Thursday, October 3, 2013

Chic Fil A SWOT Analysis

The class of Managing Organizational Behavior has been discussing Whole Foods and how they may have strayed from their core values as the company grew.  Another company that has tried to stay true to their core values is Chic Fil A.  Both companies are similar in focusing on a pleasant experience at a type of business that typically does not focus on it, as well as an emphasis on employee happiness and well-being.  The company has many attributes that have made it successful, however, there are some things that could be improved on.  Below is a SWOT analysis of the business.  

Strengths
-Great customer service
-Quality Food especially compared to other fast food restaurants
-Christian values
-Employee happiness (O-Neill)
-Low turnover franchise operator, 5% per year (Schmall, 2007)
-Low hourly turnover of 60%, which is much lower than the industry of 107% (Schmall, 2007)
-Happy warm restaurant environment
-Loyal Customers

Weaknesses
-Closed on Sundays, less days for sales
-Low variety of food
-No global presence
-Smaller national presence than competitors especially in mid-west and west part of the country

Opportunity
-Room for expansion within US
-Expansion outside of US
-Advertising and brand awareness
-Increase product selection
-Low franchise fee entices new franchisees (Schmall).

Threats
-Societal trend of negativity towards fast food
-Increased cost of supplies
-Secularism that is against openly religious organizations
-Lowered priced, higher recognition fast food restaurants
-Backlash from CEO views


Schmall, Emily. "The Cult of Chick-fil-A." Forbes. 6 July 2007. http://www.forbes.com/forbes/2007/0723/080.html

O'Neil, Wayne. "How to Win the Competitive Advantage" Wayno O'Neill & Associates, LLC. 25 June 2012.  http://www.woassociates.com/blog/how-to-win-the-competitive-advantage/

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