Strategic Impact of Business Enviornment

Muhammad Ali Mooni CTH # 77598 Strategicimpacton businessenvironmentM- 5036107
STRATEGIC IMPACT OF BUSINESS ENVIORNMENT
(In case of Wendy’s Co Restaurant)
Introduction:
Among the successful QSR restaurants of United States Wendy Company accounts to be the
third largest company of fast food restaurants with about 6500 franchises and company
restaurants in all over U.S and approximately 29 of the other countries. Wendy’s was to provide
best known for its menu which comprises of famous Hamburgers, along with Chicken
Sandwiches and French Fries, served with Breakfast Sandwich and Frozen Desert.
Wendys.co.nz, (2014).
The first Wendy’s restaurant start up in 1969 in November by Mr. Dave Thomas in Columbus
Ohio, in 1970 it started it first pick up window services, while in 1975 it turned itself and opened
in Canada, within one year it got viral with spending of about one million of its common share
and turn up the notch to open it 500th restaurant in Toronto. Next year it launched it first
commercial. And in 1978 it opened it 1000th restaurant in Tennessee.
Holding an industry record of open the fastest restaurant in 100 month is goes to Wend’s. It was
the first one into the market to introduce the salad bar; with opening 2000th restaurant in 1980.,
and the most popular commercial of Wendy’s were “where’s the beef”. It also introduce the
national Dave Thomas Advertising Campaign.
Objectives:
The aim of writing this project is to:
 Analyzing the business environment
 Analyzing Marketing Tools
 Analyzing internal factors
 Analyzing External factors
 Analyzing Porter Value chain
 Analyzing Risk Management

Impact of tourism: Tourism is deliberately defines as the travelling from one place to another
for any reason which sum up under the circumstance of the purposes of Business, leisure and
recreation, medical, friends and family, sports or event. Tourism has a great advantages effect on
to the impact on the economy on any country, it plays with natural resources as well as all the
notch up pristine of any country, it can be said in other words that any country can cash its cost
but just admiring the cultural and nature of the country to the seeker of beauty, music, art and
peace.
Changing Dimension of Business Environment: the business analysis is to launch a very
renounce brand in Pakistan which has prove to be the confetti for capturing the fast food market,
although it seems to be in a political haze which can sometimes be unstable but it doesn’t effect
the market of the Karachi specifically because the only tourism and a break from the situation
and real life realities is to go eat out. Now with more trends to eat to every third day is an anthem
in numerous housing. Everywhere in each corner a fast food restaurant can be easily found which
is evidently resulting of the demand in the market of fast food lover. The main focus of bring any
business into another country is that it doesn’t leaves it punch of origin while blending into
adapting the local flovouring.
Impact of Technology: the impact of technology has eased up the customers of all he services
any QSR can provide, many of the consumer like to have food to be enjoy in their homes. A new
approaching method to reach out these people is though technology, for those restaurants which
do not have any online website to take orders goes to these food servers like food panda which
deliver the customers its favorite food. A lot of on the site advances has hooked people for easy
access and less time consuming method to turn more to QSR Restuarants.
Globalization: the reasons for expanding business across border is the going global,
globalization covers for about many situations and is an ideal for different aspect going for a
single face to confront for manage political social economical and social bridges. The is one of
the reasons that expansion and interchange of ideas and good services
Looking back at the history of Wendy’s, it is easily observed that Wendy’s aims to complete
round figures when it comes to opening the new franchise. Within the periodically record of two

years Wendy’s touchdown 500th/1000th,2000th in a row their main focus is on expanding the
continuous name of their brand.
Moe specific over is that it contains certain internal and external factor that affects the business
operation while carrying out in any country. These factors sum up to the greater influence for
new business start up into any country. The internal factors that might include opening a
franchise of Wendy’s across Pakistan is the management style and where as external factors
comprises of social economical issue in which the people Wendy’s is marketing need to
understand the psyche and what and how it is important to each other. Other than that,few legal
bureaucratic red tape legal system has to be form to get the work done if one’s have to start up
any business here. Pakistan working type can come into the file of bossied tone, just to adjust
into leads to turn up success with its employees.
Diversity Management: diversity management is easily explained by the management of many
diversified aspect to blend together for favorable results. Accordingly to the issues that can be
faced by the Wendy’s when setting up in Pakistan is that it will face up the socio-cultural
preferences. Penetrating into the new market takes up a setting and struggling time period of 10
month since it is something foreign to the locals to build bud its taste buds. It can also be
countenance the initial effort to fight back the political instability, which is probably the defiant
of good governance interlined to the tumbling stock market. Unemployment will be a reason for
setback for trained and skilled worker, this can be dissolve training session conducted before the
opening of the brand. Wendy’s might face some regal governmental issues as this is purely Halal
food as per the Shariah law here in Pakistan. Selling alcohol beverages is prohibited into the
country, so Wendy’s have to re=adjusts it strategy on menu planning while serving here in
Pakistan. As being the first hamburger restaurant there will be a rival competition even on a
minor level. To success in the market like Wendy’s has to be turned on very specified set of path
based n the strategic decision making with both pros and cons of every situation into the long run
as well.

PESTEL Analysis:
Pestal analysis is define as the analyzing tool used for marketers or businessmen to access u the
potential of survival rate into the business market. It is all depending on the analyzing with the
macro environmental factors. The following is the PESTAL analysis for the setting up the
business in Karachi.
Political: the key to successful business is to keep all the political influences away from your
business, the instability is the reason that which rings the sirens of war of terror which then
persue the markets and businesses to keep shutter down. Karachi is the city givng about 70% of
revenue into the country, it is the main icon for showing power among other political parties of
who have more control, such emerging parties containing MQM and PPP and now it is PTI. .
Since, the rivals are still operating their businesses deliberately in overall all cities of Pakistan.
Therefore, by taking fewer precautionary steps Wendy’s can also carry out its operations in
Pakistan as well.
Economical: Pakistan is the 26th largest country to be ranked on the purchasing. It is densely
populated with estimation of 186 million people and the GDP annually has increase to about 4.1
% in 2014, in contrast to the 3.59% of 2012. Despite the current economical state into the fury of
terrorism, the constant increase in oil/fuel prices, low disposal income and high prices, Pakistan
is stabilizing to show promise results when it comes to food industry. The global financial crisis
is the reason of declination into the economical status of Pakistan. What more effort Wendy’s
has is that the cheap labor is that it can turn out the tables with hard working employees and low
expense. This would cut Wendy’s costs for hiring employees from homeland. The more the
effort government is inflation in about 20 years Pakistan will be one among the developed
country past all these problems of economical deviation.
Social: the social gathering of Karachi is elite class, middle class, and low middle class which
can affordably can dine out at Wendy’s. the high income earners are much more fond of dinning
outside than relatively inside. As the business environment has change up the working styles and
attitudes to stay at home work or the trend of outing and small meeting be held in a third place,

Wendy's can target this segment offering breakfast sandwiches. Fresh graduates often entertain
the idea of having lunch at any fast food joint.
Culture also has a vibrant impression on to the social wellbeing of Wendy’s is that there are such
events that Karachiets are too much jostled about. Event such as Ramadan, Eid ul fiter, eid ul
Azha.
Technological: Technology plays a significant role into this era of modern science. Since
everything is now available to everyone on the tip of their fingers, it is now possible to connect
everything virtually. The modern scientifically advancement in technologies are mobile
applications which is the fastest source of connectivity when it comes to the any industry
especially food and hospitality industry. Latest technology includes tablets instead to menu
cards, with operative machinery like wine openers and latest machinery like multipurpose
cooking ovens.
Environmental: Business environment of Karachi is very suitable for a business such as a
restaurant because it is the only entertainment that Karachiiets enjoy. Being the center of
economy, Karachi is an industrial city, which produces about 50 % of Pakistan’s economy.
Karachi has five seasons of the year, summer winter, spring, autumn and monsoon. It is has
humid weather because of the sea level even in the hot days of summer. In summer the recorded
temperature rise to maximum 43’C and lowers to 3’C in the winters. Karachi is called the “city
of lights”, along with this it is a green and accordingly a clean city. For hygiene purposes CDGK
“City Development Government Karachi” tends to keep it hygienic and clean. Programs like
“We own Karachi” initiated to keep the city clean with the help of volunteers focusing
youngsters.
Legal: the legal aspect of any business starting at the a franchise leads to many documentation
and standardize procedures and rules and regulation. These consequences are highly of
concerned for any business to look before setting up its operation. Anti:trust law, Discrimination
law Copyright, patents / Intellectual property law Consumer protection and e:commerce
Employment law Health and safety law Data Protection. Different courts are there for different
purposes to deal with different types of issues. There is no hard and fast rule concerning fanchise
in pakistan except the official contracts such as the license agreement and deals under the

“Contract Act 1872” that is all the franchises and franchisors have to follow through the
guidelines set up by the Government. All these regulations has to be followed by Wendy’s to
surf a safe business.
Environmental: the environmental aspect of country is moderate in such a way that people are
very open to try out new exciting things, some are into this business for status consciousness the
others are for profitability. Karachi is a metropolitan city which has about different people living
together, each one having different preferences but at the end they agree on the fact is that
Karachi is generating the great chunk of economy for Pakistan through service industry other
than agriculture.

SWOT analysis: SWOT analysis is a basic analsis for any business entering into a new
market, it allow the seller to strength himself against the rival opponents, it allows them to focus
on the line of action other than dispersing and then dissolving into the new market to this sort of
analysis enables business to know its strengths, weakness, opportunities and threats to estimate
whether the business is ready to suvive the long bitter work environment.
Strengths: Wendy’s greatest strength is being a quick service of providing quality hamburgers,
with a fast track of expanding business over increase of 6500 franchise and Company
Restaurants in the U.S. and 29 in other countries and U.S. territories worldwide, internationally
recognized brand name, HACCP and consistently maintaining quality and hygienic standards
and its diversified range of menu.
Weakness: the weaknesses will identify the areas where Wendy’s needs improvement. Wendy’s
with be at disadvantage as it is penetrating into a new maket, it need to buld its customer base, it
specifically required to arise the demand into the market. The biggest rival of fast food industry
had already capture the market with chicken and burgers. Wendy’s has already gone through the
negative publicity in the earlier years which had adversely affected its financial position.
Therefore, Wendy must keep in mind when making strategic decisions about its problem and
must have a backup plan of any of the situation.
Opportunities: Wendy have high opportunity to perform best because of the benefits it can
receive from the Pakistani market, Pakistan is a low interest rate country, with cheap labor in
third world country, it has a large consumer market which Is in demand of fast food.
Threats: the facial threat that Wendy's can face is strongest opponent grip on to thefast food
market, The possible threats that Wendy’s might see while operating in Pakistan is the fierce
competition from i.e. McDonalds, KFC, burger King and similar small businesses even locally
are offering variety of breakfast menus, consumers tastes, economic and political situations and
the government reaction, attracting the loyal customers.

Porter’s five forces: Fortor five forces is an analyzing tool that prepares the business
capability into the market with profit generated.
Threat of new entrants: As being the new entrant, coming to the new market has always the
threat of rivals. But Wendy’s being world famous hamburger restaurant with fight back capure
the demand from the market.
Bargaining power of suppliers: Strong bargaining leads the supplier to sell higher priced or low
quality food.This directly with be beaming effect on Wendy’s profits as they cannot compromise
into the quality of their menu. That’s the reason that wendy’s must keep few vendors whom
which thy can buy their suppies, addition to that the advantage that Wendy’s has is that it doesn’t
require seasonal food, which will b then an issue to handle at hand.
Bargaining power of buyers: when you are attracting customers, buyers bid low prices
comparative to the sales of other rivals, what to be done in this situation is not to compromise on
your quality and adjust to seasonal package, deal and offers.
Threat of substitutes: the threat of substitute will keep Wendy’s on their toes, to be a
competitive opponent, Wendy’s has to keep their menu and offers to be into the line of
demand of the market while not losing your customer to your opponent through engaging and
retaining the customers with best quality services.
Rivalry among existing competitors: as you can observe the rivalry of Pepsi and Coke is going
from ages, these brands can be build to Wendy’s profit, these side brand has the largest
customers base and favoring them will give Wendy’s the benefit of sharing their customers as
well.

Porter’s Value Chain analysis
Inbound Logistics: reasonable prices are put up for the raw material, both from country poltury
and dairy items to hygienic meat at low coast.
Operations: Wendy’s is a day to day operating brand, what wendy’s provide is the need of the
market, some people prefers low carb diet, thus Wrndey’s have salads bars and low calorie meal,
proper marketing and promotional prices are the addition bonus Wendy’s have to its benefit.
Service: Wendy’s should always take customer feedback either they dine in or take away.
Procurement: Wendy’s must make effective management team to deal with local suppliers as
well as home land for the supply of raw materials.
Human Resource Management: the cheap and very hardworking and skillful labor in Pakistan
has given Wendy’s an advantage for not US locals t come and work here.
Technology: as thworld is improvising, Wendy’s as well have improvise into effective method
of recording the data entry of the organization.
McKinsey 7’s Framework
Strategy: the strategy of Wendy’s is to franchise its branches all around the world with more and
more into very limited time. Its strategy is to retain its image as the third largest company with
the most franchises in the world.
Structure: the structure of Wendy’s is set up on to the mission stated by the founder Mr. Dave.
Speaks to the way Wendy's business divisions and units are sorted out and incorporate the data
of who is responsible to whom.
Systems: accordingly to Wendy’s day by day work and sum up is the greatest strategy for a
short term program.
Skills: Are the capacities that Wendy's workers perform exceptionally well? They additionally
incorporate abilities and capabilities. Amid authoritative change, the inquiry frequently emerges
of what aptitudes the organization will truly need to fortify its new system or new structure.

Staff: the structural frame work of Wendy’s is that it has the hierarchy of any small restaurant
with four servers, and executive chef, Sous chef, 2 cooks, 1 restaurant manager, 1 general
manager of the restaurant. .
Style: the style of Wendy’s is of top level supervisor their main focus is to give the best quality
of food to it customers.
Shared Values: Wendy’s will share the value of the of both United States and Pakistan, merging
the need of markets.
Conclusion
This report consists of detailed study of establishing franchise of The Wendy’s Company in
Karachi, Pakistan. All the possible outcomes, risks and consequences are discussed in depth and
some measures are closely observed and taken into account. The operating strategies, and
commerce decisions were also discussed and the probable results and effect are also mentioned.
The report includes Company’s SWOT and PESTLE analysis and Porters five forces. The
jeopardy that is associated with the business is also highlighted.
Recommendations
Certain recommendations are too intrigue for Wendy’s to open its franchise/restaurant in
Karachi, Pakistan. At first the diversification of menu can enable Wendy’s to attract customers.
Followed by, the location, as it should be selected which has peaceful environment and can
target maximum number of customers. It would be recommended to Wendy’s to bring variation
in breakfast and meals. And at the last but not the least Wendy’s should hire staff that meet the
international standards and convey a sense of professionalism as it can increase efficiency. It
would also be of great worth if the firm markets itself through social media or other above the
line promotional strategies.

REFERENCES :
WENDEYS, (2014), The Wendy’s Story, [ONLINE] Available at: https://www.wendys.com/en-
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Wendys.co.nz, (2014). Wendy's Hamburgers. [online] Available at: http://www.wendys.co.nz/
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