Canadean (2012) reported that the sustenance and eatery industry would face expanded combination in the up and coming year. Little organizations would either blend or obtain other little organizations in quest for expanding their authoritative size. The principle reason that will make organizations consolidation or procure would be high weight on their net revenues from the macroeconomic environment joined with expanded rivalry. Expanding the expense alongside expanded interest of minimal effort nourishment items would compel organizations to lessen their operational costs by means of economies of scale.
In addition to the price of chicken wings, and how the restaurant industry is truly competitive, BW3 and Hooters are known as the places to go for wings, but with McDonalds entering the wing business is concerning. McDonalds price point might persuade customer purchase. Another obstacle that BW3 faces is going international, trying to establish in Canada and the UK.
The food provided and promotions will have to adapt to the culture and traditions of the abroad Strategic Audit Executive Summary
Jim Disbrow and Scott Lowery founded Buffalo Wild Wings Bar & Grill (BW3) in 1982 near the Ohio State University campus. BW3's main goal is to provide its customers with a Buffalo, New York style of chicken wings saturated in a variety of sixteen signature sauces and five signature seasonings. Buffalo Wild Wings restaurants offer 20-30 domestic and imported beers on tap, as well as a large selection of bottled beers, wines, and liquor. BW3 restaurants offer a welcoming neighborhood atmosphere, which includes dining and bar areas that provide distinct seating options for sports fans and families. BW3 provides their guests with the option of widespread multi-media systems, which consists of approximately fifty televisions and projection screens capturing the hearts of sports fans and families alike. BW3 differentiates their restaurants by the social environment created and the connection that is made with team members, guests, and the community. BW3 has won a dozens of "Best Wings" and "Best Sports Bars" awards across the country. Their award winning food and memorable experience drive guest visits and loyalty. The business strategy that BW3 presents is to continuously grow and develop the BW3 concept as a national leading, and potentially international leading restaurant chain. 800+ company owned and franchise restaurants in 30+ states in North America poses as a strong starting ground to expand. A team of 25,500 members accumulated revenue calculated to 303.8 million, which is a 37.8% increase from 2012. In most existing markets BW3 plans to continually grow and open up new restaurants until a market is penetrated to a point that will enable them to gain marketing, operational, costs, and other efficiencies. With intentions to enter new domestic and international markets by opening up several restaurants within a year time frame to build brand awareness in both company-owned restaurants and franchise owned restaurants. I. Current Situation
Buffalo Wild Wings (BW3) has been striving since the beginning. As of right now Buffalo Wild Wings currently has 381 company owned locations and an additional 510 are franchised. This creates a grand 891 locations in the United States and Canada. BW3 Having mostly franchised locations allows the company to have less risk attached. BW3 has zero long-term debt. However, they do have other liabilities. The price per earnings is 41.98 and their stock has doubled within the year. Furthermore, BW3 had a gain in profits nearly 80% over three years. The company is branching out and going international through agreements with new and existing franchisees. 1.Mission
"Our mission is to WOW people every day."
Four specific how-to-wow strategies:
We are Guest Driven - We will WOW our guests every day We are Team-Focused - We will WOW our team members
We are Community-Connected - We will WOW the communities where we do business. We are Dedicated to Excellence - We will WOW our franchisees and stakeholders. 2. Objectives
The overall objective for BW3 is to expand and improve as a company. A milestone for BW3 in 2015 is to enhance the company business strategy. In addition, BW3 wants to achieve having 100 chains in Canada by the end of 2015. The plan is to not only expand but also expand internationally continuing in Canada and over to Europe. As for the currently existing locations the objective is to innovate the customer experience and in flavors. To achieve that an increase in budget for marketing and research on consumers tastes for new wing sauces must take place. One more milestones would be to create a new sauce for each state by 2016. Finally is to obtain and accomplish 1,400 restaurants by 2017.
The goals for the year are to grow BW3 by building up and promoting both the BW3 brand and all their restaurant locations. They are not limiting themselves just domestically. The reach is international now. Several more locations are hopefully to arise. BW3 is striving on their pursuit of accomplishing their joint venture to be able to go abroad. There currently are two signed franchises in development in Puerto Rico and in the Middle East. There have been negotiations and agreements for all franchisees.
II. Strategic Managers
A. Board of Directors
The board consists of seven members. Out of those seven, six of them are from outside of the company. The only insider is Sally J. Smith who has been a director since she arrived at BW3 in 1996. Warren E. Mack has been on the board the longest. He has been there since 1994. Then follows Dale M. Applequist in 1997, J. Oliver Maggard in 1999, James M. Damian in 2006, Michael P. Johnson also in 2006 and finally Jerry R. Rose in 2010. All of the directors on the board deserve to be there with all of their experience. Together they have a well-rounded portfolio including international accounting, marketing, advertising, legal and investment. B. Top Management
The top management was mostly brought in externally. A lot of the management though was taken in from positions where they started at in BW3. Currently
1- Global Environment
2- Technological Environment
3- Market Size
4- Stage of Life Cycle
5- Growth Rate
6- Pace of Change
7- Industry Attractiveness