Chick-Fil: Servant Leadership and Success - Research Paper Example

Chick-Fil-A Servant leadership and success Table of contents Page number Introduction…………………………………………………….3 2. Biography of founder…………………………………………..3 3. Mission and organizational strategy…………………………...4 4. SWOT analysis………………………………………………..…4 5. Leadership style………………………………………………....5 6. Process for control……………………………………………....6 7. Innovative management practices………………………………7 8. Conclusion …………………………………………………….....8 9. References ……………………………………………………......9 Chick-fil-A servant leadership and success Introduction Chic-fil-A, Inc is family owned fast food restaurant headquartered in Atlanta, Georgia and mainly specializes in chicken sandwiches. The restaurant operates over 1,700 restaurants in more than 39 states in the United States (Chic-fil-A, 2013). The culture of the business is based on the evangelical Christian beliefs of the founder such as the need to observe Christian Sabbath, unlike other fast food restaurants that open on Sundays. The success of the restaurant can be attributed to servant leadership, good management practices, shared business strategy and qualified employees (Jeffs, 2008). Samuel Truett Cathy, the Chief Executive and founder of the restaurant believes that individuals must have the opportunities to enhance their living standards through serving the communities (Chic-fil-A, 2013). Some customer offerings include chicken entrees, salads, waffle fries, sandwiches, desserts and fresh-squeezed lemonade. The high expansion success can be dedicated to the committed franchise owners and emphasis on product quality (Chic-fil-A, 2013). Biography of founder In 1946, Samuel Truett Cathy opened the first Dwarf Grill restaurant in Atlanta. He introduced Christian values to the restaurant since its inception (Chic-fil-A, 2013). Cathy has overseen the expansion of the restaurant to more than 1,700 outlets in 39 states across the United States. He is a committed servant leader who believes in serving others without expecting a return and making a difference in the communities (Chic-fil-A, 2013). Cathy has built his restaurant bases on the values of quality, hard work, biblical principles, humility and the restaurants have a ‘closed-on-Sunday’ policy. Cathy holds several awards and recognitions including the President’s Call to Service Award (2008), William. E. Simon prize for Philanthropic leadership (2008) and Cecil B. Day Ethics Award (2007). Chic-fil-A has grown to become the second largest quick-service restaurant in the United States based on annual sales (Chic-fil-A, 2013). Mission and organizational strategy The mission of Chic-fil-A is to ‘glorify God by being faithful steward of all that is entrusted to us; and to have a positive influence on all who come in contact with the restaurant’ (Amason, 2010). The company has remained faithful to the mission through its corporate sponsorships, WinShape Foundation and several social responsibility initiatives that aim at helping the needy in the communities. The vision of Chic-fil-A is to become a leader fast food restaurant industry and satisfy the changing needs of the customer (Amason, 2010). The organizational strategy is based on focusing on customer needs, continued improvement before expansion and put a lot of emphasis on quality foods (Jeffs, 2008). The company is committed to nurturing the franchise relations, promoting employee relations and engaging in philanthropic activities. In order to ensure healthy nutrition, Chic-fil-A cooks in 100 percent refined peanut oil that is cholesterol free and offers 10 menus that contain 10 or more fewer grams of fat. The company is actively engaged in brand building and promotion activities through integrated marketing communications that entail radio and TV advertisements, sponsorships, merchandise sales and clothing. Some of the leading competitors include KFC, Burger King, Sonic and Taco Bell (Amason, 2010). SWOT (strengths, weakness, opportunities and threats) analysis One of the strengths of is the high recognition of the chicken sandwich is differentiated from those offered by competitors (Amason, 2010). The company has attained consistent growth in market share and annual increase in sales over the last few years. The company enjoys good leadership style and highly qualified staff that is committed to the organizational mission. Accordingly, the Chic-Fil-A Cow advertising campaign is popular and makes it easy for the restaurant to enter in to new markets in the United States (Amason, 2010). However, the restaurant closes on Sundays thus losing some sales. Only Chicken sandwich is popular among the customers, but consumption preferences are slowly shifting to other meals like bacon, ham and salads to need of health conscious foods. The company has excellent growth opportunities that it can exploit in order to attain competitiveness in the industry. For instance, the company must diversify its menu offerings and stop relying mostly on the Chicken Sandwich for revenues. The company must establish strong market presence in Northern and Western parts of the US in order to minimize the competition in the industry (Cole, 2003). Accordingly, the company faces some threats since KFC and Popeye’s have attained high market presence in South. The company faces high threats negative perceptions on brand values if the franchises fail to follow the stipulated food quality policies (Amason, 2010). Leadership styles One of the critical success factors at the restaurant is the servant leadership style of the senior management. The management has been able to inspire and motivate the subordinates in order to attain the shared vision of the restaurant (Jeffs, 2008). Accordingly, the leadership style is based on trust and appreciation of the diverse ideas of the subordinates. Interesting, the founder of the restaurant believes that each individual must have an opportunity to excel and make a difference in the community (Chic-fil-A, 2013). In this case, the restaurant helps those employees dealing with life issues through counseling programs and closing on Sundays so that employees can concentrate on personal development activities (Jeffs, 2008). The management treats employees with respect and listens to the unique needs of each employee. Samuel Truett Cathy is considered a hero in the organisation since he has been able to manage the restaurant successfully for more than 50 years. He is considered as a source of inspiration to all the subordinates. The restaurant motivates its staff through providing training opportunities, promotions, fair compensation rewards, gifts, sporting events and allowing employees to attain personal growth through participating in social responsibility initiatives (Amason, 2010). Cathy established the Leadership scholarship program that awards scholarship to team members to study in a school of their choice (Chic-fil-A, 2013). Chic-fil-A has a flat organizational structure and less bureaucratic policies that allow for effective communication among all the stakeholders in the organization. The restaurant has embraced authority and responsibility delegation and subordinates can easily consult with the management through informal communication channels (Amason, 2010). Processes for control Chic-fil-A restaurant has implemented several process controls that aim at ensuring efficient workflow and effectiveness in the resource allocation. The restaurant has implemented an integrated computer system that aims at making work easier, minimizing human errors and avoiding extra expenses on labor (Amason, 2010). The restaurant has a customer-order fulfillment system that makes sure customer orders are fulfilled in a timely manner without any delay. According, the restaurant has a stock management system that tracks the use of raw materials and ensures there is enough supply to meet the demands of the customers (Cole, 2003). Indeed, the accounting and financial management system is effective in the management of receivables, cash and facilitates the preparation of daily, weekly and monthly reports on the restaurant income, expenses and profitability (Amason, 2010). The restaurant has a human management system that facilitates in identifying training needs, recruiting new staff and reward management in the organisation. The information systems enable the organisation to manage different work processes, manage customer relationships and ensure effective controls in financial management in the restaurant (Amason, 2010). Innovative managerial practices Business organizations in the contemporary business environment must utilize technology in order to attain competitive edge in the market. Chic-fil-A has recognized the need to use technology in its marketing efforts such as use of the internet in reaching out to the younger chicken consumers (Cole, 2003). The restaurant utilizes the social media networks to advertise the products, gifts and promotions. The restaurant allows the customers to make orders through the internet and participate in online draws that provide them an opportunity to win gifts that are delivered at the doorsteps (Amason, 2010). The internet technology has allowed the restaurant to attain customer loyalty through real-time access to customer feedback and handling of complaints. Dan Cathy actively participates in the management of customer relationships through communicating with potential customer on the internet forums and handling customer grievances (Amason, 2010). The restaurant is a pioneer in the quick-service food mall and utilizes the mall-based restaurant concept in its locations (Chic-fil-A, 2013). Accordingly, the restaurant has responded to the need of customer convenience through opening stand-alone restaurants in high human traffic areas and drive-through only restaurant outlets (Chic-fil-A, 2013). In addition, the restaurant still operates the original Dwarf House restaurants that allow the customers a table service and walk-up counter service. The restaurant operates the Truett’s Grill that features full chicken menus and other select dishes in a seated-dine-in service thus creating customer comfort (Chic-fil-A, 2013). Conclusion Chic-fil-A is the second largest fast food restaurant in the United States and is popular for its Chicken Sandwich. Cathy, the founder of the restaurant has steered the expansion of the restaurant to more than 1,700 outlets in 39 states across the United States. The leadership style of the organisation is committed to the mission of making a difference in people lives and serving the community. The restaurant considers the unique employee needs and closes on Sundays in order to adhere to the biblical values of the founder. The restaurant is committed to quality, continuous improvement, employee relations and service to the community. Reference list: Amason, A. (2010). Strategic management: from theory to practice. London: Taylor & Francis. Chic-fil-A. (2013). “Company highlights”, Chic-fil-A, Available on 15th September at (http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets) Chic-fil-A. (2013). “S.Truett Cathy: founder, chairman and chief executive officer”, Chic-fil-A, Available on 15th September at (http://www.chick-fil-a.com/Press/Bios/Truett). Cole, G.A. (2003). Strategic management. New Jersey: Cengage Learning. Jeffs, C. (2008). Strategic management. New York: Sage. Read More