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Concordia University Kipley PerelesResearch MethodsIndividual Project1. What is the overall philosophy adopted by “Chick-Fil-A?” How does it differ from other fastfood restaurants?Chick-Fil-A’s core philosophy is to make business decisions on biblical principles. Chick-Fil-Ahas maintained the original Christian values established by its founder, S. Truett Cathy. Thisrelates to all facets of the business. "My dad's determination and industry knowledgecombined with his endless dedication to his faith and moral values continue to inspire our business goals and our daily excitement," said Dan Cathy, president and COO of Chick-Fil-A.The company’s corporate mission statement is to “glorify God”.Chick-Fil-A differs from other fast food restaurants in that they are closed on Sunday so thattheir employees can worship and spend the day with family.2. What is the competitive advantage, if any, of “Chick-Fil-A’s? If it exists, is it sustainable?Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead toa competitive advantage which the company has been able to capitalize on. However, thesuccessful growth of the franchise has been attributed to employee loyalty and unusually lowturnover among Chick-fil-A operators as low as 5% a year. Part of this loyalty and satisfactionstems from offering an attractive profit sharing plan (up to 50% of profits), which helps attractnew investors and entrepreneurs over the competition.3. Will the approach taken by “Chick-Fil-A” limit or enhance its future growth potential?Ultimately this approach will help “Chick-Fil-A” grow in mass, however I would be cautiousabout its profitability because of its profit sharing plan. Its profit sharing plan requires thefranchiser to invest an initial $5,000 while Chick-Fil-A absorbs the remaining infrastructurecosts and shares 50% of the profit. I think that is a very generous model that may limit itsprofitability. It will grow by volume because of the interest from entrepreneurs alike but thebottom line will not be as healthy as some other competing restaurants, like McDonalds.
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