Manager... What Wo th ESS DILEMMA Would You Do? MPANY: McWendy King NHead of Fra

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Manager... What Wo th ESS DILEMMA Would You Do? MPANY: McWendy King NHead of Franchise Operations CE: Wichita, Kansas King the United States, with over 5,000 of the largest fast-food restau- E venniesiht chain has a traditional fast-food chicken, and roast beef sand recty operates roughly 50 cWendyki, Salads with thise systetors who own just one or two specialty as oand so forth. McWendy King owns shakess roughly 50 percent of its restau- McWendy King franchisees by franchisees. Unlike in sonm the rest run emall-busies the franchised restaurants the ad- ement and control are not as evi unit in e cal businesspersons who are McWendy King franchiseets sen in MelWendy King's major control atlets Suere manager of a company-owned rdets. This gives the the daily operations of their operatndy King's major competitors. was testing the pizza concept, but were not informed along the way of the operational considerations and utkes of being run by local were aware that the company in ois, wished to experiment and aetmanager, is ideas to the company's through window was roughly $15,000 ment with the develop box was too large to fit through the current store drive- ployee training. In addition, because the 16-inch pizza taurant. After talking the store manager drafted peoria, sale of pizzas at his res through windows, all the stores would have to make structural modifications. The cost to redo each drive- The franchisees were aware that the company helieved the idea had merit, costs. Unlike the company units that had flat or de- representativ hts, competitive analysis, co was testing the pizza concept, but were not informed doerational considerations along the way of the operational considerations and were impressed with the an in the Midwest region, work- and they decided to test it ng closely with the store in Peoria. clining sales, the franchise units, because of the tighter worke for months developing the that could be produced as nd would require a minimum of owner co Headquarters worked perfect fast-food pizza ntrol, operated with significantly higher sales. With emotional responses, the franchisees rejected the idea of making such sweeping changes in order to add pizza to the menu. They suggested that the company taurants. The company then tested the company-owned restaurants in the Midwest investment for the company and franchi se look into other less costly alternatives for expanding product in region was that the pizza product would hut not in the 12-inch size originally the McWendy King menu QUESTIONS achieve success fared. Instead, research suggested that if only one was offered, it should be 16 inches to accommo- date small families and those who like to reheat the 1. As the head of franchise operations, what should you have taken into consideration in evaluating operational changes for the system? product for later meals. 2. Identify and evaluate compromise alternatives to endy King presented the concept, with all the fnancial information, to the franchisees. The comp y's presentation indicated that each store would need 3 resolve the situation; consider both quality and productivity for each alternative. What is the role of communications between the corporate and franchise organizations? approximately $41,000 in equipment and em-

Explanation / Answer

1. Firstly you should take a market survey for perticular 16 inch Pizza for your own region. It need to check the survey result whether it is positive response or negative response from the customer. You should ask to customers about the taste & prize of that pizza. Then you need to identify the monthly demand for franchise. Now you have to calculate the total profit per month or year. Need to analyze is it worth to invest 41k + 15k dollar ? You also need to analyse the future response of the product.

2. You need to discuss with company about the investment. Company is introducing new product so they should invest in franchise store operational cost. Because company will be more benefit if product has got success in market. I feel you should demand to company to invest 50-50 percent each share for operational cost while introduce any new project.

3. Whenever the company start working on new project, they should aware the franchise store and ask any improvement in upcoming product. After successful R&D of product company should introduce the product to frenchise store formally. Company should plan with franchise how to implement & what timline need to execute the product ? Company should send the future demand forecast of the product so that frenchise can plan for production. Company should share the list of equipment requirement for new product.

Thank you for choosing Chegg..

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