Growing demand for healthier food instead of fast-food

Every case should include each of the following steps (but not as subject headers – incorporate them into a narrative):

1) Identify your role: CEO? Board member? Outside consultant? Etc. One sentence max.

My notes
Role: as a consultant looking on the outside

  • Founder: Samuel Truett Cathy
  • 2013, Dan Cathy took charge as the CEO
  • Tim Tassopoulos, a president and COO
    2) Identify the problem: Write a concise problem statement. This should just be one or two sentences, and appear at the very beginning of your work. Use it as a reference point as you proceed through the analysis.

The process of thinking about possible solutions may lead you away from the initial problem. Don’t fall into this trap. Make sure your recommendation actually addresses the problem you have identified.

There generally is not one “correct” problem to be identified. Instead, you are graded based on how well you analyze and solve the problem you chose to work with.

My notes: Business problems:

  • LGBTQ backslashes (boycotts and protests) when expanding globally
  • Fierce competitions between major fast-food players (mcdonlds and popeyes unleashed their chicken sandwich)
  • Growing demand for healthier food instead of fast-food

Info:

  • International expansion challenges
  • 2400 restaurants, 10 billion system-wide sales, growing excessively
  • Reputation: family-owned chain (closed on Sundays – “Bible Belt”)
  • Controversial (public relation battle): Cathy’s family donated to orgns that opposed same-saex marriage, anti- LGBTQ, promoted “conversion therapy” – “operate on biblical principles”; increasing total funding to anti-LGBTQ groups
  • Pleasant and friendly dining experience – politeness of employees – customer satisfaction
  • Prospectus working environment
  • Franchise model and screening criteria (compared to mcdonalds)
  • Corporate culture: (caution, top-down control, in-depth) training; caring and strong value are carved into the culture – co-founding culture
  • Giving back to society, helping young people, scholarship programs
  • Private and family-owned business

Industry:

  • Saturated and price competing
  • Competition among fast-food chains, small players filed bankruptcy
  • Declining fast-food sales were attributed to declining football viewership, immigration rates and construction activity, as well as to increased consumer demand for healthier alternatives to hamburgers and pizzas.
  • Giant players, acquisitions of new tech
    Chicken sandwich war
  • Mcdonalds discounted its meals facing the challenge of chick-fil-a
  • Mcdonalds and popeyes both launched their chicken sandwiches
    Social-political: anti-LGBTQ history caused backslash from left wing rights group, when expanding globally. (hired PR company to assit opening in Toronto)

3) Conduct your analysis: Use the analytical tools from the course reading. DO NOT do external research.

The point of the exercise is to see how you apply the tools of the course to a real-world challenge, NOT to see if you can find out what the company actually did. Very often a strong case will make recommendations that are quite different from what the company did because you are working with different information than they were.

The analysis should be the longest section of your write-up. In full-length case studies, at least one full page per tool plus the work you do in the appendix. For the one-page case studies, one paragraph per tool plus the work you do in the appendix will suffice.

Each assigned reading has at least one tool (like shared value, stakeholder theory, five forces, etc.). Use at least two tools. ONLY use tools from our readings, NOT tools from other courses (like SWOT). Furthermore, you must use one of the specific tools assigned in the same week that case is due.

Make sure the tool you use fits the problem – i.e. five forces looks at the industry, while other tools, like those on organizational culture, look within the firm.
Also, ask yourself why you have chosen one type of analysis over another. Assumption checking can also help determine if you have gotten to the heart of the problem or are still just dealing with symptoms.

My notes:
Analyses models: (at least 2 models, and one from week 5)

  • Stakeholder theory – tackling LGBTQ issues
  • 5 forces model – industry-wise competition (week 5)
  • Learning from the future – from Christian/biblical orgin to new paradigm (LGBT/equal rights),general public’s preference for healthier food

4) Propose alternative solutions: Generally, three. Make sure each alternative is justified and supported by your analysis.

It is important to remember that in management cases there is rarely one right answer or one best way. Even when members of a class or a team agree on what the problem is, you may not agree on how to solve the problem. Therefore, it is helpful to consider several different solutions.

My notes

  1. Embrace the rights of LGBTQ groups, hiring PR companies
  2. Accelerate internationalization, some level of localization
  3. Incubate new products to meet the needs of healthy food

5) Make recommendations: Choose ONE of the three alternatives.

Describe exactly what needs to be done. Explain why this course of action will solve the problem.

The recommendation should also include suggestions for how best to implement the proposed solution because the recommended actions and their implications for the performance and future of the firm are interrelated.

The solution you propose must solve the problem you identified. This point cannot be overemphasized; too often, students make recommendations that treat only symptoms or fail to tackle the central problems in the case. Make a logical argument that shows how the problem led to the analysis and how the analysis led to the recommendations you are proposing.

Remember, an analysis is not an end in itself; it is useful only if it leads to a solution. The actions you propose should describe the very next steps that the company needs to take.

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