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Using the presented scenario, please answer the question in bold. Using Wendy\'s

ID: 379100 • Letter: U

Question

Using the presented scenario, please answer the question in bold. Using Wendy's restaurant as the chosen company. Thanks you!

Presented Scenario: An overseas contractor that is a major supplier to Wendy's Restaurant has recently been revealed as one that operates with poor working conditions for employees (uses child labor, pays low wages, requires long hours, no benefits, etc.).

Examples of each type of corporate communication:

a) Informational Example: When a new product is launched, the public will know nothing about it. Consider the situation when Apple launched the iPad, a totally new class of technology. In order to generate interest, the company first had to tell people about the product.

b) Educational Example: Once the target audience is aware of the new product, they often need to be educated as to why the product could be useful to them.

c) Persuasive Example: Once a new product has become successful, it is highly likely competitors will have entered the market. Communication therefore needs to persuade the target audience to purchase the version that the corporation provides rather than a competitor’s version.

For the assignment, the following critical elements must be addressed:

I. Communication Context: Provide an overview of the scenario that your communication strategy will address for Wendy’s Restaurant.

Explanation / Answer

The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings.

A company's proportion of short and long-term debt is considered when analyzing capital structure. When people refer to capital structure they are most likely referring to a firm's debt-to-equity ratio, which provides insight into how risky a company is. Usually a company more heavily financed by debt poses greater risk, as this firm is relatively highly levered.