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