Where to Locate Next?
The location of the business can have a significant effect on how it performs. Since Wendy’s Co. is the third largest quick-service hamburger-chain company in the US, the company wants to expand its services in the country. The management understands that the positioning of a business restaurant is a critical factor in making or breaking it. According to researchers, the location of a restaurant is one of the most important factors for success since it appeals to a large customer base. The management wants to take advantage of the technology, the Geographic Information System (GIS), which, they believe, will help them in deciding the location. The following essay will discuss the importance of the GIS system in their decision making, whether the store locations are certain or uncertain, and how intuition can help contribute to Wendy’s decision-making process.
The GIS is essential in helping the management pick good locations for their future stores. Auto traffic information will help Wendy’s Co. to know when and where traffic flows. The Co. will have an understanding of the demographics of the consumers, and this will greatly help them determine the kind of foods to prepare. Information on the competition will also help them determine whether to locate their stores in that location and even the unique products they should introduce to curb competition.
Store location decisions are not certain since GIS provides location information based on past data sales, and it does not have access to other data needed, including the customers’ loyalty (Robbins, S. P., & Coulter, M. K., 2018). However, the technology, the GIS in this scenario, is very important since it will help Wendy’s Co. prepare for growth challenges that she may face.
Intuition or the management’s instincts, backed with a previous company’s experience, will help the firm decide on a new location (Robbins, S. P., & Coulter, M. K., 2018). This is because Wendy’s Co. has vast information and experience in running business restaurants. Having new branch locations allows a business to expand as well as improve on the quality of its customer services. The critical factor which makes a business succeed despite having competition is the quality of its customer service. As such, to make it easy and convenient for customers to access their services, Wendy’s Co. should relocate as close to customers as possible.
Reference
Robbins, S. P., & Coulter, M. K. (2018). Management: 管理学. Qing Hua da Xue chu ban she.