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Case Study Buffalo Wild Wings PDF
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0 Wild W; CASES» BUFFALO WiLD wiNGs, INC, 2013 ming atmosphere ee phere, open layout eat Gifferent beers on draft and tap, up t0 10 projear’, Ove The typical 30 a pee store offers 21 Ba soccting event ‘on TV screens, and up to 50 smaller We Be BWW specializes in traditional bone-in chicken w; complimented by its 16 different wing sancee Bs anes and boneless chicken wings ; WW als B Sobolc beverages. The typical restaurant ane 2 Ses burgers oer ger fods, and pions. As of Year end 2012, BWW operon rg ete Stn of ber, ines, an gue Bees torchisce oorea re, 91 stores of which 381 were company-owned ee ed. The company expects to increase its total mumive ty 105 in 2013 and approximately by the same pes ohrenateae ewe y E 's around $2 million to build, including the land, building, appliances, etc. Each has 50 high-definition flat-screen TV's and 10 lage projection screen TV's. Takeout orders comprise 14 percent of BWW sales In their company-owned restaurants, BWW employ s 25,500 L-tir 72,300 part-time, which it calls team members. Fine of the Sp steel cee including the CEO, Sally J. Smith. BWW operates its 817 stores in 48 U.S. states and Canada. BWW opened five new restaurants in 2012 on the parking lots of big-box retail stores such as Home Depot. BWW expects to have 1,500 restaurants in the USA and Canada by 2016, and many of them will be in vacant space of Sears stores, parking Jots, and malls. Copyright by Fred David Books LLC. (Written by Forest R. David) History In 1981, James Disbrow, from Buffalo, New York, along with friend, Scott Lowery, went ooking fas cichn wie 8 ey Wings and expanding this tradition of Buffalo, New York, to other imei scoua nary The first restaurant named Buffalo Wild ‘Wings & Weck or BHAA as ort a icone) Ohio, in 1982 near the campus of Ohio State University. In ron Program and in 2003 the company completed its initial public offering. Vision and Mission ode of ethics, but : ethics, facies: stement in its code OF ¢ rt. However es» ier mits website ots annual ePO ‘plicit mission or visio ide its “concept and business strateey” ** follows: en the Buffalo Wild Wines brand ence Deliver a unique Sues PTT iin ond a4 does not provide an bee BWW doesEGIC MANAGEMENT CASES EXHIBIT 1 BWW’s Organizational Design Sally Smith (CHDspd President Monit Saw Managing Director International Source: Company documents Organizational Chart [As indicated in Exhibit 1, BWW appears to operate from a divisional by geow structure, Internal Issues Statement of Ethics and Governance BWW has two statements of ethics: one for regular employees and one for executives. Fi employees, the Code of Ethics provides an overall standard for ethical conduct in conju with what is viewed today as ethical business behavior. The statement also proves following: (a) how to report violations of conduct, (b) extensive personal conduct pols (©) conflicts of interests, (4) protecting trade secrets, (e) disclosure of financial i (® environmental impact, and much more. The executive code of ethies is similar tothe de ment for employees. Both codes of ethics stress doing the job to the best of one's bili seeking help before making a decision on any matters of which the employee is nos © BWW provides a well-detailed corporate governance document for view amits wets 1° document stresses all key issues related to the governance of BWW, including but not itis board size, board leadership policies, selection of new directors, retirement, compensa stock ownership policies Business Segments N {As indicated in Exhibit 2, 2 percent of BWW's revenues come from aleohlic VERE included in the chart but important to note is that 13 percent of BWW 's sales come fg. crders, an area in which BWW stats it does not ry to compete on and donot consi ‘ving establishments its primary competitors. But 13 percent is quite large and may PE area forthe company inthe future. Exhibit 3 reveals strong revenue growth for BWW’s company-owned and franc cover the last three years. Revenue from company-owned stores increased M DERN ya Bahibit 4 reveals average revenue per store. Note that franchised stores ae CO Fevmpany-owned sores cn average, but this is partly the result of BWW repurchiss forming franchised stores. chisel anchisedi EXHIBIT 2 A BWW Revenue-by e-by, Product Percentage CASE3 » BUFFALOWILD WINGS, nc, 2013 404 " Boneless eevee ational Wings Wings” coho 2 Te —— Beverages Other Food 20% 19% EXHIBIT 3. BWW Revenue Analysi abi ani ‘$964M 17M ao ca mm —s S131 At eta Source: Company documents, EXHIBIT 4 BWW’s Average Revenue per Restaurant 201 2010 2009 Company Owned 225M 2M 2M Franchised $2.66M 24M 2.36x Neen en eee ‘Source: Company documents. Strategies BWW is currently employing both market pen plans to have around 1,500 restaurants within t currently own. BWW is considering adding locat Canada The company also expect (0 maintain ts 60-40 split of franchised-owned to company- Owned stores, Opening new stores especially in new coun ‘would create additional risks, Ee aovarcgess, supply cain asus nln ee and much more BWW is considering expanding into jnternational markets via joint ventures with an established mi 2 ent growth in ; Exhibit 5 reveals BWW growth over recent years. Note in 2012 the 19 percent growth ‘company-owned stores and 2.4 percent for franchised stores. tration and market development strategies and the next several years, nearly double what they ions outside its current two countries: USA and emer tering a unique brand experience £0" salized in offering # unign : 1 1982, BWW Bas Pei ger vai 6 award-winning gh nok acknowledged Py ree roacs BY ae Tablegating at is Since its inception i guests with the wide array of TVs, a great social and sporting Sal pany, sex appeal with young atract® 319 pa 420
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