Case #18 In N Out Burger: Building a Better Burger
March 18, 2013
Amy Staudinger
Management Principles and Practices
Professor Restad
Entrepreneurs are the heart and soul of the American economy and are responsible for the creation of many of our Country’s jobs. 99% of all U.S. businesses meet the definition of small business; “a business that is independently owned and operated, does not dominate in its industry and employs fewer than 500 employees” (pg 433). Without individuals that are willing to take risks and who are driven to succeed under their own power, we would not have companies like In N Out Burger. The Snyder family founded In N Out Burger in the pursuit of the “American Dream”; work hard and prosperity will…show more content… He instilled a sense of pride and ownership in his managers and employees hoping they would be productive and ultimately lead to personal success and financial gain for them. Rich developed the In N Out University to draw from the talents and expertise of his best managers and to train the associates that showed the most potential to excel in management. “Why let good people move on when you can use them to help your company grow?” (Pg. C-37) As discussed in Chapter 10 of our textbook, human resources are a company’s most valuable assets. Recruiting, developing and keeping talented employees are huge costs to organizations, so when a talented workforce can be maintained long term, not only does the company benefit, but so do the employees. No doubt the management style Rich most closely demonstrated would align well with Elton Mayo’s, Hawthorne Effect; “treat your employees well and they will live up to your expectations” (pg. 40). It is pretty hard to argue with over sixty years of success when analyzing the business decisions the Snyder family has made throughout the history of In N Out Burger. Some might think that Rich’s young age at the time he took over as CEO would have been a detriment to the company, but he proved the complete opposite. He was raised by his parents who were obviously very successful business people. He inherited the entrepreneurial spirit and with that comes the ability and desire to take risks. I don’t think in his case it would have
