Management Theory - Wendys Crisis Management

Introduction
Wendy’s has 6,481 member of a chain all over the world, and valued as world 1798th largest company by Forbes. However, the company have faced crisis on 2005 due to one evil customer. In March 2005, a woman claimed she found a human fingertip in her chili she ordered for a diner at a Wendy’s restaurant in San Jose California. The next day, the incident was all over the media, on the late night TV shows, news and on the news papers. Consequently, Wendy’s sales and reputation went down because customers do not trust Wendy’s food anymore after the incident. Wendy’s faced one of its biggest crisis management that Elliot (2005), called a crisis of confidence in the public’s mind about the quality and the safety of Wendy’s food. In this study, we will first analyze the consequences of the crisis before we analyze how Wendy’s management handled the crisis. Then we will suggest several strategies and implementation plans that should help Wendy’s to faced this crisis to save the sales and the company’s reputation. Finally, we will propose certain tips to evaluate the success of the plan.

Case study analysis/ consequences
According to Elliot (2005), Wendy’s reported that about 6,250 restaurants that had been open about a year and half had seen their sale decreased about 2.5 percent since the fingertip incident. Certain store around Bay area had their sales down about 20 to 50 percent. In addition,