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CASE ANALYSIS:
Case Background
The increase in minimum wage after a policy change has continued to affect multinational
companies. Such as case was experienced by Dining Brands Worldwide. The case study will
detail various challenges and opportunities that the CEO of Dining Brands Worldwide can adopt
to mitigate this challenge. The company’s current strategy is to increase the working hours of its
employees, increase the price of its products, and shift the healthcare costs to its
employees(Mărginean and Chenic,Page 98). Every strategy chosen by the company will have
various consequences either legally, economically or socially.
Stakeholders
Internally the company is obligated to provide fair compensation to all its workers by adhering to
minimum wage laws and ensuring the employees undergo professional development. (Asalu,
Page 30)The management also has to ensure transparency in communication when there is a
policy change .The management has a task of ensuring that any change in policy doesn’t affect
the company negatively.The operations and financial performance is the responsibility of the
management .Shareholders expect the management to maximize their shares value while still
communicating the impact of the wage increase on profitability.
Externally, the company has responsibilities to customers, suppliers and regulatory bodies. The
company has responsibilities to various stakeholders. Customers should get high quality
products at fair prices, despite any wage changes. Suppliers need clear communication, as
pricing changes affect business agreements(Asalu and Page) . Legally, the company must follow
labor laws, like reporting payroll accurately and cooperating with inspections. Non-compliance
to labour laws results in negative brand image causing community backlash and claims of unfair
competition.
Moral, Legal and Financial Considerations
Ethically, DBW has an obligation of ensuring fair compensation for its employees. This means
adhering to minimum wage laws to enable a decent standard of living and upholding human
CASE ANALYSIS:
Case Background
The increase in minimum wage after a policy change has continued to affect multinational
companies. Such as case was experienced by Dining Brands Worldwide. The case study will
detail various challenges and opportunities that the CEO of Dining Brands Worldwide can adopt
to mitigate this challenge. The company’s current strategy is to increase the working hours of its
employees, increase the price of its products, and shift the healthcare costs to its
employees(Mărginean and Chenic,Page 98). Every strategy chosen by the company will have
various consequences either legally, economically or socially.
Stakeholders
Internally the company is obligated to provide fair compensation to all its workers by adhering to
minimum wage laws and ensuring the employees undergo professional development. (Asalu,
Page 30)The management also has to ensure transparency in communication when there is a
policy change .The management has a task of ensuring that any change in policy doesn’t affect
the company negatively.The operations and financial performance is the responsibility of the
management .Shareholders expect the management to maximize their shares value while still
communicating the impact of the wage increase on profitability.
Externally, the company has responsibilities to customers, suppliers and regulatory bodies. The
company has responsibilities to various stakeholders. Customers should get high quality
products at fair prices, despite any wage changes. Suppliers need clear communication, as
pricing changes affect business agreements(Asalu and Page) . Legally, the company must follow
labor laws, like reporting payroll accurately and cooperating with inspections. Non-compliance
to labour laws results in negative brand image causing community backlash and claims of unfair
competition.
Moral, Legal and Financial Considerations
Ethically, DBW has an obligation of ensuring fair compensation for its employees. This means
adhering to minimum wage laws to enable a decent standard of living and upholding human
