner perfectly illustrates his desire to have autonomy and control as he has demonstrated thus his passion to business ownership and entrepreneurial activity. As franchising implies limited scope of actions on behalf of an entrepreneur because of clearly identified instructions, manuals, and procedures, Dave has came up with an idea to create his own business where he will have control over everything. His desire to control his life and business is a good illustration of some of the basic entrepreneurial traits. Also, he has demonstrated open mindedness and innovation traits when decided to open burger restaurant with new innovative and creative ideas. When he has made a decision to shift to hamburgers, he made a decision to shift to the thing which he really liked. In such a way he has demonstrated his passion to do what he loves. Despite the skepticism and negative forecasts of experts he has made a decision to move forward with his idea. Thus, Dave has demonstrated optimism and belief in himself and his expertise, which is also critical for successful entrepreneur. 2. Dave’s success with the first Wendy’s restaurant can be attributed to an idea to offer fresh hamburgers of high quality. This was something new as the competitors offered hamburgers made from a frozen meat. Even though the market was saturated he has managed to find a unique selling point or the so called competitive advantage, which enabled his business to develop and grow despite fierce competition on the market. It is possible even to suggest that he has broken some stereotypes, as fast food is usually associated with bad quality and unhealthy food. Thus, fresh high quality fast food offered in Dave’s restaurant has contributed to shift in consumer’s perceptions about fast food. He has managed to satisfy customers’ needs and even exceed their expectations, making the restaurant profitable within the first weeks after the opening. 3. The phrase about the most difficult thing in running business is “being willing to listen to customers then doing whatever it takes to make your dream (and their wants) a reality” could be interpreted as Dave’s vision of his role as an entrepreneur. Dave is an entrepreneur who pursues his own dream, and chooses optimal methods impacting other people, including customers. He demonstrates thus that he pursues not only financial benefits, but also social benefits, as he strives to provide customers with what they really want. While he has his own dream and vision of what his business should look like, he is open to new ideas and he is eager to listen to what the customer says. Thus, his role as an entrepreneur is to find a balance between his dreams and customers’ wants, as sometimes these aspects might be in conflict. For example, Dave might be a perfectionist and have a perfect vision of what should be his business, but customers’ might not be ready for these changes yet. 4. It is not easy to give advices to a man who has already become a millionaire and a successful entrepreneur. However, some common advices regarding the sustainability of Dave’s business can be given. Dave should work on opening more locations for his restaurants. Even though he already has developed successful national and international chains, there are still many opportunities for business growth (for example, emerging markets). As the competition is much fiercer comparing to the times when the company was founded, Wendys Hamburgers’ management might reconsider its menu list and may be introduce new menu items or refresh the old ones. Expanded menu might attract broader categories of customers of different ages. However, it is important to balance menu innovation not to put on risk company brand identity. Also, in order to make the business truly sustainable, the company could focus more on corporate social responsibility concept, where the focus is made not only on economic, but also on social and environmental issues. By following this approach the company will strengthen its long-term financial value as more and more customers are concerned about environmental and social impacts of the businesses. Companies who are focused on sustainable development will be able to increase customers’ loyalty and retention. Both these factors are recognized to be important elements in firm’s sustainability and long-term value creation. It is also important to communicate all achievements in relation to company’s environmental and social footprints to all stakeholders. Therefore, the company can use its website as a platform for communicating major plans and achievements. This activity will definitely help to make business even more sustainable. Another important aspect, which the company could adopt, is utilization of Information Technologies and development of apps. This strategy has been widely implemented by many fast food providers, such as Starbucks, Subway, etc. Today’s increased use of smartphones provides great opportunities for businesses, as customers can be reached in the most efficient, cost-effective, and quick manner. Customers also seem to be very happy with various IT innovations, as they help to make their lives much easier and save their time for purchasing or order making. Thus, Dave should focus heavily on innovations in apps and also creating an environment and organizational structure supporting sustainability. Also, the company’s management could develop some marketing campaigns and launch them via social media networking channels. This might help to engage more customers (both current and potential) and to increase customer’s loyalty towards the brand, making business more sustainable. And as a true entrepreneur, Dave should encourage continuous innovations within his organization. As a franchise owner Dave should continue working hard on strengthening the brand of his company, as the importance of brand name is crucial in developing great franchising network. Thus, he will gain even greater market share and will ensure that the business is developed in sustainable manner. Read More