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Managerial AnalysisManagerial Analysis
Justin DossJustin DossBML - 313 Principles of ManagementBML - 313 Principles of Management
Workshop 5: December 20, 2011Workshop 5: December 20, 2011
Chick-Fil-A History Chick-Fil-A History
Began as Dwarf House in Began as Dwarf House in Hapeville, Georgia in 1946Hapeville, Georgia in 1946
Founded by S. Truett Founded by S. Truett CathyCathy
Original Menu Burgers Original Menu Burgers and Milkshakesand Milkshakes
Pioneer of in mall Pioneer of in mall restaurants in 1967restaurants in 1967
PlanningPlanning Chick-Fil-A's MissionChick-Fil-A's Mission: To be America's best quick To be America's best quick
service restaurant service restaurant Purpose:Purpose: “To glorify God by being a faithful steward of all “To glorify God by being a faithful steward of all
that is entrusted to us and to have a positive influence on all that is entrusted to us and to have a positive influence on all who come in contact with Chick-Fil-A.”who come in contact with Chick-Fil-A.”
Chick-Fil-A Today Chick-Fil-A Today Headquarters in College Park, GAHeadquarters in College Park, GA Located in 39 States mostly Southern statesLocated in 39 States mostly Southern states Still found in malls, Free Standing units,Dwarf Houses,Truett's Still found in malls, Free Standing units,Dwarf Houses,Truett's
grill, Drive Thru only restaurants, licensed outlets, and lunch grill, Drive Thru only restaurants, licensed outlets, and lunch counterscounters
Gradually growing in United StatesGradually growing in United States Expanded to South Africa Expanded to South Africa
PositioningPositioning
Charity, Community involvement, ScholarshipsCharity, Community involvement, Scholarships High end of fast food price spectrumHigh end of fast food price spectrum Unique RecipesUnique Recipes Quality ingredientsQuality ingredients Healthier food choices Healthier food choices Closed on SundaysClosed on Sundays
Creative StrategyCreative Strategy
““Eat Mor Chikin” Ad Campaign Eat Mor Chikin” Ad Campaign created by Richard's group in created by Richard's group in '95'95
Wanted a unique identityWanted a unique identity Budget for advertising was lowBudget for advertising was low Brand AppealBrand Appeal
Advertising & Promotion StrategyAdvertising & Promotion Strategy BillboardsBillboards RadioRadio Flyers with CouponsFlyers with Coupons SponsorshipsSponsorships TV AdvertisementsTV Advertisements Merchandise SalesMerchandise Sales Social MediaSocial Media
CustomersCustomers Mostly SouthernMostly Southern LoyalLoyal Willing to Spend $Willing to Spend $ (Good service)
CustomersCustomers
Family FocusedFamily Focused ChildrenChildren Eat Eat
Breakfast/Lunch/DinnerBreakfast/Lunch/Dinner
CompetitorsCompetitors
McDonald’sMcDonald’s Burger KingBurger King Taco BellTaco Bell SubwaySubway KFC – KFC – Chick-Fil-A's major competitor in chicken salesChick-Fil-A's major competitor in chicken sales
OrganizingOrganizing Centralized – Centralized – Decisions Decisions
are made from the top are made from the top down to the lower down to the lower levelslevels
FormalizationFormalization – – Rules Rules and Regulations they and Regulations they expect each employee expect each employee to follow based off to follow based off Christian principlesChristian principles
OrganizingOrganizing Hierarchical:Flat/Tall -Hierarchical:Flat/Tall -They try to eliminate the number of They try to eliminate the number of
layers they have yet they are more like a Tall structure layers they have yet they are more like a Tall structure because the number of employees that report to the because the number of employees that report to the managers is not that great due to the fact each restaurant managers is not that great due to the fact each restaurant has their own manager.has their own manager.
Departmentalization –Departmentalization – Each employee is grouped by Each employee is grouped by what they do and each group has a specific function but what they do and each group has a specific function but employees can be used to fill multiple roles.employees can be used to fill multiple roles.
Mechanistic – Mechanistic – They have a clear job description for each They have a clear job description for each employee and they are often slow to change because employee and they are often slow to change because they try to keep the company as true to the heart of the they try to keep the company as true to the heart of the founder as possible.founder as possible.
EmployeesEmployees CorporateCorporate OperatorsOperators ManagersManagers Front line Front line
LeadingLeading
Left to Right: Left to Right: Donald Cathy (Senior Vice Donald Cathy (Senior Vice President) Dan Cathy (CEO), Truett Cathy President) Dan Cathy (CEO), Truett Cathy (Founder)(Founder)
Servant LeadershipServant Leadership Greatest/ServantGreatest/Servant““Anyone who desires to be Anyone who desires to be
the greatest must be the the greatest must be the servant.” servant.” -- Jesus ChristJesus Christ
22ndnd Mile Customer Service Mile Customer Service ““If anyone asks for your coat If anyone asks for your coat
give them your scarf also.” give them your scarf also.” -- Jesus ChristJesus Christ
LeadingLeading
Practice What you PreachPractice What you Preach Lead by exampleLead by example Encourages employees Encourages employees
to lead by example at to lead by example at work and in their work and in their personal livespersonal lives
Lead, Live, Love - Lead, Live, Love - Married employeesMarried employees
LeadingLeading
Founder: Truett CathyFounder: Truett CathyCEO: Dan CathyCEO: Dan CathyPresident: Jim CollinsPresident: Jim Collins
““Companies that create lofty Companies that create lofty goals lose sight of their goals lose sight of their core values.”core values.” -Truett Cathy -Truett Cathy
ControllingControlling Horizontal Strategy 5 Chicken SuppliersHorizontal Strategy 5 Chicken Suppliers (ex: Wayne Farms (ex: Wayne Farms
LLC)LLC) Coke Supplies DrinksCoke Supplies Drinks Richards Group - MarketingRichards Group - Marketing Winshape Non-Profit Organization Winshape Non-Profit Organization
POSPOS
Windows based SystemWindows based System (Powers Registers/Back office (Powers Registers/Back office Systems)Systems)
Point of Sale systemPoint of Sale system Corporate over sees operation for all locations (1,500)Corporate over sees operation for all locations (1,500) Captures and Maintains all store dataCaptures and Maintains all store data InventoryInventory Store SalesStore Sales Every Customer TransactionEvery Customer Transaction
FinancialFinancial Restaurant Industry brings in $120 Billion Restaurant Industry brings in $120 Billion
50% Specializes in Hamburgers50% Specializes in Hamburgers Sales $3.5 Billion last year and expected to increaseSales $3.5 Billion last year and expected to increase
#2 Restaurant in the quick service restaurant Industry #2 Restaurant in the quick service restaurant Industry Merchandise Sales:Merchandise Sales:
$25 Million from Calenders, Bobble heads,etc.$25 Million from Calenders, Bobble heads,etc.
RecommendationsRecommendations
Recommendation 1:Recommendation 1:Stick to the Core of their Mission and PurposeStick to the Core of their Mission and Purpose
Why?:Why?: Set apart from the industrySet apart from the industry Customers have faith in company that has faithCustomers have faith in company that has faith Keeps them from making financial gain 1Keeps them from making financial gain 1stst priority priority People oriented People oriented (Customers/Employees)(Customers/Employees)
RecommendationsRecommendationsRecommendation 2:Recommendation 2:Remain Transparent and Authentic in LeadershipRemain Transparent and Authentic in Leadership
Why?:Why?: Builds a strong Culture Builds a strong Culture Encourages honesty and builds trustEncourages honesty and builds trust Enthusiastic workers Enthusiastic workers (Corporate/Front line)(Corporate/Front line)
RecommendationsRecommendationsRecommendation 3:Recommendation 3:Annual Conference for Chick-Fil-A's LeadershipAnnual Conference for Chick-Fil-A's LeadershipCorporate,Operators,ManagersCorporate,Operators,Managers
Why?:Why?: Build Family focus not worker mentalityBuild Family focus not worker mentality Highlight and celebrate store/individual successHighlight and celebrate store/individual success Re-introduce Mission,VisionRe-introduce Mission,Vision Unity in staying consistent with Cathy's goals/focusUnity in staying consistent with Cathy's goals/focus
RecommendationsRecommendationsRecommendation 4:Recommendation 4:Expand in upper regions/InternationallyExpand in upper regions/Internationally
Why?:Why?: Brand AwarenessBrand Awareness India (Cows Scared)India (Cows Scared) Global InfluenceGlobal Influence
Any Questions ????Any Questions ????
The EndThe End
Enjoy your Chick-Fil-A Enjoy your Chick-Fil-A Coupons/Miniature Cow Coupons/Miniature Cow
EAT CHICK-FIL-AEAT CHICK-FIL-A