KFC Matrixes Analysis

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KFC Matrixes Analysis

  1. 1. Managerial Policy Kentucky Fried Chicken Presented by: Muhammad Farhan Akhtar
  2. 2. The Evolution of KFC <ul><li>1939 – Colonel Sanders develops his original recipe chicken </li></ul><ul><li>1952 – Kentucky Fried Chicken is Formed </li></ul><ul><li>1952 – 1997 KFC grows into national Restaurant Chain </li></ul><ul><ul><ul><li>– Many owners and stake holders along the way. </li></ul></ul></ul><ul><li>1986 – PepsiCo’s acquisition of KFC </li></ul><ul><li>1997 – Tricon Global Restaurants Inc is formed as a spin-off from PepsiCo </li></ul><ul><li>2002 – Tricon changes its corporate name to YUM! Brands </li></ul><ul><li>2007 – KFC introduces its Zero grams Trans Fat recipe </li></ul>
  3. 3. KFC in Pakistan
  4. 4. Vision / Mission Statement <ul><li>Vision </li></ul><ul><ul><li>To sell food in a fast, friendly environment that appeals to pride conscious, health minded customers </li></ul></ul><ul><li>Mission </li></ul><ul><ul><li>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 . </li></ul></ul>
  5. 5. Goals <ul><li>Build an organization dedicated to excellence. </li></ul><ul><li>Consistently deliver superior quality, and value in our products and services. </li></ul><ul><li>Maintain a commitment to innovation for continuous improvement and growth, striving always to be the leader the market place changes. </li></ul><ul><li>Generate consistently superior financial returns and benefit our owners and employees. </li></ul>
  6. 6. Products Chicken Mania Hot Shots Hot wings Family Feast Zinger Mighty Zinger Rice n Spice Wings n Rice Wow Meal Nuggets Twister Xtreme Zinger
  7. 7. 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. <ul><li>SO – Strategy </li></ul><ul><li>Introduced new recipes (S1,S2,O3) </li></ul><ul><li>Increase numbers of outlets in different countries (S3,O5) </li></ul><ul><li>Capture customer by introducing new deals (S6,O4) </li></ul><ul><li>WO – Strategy </li></ul><ul><li>Introduce cheaper items in the menu (W1,O3) </li></ul><ul><li>Change the image of KFC from fried to Healthy (W2,O3) </li></ul><ul><li>Offer cow meat and vegetable food also (W4,O4) </li></ul>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 <ul><li>ST – Strategy </li></ul><ul><li>Introduce healthier recipes (S5,T2) </li></ul><ul><li>Differentiate as one providing in fastest service (S2,S4,T1) </li></ul><ul><li>Engage in CSR activities (S2,S4,T3) </li></ul><ul><li>WT– Strategy </li></ul><ul><li>Work on the image of a healthy fast food chain through advertising (W2,T2) </li></ul><ul><li>Develop a strong culture of strong service (W5,T5) </li></ul>
  8. 8. Recommendations <ul><li>Short Term </li></ul><ul><ul><li>Introduce new recipes suited to local taste </li></ul></ul><ul><ul><li>Introduce cheaper items in the menu </li></ul></ul><ul><ul><li>Introduce healthier recipes </li></ul></ul><ul><ul><li>Differentiate through good services </li></ul></ul><ul><ul><li>Work on the image of a healthy fast food chain through advertising </li></ul></ul><ul><li>Long Term </li></ul><ul><ul><li>Change the image of KFC from fried to ‘healthy’ </li></ul></ul><ul><ul><li>Open up new outlets </li></ul></ul><ul><ul><li>Engage in CSR activities related to animals & environment </li></ul></ul><ul><ul><li>Develop a strong culture of good service </li></ul></ul>
  9. 9. Internal Factor Evaluation (IFE)
  10. 10. (IFE) Cont....
  11. 11. External Factor Evaluation (EFE)
  12. 12. (EFE) Cont....
  13. 13. Competitive Profile Matrix (CPM)
  14. 14. BCG Matrix
  15. 15. 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
  16. 16. Grand Strategy Matrix Weak Competitive Position Strong Competitive Position Rapid Market Growth Slow Market Growth <ul><li>Quadrant II </li></ul><ul><li>Market Development </li></ul><ul><li>Market penetration </li></ul><ul><li>Product development </li></ul><ul><li>Horizontal integration </li></ul><ul><li>Divestiture </li></ul><ul><li>Liquidation </li></ul><ul><li>Quadrant I </li></ul><ul><li>Market Development </li></ul><ul><li>Market penetration </li></ul><ul><li>Product development </li></ul><ul><li>Forward integration </li></ul><ul><li>Backward integration </li></ul><ul><li>Horizontal integration </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Quadrant III </li></ul><ul><li>Retrenchment </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Horizontal diversification </li></ul><ul><li>Conglomerate diversification </li></ul><ul><li>Liquidation </li></ul><ul><li>Quadrant IV </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Horizontal diversification </li></ul><ul><li>Conglomerate diversification </li></ul><ul><li>Joint ventures </li></ul>
  17. 17. THANK YOU

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