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  1. 1. Welcome to KFC
  2. 2. Angeles FloresRene GuillarmeYvette MinjaresJarvis MullahanArmando RoblesDenise Simon
  3. 3. KFC Facts• KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant chain.• Founded by Colonel Harland Sanders in 1952.• More than 11,000 outlets• 85 countries and territories around the world.• 8 million customers each day.• Yum! Brands is run by David Novak, Chairman & CEO• KFC Division is run by Cheryl Bachelder, President and Chief Concept Officer
  4. 4. From $105 to 7.2 Billion in 50 years• 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check• 1964, Col Sanders had more than 600 franchised outlets in the US and Canada.• 1964, Sold his interest in his company for $2 million to a group of investors.• 1966, KFC went public• 1969, Listed on the NYSE• 1971, KFC was acquired by Heublein Inc. for $285 million.• 1982, Heublein & KFC Inc. was acquired by RJ Reynolds• 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.• 1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.• 2002, Tricon changed its corporation name to Yum! Brands, Inc. .• NOW: – Yum Brands, Inc. is the worlds largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. – Yum! Brands, Inc., is a Fortune 300 company – Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001. – Current Market Cap value on the NYSE is 7.2 Billion
  5. 5. Yum! Financial Data & TrendsIn Past 5 Years:Debt Ratio has dropped 25%Net Income after Taxes has increased 31%Profit Margin has increased 41%
  6. 6. Yum! Brands, Inc. International Presence & Competition The International Portfolio of 5 leading U.S. Brands give Yum! a distinctive advantage over the single-brand competitors. *In Thousands
  7. 7. KFC Domestic & International
  8. 8. Internal Analysis Functional AreasFinance/Accounting Since 2001, Yum Brands Inc. has outperformed the marketComputer Information Systems Newly established Computer information systemMarketing Positioning among competitors is favorable unconventional methods of distribution multibranding Management Objectives and goals are measurable and achievable Team empowermentProductions/Operations Constant improvement on quality of chicken Producer and operators are strategically located
  9. 9. Internal Factors SW• Strengths • Weaknesses – Multibranding Strategy – Conflicting Corporate Cultures – Name recognition and Reputation – No defined target market – Employee Loyalty – Time it takes to market new products – Global Expansion – Targeting Non-Traditional Outlets
  10. 10. External Factors OT• Opportunities • Threats – International Appeal to – PETA American products – Consumer health food – Economies of Scale trend and Scope – Saturated fast food – The downturn of the industry US economy
  11. 11. Space Matrix• Competitive Aggressive position FS Advantage• Industry Strength CA IS• Environmental Stability• Financial Strength ES
  12. 12. BCG MatrixAsia Europe ? USA Americas
  13. 13. Additional Matrices• IE Matrix Strong THE IFE TOTAL WIEGHTD SCORES Average Weak 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 3.0 2.0 1.0 4.0 THE EFE Asia 20% US 67% TOTAL WIEGHTED 3.0 SCORES Americas 7% Europe 6% 2.0 1.0• Grand Strategy Matrix – Quadrant I
  14. 14. Alternatives• KFC Hospice Dinners – Delivering a caring outreach to the terminally ill (SO)• KFC Cafeterias – Offering dishes competitors do not (SO)• KFC Grocery Products – The Cornel is always home (SO)
  15. 15. Alternatives Not Chosen Our recommendations to KFCKFC Cafeteria KFC GroceriesMarket Development Product DevelopmentConcentric Diversification Market Penetration Concentric Diversification• Similar to Furrs or Lubys • Similar to Taco Bell• Fast food with traditional groceries restaurant environment • Advantage of Name• Reaching out to a new Recognition market • Frozen Meals • Chicken Breading Mix
  16. 16. KFC Hospice dinnersDelivering outreach to terminally ill – Hospice delivers meals to the terminally ill nationwide. – These meals are delivered directly to the patient in their own home. – Why? • Political & Social Image • Advances KFC’s name recognition and reputation • “Secret Recipe” • Expands employee loyalty
  17. 17. Strategic ManagementMarket Development KFC will introduce their present and new products and services into new geographic/demographic areas.Product Development Bring back rotisserie chickenConcentric Diversification Add more to KFC product & service variety to the patients
  18. 18. Implementations• Market Research • Determine area’s demand to determine boundaries• Expand menu • Healthier choices• Meals will be sold at cost • Determine effects on budget
  19. 19. Long-term company objective• KFC is a publicly traded company with responsibilities to all shareholders• By becoming a more “socially responsible” corporation we hope to attract a new type of investor while retaining our current stockholders. Thank you for your attention• Ben & Jerries & Starbucks have benefited financially by promoting their “socially responsible corporation”• KFC hopes to achieve this by becoming synonymous with hospice.
  20. 20. The End
  21. 21. Yum! Brands, Inc.http://www.yum.comKFChttp://www.kfc.comThailandhttp://www.kfc.co.th/Japanhttp://www.kfc.co.jp/Crueltyhttp://www.kfccruelty.com/The Wall Street Journalhttp://www.wsj.com