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So its customers would not be lured by its competitors, wendy's decided to offer a 99-cent value menu to compete with the value menus offered at burger king and mcdonald's. this is an example of which element of the immediate environment?

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Erudite1
This is an example of COMPETITION element of the immediate environment. 
In marketing, there are three elements of  consumers' immediate environment, these are: company, competition and corporate partners. These three elements works together and directly determine the performance of a company in a particular place. In the scenario given in the question, Wendy decided to offer the 99 cent value menu purposely to attract more consumers than its competitors.