Running head STRATEGIC LEADERSHIP AT CHICK-FIL-A .docx

Running head: STRATEGIC LEADERSHIP AT CHICK-FIL-A
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STRATEGIC LEADERSHIP AT CHICK-FIL-A
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Strategic Leadership at Chick-fil-A
Latrice Jones
Argosy University
Perspectives in Change Leadership
10/29/2014
Introduction
Chick-fil-A is a United States based company operating in the
food and beverage sector. Founded in the early 1960s, this
company has its headquarters in Atlanta, Georgia. It registered
peak sales of more than $5 billion in the 2013 fiscal year.
Currently, it is the largest quick-service chicken restaurant in
the nation. The company’s main specialty is serving freshly
prepared chicken products, with its major offering being
chicken sandwich. The values and vision developed by the
company’s founder, Truett Cathy, continue to guide employees’
conduct and values. Currently, the leadership of the company is
under COO Dan Cathy. The mission of Chick-fil-A is “to be
America’s best quick service restaurant”. It hopes to realize this
ambition through strategies such as responsiveness to customer
needs, improved employee training, responsiveness to customer
needs and more emphasis on quality. According to its Website,
the company’s purpose is “to glorify God by being a faithful
steward of all that is entrusted to us, and to have a positive
influence on all those who come to Chick-fil-A”. This report
analyzes the strategic cascade of the company, highlights the
specific strengths, weaknesses, opportunities and threat faced
by the company and concludes by an evaluation of the internal

environment of the firm. The paper also offers practical
recommendations that can align employee’s behaviors to the
overall strategies of the firm.
Strategic Cascade
Target Market
Chick-fil-A pursues an ingenious marketing strategy that has
enabled it to continue registering growth over the recent years.
The target audience for Chick-fil-A differs from the usual fast
food clientele that normally includes children and teens. The
company mainly targets adults between the ages of 18 and 44.
According to Lee (2011) many of the target clientele are
women. The company also targets customers on the high-income
bracket and it strives to reach out to the more educated clientele
than those targeted by restaurants in the hamburger market. Lee
(2011) asserts that customers targeted by Chick-fil-A are more
likely to be in white-collar jobs. Mindful of the aforementioned
demographics, the company decided to operate in suburban
neighborhoods and malls, as these are the areas where most of
its potential consumers reside.
Value Proposition
In order to deliver services that satisfy the needs and wants of
the target clientele, Chick-fil-A has emphasized on various
components. First, the company’s management emphasizes on
some simple rules such as listening to the customers, high
quality products and emphasis on impeccable customer care. As
envisaged by Rama (2011), the value proposition of the
company is to deliver exceptional experience to consumers in
terms of quality, customer service and speed. Chick-fil-A has
been superior in speed delivery of its products through
producing chicken sandwiches in less time with no condiments
and a relatively simplistic menu.
The company also has a sophisticated training and recruitment
program designed to ensure impeccable customer service that

makes consumers have a much more personal and emotional
experience (Chick-fil-A, 2014). Furthermore, the company also
strives to offer healthy products in its menu offerings and
maintains ambient stores, all of which have increased customer
satisfaction. The employees are also friendly and courteous,
which has contributed to the retention of customers in the
restaurant. Moreover, Chick-fil-A organizes an ‘Appreciation
Day’ annually where it gives thanks and gratitude to its clients.
This helps to show the customers that the company values them,
a factor that has translated to improved loyalty.
Product Positioning
One of the major factors that have contributed to Chick-fil-A’s
success is its inventive brand positioning strategy. According to
Palmer (2012), positioning entails making the image and
offerings of the company to occupy a unique place among the
minds of the target consumers. The company has been
successful in positioning it brand through the “Eat Mor Chikin”
cow ads that that encourage customers to consume more chicken
and in the process conserve beef (Cathy, 2002). Such
advertisements have helped to give Chick-fil-A a more
competitive edge against the hamburger-oriented chains such as
McDonalds, Wendy’s and Burger King. In addition, the
company has reinforced its brand positioning through tapping
the emotional response of its consumers.
As Hill & Jones (2012) vividly point out, a good positioning
strategy needs to “appeal to both the heart and the head”.
Chick-fil-A has indeed leveraged its strong corporate image and
superior customer service to capitalize on the emotional
branding concepts. Through promoting its corporate image as a
healthier, more socially responsible and friendlier choice, the
company has stimulated a positive emotional appeal among its
customers, which has helped to strength its brand recognition
and image (Hill & Jones, 2012). Chick-fil-A also charges a
slight premium on its offerings as compared to similar offerings
by the competitors. This has helped to reinforce the company’s

image and reputation for quality offerings.
Sources of Uniqueness and Sustainability
Chick-fil-A is sustainably different from other competitors in
the food and beverage sector in various ways. First, the
company’s commitment in corporate social initiatives is
unparalleled in the industry. Currently, the firm is involved in
sponsorship deals with various college athletics, specifically
with college football. For instance, over the past few years, it
has been sponsoring The Peach Bowl, which has recently
changed its identity to ‘Chick-fil-A Bowl’ (Chick-fil-A, 2014).
The company also sponsors the Chick-fil-A Kickoff Game.
These sponsorships offer the company immense advertisement
and promotional opportunities during college football seasons.
They also enable the company staff to interact with potential
customers and understand their distinct needs and preferences,
which can help the firm to make product or service
modifications and attract more customers (Palmer, 2012).
In addition, over the last three years, the company has given
over $70 million in contributions to more than 700 charitable
and educational institutions (Chick-fil-A, 2014). Such
initiatives aimed at empowering the communities where the firm
operates can help to sustain a positive brand image, which
subsequently improves sales. Chick-fil-A’s strategy is also
unique from other quick-service restaurants in that rather than
trying to attract consumers via cheap pricing and cheap value
menus, they employ a higher pricing strategy that offers no
value menu (Lee, 2011). This has enabled the company to focus
more on the freshness and quality of their food while keeping
their profit margins high. This is indeed the reason why Chick-
fil-A has continued to realize success of its prestige pricing
strategy.
SWOT Analysis
Strengths

Chick-fil-A enjoys various strengths that have allowed it to
sustain a competitive edge in the food and beverage sector. One
of the strengths enjoyed by the company is a huge market share.
According to Rama (2011), the company currently commands a
market share of 22% in the restaurant chain industry. It is also
the leading quick-service chicken restaurant in the United States
in terms of domestic annual sales. The huge market share has
also enabled Chick-fil-A to register record revenues, which
amounted to over $5 billion in the 2013 fiscal year (Chick-fil-A,
2014).
Chick-fil-A also has a motivated and competent work force
dedicated to excellent customer service. The employees in the
organization rely on the Christian values held by the company’s
founder, Truett Cathy, which has aided to improve their
personal and corporate values. Some of the desirable values
exhibited by Chick-fil-A’s employees include integrity,
teamwork, open communication, hard work, commitment to
ethical standards and courtesy (Lee, 2011). This is a major
strength since it has enabled the organization to win the loyalty
and trust of its customers. The company’s management also
gives staff work off on Sundays. This helps them to revitalize
and hence they are able to offer better services during the
weekdays.
In addition, the firm hires, recruits, manages and trains its
employees. This has helped to build cohesiveness among
employees. It has also enabled them to develop a heightened
sense of shared purpose and commitment to company vision.
Management in the organization has established various
initiatives, for example the Leadership Scholarship Program,
which grants $1000 to qualified Chick-fil-A employees to
advance their studies in institutions of their choice (Chick-fil-
A, 2014). Since the program begun in 1973, the company has
awarded over $25 million in financial assistance to its
employees. This initiative improves employees’ retention rates

and encourages skill development, which gives the fast food
restaurant a competitive advantage.
Weaknesses
Although Chick-fil-A enjoys various strengths, it also has some
weaknesses that may undermine its performance. One of the
major weaknesses stems from the company’s closure on
Sundays. Even though it gives the staff time to rejuvenate and
revitalize, the closure may have a negative impact on company
sales. Furthermore, it may also reduce brand acceptance and
recognition. According to Rama (2011), many firms in the food
and beverage industry maintain 24-hour operations throughout
the year, which helps them to garner more profits.
Another weakness comes from Chick-fil-A’s overconcentration
of its stores in the South. Hill & Jones (2012) reckon that the
company’s presence in the Western, Mid-Western and North
Eastern regions of the nation is very minimal, a factor that may
limit its sales and make it problematic to sustain the employee
development programs. In addition, Chick-fil-A does not
maintain international operations like other companies in the
industry. Personnel in the organization also have to abide by
Christian principles and values (Cathy, 2002). Hence, the
company seems insensitive to diversity in the workplace. The
requirement to abide by the Christian values may eventually
prevent Chick-fil-A from tapping fitting talent because qualified
individuals from other faiths may be hesitant to apply for
positions in the company.
Opportunities
Being a franchise presents Chick-fil-A with various
opportunities for growth. Individuals from diverse parts of the
country can liaise with the firm and open up new restaurants
under its name, which provides opportunities for Chick-fil-A’s
expansion to the regions where it currently has few stores. The

low fees of erecting franchises can entice many individual
operators to set up new stores, which will ultimately be of
benefit to the company (Rama, 2011). The company also has
opportunities for expansion in other parts of the globe,
especially in the emerging markets such as the BRICS countries
where the spending and purchasing power of consumers is
increasing. Expansion into new areas brings innovative and new
ideas into the firm, which can ultimately aid to foster a learning
culture (Palmer, 2012).
There are also many opportunities for the company to improve
on its product offerings. Currently, the major specialty on
Chick-fil-A’s menu is chicken sandwich (Chick-fil-A, 2014). By
venturing in new offerings, the quick-service restaurant can be
able to expand its customer base as well as increase brand
awareness and net sales. The advancements in IT can also
present viable opportunities for the organization. For example,
rather than concentrating on traditional forms of advertisements
such as event sponsorships, billboards and TV adverts, Chick-
fil-A can institute vibrant advertisement campaigns through the
social media platforms, which will enable it to reach a wide
clientele base at relatively lower costs. Through these
platforms, the company can also get valuable feedback from
customers, which can aid in product and service improvements
(Palmer, 2012). Moreover, harnessing emergent technologies
can help to improve employee relations and production
processes.
Threats
A major threat that confronts Chick-fil-A is the growing number
of health conscious consumers in the nation. Although the
company reiterates that it is offering healthier alternatives,
many consumers are still skeptical and are shifting their
preferences towards more natural foods because of the health
concerns related to fast food restaurants such as the risk of
acquiring obesity, diabetes and other lifestyle diseases (Rama,

2011). The increasing health consciousness can potentially
reduce company sales. Furthermore, since Chick-fil-A is
principally a chicken specialty restaurant, some diseases
including bird flu can scare aware potential customers and
thereby lead to dwindling sales.
The other threat confronting Chick-fil-A is stiff competition
from other renowned fast food chains in the nation. The main
competitors of the company include KFC, McDonald’s, Burger
King, Taco Bells, Sonic and Wendy’s (Rama, 2011). Apart from
chicken offerings, these competitors also have other products in
their menus. This expansion of menus by major competitors can
make Chick-fil-A’s menu to appear limited to consumers. The
competitors have also devoted numerous resources in
advertisement and promotional campaigns, which poses a threat
to Chick-fil-A’s market share. Furthermore, like many other
companies in various industries, the global economic crisis
presents a major threat to Chick-fil-A. The financial
uncertainties witnessed during the recent years can interfere
with consumer’s spending powers and ultimately lead to a
decline in sales (Hill & Jones, 2012). The uncertainties can also
lead to fluctuations of prices and increases in the cost of raw
materials such as chicken meals. This will inevitably affect the
firm’s production processes and sales.
Summary of the Internal Environment
Company Structure
Chich-fil-A follows a centralized organizational structure.
Senior executives including COO Dan Cathy make decisions at
the top and which are then translated to the lower levels (Lee,
2011). There is also a high degree of formalization, where the
company expects employees to follow the outlined rules and
regulations, most of which are based on Christian principles. In
addition, there is a high degree of departmentalization in the
organization. This entails grouping employees based on their

roles in the organization and every group has a specific function
to accomplish in the firm. Nonetheless, when need arises,
employees can fill multiple roles (Cathy, 2002). The employees
include operators, managers and frontline employees. The
organizational structure is also mechanistic. The company
maintains clear job descriptions for every employee.
Nonetheless, it is worth noting that the company has been
resistant to change over the past decades because the senior
executives including the COO want to keep the company as true
as possible to the founder’s heart. Chick-fil-A mainly pursues a
servant leadership approach, informed mainly by the religious
principles and values of Truett Cathy.
Systems
The company uses a point of sales (POS) system as part of its
information system technology. This system oversees the
operations of all the company’s stores and tracks the entire
inventory, store sales as well as every customer transaction.
Management in the organization communicates to all employees
via video conferencing, whereby they clarify the expectations,
values and goals of the firm. This helps to bring convergence of
the overall strategic approach pursued by the company.
Company Culture
The culture at Chick-fil-A relies heavily on the principles of its
founding father. In terms of corporate values and culture,
Chick-fil-A may fit the description of a communal organization
that tries to uphold and preserve its shared values, most of
which are guided by Christian principles. The organizational
culture at Chick-fil-A is an enabler of the overall corporate
strategy of the organization. The company’s values emphasize
on the importance of religion, helping those in need, making a
positive impact in the community as well as promoting
generosity for all people who come in contact with the firm,
including employees and customers (Rama, 2011). The company
recruits employees who share these values. The company also
places strong emphasis on the development of leadership skills

among all employees and operators. Teamwork is also a
cornerstone of the restaurant’s culture.
Chick-fil-A mainly communicates its corporate culture and
values through public relations and community service. The
staffs at the organization are attentive and swift. They also
exhibit the desired moral behaviors advocated by the Christian
principles that govern conduct at the organization. For example,
all employees in the organization strive to exhibit high levels of
integrity, teamwork, open communication, hard work,
commitment to ethical standards and courtesy. According to
Hill & Jones (2012), customer-centered leadership is indeed the
cornerstone of Chick-fil-A’s service. Through instilling these
values and training employees on the desired customer
interactions, the company has been able to create a heightened
sense of personal and spiritual commitment, which has indeed
contributed to the brand awareness and customer satisfaction
among the majority of its customers.
Employee Behaviors
The Chick-fil-A employees exhibit various desirable behaviors
that are indeed consistent with the overall strategy of the
organization. They display high commitment towards fulfilling
their duties and are happy to serve the customers. This is
consistent with the mission of the organization, which is “to be
America’s best quick service restaurant” (Chick-fil-A, 2014).
Indeed, the company employees go beyond their call of duty to
understand the needs of their clients and ensure that the services
they provide meet those distinct needs of the consumers. The
main reason that has helped to align employee’s behavior to the
overall business strategy of Chick-fil-A is emphasis on periodic
training by the company’s management including the founder
and the COO.
Apart from instilling the required skills and competencies
among employees, the training also focuses on best etiquette
practices, customer service and diversity training (Cathy, 2002).
The company also provides various incentives to the employees,

which has helped to improve their motivation and job
satisfaction. Some of the benefits provided to the employees
include health coverage for staff members and their dependents,
company-paid disability insurance, tuition reimbursement
program; defined benefits pension plan as well as sick leave and
paid vacation (Chick-fil-A, 2014). All these have helped to
enhancing the employees’ career development prospects as well
as increasing their commitment towards the company’s vision,
mission and values.
Leadership
Due to the strong Christian principles advocated by the founder
and other executives in the organization, it is not surprising that
Chick-fil-A mainly pursues a servant leadership approach.
President and Chief Operating Officer (COO) of the company,
Dan Cathy, is an eager and visible ambassador of the company’s
brand. Due to his outspoken nature and emphasis on exceptional
customer service, he is able to set high standards that guide the
other employees in their task accomplishments (Rama, 2011).
Despite the mounting criticism about his personal and political
beliefs, Dan Cathy has managed to steer the business in the
right direction and inculcated the desired values among all
employees in the organization.
Nevertheless, in spite of the success of the leadership at Chick-
fil-A, there is also the need for initiating some actions that
might help to create new behavior that support the overall
business strategy. First, there is need for comprehensive
evaluation of all employees in the organization. This will entail
conducting periodic appraisals and designing employee self-
assessments so that all employees can gauge their progress and
take remedial measures in order to ensure that their behavior
and attitudes are consistent with the overall mission of the
organization (Palmer, 2012). Through the periodic evaluations,
employees will be able to receive invaluable feedback from the
senior management team, which will foster the development of

appropriate or desired behaviors.
There will also be the need for decentralizing decision-making
in the organization. This is important because it gives
employees the autonomy and independence required for making
informed decisions that can have a positive impact on the firm.
Delegating the decision-making responsibilities to lower level
employees will also enable them to have a heightened sense of
ownership, which will improve their satisfaction with the job
and give management more time to focus on other important
issues such as product development and expansion into other
global markets.
Conclusion
Chick-fil-A, the largest quick-service restaurant in terms of
annual domestic revenues in the nation, has been able to realize
growth due to its inventive strategies that mainly emphasize on
high quality products, exceptional customer care and employee
development. The philosophy of company founder Truett Cathy
has helped the company employees to demonstrate desired
behaviors and attitudes, all of which have translated to better
performance and customer retention. Nonetheless, the company
needs to institute some changes in order to overcome the
weaknesses and threats that still face it. Mechanisms for
improving performance and modeling desired behavior should
include more decentralization and periodic evaluation of
employees. All these will help the restaurant to achieve its
long-term goals and aspirations.
References
Cathy, S. T. (2002). Eat mor chikin : inspire more people.
Decatur, GA : Looking Glass Books.
Chick-fil-A. (2014). Chick-fil-A: Company Fact Sheet.
Retrieved October 29, 2014, from http://www.chick-fil-
a.com/Company/Highlights-Fact-Sheets

Hill, C., & Jones, G. (2012). Strategic Management Cases: An
Integrated Approach. Boston, MA: Cengage Learning.
Lee, S.-S. (2011). Customer value proposition and service profit
chain of the Chick-fil-A restaurant for enhancing customer
experience. European Journal of Management, 11 (4), 43-52.
Palmer, A. (2012). Introduction to marketing : Theory and
practice (3 ed.). Oxford: Oxford University Press.
Rama, R. (2011). Handbook of Innovation in the Food and
Drink Industry. New York: CRC Press.

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