Question
CASE SCENARIO (starting on page 94 from the textbook): Closed onSundays, Thanksgiving, and Christmas? Since 2010, Chick-fil-Abecame and continues as the fast-food industry champion by
CASE SCENARIO (starting on page 94 from the textbook): Closed onSundays, Thanksgiving, and Christmas? Since 2010, Chick-fil-Abecame and continues as the fast-food industry champion by salesper restaurant, despite being open only six days a week and closedon two major holidays. Averaging $4.8 million per restaurant in2016, Chick-fil-A earned nearly twice as much as their nearestcompetitor, Whataburger, who came in second with $2.7 million perrestaurant.137 So how can a firm in the fast-food industry grow andbecome a player competing against such powerhouses as McDonald’s,Burger King, Taco Bell, Wendy’s, and KFC to become the largestchicken, and the third-largest American fast-food restaurantchain?138 Founder S. Truett Cathy, who died in 2014, would argue“We should be about more than just selling chicken. We should be apart of our customers’ lives and the communities in which weserve.”139 Yet some would disagree, saying that Truett’s businessmodel, not his ethics, is what drove the growth of the business andmade it the success it is today. Chick-fil-A restaurants follow thekeep-it-simple principle: make a good chicken sandwich, have amodest menu, and provide respectable service.140 This is radicallydifferent from other fast-food chains who vary their menu by regionand by season in order to create a buzz about their restaurants.Taking a page out of the two biggest names in the industry (McD’sand Starbucks) Chick-fil-A has produced top-quality, deliciousproducts coupled with customer service that has consistently beatthe fast-food industry giants in customer satisfaction.141Secondly, Chick-fil-A, unlike the multinational firms in theindustry, owns every restaurant. They are very selective indetermining their restaurant locations and build their ownstores.142 Although the franchise is very easy to buy into ($10,000initial investment) as compared to its competitors, they are veryselective in who can operate their stores and have a rigoroustraining program. “This is not the right opportunity for you if youare seeking a passive investment in a business, want to sell theproperty to Chick-fil-A, Inc., are requesting that Chick-fil-A,Inc. build at a specified location, and are seeking multi-unitfranchise opportunities.”143 Those who knew Truett best woulddisagree with these pundits. S. Truett Cathy was a devout Christianand his spiritual beliefs drove the firm.144 This is exemplified onthe firm’s website. “To glorify God by being a faithful steward ofall that is entrusted to us. To have a positive influence on allwho come in contact with Chick-fil-A. … [the] tradition in ourRestaurants is to treat every person with honor, dignity andrespect–regardless of their belief, race, creed, sexual orientationor gender.”145 When asked about his formula for achievement, Truettnoted that “I was not so committed to financial success that I waswilling to abandon my [spiritual] principles and priorities. … Idon't want to ask people to do that[,] what I am not willing to domyself.”146
Go to the Internet: To learn more about Chick-fil-A and formerCEO S. Truett Cathy go to Chick-fil-A’s website atwww.chick-fil-a.com/.
Answer the following Case Questions (do NOT use the questionsfrom the textbook) based on the above case study: Support youranswers to the following questions with specific information fromthe case and text or with other information you get from thetextbook, Web or other sources. You MUST be sure to cite yourreferences. Use complete sentences to answer these questions.
1. What is an attitude, and how does it drive Chick-fil-A’sbusiness model?
2. Did S. Truett Cathy and Chick-fil-A appear to have Theory Xor Theory Y assumptions about worker attitudes? Explain why youchose this Theory.
3. Describe S. Truett Cathy’s self-concept andself-efficacy.
4. Discuss how S. Truett Cathy’s values shaped Chick-fil-A’soperation.
5. Got to www.youtube.com/watch?v=evmCQFN6MuM and describe howS. Truett Cathy’s values and spirituality drove his individual andbusiness ethics. Cumulative Case Question
6. Review your answer to questions 5 and the associated video.Which of the Big Five Personality Traits do you think was strongestin S. Truett Cathy? Why
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