US-based Eatway, the world's largest restaurant chain in a number of locations, found itself in deep trouble in 2019 in its home country. After being popular for more than 50 years for its healthy subs with unlimited options to customise, Eatway was falling behind competitors, who had come up with products that were similar to or better than Eatway's. Eatway was unable to cater to the changing demands of the customers, who wanted healthier food and food that was fresh, organic, and procured locally. There were also changes to the way the food was consumed. While some customers preferred plush interiors and restaurants, others wanted to grab food on the move-through drive-ins. More and more customers wanted food delivered to them.

Eatway, which expanded rapidly over the years, was facing a huge backlash from the franchisees in the US. Rapid expansion over the years had resulted in oversaturation, with the franchisees, especially those in the US, self-cannibalising sales due to operating in close proximity to the Eatway restaurants. Several outlets were closed due to consistently declining sales and traffic. To attract customers and face the competition, Eatway started lowering prices. This angered the franchisees as their margins were impacted. Amidst these problems, the founder of Eatway, John, died in 2015, and his sister took over. The franchisees were not happy with her leadership and complained of a leadership vacuum. As the chain continued to face challenges, the operations were handed over in mid-2018 to Tom, who became its interim CEO. It remained to be seen how Tom would bring the beleaguered chain back to glory.

Source: IBS Centre of Management Research

1. Critically assess Eatway’s scenario, from Tom’s point of view. Suggest a few growth strategies to the company based on Ansoff’s Matrix.
2. Critically evaluate and discuss survival-based corporate strategy for your organisation or an organisation of your choice. (This question is NOT based on the given Eatway’s scenario.)

Answer rating: 100% (QA)

From Toms point of view Eatway faces several critical challenges that require strategic intervention to ensure its survival and growth in the competitive fastfood industry Analyzing the situation usin... View the full answer