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Kentucky Fried
ChickenReport based on study of
structure and culture of KFC
Submitted to:
Sir Raja Saad
Bahria university, Islamabad
Submitted by:
SALMAN ZAHID 01-
113082-032
MUZAMMIL ARIF 01-
113082-
USMAN ASLAM 01-113082-
NAEEM AMIN 01-
113082-
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Transmittal Letter
Research Associates
BUI Students
BAHRIA, UNIVERSITY ISLAMABAD
December 30, 2011
Sir Saad
Bahria, university Islamabad
Respected sir saad,
We are thankful to you that you have assigned aproject last week. we observed all structure andculture of KFC and we highlights those points which isnecessary for the organization.
We also appreciate you that you guide us very well inobservational study. The report has been prepared insystematic manner according to the requirements.While studying the report you will come to know aboutstructure and culture of the organization.
The SWOT analysis of KFC reveals their strength,weakness opportunities and threats. Followed by thesuggestion, that will definitely work if considered.
We will hope that you will like and appreciate ourreport and gives credit in future.
Yours Obediently,
Group Leader
SALMAN ZAHID
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Table of Contents
Executive Summary 1
Introduction
2
KFC Saloogan 2
History 3
KFC in Pakistan 4
Some Facts
4
Vision
5
Mission Statement
5
Culture 6
Organizational Structure and Design
6
Hierarchy of KFC in Pakistan7
Structure in Branch 7
Major Departments 8
Human Resource Management
8
Nutritional Information & Specific Ingredients9
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Social Responsibility
10
Strategy
10
International Expansion
10
Multi brand Innovation & Expansion:10
Global Franchise Fees10
Strong Cash Generation and Returns
10
International Operations
11
Founding Truths
12
External Environment
13
Competitors
13
Suppliers
13
Customers
13
The principal Of KFC
14
Analysis
15
Hdfh
16
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Bibliography
18
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Executive Summary:
From the project we study many topicssome of these topics are:
Structure
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Culture Symbol Slogan Behavior External
environment
These points describeabout the KFCinternal and externalenvironment. The KFCculture has important aspects. They co-
ordinate and co-operate with employeesvery well.
They give awards and held ceremonies foremployees. Upper level management is therole model for all employees. Theycooperate with operatives and work in ateam structure. New employees are treatedvery well. The important aspect is that the
external environment like wars, trends,emergencies influenced their plans
The top management takes decisions withthe suggestions of employees. There is nomisunderstanding among employees andmanagement. They exit in clan culture.
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INTRODUCTION:
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The Global Company that serves you with same quality
and care throughout the world.
KFC is based in Kentucky, and is the worlds most
popular chicken restaurantchain.
8 million customers each day.
KFC is part of Yum! Brands,
Inc., which is the world's
largest restaurant system
with over 32,500 KFC, A&W All-American Food,Taco
Bell, Long John Silver's and Pizza Hut restaurants in
more than 100 countries and territories.
KFC has more than 13,700 restaurants in more than 100
countries and territories around the world.
Food, fun & Festivity, this is
what KFC is all leading the
market since its inception.
Be it colonel sanders secret
original recipe chicken or the
hot & spicy version, every
bite brings a yum on our face.
KFC SALOGAN:At KFC we can proudly say.
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HISTORY: 1890 Colonel Harland Sanders, the founder of the KFC
Corporation, was born.
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1932 Colonel Sanders developed his special blend of
11 spices and herbs, which marked the beginning of his
famous Original Recipe chicken.
1935 The Colonel became known as the Kentucky
Colonel, this name is what later became incorporated inthe name Kentucky Fried Chicken.
1952, Col. Sanders started franchising his recipe door to
door financed by his $105.00 SS Check
1966 KFC went public with its franchises and special
chicken recipe.
1976 Colonel Sanders received an award for becoming
the worlds second most recognizable celebrity.
1980 Sadly, Colonel Sanders passed away. However,
his legacy carried on and is still widely recognizedtoday.
1997-Frist KFC restaurant opens in Pakistan in January
at Karachi. 1997-Frist KFC in Lahore in June at Barket market.
2000 KFC founded the Colonels Kids Charity to help
kids afford education and get a
good start in life.
2002 Tricon Global became Yum!
Brands, Inc., which it remains tothis day.
2011 Today there are 13,266
KFC franchises around the world,
5,525 in the U.S. alone.
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KFC IN PAKISTAN:Cupola is a Dubai based multinational company involved in
several business including, oil gas exploration, plastic cards,
retail markets and food franchising. Cupola holds the master
franchise rights to operate KFC in Pakistan.
SOME FACTS:
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Quoted from Yum! Brands, Inc., KFCs parent corporation.
Our 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. A&W, KFC, Long John Silver's, Pizza Hut,
and Taco Bell offer customers food they crave, comeback
value, and customer-focused teams. The unique eating
experience at each of our restaurants make our customers
smile and inspire their loyalty for life. Toward that end, our
750,000 associates around the world are trained to be
customer maniacs.
MISSION STATEMENT:
These are the basic mission of KFC.
Recognition: we find reasons to celebrate the achievements
of others and have fun doing it, is right up there with
Customer Focus and Belief In People. "Recognition is
everybody's responsibility," says Chicago restaurant manager
Adonis Chapel. He explains that since KFC started
encouraging informal recognition, things have really changed.
"You keep employees longer, they are happier, they work
better for you."
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CULTURE:
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The set of key values, beliefs, understandings and norms
that members of organization share. Employees deeply follow
the culture at surface level and higher level of organization.
Big on diversity in the workplace.
Promotes differences in
background, ethnic cultures, and
values.
Team-oriented environment.
Focuses on teaching everybody
something new .
Promotes unity in the workplace
Focuses on building relationships and creating diversity
and commitment within the company and amongst
employees and customers.
ORGANIZATIONAL STRUCTURE ANDDESIGN:
Kentucky Fried Chicken exhibits culture throughemployees by having a wide range of diversity. People and
employees belonging to an ethnic group often bring their
cultures with them, sometimes creating subcultures. These
subcultures are often derived from different customs, values,
languages, traditions, and beliefs. Since Kentucky Fried
Chicken values diversity, their management looks for ways to
create benefits for the entire organization.
KFC is part of a divisional structure, which is Yum!
Brands, Inc. Long John Silvers, A&W, Taco Bell, and Pizza Hut are
the other divisions.
Offers positions to many people; good for senior
executives.
Willing, responsive, and flexible to change and
growth.
KFC works to bring recognition and money to Yum!
Brands, Inc.
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HIERARCHY OF KFC INPAKISTAN:
STRUCTURE IN BRANCH:
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MAJOR DEPARTMENTS:Organization has the following major departments;
Human Resource
Accounts
Administration
I.T
Marketing
Finance
HUMAN RESOURCE MANAGEMENT:We wont make you wing it is KFCs motto when it
comes to training employees.
Training includes: Workbooks Quizzes On-the-job competency based training
Employees are encouraged to work together as a team KFC is committed to making
sure their people grow to theirhighest potential
KFC does their best to makethe job interesting and excitingfor worker.
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NUTRITIONAL INFORMATION AND
SPECIFIC INGREDIENTS
Zero Grams of Trans Fat:
The taste you love just got better. Starting in April 2007,
KFC proudly introduced a new recipe
that maintains all the delicious finger-
lickin' flavor of the Colonel's 11 herbs
and spices, but with Zero Grams of
Trans Fat per serving.
Food Allergies and Sensitivities:The allergen information is based
on standard product formulations and is current as of
November 2008. Variations may occur
due to differences in suppliers,
ingredient substitutions, recipe
revisions, and/or product production at
the restaurant.
Keep It Balance:
Mix together daily activity, a
sensible diet, and a little fun. What do
you get? A recipe for keeping your body balanced. The
exchange list is a meal planning system developed by
dietitians primarily for people with
diabetes. It groups together foods that
have similar carbohydrate, protein, fat,
and calories, and can be used as a
guide for planning balanced meals.
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SOCIAL RESPONSIBILITY:
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KFC has made it their responsibility to consumers thatthey will provide quality chicken in a fast, efficient way.
KFC sponsors a reward for senior citizens, those wholive life to the fullest and are recognized in theircommunity
KFC also has the Colonels Kids program, a charityorganization that helps kids become educated and growup in a better world than that which they have known.
STRATEGY:KFC has created a strategy that is focuses on strength and
opportunity. They want to expand internationally, offerconsumers more choices at their restaurants, and providegood services to their customers. They have incorporated agrowth strategy into their company because they fully intend
to be the largest fast food chicken corporation in the world;they seem to have already accomplished this goal, but alsointend to stay well ahead in the game by franchising KFCbuildings throughout every country in the world.
International Expansion:
KFC number-one goal is to drive global expansion withits category-leading brands.
Multi brand Innovation & Expansion:
KFC is the worldwide leader in multi branding, offering
consumers more choice and convenience at one restaurantlocation from a combination of two of the company's brands.
Global Franchise Fees:
Global franchise fees, a significant factor in annualprofits and cash flow, grew 6% to $866 million.
Strong Cash Generation and Returns:
KFC generated over $1.3 billion in cash from all sourcesin 2008, more than fully funding capital expenditure needs,allowing free cash flow for share repurchase, and some
repayment of debt. Return on invested capital is 18%, in therestaurant industry's top tier.
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INTERNATIONAL OPERATIONS:
These are some international operations of KFC.
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KFC opened its first franchise overseas in January 1997
in Pakistan at Karachi.
KFC is a very diverse company and has 750,000 people
employed around the world.
KFC is devoted to Fried Chicken franchises are in
countries other than the United States.
The incredible success of this company has given it the
opportunity to compete globally with other corporations
and gain in popularity worldwide.
KFC franchises are located diversity and are willing to
give just about anyone a chance to begin their career by
working at one of their locations.
Expanding their global business is one of Yum! Brands,
Inc.s key growth strategies.
KFC (as a division of Yum! Brands) continues to grow
substantially throughout the world as a fast food
enterprise, and there is much more success and growth in
the future.
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FOUNDING TRUTHS:
The founding truths are:
1) People Capability firstSatisfied customers and
profitability follow.
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2) Respond to the Voice of The CustomerNot just
listen.
3) The Restaurant General Manager Is Our #1 Leader
Not senior management.
4) Run Each Restaurant As If Its Our Only OneAvoid
the trap of the averages.
5) Recognition Shows You CarePeople leave when you
dont.
6) Great Operations and Marketing Innovation Drive
SalesNo finger pointing.
7) Operation Discipline through Process and
StandardsConsistency, not program of the
month.
8) Franchisees Are Vital AssetsOperate as one
system, not two.
9) Quality In Everything We DoEspecially the food.
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EXTERNAL ENVIRONMENT:
Customers
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Consumers continue to return to KFC because of
the quality and good prices of their food. KFC has a lot
of fans and continues to grow to provide better
customer service
Suppliers
Companies provide KFC with raw materials and
chicken In Pakistan KFC purchases the chicken from K &
N chicken. Over 95% items. KFC Pakistan has helped
develop the local economy from restaurant construction
to pap packaging. Important items produced and
bought locally include poultry products, cooking oil,
bakery products and raw materials.
Competitors
Chick Fila is KFCs biggest competitor, and quickly
growing in popularity. Other competitors include AFC
Enterprises and McDonalds. KFC has more then 80
percent share in the market.
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THE PRINCIPAL OF KFC:
Credibility: Being regarded by our stakeholders as beinga reliable source of knowledge.
Character: Conducting ourselves with honesty, integrity,
and spirit.
Communication: Facilitating free flow of information
about our activities. Always voicing our opinion and sharing
our concerns.
Creditworthiness: Total honesty in our business dealing,
as financially responsible partners, advisors andemployers.
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Commitment: Always seeking to be true to our word, but
doing what we do with energy and determination.
Capacity: Constantly seeking to reinforce and build our
capabilities to the point of always exceeding the
exceptions of others, but always doing so as part of ateam.
Coherence: Being clear to the point of transparency at all
times.
Conscientiousness: Striving for excellent- we believe
that there is no shortcut to hard work.
Charisma: Seeking to stand from the rest and employing
people who do.
Conceptual: Thinking with clarity, imagination andcommunicating this clearly.
Caring: Doing what we do with a deep commitment to
quality and bearing in mind the opinions of others.
Community: Believing that we have a deeper role to play
than just being business people and returning some of the
rewards that we reap.
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ANALYSIS:The Kentucky Fried Chicken Corporation is a very
successful company that has grown to be the fast foodgiant it is today through good management practices and
good planning. Their mission statement is very clear:
recognition is key. They are all about diversity and
helping people growing in any way they can, and focus
on customer satisfaction as well. Their goals include
being the best in the business, which they have definitely
accomplished, and focusing on customer satisfaction as a
major part of their environment.KFC desires to offer good
food, comeback value, and customer-focused teams to
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consumers throughout the world; they want to have loyal
customers who will come back time and time again to
enjoy their food.
As a result of this project, we have learned a lot about
the company about the history and background of KFC as
a whole. There is a lot that goes on in the franchising
world that we never really knew anything about until
doing the research that went into preparing for this
project/presentation. KFCs grand strategy and the
organization as a whole is very impressive; through all
this research I (Sally) have gained a lot of respect and
admiration for what theyve been through to become the
giant, amazingly popular franchising company they aretoday.
The Kentucky Fried Chicken Corporation has done an
excellent job in the consumer market, both domestically
and abroad. Not only do they do a wonderful job of
planning, organizing, staffing, leading, and controlling,
but they have been very successful at achieving their
goals as well. Having done extensive research on the
company and its parent corporation, I feel like KFC hasbeen pretty successful overall and has done a good job
with hiring and retaining good employees and taking
care of their consumer base in every way possible.
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1) What does KFC stand for?
Kentucky Fried Chicken.
2) Is KFC an American Company?
KFC is an American brand. The local franchisee/investment
and management is Pakistani.
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3) Which company operates KFC in Pakistan?
Cupola Pakistan Ltd (CPL) owns and operates KFC in
Pakistan.
4) What does KFCs Colonel stand for?He was he founder of KFC concept and now only his visual
image is associated with KFC. He was an American who died
in 1980.
5) Does KFC sell 100% Halal chicken?
Yes.
6) Does KFC buy Chicken from Pakistan?
Yes from local suppliers K & NS and thus promoters the
local poultry industry.
7) Does KFC buy all its supplies from Pakistan?
Over 95% items. KFC Pakistan has helped develop the local
economy from restaurant construction to pap packaging.
Important items produced and bought locally include poultry
products, cooking oil, bakery products and raw materials.
8) How is KFC Pakistan promoting the local economy?
Employing over 1200 people in various capacities and thus
providing them with the livelihood. If each person directly or
indirectly contributes to support 05 family members, the
total number of depending on KFC is 6,000 souls; this is
other than the suppliers associated with KFC Pakistan.
Promoting the local supplier industry (construction related,
paper and packaging, cooking oil, machinery, poultry
products, bakery and confectionary items).
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Sales tax @ 15% being paid to the Government. Corporate
and individual Income tax. With holding tax on al payments
made to the suppliers, making them a part of the
documented economy. Payment to local Governmentdepartments for licenses and taxes. Foreign investment
coming into Pakistan.
9) Has KFC contributed in improving the standards of
Restaurant business in Pakistan?
KFC Pakistan has contributed in providing Halal and Hygienic
products to its customers and managed this through proper
training of its human resources. It has created competitive
level for other thus improving the overall industry standards.
10)What has KFC Pakistan done for children?
It provides a family like environment where children can also
come with their families or alone and enjoy the healthy and
hygienic food. Play areas are also provided for enjoyment.
KFC Pakistan team makes frequent school visit and educates
the children about different social issues. KFC Pakistan also
designs programs especially for children in order to involve
them in healthy activities. (Kiddy Fun Camp as an example)
11)Does KFC Pakistan support and social concerns?
Participating in social concerns like protecting the
environment. It also supports various social organizations
like Care and Kindness Society and visits handicapped
children (SOS and Fountain House) on occasions.
Also contributes an amount to celebrate the National
Occasions by sponsoring events arranged by the
Government.
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Bibliography:
The information about KFC is collected from
KFC Kentucky Fried Chicken | restaurants
Yum! Brands
www.kfcpakistan.com
www.kfc.com
Mr. M. ASIF the Assistant manager
Phone No.
We also went to visit and ask detail information about thestructure and culture of KFC Branch f-6 supper market.
Special Thanks:
Mr. Atif Nasir (Finance Manager)
Miss Asma (Operation Manager)
http://www.kfc.de/51/restaurants/http://en.wikipedia.org/wiki/Yum!_Brandshttp://www.kfcpakistan.com/http://www.kfc.com/http://en.wikipedia.org/wiki/Yum!_Brandshttp://www.kfcpakistan.com/http://www.kfc.com/http://www.kfc.de/51/restaurants/