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KFC Management


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KFC Management

  1. 1. • Aatiqa Bint e Ghazali. • Asma Ibrahim. • Farwa Ali. • Hajra Batool • Hummara Bashir. • Jaweria Khalid. • Shaista Anwar Presented By
  2. 2. Our Organization
  3. 3. Introduction • One of the leading fast food Franchise concepts of today. • Products are made on the motto of "Crispy outside, juicy inside”. • Started in 1930 by Harland Sanders the founder of KFC • Cupola holds the master franchise rights to operate KFC in Pakistan since1999. • More than 10,000 outlets in the world. • 64 outlets in Pakistan. • North Region including Lahore, Rawalpindi and Islamabad (Punjab). • South Region including Karachi and Hyderabad (interior Sindh).
  4. 4. VISION AND MISSION • VISION To be leading integrated food services group in ASEAN region delivering consistent quality products and excellent customer focused. • MISSION To maximize profitability, improve shareholder value and deliver sustainable growth year after year.
  5. 5. • 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 grow, striving always to be the leader in the market place changes. • Generate consistently superior financial returns and benefits our owner and employees. Objectives
  6. 6. • Since beginning, KFC has presented itself and well competed, only through it delicious chicken. • People from all over the world know KFC as the best chicken expert. • Their chicken has always been unique in taste and has helped them in order to build their own identity in all over the world Core competency
  7. 7. • KFC Pakistan provides 100% Halal and Hygienic products to its customers. It offers a variety of finger-licking products, some of which are as follows: 1. Crispy Fried Chicken 2. Zinger 3. Twister 4. Hotshots 5. Chicken Burger 6. Hot wings 7. Rice and Spice 8. Fish Zinger 9. Nuggets 10. Corn on the Cob 11. French Fries PRODUCTS OF KFC
  8. 8. • Responsibilities: • Responsible for all the human resource functions. • such as policy, recruitment, IR, performance evaluation, compensation and benefit, and other general admin matters. KFC Human Resource Management
  9. 9. HRM
  10. 10. Selection
  11. 11. • Selection based on :  Test  Physical Test  Behavioral Test  Team Skill Judge  Working Capacity  Communication Skill  Confidence  Body Language  Motivation Level Selection Criteria
  12. 12. • KFC has developed an e-recruitment tool which gives potential employees the ability to apply for a job online. • Job Description • Person Specification. Recruitment
  13. 13. • Trainee Managers • Responsible for assisting the Restaurant General Manager and Assistant Managers in creating an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. • Skills & Abilities • Trainee Managers must have at least a year 10 education and 2 years work experience in a managerial/supervisory role. • Must have excellent customer service skills and the ability to deal with customers complaints • Excellent communication skills • Must have the ability to develop competent computer skills • Be able to motivate, delegate and co-ordinate Example(Job description)
  14. 14. • Firms cannot just ‘sack’ workers • Wide range of procedures and steps in dealing with workplace conflict – Informal meetings – Formal meetings – Verbal warnings – Written warnings – Grievance procedures Discipline
  15. 15. • Training “We won’t make you wing it” is KFC’s motto when it comes to training employees. Training includes: 1) Workbooks 2) Quizzes 3) On-the-job competency based training Employees are encouraged to work together as a team. Training
  16. 16. • Christ Mendel , director of global risk management of Tricon Global Restaurant (an arm of Yum ! Brand ) stated that the company focuses on: • Training and education for all their employees and managers . • Substantial training programs for all front line people . • The training has been integrated into the company 's broader management trainings that deal with issues as sexual harassment , hiring and firing practices ,interpersonal relationships , and conflict resolution . Training(Cont)
  17. 17. • To enhance employee motivation KFC is using one to one meetings strategy. • They have staff incentive programs, conventions, Champs Elysees. • Includes the cleaning, hotel, maintenance, accuracy, speed of service and product quality etc. • KFC sends e-mail, together with the memorandum to the employees, the crew incentive programs etc. Motivation
  18. 18. Reward System • Employees are motivated. • KFC also reward their employees in terms of promotion, incentive, payoff free meals depending on the level of the employee and how much they perform their job well. • Bounces are given to the employees on the basis of "My growth body" points. If the person has 5 points he or she can get benefits in term of financial bonuses.
  19. 19. 1. Business level Strategy 2. Corporate level strategy 3. Functional level strategy Strategies
  20. 20. • Differentiation: By providing unique taste of chicken • Re-establish and maintain an emphasis on clean and updated restaurants paying close attention to service while maintaining product consistency . • KFC has differentiated its products on the basis of “Food, fun & Festivity”,. • KFC is sharing supply chain with Pizza Hut, which creates the supply chain collaborative sharing effect. It decreases the cost also. • In one word, KFC performed slightly better control of product costs. Business level Strategy
  21. 21. • Growth: Switched from franchise to company owned in their larger markets • Interest in local community (Neighborhood) – Combing the two concepts in the same unit – Changed name and Logo • Retrenchment: Introduced different menu items to keep up with local competitors • Turnaround: Updated Technologies in Service and Production unit • Pay closely aligned with customer service and restaurant performance • More responsibility assigned to franchisees and marketing managers • Switched to highly performance based management strategies. Corporate Level Strategies:
  22. 22. Functional Level Strategies • By using segmentation. • By using market development. • By using product development.
  23. 23. • There are only two teams in KFC ( Chandni Chowk Branch) • One team is Concentrating on resolving internal Conflicts between employees and employers through different procedures and committees: If employee is unsatisfied with its team or management then he/she can easily resolve his/her issue • Second team deals with the customer care satisfaction and try to improve technology and working conditions: On different occasions customers offers and discounts available. Teams to handle critical situations :
  24. 24. • The competitive advantage of KFC is its position as the dominant firm. • It currently enjoys 50% market share in Pakistan. Competitive Advantage
  25. 25. KFC Management Functions KFC management is following the “POLCA”  P = Planning  O = Organizing  L = Leading  C = Controlling  A = Assurance
  26. 26. Planning • Strategic Plans KFC has strategic planning to increase its market worth value of the market and its market share. They work on a well defined strategic planning for this. • Operational Plans • Include launching of a new product to change or innovate its product line for the customers.
  27. 27. • KFC policies are excellence for their standards which are shortly termed as CHAMPS i.e. C: Cleanliness H: Hospitality A: Accuracy M: Maintenance P: Product S: Speed of Service. KFC policies regulates around these standards, hospitality is also with the employees regarding their issues and privacy POLICIES:
  28. 28. • Procedures are well described in CHAMPS standard library whose access is onlygivento the employees • There procedures/ rules include safety for its products as well as their employees by providing with sanitizers keeping kitchen environment clean and hygienic. PROCEDURES/RULES:
  29. 29. Planning objectives To expend our organization in all over the Pakistan. To create and build superior quality for our customers. To follow Marketing Mix Strategies. To Generate Superior financial return for KFC and KFC’s employees.
  30. 30. Organizing • Second pillar • Concerns with Organizational structure, segmentation and targeting of customers • Organization structure differs on operational level and cooperative level. The difference is due to working activities. • The operational level management is concerned with the restaurant business and management and the cooperate level management is concerned with the business activities.
  32. 32. The KFC Management Hierarchy Chart (Corporate level in north region)
  33. 33. Factors Effecting Organizing The Internal Environment This environment includes the factors that are close to the company and are controllable by the organization.  Company  Suppliers  Customers  Competitors  Marketing Intermediaries The External Environment This environment includes on those factors which are not controlled by the organization.  Demographic Factors  Natural Factors  Technological Factors  Political Factors  Cultural Factors
  34. 34. Targeting  KFC is targeting upper class. Target market depends upon size and growth rate of population, company resources and structural attractiveness of market segment.  KFC target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products.  Target heavily on the youngsters as compared to the middle & old age.
  35. 35. Leading • Third pillar • Related with staff behavior towards employees, feedback by the employees to managers and other top level offices and customers issues. • HR manager are responsible for the all related issues of employees and customers
  36. 36. Appraisal system • Designed to serve the company's and employee's interests. • Used to check the ability of Employees and to ensure that where they are standing.
  37. 37. • KFC is centralized as all the decisions are pre documented and taken at upper level of organization without any involvement at lower level. • A new deal is launched in the market with agreement of all the heads of department. • Head of department discuss the objectives with their team . • Have a team environment in units where everyone works together. • Hence from this we can also conclude that MBO approach is used by KFC management. Is KFC centralized or decentralized? Traditional Planning OR MBO?
  38. 38. Controlling • Forth pillar. • Related with the controlling the task and its evaluation that how a manager control all inventory management, all employees activities, assign tasks to employees and evaluate them with desired goals and objectives.
  39. 39. HR manager control all activities into following ways • Feed forward control • Feedback control • Concurrent control • External control • Employee discipline system • Financial control • Purchasing control • Inventory control • Statistical control
  40. 40. Feed forward control • Feed forward controlling is done by the territory managers. • Store monitoring and visits to factory to check its supplies and controlling. • Done before finishing the Products.
  41. 41. Feedback Control • Done by the supervisor of the branch or the assistant manager. • Through comment cards, general interviews of employees about KFC management behavior and other related issues.
  42. 42. Concurrent control • Done by the Unit Business Manager • Done for the assurance of food quality by monitoring kitchen workers with number of visits during a day. • To reduce wastages, and for superior quality products.
  43. 43. External control • Yum brand representatives visit KFC restaurants. • For standards and quality check up. • No relaxation is given to Manager on any flaw.
  44. 44. Employee discipline system • Disciplines are maintained in KFC as this is their core strategy. • employment discipline is maintained by managers and are followed CHAMPS.
  45. 45. Financial control • Department that sees all the financial activities. • UBM has to report all the financial activities required to be done or done to the finance department directly.
  46. 46. Purchasing Control • Purchasing depends on the restaurant branches: – In house purchasing – Ware house purchasing – Direct purchasing – Indirect purchasing
  47. 47. Inventory control • Inventory is done several times a week one final time a month and at the end of the year. • Inventory controls are looked after by UBM and AUBM.
  48. 48. Statistical control • Control of the branch is taken care by the UBM and all these statistical data are given to the financial department at the end of the day, week, or month.
  49. 49. • KFC has teams with in the department and there are cross functional teams. • Communication is channeled as mostly departments communicate in formal meetings e.g. in regional meetings. • These meetings provide opportunities to share ideas among each other and also provide an insight what others are doing. • Culture of KFC promotes team work. Communication
  50. 50. SWOT ANALYSIS Strengths Weaknesses Opportunities Threats KFC
  51. 51. Strengths • Brand Equity. • KFC secret recipe of 11 herbs species. • Strong Market Share (over 50%) • Oldest and finest in Business • Loyal customers • Faces numerous advantages of being a Multinational Organization e.g. economies of scale, government incentives etc and its good will in entire world. • KFC has Competitive advantage in fast food industry because of its quality and variety of products of chicken. • Product is their strength customers come here for product ignoring the prices. • They don’t do much advertisement as awareness is there & they don’t find a need for advertisement.
  52. 52. Weaknesses • Presence of Multinational competitors in the market e.g. McDonalds. • Compressed hierarchy. • Unhealthy fats: • Over confidence on own product. • Lack of knowledge about their customers. • Lack of relationship buildings with employees. • Lack of focus on R&D. • Question of over franchising leads to loss of control and quality.
  53. 53. Opportunities • Cheap and easy availability of labor • Increase consumption of fast food has increased the market size. • “All under one roof” • Loyal customers • New Leadership, Domestic markets and Customer focus
  54. 54. Threats • Rated 83 out of 100 in term of competitiveness. • High political instability. • Animal diseases like bird flu. • Compressed hierarchy can collapse the whole system of the management efficiency. • Increasing inflation rates directly affects menu rates. • 85% annual employee turnover for fast –food market.
  55. 55. Suggestions • KFC should focus on the competitor’s product. • KFC should organize its management hierarchy simple as for every employee and customer. • KFC should focus on the eligibility of the employees. • KFC should focus on the market surveys for the knowledge of customers. • KFC should facilitate its employees by giving relaxation and bonuses. • KFC should focus on its Research and Development Department.
  56. 56. • Process-Kfc. • resources-to-meet-emerging-business-needs. • 0e03d147a04cb27fff30e6ae6.pdf • Analysis-KFC References