Case Study : Chic Fil A Operates

922 WordsApr 11, 20174 Pages
Problem Identification Firstly, Chic Fil A operates mostly on weekends and is closed on Sundays. The majority of people usually go for picnics on weekends, especially on Sundays. Many people like to go out to eat after church on Sundays. Chick Fil A is missing out on this opportunity for making more revenues and money of its returns (Nelson, 2015). Secondly, the company lacks product differentiation. The menu consists pretty much all just chicken dishes and sandwiches. Thirdly, embracing of Christian-based values as the key business principles caused resentment and product boycotts from gays and lesbians (Sieczkowski, 2014). The majority of people in this group felt the company interfered with their rights. Such aspect is likely…show more content…
The strategy leads to sales growth hence more profitability thus benefiting the company stakeholders. SWOT ANALYSIS STRENGTHS • Strong brand name, image, and recognition • Family business empire • Strong advertising campaigns • Strong market leadership within the industry • Strong corporate social responsibility (CSR) • Experience in running the business through competent management team WEAKNESSES • Minimal product differentiation • A local-based company despite its long existence • Christian-based values • Minimal viewpoints from investors since the firm is a family empire • Failure to operate on weekends • Concentration of its outlets only in the southern states of America OPPORTUNITIES • Overseas expansion • Local expansion • Product differentiation • Exploitation of other product lines THREATS • Emerging competitive threats due to new entrants • Economic downturns • Market risks due to current fluctuations • Market saturation • Disease outbreaks like typhoid • Increased supplier power competitiveness Alternative Solutions Firstly, Chic Fil A may consider hiring other human resources outside the family for countering the thinking within the family values. For example, the Cristian-based principles applied by the executive management are likely to be different than the family’s. Thus, this reduces the threat of product boycotts

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