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	Wendy's case analysis
	Wendy’s did not display adaptability to the external environments. Following items point to this fact: • The cost of labor compliance caused slowdown in Wendy’s increase in revenue and profit. In 1979, the U.S. Department of Labor reviewed company labor and indicated that certain company policies were not uniformly adheres to and as a result the company was not in compliance with the Fair Labor Standards Act. This eventually cost Wendy’s $3.8 million dollars in Net Income. • Again in 1979, they were faced with major challenges, such as inflation and energy problems. Wendy’s failed to anticipate high labor costs and rising beef prices. • Wendy’s failed to recognize a concept known as the “Learning Organization”. Approximate Word count = 444 Approximate Pages = 1.8 (250 words per page double spaced)

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