1. MBAD 271-Strategic Management

4. External Factors Framework 2.05 100% Total .1 2 5 4. Regional/Boutique Stores .4 4 10 3. Commoditization .3 2 15 2. Government Action .2 1 20 1. Health Concerns Threats .05 1 5 4. Boutique Stores .1 1 10 3. Mass Customization .3 2 15 2. Mergers/Acqusitions .6 3 20 1. Globalization Opportunities Weighted Score (% X Rating) Performance Rating (1-4) Importance Weight (Percentage) Critical Success Factors

5. Competitive Factors Framework 2.2 1.9 1.85 2.5 100% Total .05 1 .1 2 .05 1 .05 1 5% 4. Regional/ Boutique Stores .4 4 .4 4 .4 4 .4 4 10% 3. Commoditazation .15 1 .15 1 .15 1 .15 1 15% 2. Government Action .4 2 .4 2 .4 2 .6 3 20% 1. Health Concerns Threats .05 1 .05 1 .05 1 .1 2 5% 4. Boutique Stores .1 1 .1 1 .1 1 .1 1 10% 3. Mass Customization .45 3 .03 2 .03 2 .03 2 15% 2. Mergers/Acquisitions .06 3 .04 2 .04 2 .08 4 20% 1. Globalization Opportunities Score Rtg. Score Rtg. Score Rtg. Score Rtg. Yum Brands Burger King Wendy’s McDonald’s Importance Weight Critical Success Factors

6. Value Chain Analysis Service Marketing and Sales Outbound Logistics Operations Inbound Logistics Customer call center for complaints, service cards, communications Advertising, brand marketing, cupons, store decoration, new item creation, media promotions Order processing, drive through window, shipping Food creation, cooking, maintenance, cleanliness and hygiene controls, communications infrastructure and training Storage of raw materials, inspection Replacement parts for equipment, service contractors Advertising- Radio, TV, newspaper & internet Restaurant supplies, computer services, waste disposal and POS operations Food, paper goods, real estate, cooking equipment, energy, eRestaraunt services & inventory applications Transportation, local sourcing for fresh vegetables and salads, site maintenance contractors, restaurant supplies Procurement Service manuals, training videos, customer feedback systems Market research, new product introduction, sales & forecasting systems Back kitchen monitors, order timing, better equipment for drive through, remote call center for drive-thru ordering Design of terminals, design of procedures, quality control procedures, wireless thermostat monitoring & control, card payment terminals Design of ordering/scheduling software, potential JIT delivery system for goods Technology Development Recruiting, training, development Human Recourses Financing, legal support, general management, accounting, quality control Firm Infrastructure The Value Chain

8. The 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 (-) (-) (+) (+)

9. Value 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

10. Forces SUBSTITUTES RIVALRY SUPPLIER POWER COMPLEMENTOR POWER CUSTOMER POWER NEW ENTRANTS THREAT OF NEW COMPETITORS

15. Quality/Price Profile 100% 100% 10 5.5 6.6 5.8 20% Sides 8.7 7.8 8.2 10 20% Drinks 10 7.6 8 8.7 30% Sandwiches 4 7.7 8.1 9.35 30% Meals Yum Brands Burger King McDonald’s Wendy’s Price Performance Scores Importance Weights Price Attributes Price Profile 7 8 10 6 20% Kid-Friendly 4 3.66 4.33 5 15% Speed of Service 10 3.2 8.7 1.9 5% Location 5.33 4.66 5 6.66 30% Quality of Food 5.33 4.66 5 6.66 30% Taste Yum Brands Burger King McDonald’s Wendy’s Quality Performance Scores Importance Weights Quality Attributes Quality Profile

16. Value Map

17. Strategic Group Mapping Analysis

18. Customer Value Rating 3% 1.03 = 55% x 1.01 + 45% x 1.05 Yum Brands -13% 0.87 = 55% X 0.85 + 45% x .90 Burger King 3% 1.03 = 55% x 1.07 + 45% x .99 McDonalds 14% 1.14 = 55% x 1.14 + 45% x 1.13 Wendy’s (Disadvantage) (wtd ave) Weight Ratio Weight Ratio Firm % Advantage Rating Quality Price Satisfaction Customer Value

19. SCM Sophistication

20. SC Design

31. Political & Socio-Cultural Trends Company- Offers corporate social performance and political activities Suppliers (Policy Makers) FDA Congress Customers (Social Actors) Activists Community Groups (Political) Complementors Pro-Business Legislators Lobyists (Political) Competitors LA Government Supersize Me (-) (-) (+) (+) Corporate Political Advantage Process Social Legitimacy Process

34. Threats and Opportunities, Redux Regional/ Boutique stores Inter/Intra group mergers Government Action (Los Angeles) More upscale “boutique” stores Consumer concerns about nutritional data Mass Customization Commoditization Global Expansion