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
To sell food in a fast, friendly environment that appeals to pride conscious, health minded customers
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. 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 .
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 Analysis STRENGTHS S1. Good Taste S2. Brand Equity S3. Global Experience S4. Operations S5. Trademark Recipes S6. Strong Customer Focus WEAKNESSES W1. High price W2. Image of ‘Fried’ W3. Only chicken related recipe W4. Most of the product having close substitution in market W5. Inconsistent Quality of service in many outlets. W6. Lack of control in Joint- venture arrangements. OPPORTUNITIES O1. Increase outlets O2. Undeveloped market abroad O3. Increase trends to take meal out of home O4. Earn big profits as the population grows O5. 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)
THREATS T1. New entrants / better quality brands T2. Health conscious eating habits T3. Animal care activists T4. No support from government agencies T5. 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)
Work on the image of a healthy fast food chain through advertising (W2,T2)
Develop a strong culture of strong service (W5,T5)
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
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)
External Factor Evaluation (EFE)
Competitive Profile Matrix (CPM)
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 Total Weighted Score Low Medium High 1.0 to 1.99 2.0 to 2.99 3.0 to 4.0 IFE = 2.78 EFE = 3.20
Grand Strategy Matrix Weak Competitive Position Strong Competitive Position Rapid Market Growth Slow Market Growth