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Industry Analysis BUSS440.A

Emily Gagne

on 31 March 2015

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Transcript of Chick-Fil-A

Founder: Samuel Truett Cathy
SWOT - Internal
Environmental Factors
Capitalizing on Overseas Markets
SWOT - External
Strong Advertising
Sponsoring sport events &
charitable contributions
Community oriented
Strong corporate culture
Closed on Sundays
Only offers Chicken
High Calorie - "fast food"
Strong corporate culture
Polite, spiritual,
treats employees well
Can alienate customers & investors
International Markets
Increase in menu food variety
Health Conscious Capitalization
Franchising on college campuses
Business Expansion
Untapped areas in U.S.
Unpopular Political Stance
COO Anti-LGBT Comment June 2012
Avian Flu
Recovery losses
Increase in Raw Materials pricing
Competitors & their menus

Porter's Five
Threats of New Entrants
Supplier Power
Buyers Power
Industry Rivalry
Threats of Substitutes
Short-length Contracts with Suppliers
Suppliers Inquiry Form
High-standard in product quality
Change suppliers to ensure best quality over competitors
Important to hold a strong presence in the market to drawn in customers
Always there
High amounts of competition
Many locations for customers to choose from on the same block
High volume locations are critical
Many competitors with similar services of alternative choices
Adapting Market
Easy for new entry
Many choose not to since the competition is so intense
Technological Trends
Demographic Trends
Economic Trends
Political and Legal Trends
Sociocultural Trends
Global Trends
Online Sales Promotions
Break-through discovery with extra boneless chicken for airlines
Pressure cooking in oil for 4 mins vs. precooking chicken 20 mins before customers arrive
Chick-Fil-A religious values vs. Boston, Chicago
Chick-Fil-A appreciation day in response
National Same Sex Kiss Day
Awareness up by 6.5%
August 1, 2012
15% college or high school students
35-44 years old (24%)
25-34 years old (22%)
43% Male 57% Female
74% Caucasian
16% African Americans
4% Asian
5% Hispanics
1% other
Company, employee, & Customer
Golden Rule
Environmentally Friendly
900 restaurants with eco-friendly lighting, refrigerating, and high tech water saving
Recyclable Styrofoam
Married workers operating store
Not required but encouraged
North and Central America
92 restaurants in Mexico, Canada and Puerto Rico
Slow and steady approach
At 25 Cathy's big break through
boneless chicken
"Cathy devised a seasoning formula of 2 ingredients,
put the chicken between two buttered buns, and trademarked the name 'Chick-Fil-A' for the new sandwich"
Chick-Fil-A Today
The original company name Dwarf House
Due to owner ship, slower pace of expansion
Private, family ownership and management philosophy
Ranked 13th in quick-serve restaurant franchises
2nd to KFC
$5,000 to franchise compared to $45,000 at KFC
Took 15% of annual sales revenue at 50% of Net Profit
KFC required min. New Worth of 1.5M per year
50% of CFA operators earn 100,000 per year
CFA total start-up 281,000-815,000
KFC total start-up 1.3M-2.47M
Ideas That Worked
Improvements & Alternative Plans
Gradual Growth
Family Standards
Strict rules & regulations
Managers & CFA mission statements
People Over Profit
Pre-Established marketing techniques
CSR benefits
Capitalizing on publicity stunts
Getting more chicken in places
Emily Gagne
Vinny Romano
Marisa Didino
Domenic Ciano
Josias Manzanillo

Full transcript