Strategic Management - Value Chain

ORGANIZATION

Chick-fil-A’s business model is centered on customer service and providing a small-size menu.

FINANCE

“New units are built from the profits of Chick-fil-A. We try not to go into debt to expand.”

Chick-fil-A revenue streams cosist of :

• Royalty (50% from all their franchisees)
• profit from restaurants sales (15%)
• Licence fee (around $10 K)

“In the last three years, Chick-Fil-A operators have donated $68 million dollars to more than 700 charitable or educational organizations.”

Human Resources

Chick-Fil-A’s statement that leaders are learners.

One of the largest leadership-specific high school programs in America.

Employees call it “corporate tourism”!

Managers and owner-operators are usually long-term employees that began their careers at a young age and who plan to stay with the organization.

MODEL

Management Information System

Chick-fil-A uses an algorithm that keeps track of daily production and sales numbers.

Chick-fil-A’s Financial Solutions Lab leverages emerging technologies, data innovation and robotic process automation.

The need for speed: A new way to drive-thru.

Developing new feauture for mobile app - "Express Drive thru".

VALUES

- Core values reflect their purpose, culture, and shape the staff and work experience of Chick-fil-A teams wherever they are.

- Keep the needs of operators, their team members, and customers at the heart of our work.

- Purpose-driven.

- Persue what's next.

- VALUES

- CULTURE

CULTURE

Value Chain Activities

- Chick-fil-A is committed to a workplace culture where everyone is treated with honor, dignity, and respect. And their policies, practices and benefits support this goal.

- A strong and caring culture is essential to their success and to offering fulfilling careers for their staff.

- At their restaurants, they're known for being closed on Sunday, to allow operators and their team members to enjoy a day of rest, be with their families and loved ones, and worship if they choose.

- VALUE CHAIN

ACTIVITIES

SUPPLY CHAIN

- Chick-fil-A operates with a unique supply chain model and mindset.

- Product is sourced using high standards.

- Their operations are heavily based on experience of consumers and others (employees, suppliers, etc.).

VALUE CHAIN ACTIVITIES

Operations

- Chick-fil-A created a special pressure fryer, that gives the opportunity to produce fresh food in a short time.

- "Lean process", employes ever-evolving methods of reducing waste.

- "Kanban system" to keep timing on track.

Distribution

- Operations/Distribution

- Marketing and Services

Value Chain Activities

- Unique Franchise Model. Chick-fil-A selects each restaurant and builds it.

- There are well defined terms and conditions where it describes what it is looking for and who should not apply to be a franchise.

- Differentiates between franchisees not by a minimum amount of capital, but by quality of character and fit within the organization.

Marketing

These activities are undertaken by CFA to create means through which the buyer can buy a firm’s products.

These activities include – marketing, channel selection, sales force management, pricing, advertising, and promotion etc.

Services

Chick-Fill-A needs to provide after sales services and maintenance for successful usage of the product.

Service activities of CFA can include – part supply, product forward and backend alignment of software, post sales maintenance, installation services, and training.

CONCLUSIONS

Introduction

Conclusion

QUESTIONS

Questions