Chick-Fil-A Harvard Case Solution & Analysis

Problem statement

The company is facing issues with the changing trend of meat consumption in the restaurant business. In the year of 2005-2006, the company was being accused of cooking meat at excessive temperature. The complaint for high heat cooking was made because it  generates Phip i.e. a bacteria that develops numerous chronological abnormalities in a human being. This complaint was made by the Physicians Committee for Responsible Medicine that pointed out the famous fast food restaurants McDonald's, Applebee's, Outback Steakhouse, Burger King, and Chick-fil-A. This lawsuit explains that the company is using poultry chicken breed with the use of antibodies whose consumption would result in harmful disease in human.

To deal with this problem positively the company has made a commitment of delivering pure poultry chicken meat, fed without antibiotic treatment. Although the company has provided apparent solution to its current issue but it is not an easy task to perform that changes the entire scheme of raw material.

Introduction

Chick-fil-a is an American fast food restaurant, it was founded in the year 1946 and has spread its wings to more than 1850 restaurants in the United States. The company is aiming at the fastest fast food service provider of their country. Chick-fil-a has also enjoyed first mover advantage of opening the restaurants in malls in the late 70‘s, when there was no fashion of dining in shopping malls and big parts that greatly serves families. Despite being a huge fast food restaurant chain, the company’s profits are being stuck on $ 5 billion which was also signaling the company to look over their operations seriously.

 The case study highly focused on the causes of decrease in revenue experience by the company Chick-fil-a. An internal analysis would provide great assistance in finding out the major cause of customer defection which eventually would turn into high customer turnover ratio and decrease profitability. After analyzing the issue, an analysis would be performed that will suggest a different alternative along with their pros and cons to resolve the problems faced by Chick-fil-a. Furthermore, the paper will also provide recommendations on the basis of selected alternative to enhance organizational productivity and profitability.

Swot

Strength

1.    Chick-fil-a is the second largest quick serving restaurants that give high priority to provide quality food quicker than the customer’s expected time horizon of getting served.

2.    The company has also performed a successful marketing scheme regarding its fast food chain’s promotion, featuring the raw material of their products i.e. cow and chicken meat.

3.    Chick-Fil-A has a strong brand equity in their online order placement and fastest delivery service. These promotional schemes facilitate families to get quality food at home without wastage of time in huge queues of a traffic jam to reach the restaurant.

4.    Due to Chick-fil-a‘s dedication towards their mission, they possess a history of increased revenue growth since its inception. Continuous increment in income makes the company strong in terms of financial health.

5.    The company has also maintained a quality product sustainability in the restaurant business which has rated Chick-fil-a as the second most liked chicken brand by the fast food consumer in U.S.

Weakness

The company has not yet planned for its global appearance due to which they have never set foot outside the US market.

It would be unjustified if the company ignores the ethical difference of its management on the social issues that exist in the society. The management was unable to differentiate between its social and business responsibilities and gave more importance to the personal point of view for diverse cultural facts.

Chick-file-a has found its self in a position where people are facing problems related to the location of their restaurants. The company is limiting its business by having no presence in the west and Midwest parts of the United States of America. So, the company must balance its placement strategy while selecting its target market. However, its competitors are running to achieve the advantage from their innovative food item.

As it has been discussed earlier that the company must move for globalization, although this process requires a lot of investment but will also provide the long-term advantage to it. The company’s international expansion would also contribute to its financial health. Chick-file-a considers its nonpublic appearance as its weak point....................

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