competency based training- Employees are encouraged to work together as a team-
They are working efficiently on operational plans for example they only open up the branch were they can easil yearn up to more than desired or planned revenue even like KFC has open up its wheels for less cost and market penetrating in areas like Thokar Niaz Baig and Bahria Town this is part of their operational plans once they will think they have made the spot then they would openup its new branch.
• One of the leading fast food Franchise concepts
• Products are made on the motto of "Crispy outside,
• 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
• South Region including Karachi and Hyderabad
VISION AND MISSION
To be leading integrated food services group in ASEAN region
delivering consistent quality products and excellent customer
To maximize profitability, improve shareholder value and
deliver sustainable growth year after year.
• 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.
• 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
• Their chicken has always been unique in taste and
has helped them in order to build their own identity
in all over the world
• 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
5. Chicken Burger
6. Hot wings
7. Rice and Spice
8. Fish Zinger
10. Corn on the Cob
11. French Fries
PRODUCTS OF KFC
• 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
• Selection based on :
Team Skill Judge
• KFC has developed an e-recruitment tool
which gives potential employees the ability to
apply for a job online.
• Job Description
• Person Specification.
• 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
• 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
• Excellent communication skills
• Must have the ability to develop competent computer skills
• Be able to motivate, delegate and co-ordinate
• 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
• Training “We won’t make you wing it” is KFC’s motto when it
comes to training employees. Training includes:
3) On-the-job competency based training
Employees are encouraged to work together as a team.
• 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
• 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 .
• To enhance employee motivation KFC is using one to one
• They have staff incentive programs, conventions, Champs
• 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.
• 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.
• 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
• Growth: Switched from franchise to company owned in their larger
• 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
• Turnaround: Updated Technologies in Service and Production unit
• Pay closely aligned with customer service and restaurant
• More responsibility assigned to franchisees and marketing
• Switched to highly performance based management strategies.
Corporate Level Strategies:
Functional Level Strategies
• By using segmentation.
• By using market development.
• By using product development.
• 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
Teams to handle critical situations :
• The competitive advantage of KFC is its
position as the dominant firm.
• It currently enjoys 50% market share in
KFC Management Functions
KFC management is following the
P = Planning
O = Organizing
L = Leading
C = Controlling
A = Assurance
• 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.
• KFC policies are excellence for their standards
which are shortly termed as CHAMPS i.e.
S: Speed of Service.
KFC policies regulates around these standards,
hospitality is also with the employees regarding
their issues and privacy
• Procedures are well described in CHAMPS
standard library whose access is onlygivento
• There procedures/ rules include safety for its
products as well as their employees by
providing with sanitizers keeping kitchen
environment clean and hygienic.
To expend our organization in all over the Pakistan.
To create and build superior quality for our
To follow Marketing Mix Strategies.
To Generate Superior financial return for KFC and
• 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
THE KFC MANAGEMENT HIERARCHY CHART
The KFC Management Hierarchy Chart
(Corporate level in north region)
Factors Effecting Organizing
The Internal Environment
This environment includes the factors that are close to the company and
are controllable by the organization.
The External Environment
This environment includes on those factors which are not controlled by
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 &
• Third pillar
• Related with staff behavior
towards employees, feedback by
the employees to managers and
other top level offices and
• HR manager are responsible for
the all related issues of
employees and customers
• Designed to serve the company's and
• Used to check the ability of Employees and to
ensure that where they are standing.
• 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
• Have a team environment in units where everyone works
• Hence from this we can also conclude that MBO
approach is used by KFC management.
Is KFC centralized or decentralized?
Traditional Planning OR MBO?
• 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.
HR manager control all activities into
• Feed forward control
• Feedback control
• Concurrent control
• External control
• Employee discipline system
• Financial control
• Purchasing control
• Inventory control
• Statistical control
Feed forward control
• Feed forward controlling is done by the
• Store monitoring and visits to factory to check
its supplies and controlling.
• Done before finishing the Products.
• Done by the supervisor of the branch or the
• Through comment cards, general interviews
of employees about KFC management
behavior and other related issues.
• 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
• Yum brand representatives visit KFC
• For standards and quality check up.
• No relaxation is given to Manager on any flaw.
Employee discipline system
• Disciplines are maintained in KFC as this is
their core strategy.
• employment discipline is maintained by
managers and are followed CHAMPS.
• Department that sees all the financial
• UBM has to report all the financial activities
required to be done or done to the finance
• Purchasing depends on the restaurant
– In house purchasing
– Ware house purchasing
– Direct purchasing
– Indirect purchasing
• 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
• 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.
• 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.
• 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.
• 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.
• Cheap and easy availability of labor
• Increase consumption of fast food has increased the
• “All under one roof”
• Loyal customers
• New Leadership, Domestic markets and Customer
• 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
• 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
• KFC should facilitate its employees by giving relaxation and
• KFC should focus on its Research and Development