Transcript of "Chick fil-a managerial analysis presentation"
Managerial Analysis Justin Doss BML - 313 Principles of Management Workshop 5: December 20, 2011
Chick-Fil-A History Began as Dwarf House in Hapeville, Georgia in 1946 Founded by S. Truett Cathy Original Menu Burgers and Milkshakes Pioneer of in mall restaurants in 1967
Planning Chick-Fil-As Mission: To be Americas best quick Mission service restaurant Purpose: “To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come in contact with Chick-Fil-A.”
Chick-Fil-A Today Headquarters in College Park, GA Located in 39 States mostly Southern states Still found in malls, Free Standing units,Dwarf Houses,Truetts grill, Drive Thru only restaurants, licensed outlets, and lunch counters Gradually growing in United States Expanded to South Africa
Positioning Charity, Community involvement, Scholarships High end of fast food price spectrum Unique Recipes Quality ingredients Healthier food choices Closed on Sundays
Creative Strategy “Eat Mor Chikin” Ad Campaign created by Richards group in 95 Wanted a unique identity Budget for advertising was low Brand Appeal
Advertising & Promotion Strategy Billboards Radio Flyers with Coupons Sponsorships TV Advertisements Merchandise Sales Social Media
Customers Family Focused Children Eat Breakfast/Lunch/Dinner
Competitors McDonald’s Burger King Taco Bell Subway KFC – Chick-Fil-As major competitor in chicken sales
Organizing Centralized – Decisions are made from the top down to the lower levels Formalization – Rules and Regulations they expect each employee to follow based off Christian principles
Organizing Hierarchical:Flat/Tall -They try to eliminate the number of layers they have yet they are more like a Tall structure because the number of employees that report to the managers is not that great due to the fact each restaurant has their own manager. Departmentalization – Each employee is grouped by what they do and each group has a specific function but employees can be used to fill multiple roles. Mechanistic – They have a clear job description for each employee and they are often slow to change because they try to keep the company as true to the heart of the founder as possible.
Employees Corporate Operators Managers Front line
Leading Servant Leadership Greatest/Servant “Anyone who desires to be the greatest must be the servant.” - Jesus Christ 2nd Mile Customer Service “If anyone asks for your coat give them your scarf also.” - Jesus ChristLeft to Right: Donald Cathy (Senior VicePresident) Dan Cathy (CEO), Truett Cathy(Founder)
Leading Practice What you Preach Lead by example Encourages employees to lead by example at work and in their personal lives Lead, Live, Love - Married employees
LeadingFounder: Truett Cathy “Companies that create lofty goals lose sight of theirCEO: Dan Cathy core values.” -Truett CathyPresident: Jim Collins
POSWindows based System (Powers Registers/Back office Systems) Point of Sale system Corporate over sees operation for all locations (1,500) Captures and Maintains all store data Inventory Store Sales Every Customer Transaction
Financial Restaurant Industry brings in $120 Billion50% Specializes in Hamburgers Sales $3.5 Billion last year and expected to increase#2 Restaurant in the quick service restaurant Industry Merchandise Sales:$25 Million from Calenders, Bobble heads,etc.
RecommendationsRecommendation 1:Stick to the Core of their Mission and PurposeWhy?: Set apart from the industry Customers have faith in company that has faith Keeps them from making financial gain 1st priority People oriented (Customers/Employees)
RecommendationsRecommendation 2:Remain Transparent and Authentic in LeadershipWhy?: Builds a strong Culture Encourages honesty and builds trust Enthusiastic workers (Corporate/Front line)
RecommendationsRecommendation 3:Annual Conference for Chick-Fil-As LeadershipCorporate,Operators,ManagersWhy?: Build Family focus not worker mentality Highlight and celebrate store/individual success Re-introduce Mission,Vision Unity in staying consistent with Cathys goals/focus
RecommendationsRecommendation 4:Expand in upper regions/InternationallyWhy?: Brand Awareness India (Cows Scared) Global Influence