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Chick Fil A Essay

1591 Words7 Pages

Introduction
Chick-fil-A (CFA) is a restaurant chain admired by many but it also attracted a lot of controversy over the last few years. The founder, Truett Cathy, have created a culture that differentiates the organization from most other fast-food chains, and the company have stayed true to its values till the present days. In this case study, the company’s competitive advantage, the strategic leadership initiatives that helped the company attain success, how it responded to its external environment, and the strategic challenges it is facing are discussed. In addition, findings on the company’s approach on its international expansion and its status as a privately-owned company are included, and possible directions the company might take in these areas are suggested.
Analysis
External Environment Facing Chick-fil-A The industry. In 2011, quick-service restaurants was poised to reverse the trend of three-years of declining sales, to achieve over $167 billion in sales, a gain of 3.3% over 2010. CFA is a strong performer in this segment, posting a sales of $4 billion, an increase of 13% over 2010, …show more content…

Business model of CFA. CFA’s business model varied significantly from that of most other fast-food chains. First, advertising budgets and debt loads were lower than average, and operating hours were reduced. Second, franchisee recruitment, financial commitment, and management expectations also deviated from industry norms. Third, the pace of expansion was significantly slower than the average fast food segment, due to ownership 's aversion to debt. Fourth, it has a private, family-controlled ownership structure and its management philosophy was based on biblical principles (Hitt, Ireland, & Hoshisson, 2015). On its website, as part of its expansion plan, CFA invites the public to submit proposal for real estate site for its franchisees, calling attention to the separation of the franchisee selection process from the real estate site selection process (“Real Estate,”

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