ABSTRACT
The strategy of McDonald’s has focused on global dominance through a rapid expansion of additional restaurants to penetrate new markets and establish a brand name ahead of its competitors. While waiting for the flight that was going to take him from Miami to Columbus, Paul Vandelen, Wendy’s International Franchise Manager for South America, began to ponder the prospects of Wendy’s expansion in Argentina. The company manages its portfolio debt in response to changes in interest rates and foreign exchange by periodically retiring, redeeming, and repurchasing debt. In 1995, for instance, it entered into a strategic alliance with Tim Horton, a Canadian fast food retailer. This alliance gave Wendy’s access to more than 1,323 restaurants in Canada. Since 1990, Argentina has been modifying its foreign direct investment laws. These changes have given foreign firms an unprecedented access to local markets. By the end of 1997, Wendy’s had 4,993 restaurants, from which 481 were located outside the United States.
