Case 7 Essay examples

822 Words Feb 11th, 2015 4 Pages
LaToya Fraser
January 27, 2015
BUSA 4980
Chick-fil-A: Bird of a Different Feather Case #7

Chick-fil-A is known for their famous Chick-fil-A sandwich, but also for their private, family –controlled ownership structure, philosophy on management and biblical principles. Chick-fil-A uses the differentiation strategy to set them apart from other fast-food chains. Chick-fil-A mission was “To glorify God by being faithful steward of all that is entrusted to us and to have a positive attitude influence on all who come in contact with Chick-fil-A”, and to be “America’s best quick-serve restaurant.” One of their strategies they use to set them apart was focusing on people. This strategy included interview process, golden rule, consistent
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As for other differentiation strategy Chick-fil-A, uses that are important to them are first, their company structure. Chick-fil-A is structured by having low debt and a being privately owned. Second, are their requirements for franchises meaning having a startup fee of $5,000, which allowed them to receive 15% annual sales revenue and a 50% of the net profit. Third, is their marketing and corporate service responsibilities approach and use of cows. Chick-fil-A marketing strategy consist of low advertising, not giving customer any frequent-buyer card, but have customer register through their website to win free meals and of course cow appreciation day. Customers would dress up in a cow suite and would receive a free meal as well. Last, was their succession planning, since Chick-fil-A has a strong family involvement there is a 30% chance that will go to the second generation, 12% to the third and 3% to the fourth. As for controversy, it was not until July of 2012 when Dan Cathy made a statement saying that he stands for the biblical meaning of marriage. This statement came off as criticism towards gay couples and their marriages. The statement that was made had so much volume that gay right supporters came out to boycott. It also made people start to question the extent of ownership and their views affecting and causing long-term viability meaning their company culture. Chick-fil-A also received support from Arkansas Governor Mike

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