Managerial Policy Kentucky Fried Chicken

Presented by:Muhammad Farhan Akhtar

The Evolution of KFC• 1939 – Colonel Sanders develops his original recipe chicken

• 1952 – Kentucky Fried Chicken is Formed

• 1952 – 1997 KFC grows into national Restaurant Chain– Many owners and stake holders along the way.

• 1986 – PepsiCo’s acquisition of KFC

• 1997 – Tricon Global Restaurants Inc is formed as a spin-off from PepsiCo

• 2002 – Tricon changes its corporate name to YUM! Brands

• 2007 – KFC introduces its Zero grams Trans Fat recipe

KFC in Pakistan

Vision / Mission Statement

• VisionTo sell food in a fast, friendly environment that appeals to pride conscious, health minded customers

• MissionOur passion, as a restaurant company, is to put a YUM on people’s faces around the world, SATISFYING CUSTOMERS every time they eat our food and DOING IT BETTER than any other restaurant company. The UNIQUE EATING EXPERIENCE at each of our restaurants MAKE OUR CUSTOMER SMILE and inspire their loyalty for lift. Toward that end, our associates around the world are trained to be CUSTOMER MANIACS.

Goals

• Build an organization dedicated to excellence.• Consistently deliver superior quality, and value in

our products and services.• Maintain a commitment to innovation for

continuous improvement and growth, striving always to be the leader the market place changes.

• Generate consistently superior financial returns and benefit our owners and employees.

Products

Chicken Mania Hot Shots Hot wings Family Feast

Zinger Mighty Zinger Rice n Spice Wings n Rice

Wow Meal Nuggets Twister Xtreme Zinger

SWOT AnalysisSTRENGTHS

S1. Good TasteS2. Brand EquityS3. Global ExperienceS4. OperationsS5. Trademark RecipesS6. Strong Customer Focus

WEAKNESSESW1. High priceW2. Image of ‘Fried’W3. Only chicken related recipe W4. Most of the product having close substitution in marketW5. Inconsistent Quality of service in many outlets.W6. Lack of control in Joint- venture arrangements.

OPPORTUNITIESO1. Increase outletsO2. Undeveloped market abroadO3. Increase trends to take meal out of homeO4. Earn big profits as the population growsO5. Availability to increase the number of franchise to other countries.

SO – Strategy•Introduced new recipes (S1,S2,O3)• Increase numbers of outlets in different countries (S3,O5)• Capture customer by introducing new deals (S6,O4)

WO – Strategy•Introduce cheaper items in the menu (W1,O3)• Change the image of KFC from fried to Healthy (W2,O3)• Offer cow meat and vegetable food also (W4,O4)

THREATST1. New entrants / better quality brandsT2. Health conscious eating habitsT3. Animal care activistsT4. No support from government agenciesT5. Intensive Competition

ST – Strategy•Introduce healthier recipes (S5,T2)• Differentiate as one providing in fastest service (S2,S4,T1)• Engage in CSR activities (S2,S4,T3)

WT– Strategy•Work on the image of a healthy fast food chain through advertising (W2,T2)• Develop a strong culture of strong service (W5,T5)

Recommendations• Short Term– Introduce new recipes suited to local taste– Introduce cheaper items in the menu– Introduce healthier recipes– Differentiate through good services– Work on the image of a healthy fast food chain through

advertising• Long Term– Change the image of KFC from fried to ‘healthy’– Open up new outlets– Engage in CSR activities related to animals & environment– Develop a strong culture of good service

Internal Factor Evaluation (IFE)

(IFE) Cont....

External Factor Evaluation (EFE)

(EFE) Cont....

Competitive Profile Matrix (CPM)

BCG Matrix

Internal-External Matrix (IE)

I II III

IV V VI

VII VIII IX

IFE Total Weighted Score Strong Average Weak 3.0 to 4.0 2.99 to 2.0 1.99 to 1.0

EFE

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1.

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1.9

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2.

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2.9

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4.0

IFE = 2.78EFE = 3.20

Grand Strategy MatrixQuadrant II

• Market Development• Market penetration• Product development• Horizontal integration• Divestiture• Liquidation

Quadrant I• Market Development• Market penetration• Product development• Forward integration• Backward integration• Horizontal integration• Concentric diversification

Quadrant III• Retrenchment• Concentric diversification• Horizontal diversification• Conglomerate diversification• Liquidation

Quadrant IV• Concentric diversification• Horizontal diversification• Conglomerate diversification• Joint ventures

Weak Competitive

Position

Strong Competitive

Position

Rapid Market Growth

Slow Market Growth

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