Business Finance
HSTM 4465 Troy University Chick Fil A Social Media Crisis Questions

HSTM 4465

Troy University

HSTM

Question Description

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case study Clashing Values, Firm Identity, and Changing By Cynthia Deale and Donald G. Schoffstall Learning Objectives public, for many, Cathy has just crossed the thin line which separates To discuss the implications of adhering to the business’ vision/ mission/purpose statement in the face of changing social the comment served to bring the Cathy family’s moral values to light, To examine the response to an image crisis for a restaurant chain organization and the effects of sudden publicity on re To consider how a company’s expansion into new markets may To understand how a focus on product and service quality may household, Cathy combined his desire to work hard with an entre preneurial spirit to open his first restaurant, the Dwarf House, in Introduction on Sundays, to reflect biblical principles and allow time for attending breakthrough came from the creation of a fried chicken sandwich, and family all think highly of the popular quick service restaurant chain, runaway success with restaurants lining up to purchase the license to sell Cathy’s unique concept, however Cathy worried about the lack of was raised in a household with two fathers, and is a huge supporter of were able to retain their high standards while still making their deli want to disappoint his son and his friends, however he is uncertain if he The origins of Dave’s dilemma stem from events that occurred a a seemingly routine interview on The Ken Coleman Radio Show, Dan we are inviting God’s judgment on our nation when we shake our fist at him and say, ‘We know better than you as to what constitutes a ful, arrogant attitude to think we have the audacity to define what attempting to solidify the company’s perception in the eyes of the Originally opened exclusively in shopping mall food courts, the Cathy’s initial plans to expand were deliberately conservative as he regarding franchising the company lay in losing control of standards When a new location is determined to be viable, the company seeks put through an intensive training program before being allowed to being operations, as well as agreeing to have no other active busi then considered a relationship between the parent company and the Manisha Singal, Matthew Krawczyk and Jeremy Beal are all affiliated with Virginia Tech. 38 Volume 5, Number 2 Company Culture It is easy to see the Christian values that were instilled into the greatly to the development of teenagers who work in our restaurants, creating a wholesome atmosphere in which to work and modeling Our Operators consider themselves to be mentors to the next genera To maintain Truett Cathy’s Four Tenets, the strategic direction of subscribe to the Christian faith in order to stay with the company, and of leadership prepares to hand over the reins to their children, the core There seem to be no conflicts when we tell people of various faiths how ing members of the Cathy family are required to spend multiple years Scriptures we learn how to handle our businesses, how to give custom Advancement through the corporate ladder is earned in the same fashion less parties involved in decision making compared to a publicly traded allows the chain to remain true to Truett Cathy’s original Four Tenets, cre porate giving program is supporting youth, family and educational children, as well as a number of organizations which offer marriage encourages quality interaction between Operators, team members and However, some of the company’s charitable efforts are not uni Positioning the company primarily in shopping malls took ad vantage of a timely niche opening in the fast food marketplace as $5 million plus to groups that support the conversion of homosexual men and women into what most Christians believe is a healthier, money has been donated to Christian marriage counseling organiza shopping malls, however, the emphasis on corporate control of where tions that have stated they do not support the notion of marriage by cized by organizations such as the Gay and Lesbian Alliance Against By financing all new locations internally, Cathy guaranteed own ership would remain in his hands and that the company would be able Defamation, the National Gay and Lesbian Task Force, and the Human Dan Cathy Reacts that quality control might become unmanageable due to too fast a the one hand, the response was startling; the social media era was Journal of Hospitality & Tourism Cases 39 ing on his comments, thousands of tweets, blogs and Facebook posts San Francisco echoed the sentiments of both the Mayor of Boston and year and politicians of both parties were quick to express their opinion doesn’t share San Francisco’s values and strong commitment to equality raise up the Cathy family as champions of their cause, lengthening University passed a resolution in the student senate to cancel plans for a tively hardline stance on a political issue such as gay marriage were and acceptance of LGBT rights, as well as the ability for a message to be instantaneously transmitted to millions of social media users, ne Two weeks after Dan Cathy’s interview on The Ken Coleman Radio In response to the Baptist Press interview, the Jim Henson Company, Show, he accepted an interview with the Baptist Press, a news ser announced that it would cease business relations with the fast food month earlier, delegates at the annual meeting of the Southern Baptist company and donate the planned payment for the brand to the Gay Negative effects were not only felt in the public arena, but also Shortly after opening the interview, Cathy was asked outright whether price for Tyson showed that the largest drop as well as the highest vol the timeframe immediately following the comments made by Cathy The Public Reacts Public opinion in response to Cathy’s statements ranged from wholehearted support to disgust with the reactions and counter reac based market research firm based in the United Kingdom, did a study on the effects of the comments by Dan Cathy on the brand’s image and found that in the span of two days the brand’s image had fallen the BrandIndex scale, which is measured by National QSR Restaurant After Cathy’s interviews with the Baptist Press went public, Thomas Menino, the Mayor of Boston stated that he would not allow the com 40 Volume 5, Number 2 and respects its LGBT neighbors and rejects rhetoric like Dan Cathy’s In the present day, the continued financial growth and resiliency Dan Cathy, and the widespread negative response from the strong contingent of gay rights support groups came down in full force and recognized, have been found to produce customers who become loyal to the organization, in turn producing favorable financial outcomes to counter a boycott of the restaurant launched by the company’s op wins awards in the quick service category from notable organizations top honors from Sandelman & Associates’ QSR Awards of Excellence, restaurants experienced a show of public support across the nation where scores obtained from consumers were significantly higher than strong competitors such as Chipotle and Five Guys Burgers & Fries levels of quality, the restaurant chain occupies a very unique space campaign, proud declarations of their scholarships, incredible atten there was considerable backlash stemming from the comments by Dan Cathy, the bottom line financial performance remained positive, due in The effects of Dan Cathy’s statements may have brought an up Eat Mor Chikin…? swing in sales temporarily due to strong support from certain quarters, for chains that served chicken as its primary meal, overtaking the spot Journal of Hospitality & Tourism Cases 41 support for the majority of the controversial organizations associated identified as hate groups have dwindled to almost nothing, with the for expansion into the heavily populated Northeast cities, has been foundation responsible for the funds, the Winshape Foundation, fad predicted to launch the firm into a top five competitor for the quick previous entities which were seen in a negative light by LGBT political law regarding the religious freedom of a business effectively allowed a business to discriminate against LGBT patrons by citing that the res banks, public schools and assisting impoverished youths, the founda tion remains relatively neutral in its funding and provides an outlet for amendment closed the loophole, however not before bringing the More recently, Dan Cathy has expressed regret for his remarks, commenting that in the future, he would leave social issues to politi of sexual orientation is only protected against where explicitly stated; values with regards to the institution of marriage remain unchanged, Dan recognized that the debate is better suited outside of the restau kind and welcome host, than the exclusion of any individuals would Dan Cathy’s remarks may have reflected his personal beliefs, rant chain and serves to alienate market segments from the company been answered with consternation from other Christian groups, who however these values have the potential to conflict with both internal had championed the chain as a rallying cry in the debate over gay ing population and legal protection of LGBT individuals and families beliefs remains strong to this day, with politicians in many major hostility from local politicians, who are concerned that the message such as Marriott and Hilton have been very forward about embracing allow for comfort and an acknowledgement of an alternative lifestyle, the hotel chains are recognizing the business potential for this market Government Association of Johns Hopkins University voted to deny a larly, Marriott’s diversity and inclusion policies show a commitment ditional lifestyles may also run counter to the equitable treatment of ganization committed to auditing organizations in relation to a firm’s differentiating a firm from its competition, as well as giving customers substantially higher scores from competitors such as McDonalds and a reflection of this concept, creating a relatively clear definition of how Moving Forward identity, in this case, supporters of LGBT values and rights, are hoped to A still enjoys, that the negative publicity resulting from Dan Cathy’s have been shown to drive customer retention, yet in the face of a chang comments still served to drive loyal customers to support their chosen ing society, it remains to be seen how far quality can carry a company some concessions in response to the event, withdrawing their financial 42 Volume 5, Number 2 For now, a few key questions remain to be answered by the man commitment to the ideals upon which they were founded represent grows into new markets, how will the perceptions of potential custom realized, or will the negative perceptions of the Cathy family’s personal Discussion Questions As gay marriage legalization and acceptance grows, do you be lieve the negative results of Dan Cathy’s remarks will continue you believe the Cathy family’s response to the negative public was attributed to a competitor such as McDonald’s, do you Pick a hotel or restaurant that you are a fan of and find the Journal of Hospitality & Tourism Cases 43 ...
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Hello there, here is the complete paper. Go through it and in case of anything, feel free to alert me.Regards

Chick-Fil-A Outline,
A. Question 1
i.

If I were at the position of Dave, I would try all other possible options before
opting to give Chick-Fil-A my patronage.

ii.

Dave should not be limited by his son from exercising his free will while making
the purchase decisions.

B. Question 2
i.

The remarks made by the Chick-Fil-A CEO are likely to continue affecting the
market of the company both inside and outside the USA.

ii.

As the number of same-sex marriages, LGBT, and gay supporters continue
growing in the United States and globally, it also important to note that the
number of the firm’s rivals is increasing.

C. Question 3
i.

Being a family-owned business, the company has been identifying itself with
Christian principles since its start.

ii.

The business operations of the firm are focused on serving the society with the
best services regardless of the perspectives of the society about its stand on gays
and same-sex marriages.

D. Question 4
i.

Chick-Fil-A is owned privately by the members of Cathy's family. Therefore, the
company does not affect the trends of the stock market.

ii.

If Chick-Fil-A were a publicly owned corporation, its response to the reactions of
the public would have been different.

E. Question 5
i.

If the situation of Chick-Fil-A about the negative remarks were faced by one of its
competitors, such as the McDonald’s, the outcome would have been very
different.

ii.

The difference would have accrued from the difference in the ownership of the
two firms.

F. Question 6
i.

Chick-Fil-A

ii.

It follows the statement of its mission.

G. References


Running head: CHICK-FIL-A

1

Chick-Fil-A

Student’s Name
Institutional Affiliation
Date

CHICK-FIL-A

2

Question 1
If I were at the position of Dave, I would try all other possible options before opting
to give...

Knutsen (22618)
New York University

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