Chick-Fil-A Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Alternative 1: The Company can invest to build its own poultry farms

Pros

Better-quality sustenance

Owning a poultry farm, would be helpful for chick-files-a to maintain their quality standards. As the company announced its five-year plan to get rid of chicken raised by using different chemicals to make the animal healthy for a good selling price. Hence, this will help to reduce the threat from buying chickens from suppliers. The company would open its farm from which they can have fresh and healthy meat to satisfy their consumers.

Complete focused on animal health maintenance

Here the company can put all its efforts to feed animals on the natural diet that will allow them to grow naturally not artificially. Food built from this animal will be more healthy and expensive than the animals nourished in conventional ways. In a healthy chicken, plenty of vitamins are destroyed with the use of antibiotics.

Hybrid system poultry and vegetable farm

The company can grow vegetables and fruit on its farm and take the fresh ingredients for its restaurant. This would increase the viability of healthy ingredients used in the fast food and build customers trust in the company. The restaurant can also widen their product line by offering various kinds of salads and vegetable dishes. This will increase their market share by producing healthy food variety to families and other individual’s who want healthy cuisine. The company can also prove its healthy food availabilities from its farm to the consumer and other concerned institutions.

Cons

Huge investment cost

The company can grow vegetables and fruits on its farm and take the fresh ingredients for its restaurant. This would increase the viability of healthy ingredients used in the fast food and build customers trust in the company. The restaurant can also widen their product line by offering various kinds of salads and vegetable dishes. This will increase their market share by producing healthy food variety to families and another individual who wants healthy cosine. The company can also prove its healthy food availabilities from its farm to the consumer and other concerned institutions.

Maintenance cost and Overhead cost

Choosing alternative one would not be a one-time investment event. However, in order to gain continuous benefits from this venture the company must invest its time and efforts to keep running operation smoothly. Chick-fil-a has to earn more in order maintain overall overhead cost of their entire business. Poultry farm‘s maintenance cost includes labor cost, cleaning and health preservation cost in which the animals would be checked by an animal doctor to ensure the animal health.

Alternative 2:The Company can come up with a strategic alliance with the supplier

Pros

Risk distribution

It is an immediate action that the company can take for the betterment of the company. To cater all the current threats, the company must go for strategic alliance with its supplier. This partnership will mitigate the financial risk of both the company and supplier. The partnership will not create huge cost for the company as they will not be responsible for poultry farm maintenance and labor cost. Chick-fil-a would ask the supplier to nourish a particular amount of chickens that were grown without injecting antibodies to these chickens.

Strategic alliance will block competitive threats

Another positive impact of this alliance would reduce the threat of competitive advantage from the competitors. As chick-file-a wants a supplier that provides them with the meat desirable from its customer and make chick-file-a able to compete with local and global competitors.

In the case of a strategic alliance, the company should add partial investment in this move and introduce healthy food then the company would remain on the competitive side. Because in this way, the company is not spending so much in the production of healthy chicken, hence, it will increase its fast food prices up to a moderate level. This strategic alliance would provide chick-file-a a chance to introduce a new taste in the market with a slight increase in the price range.This alliance would also allow the company to understand the consumer’s demand on their offered price range.

Cons

Reliability risk

Despite all these efforts, the company finds itself under the umbrella of risk of animal health and their resistance for antibiotic injections and medicines. The company has hired an external source to deliver the core product of its business, hence an uncertainty, this will create a risk of delivering the material up to the mark.

If a customer comes with a claim that the company has not stopped selling fast food made of chicken grown with antibiotic treatment. The company would be at great risk to prove this through the supplier who is breeding animals on its farm with and without antibiotic treatment. The company’s reputation would be jeopardized again and this time the company would be at high risk to tackle this situation...........................

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