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ORGANIZATION BEHAVIOUR

OB- KFC

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ORGANIZATION BEHAVIOUR

  1. 1. NAME OF MEMBER IN GROUP: KALAIVAANI D/O JAYARAMAN ST1302BD2477 MALATHI D/O GOVINDASAMY ST1209BD1622 KANIMOLI D/O JAYABALAN ST1302BD2438 VIMALA D/O RAMACHANERAN ST1209BD1599 SUBJECT: BAGB1023 ORGANIZATION BEHAVIOUR LECTURER: MISS.LIM CY
  2. 2. Background KFC Corporation Kentucky Fried Chicken was founded by Harland Sanders in Corbin, Kentucky. Harland Sanders was born on a small farm in Henryville, Indiana, America, in 1890. Sanders loved to cook and to invent a new recipe. One day he tested to mix eleven herbs and spices with wheat flour until he got success and he had a secret recipe for cooking chicken. Sanders opened the first facility with a 142-seat restaurant, a motel, a gas station. During the 1930s an image that would became known throughout the world began to develop. First Sanders was named an honorary Kentucky Colonel by the state’s governor; second, he developed a unique, quick method of spicing and pressure –frying chicken. In 1950s a new road was built, most of people used another new road, so; Sander’s customers decreased. Eventually, Sanders decided to close his restaurant then he invested the first franchise in 1952 also 105 USD with the secret recipe and the method throughout America. Colonel Sanders sold 5 cent per piece chicken for copyright. Through the promise between Sanders and partner was signed by handshake. In 1963 Sanders’s recipe was franchised to more than 600 outlets in the United States and Canada. In 1964 Sanders sold Kentucky Fried Chicken to an investor group headed by John Y. Brown, Jr. and Nashville financier John (Jack) Massey that Colonel Sanders still was Kentucky Fried Chicken Goodwill Ambassador for helping and giving suggestion. After on 16 January, 1969 Kentucky Fried Chicken Corporation was renowned in the New York Stock Exchange that there were 3,000 chains worldwide. In 1971 Kentucky Fried Chicken merged with Connecticut-based Heublein Inc., a specialty food and alcoholic beverage Corporation.
  3. 3. In 1982 R.J Reynolds Industries, Inc. (or RJR Nabisco, Inc. in the present) merged with Heublein Inc. So, Kentucky Fried Chicken was shared of R.J Reynolds Industries, Inc. In 1986 Kentucky Fried Chicken was a big change that Soft-Drink giant PepsiCo, Inc bought Kentucky Fried Chicken for $840 million from RJR Nabisco, Inc. Reasons cited were KFC’s superior performance and its 1980-85 increase in worldwide revenue and earnings. In 1997 PepsiCo prepared to separate KFC, Pizza Hut, and Taco Bell to be a new Corporation under name Tricon Global Restaurants, Inc that was 30,000 chains in 100 countries worldwide. On May in 2002 Tricon Global Restaurants, Inc. was changed Yum! Brands, Inc. till the present after the acquisition of a restaurant tries John Silver and A & W. The company is making up a food brand with 5 brands include KFC, pizza Hut, Taco elegant bell , try John Silver and A & W. is why the company changed its name to match the number of network operations at the restaurant also named Yum! This name is also called a company's stock in the New York Stock Exchange.
  4. 4. VISION OF KFC To be the leading integrated food services group in the Asia Pacific region based on consistent quality products and exceptional customer-focused service. MISSION OF KFC “To be the leader in western style quick service restaurants through friendly service, good quality food and clean atmosphere” • To maximize profitability improve shareholder value and deliver sustainable growth year after year. • KFC are committed to customer satisfaction through offering high quality with excellent services and good value. • KFC take great pride in serving their customer. • They also seek continuous improvement in facilities. • The company keeps employees longer, they are happier; they work better for the KFC Company.
  5. 5. STATED OBJECTIVES OF KFC Every organization and company has some certain goals laid down by them to achieve to make it renown and have value added services to satisfy customers. 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. KFC is consistently providing a pleasant dining experience, with fast friendly, in a clean and convenient location. Every moment dedicated to providing excellent and delighting customers.  *Product development  *Increase variety of menu  *Introduce desert menu  *Introduce buffet to restaurants
  6. 6. OWNERS AND SHAREHOLDERS OF KFC The Group recognizes the importance of keeping shareholders and investors informed of the Group’s business and corporate developments. Such information is disseminated via annual reports, quarterly financial results, circulars to shareholders and the various announcements released from time to time. The management holds discussions and dialogues with analysts and investors on a regular basis. During the discussions and dialogues, presentations based on permissible disclosures are made to the analysts and investors to provide details on the Group i.e. financial performance, any major developments and future plans. Apart from the mandatory requirement to make public announcements via the Bursa Securities, the Group also disseminates information through press releases on corporate events, product launches and any significant developments of the Group. In addition to the above, the Group has an interactive web-site available at http:www.kfcholdings.com.my to communicate with investors and the investing public. The web-site is being used as a forum to answer inquiries and provide information on the activities of the Group. The Annual General Meeting is the principal forum for dialogue and interaction with the shareholders of the Company. Besides the usual agenda of the Annual General Meeting, the Board presents the progress and performance of the business. Thereafter, the shareholders are presented with the opportunity to participate in question and answer sessions with the Directors.
  7. 7. STAKEHOLDER ANALYSIS 1.1 Internal stakeholder of KFC • Managers Managers of KFC want the company to succeed Better chance of promotion. They know that successful company may reward them by paying them higher salaries, giving them a bonus, better fringe benefits and if company fails they could lose their job. • Employees Employees of KFC want the company to succeed more likely to get better pay, chance of promotion, better facilities. Because they know if the KFC fails, then the company will threaten their jobs and possibly cut their wages. • Suppliers KFC has numerous suppliers among which K&N supplies the major chickens are further processed to serve into their chain of restaurant all over the countries. Proper steps and methods are applied to evaluate the suppliers and their products as suppliers largely affect the overall operation and business of KFC. Suppliers must want the company to succeed to get more orders for them and more success for their business, as KFC is the supplier’s main buyer of their chickens in huge mass.
  8. 8. 1.2 External stakeholders of KFC • Customers Customers do have a say in the working of KFC are so loyal. No company can afford to lose its customers. Although, the customer base is huge and one single customer does not have much bargaining power, KFC tries to listen to each every buyer via feedback and opinion cards. Mass customization is what KFC is trying to do to whatever is possible to cater to the needs of customers. Customers continue to return to the KFC because of the good quality and same taste of their food products.KFC provides their customers best quality, good services and they always introduce innovative products to attract their customers.
  9. 9. 4 P STRATEGIES IN KFC (MARKETING MIX) The major KFC marketing management decisions can be classified by four categories which included with Product, Price, Place, and Promotion. These variables are known as the marketing mix 4 P’s of marketing. They are the variables that KFC marketing managers can control to best satisfy customers in the target market. The KFC attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner. PRODUCT AND SERVICES OF KFC Product can be offered to a market to satisfy a want or need. The core benefits of KFC are to kill people hunger. KFC’s specialty is fried chicken served in various forms. KFC’S primary product is pressure-friend pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep flying in a standards in industrial kitchen type machine. The hectic due to the lifestyle of office goings individuals the fast food concept saves times of preparing food and gives the customer a null meal quickly. The KFC foods help to kill famine of the customers. They offered variety of foods that is burgers, chicly meal, nuggets, desserts, combo meals, bologna, smoked chicken, satay, sausages and chicken ball. There are some features in KFC such as different and better taste, hot and spicy version of chicken and superior quality. KFC providing superior service also experience high levels of customer satisfaction and positive rumor. Reliability here means the accuracy of the services; that is not making mistakes and delivering what has been promised in the set up time. Responsiveness means that the service provider is being helpful to the customers, and notifies customers when then service will be provided. Employee’s behavior making customer feel secure and that employee are always polite and have some information to assist customer requirements. Although people enjoy the taste of KFC and it remains a popular chicken product, having “good” focus to the detriment of the service process means that other important attributes of a fast food restaurant not been dealt with satisfactorily. Customer would like to customized their purchases and create their own service value and service providers could help to customize in the process. Example of KFC service is delivery services, catering services, meal vouchers and so on.
  10. 10. PRICE Price is the any amount of money that customers have to pay while purchasing the product. Price is the only element in the 4P’s that brings money to the KFC. All other P's are costs to the KFC. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services. KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy. Pricing of products include the government taxes and excise duties and then they come at final stage of determine the price of their products. KFC prices of products are a bit high according to the market segment and it is also compatible to the standards of their products. PROMOTION Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. Promotion is the method used to inform and educate the chosen target audience about the organization and its products. With using advertising, sales promotion, public relations, events and experience, coupons, discounts and bundled packages an organization finds most of its meanings and survival. KFC also use the bill boards the major source of advertisement and one of the most important thing that they uses media especially the newspapers to promote their products. They are also creating awareness among the masses about their existing product range as well they tell us about the future projects.
  11. 11. PLACE OF KFC (LOCATION) Place decisions are those associated with channels of distribution that serve as the means to getting the product to get the target customers. The distribution system performs transactional, logistical, and facilitating functions. This is a listing of countries with KFC franchises. There are over 18,000 KFC outlets in 120 countries and territories located across the world. The first KFC franchise opened in the United States in 1952 and in Canada a year later. The first overseas franchise was established in the United Kingdom in 1964. A large number of Caribbean and developed Western markets had been entered by the early 1970s. This was followed by expansion throughout the Middle East and developed Asian markets from the mid-1970s and into the 1980s. China was entered in 1987. Expansions were made into Eastern Europe and South America in the early 1990s. The most recent area of expansion is Africa, where the company is targeting that continent's growing middle class. The major markets for KFC include the United States (4,500 units), China (4,200 units), Japan (1,100 units), the United Kingdom (800 units), South Africa (700 units), Canada (650 units), Australia (600 units), Malaysia (550 units), Thailand (450 units) and Indonesia (450 units). The global operations are overseen by Yum! International, which is headquartered in Louisville, Kentucky. Yum! Typically grant a master franchise to a local operator, or take a stake in a joint venture between such a company and itself. In 11 locations, Yum! International manages KFC directly, including China, Russia and India. Worldwide, major franchise holders range from large local conglomerates such as Jardine Matheson and Doosan Group, to companies specifically established to run restaurants franchises, such as AmRest. In Japan, Malaysia and Indonesia, the major franchise holders are publicly listed companies. On the other hand, in smaller markets such as some Caribbean islands, the franchises may be operated by a single individual. Besides that, for KFC the placement of the product is not important but the placement of the restaurant is important we can easily judge that the KFC target the place for their restaurant, which is well known and is in Porsche area where the income level of the people is high then the middle class level.
  12. 12. Because the prices of the KFC products is high with comparison to the local products manufacturer who are dealing in the same kind of product in which KFC is dealing but the prices of the KFC is high due to special taste, high quality, and due to international brand, it is the world recognized fast food restaurant all around the world. So, for the placing strategy, KFC chose the well income class area for their restaurants.
  13. 13. OB PRACTISES IN KFC Organizational change and stress management Most organization around the world has tried to change themselves and some more than once during the past decade. Yet for every successful change, there is an equally prominent failure. KFC develop food according to the customer’s taste. KFC organization is well positioned to change will prosper but those that ignore change will flounder. For example, the customers do not accept the changes made in KFC food made by the organization. There is almost infinite variety of pressures for change. That is globalization of markets, spread of information technology and changes in the nature of the workforce employed by organizations. All effective and relatively KFC requires changes in organization design. The leaders must able to the redign by creating emotional commitments to the changes. In the synthesis leaders involve key managers in focusing on new economic and strategic goals and debating and experimenting with new design. The KFC organization changed formal organization design almost immediately. The KFC management delivered the organization at the top and through the renewal program established a new flatter structure at the experimental stores, a structure later replicated in all franchise.  Globalization KFC face global competition on an unprecedented scale. Globalization means that the main players in the world’s economy are now international or multinational corporations. Their emergence creates pressures on domestic corporations to internationalize and redesign their operations. Global markets now exist for most products, but to complete effectively in them, KFC often must transform their cultures, structures and operations. The powerful globalization forces are pushing domestic firms around the world abandon “business as usual” in order to remain competitive. KFC industries, global strategies are replacing country-by-country approaches. Although globalization strategies aren’t easy to implement, many organizations have effectively moved outside their domestic markets. KFC have highly successful Asian operations. KFC serve more customers in the world and earn more profits from these operations.
  14. 14.  Information technology Coping with international competition requires a flexibility that May organizations often do not possess. Fortunately, the revolution in information technology permits organizations to develop the needed flexibility. Information technology comprises network of computers, telecommunications and oven system and extra. IT is having a profound impact on individual employees, teams and organizations. Changes in KFC structure, product, markets and its processes. IT can create new social division even as it brings customer together. If the full potential of IT is to be realized, employees must be better educated, better trained, and better motivated than at any time in history of KFC. For example, e-online order make the customer easy and safe the time.  Stress management The changes make stress. Stress is the body’s reaction to a change that requires a physical, mental or emotional adjustment or response. Change is act, process or result of altering or modifying. Change and stress is effect on all individual, group and organizational level because change and stress affects every level of organization. KFC overcome the problems of change and stress is ordering system and payment system by using the computerized system.
  15. 15. ATTITUDES AND JOB SATISFATION Attitudes are evaluative statements that are either favorable or unfavorable concerning objects, people or events. There are three main components of attitudes. That is cognitive component, affective component and behavior components. For cognitive component the employee though he deserved the promotion, affective component is the employee strongly dislike his supervisor. For example, the KFC employee those are work hard but never get promotion is dislike the supervisors. Behavioral component is the employee is looking for another job and in organization, attitudes are important because of the behavioral component. The importance of attitudes in KFC is correspondence to behavior, accessibility, the presence of social pressure, not persons has had direct experience with the behavior and the relationship is likely to be much stronger if an attitude refers to something with which we have direct personal experience. Job satisfaction refers to a collection of feelings that an individual holds toward the job and high level of job satisfaction equals positive attitudes toward the job. High level of job involvement is thought to result in fewer absences and lower resignation rates. Job involvement in KFC more consistently predicts turnover than absenteeism and psychological empowerment of employee’s beliefs in the degree to which they can impact their work.
  16. 16. DIVERSITY IN ORGANIZATION The concept of diversity include acceptance and respect, it means understanding that each individual differences. These can be along the dimension of race, ethnicity, gender, sexual orientation, socio-economic status, age physical abilities and more. It is the searching of these differences in a safe positive and development environment. For example, the KFC organization offered many type of food that can take by any age group of people. Other than that, physical surrounding that offered by KFC attract the customer. The physical surrounding that offered by KFC attract customer. The physical surrounding is cleanliness. Moreover, some people were satisfied with the environment and the friendly attitude of people at food counters. Diversity is also a standing part of KFC quarterly Business Reviews. KFC organization focuses on providing strong growth opportunities through increase experiential land development assignments. It challenges individuals in corporation diverse perspective in group meeting, managing diversity in the work place is essential. Diversity can include the working place diversity that is working skills and personality. All these can affect performance of an organization. Diversity is being beneficial to the organization of the KFC and the member of the KFC organization. Diversity brings substantial potential benefits to the KFC, such as better decision making and improved problem solving; greater creativity and innovation, which lead to enhanced product development and more successful marketing to different types of customers. “Diversity is more than a philosophy at KFC; it is part of our founding “How We Work Together” principles. KFC’s global culture is actively developing a workforce that is diverse in style and background, where everyone can make a difference. For KFC, diversity is not a target it’s a way of life and a way of doing business. Everyone can and does make a difference in our organization. Believe in all People – underscores the importance of actively seeking diversity in others; believing everyone has the potential to make a difference; and coaching and supporting every individual to grow to their full capacity. This adds perspective and depth to everything KFC do. KFC have also found that a diverse team makes for better problem solvers, services all KFC’s customers more effectively, and creates a richer culture for all of us to enjoy.
  17. 17. KFC are also increasing the representation of African Americans, Hispanics and women among our key talent or decision makers, and growing the pipeline of diversity in their mid- level manager ranks. All of KFC’s brands have leadership initiatives focused on high- potential diversity talent, and all leaders serve as mentors. In addition, last year each of the brand presidents went into their communities to provide business-growth coaching for local networks of minority businesses. Making progress in diversity is a business priority and the work of everyone in our system. This commitment is reflected in David Novak’s annual goals, or “Blue Chips.” KFC also have a dedicated Global Diversity and Inclusion Officer who guides their strategy and a number of initiatives that enhance their inclusive workplace. Part of KFC’s growth strategy will be to ensure that our leadership team, company workforce and culture are as diverse as our customers around the world.” “Diversity, inclusion and engagement are simply part of KFC’s core values at Yum.’ Believe in All People’ means tapping into the diverse skills, cultures, perspectives and experiences of each of our associates to drive great marketplace performance. KFC strategic diversity and inclusion vision is to grow leadership, franchisee and supplier pipelines that increasingly reflect our diverse customer and investor base.
  18. 18. ORGANIZATIONAL CULTURE A company culture describes the way a company’s owners and employees think, feel and act. KFC company culture is a direct result of the company’s vision and values. For a business to generate profits and achieve long term success it needs to build a workplace that attracts, engages and retains the best employees. The real culture of a company is determined by the way decisions are made on a day by day basis, and by how it treats its employees. When a manager does not value an employee or follow established procedures, the true company culture differs from the published version. To be effective, the actual company culture rests on the company vision and values being believed and acted upon by all employees. Young people today have demonstrated their commitment to seeking widespread experiences and doing what is ‘cool’ and ‘fun’. They see the value of teamwork and connectedness and they work to gain money, skills and experience. A company’s culture must reflect these attributes if it is to attract and retain talented employees. The ‘feel-good’ culture at KFC is inclusive and supportive – one where everyone is encouraged to look out for each other. This culture is across the KFC brand, rather than being localized in a single store. KFC is flexible around working hours to accommodate time off for exams, extra- curricular school activities, sports and family events. Many young employees initially join KFC in order to gain some extra cash. As they continue in employment they realize that there are excellent career opportunities on offer. As a Team Member, employees receive on-the-job training and the chance to cross-train within the restaurant, enabling them to learn new skills. Employees learn communication skills, teamwork and how to manage money. Many of these skills will have future life applications as well as being of benefit at work. KFC’s strong company culture benefits all its employees. Increased employee engagement results in higher morale and productivity. This ensures excellent customer service which means repeat visits and recommendations to others.
  19. 19. By providing defined and visible career paths, KFC retains more staff, with obvious spin-offs in the retention of talent and knowledge. Many successful Area Coaches, Training Managers and Restaurant General Managers started with KFC as Team Members. Retention of staff and reduction in staff turnover has benefits for KFC as it achieves a significant reduction in spending on recruitment and enables a greater investment in training. KFC provides extensive recognition and rewards to its employees which mirror the company culture. Team Members achieve money and hours, celebration of success, life experiences and discounts. The rewards and recognition for managers include work-life balance, discounts, and service recognition and education assistance. An additional benefit of working within the KFC franchise network is that employees can grow their career. Career opportunities are advertised throughout the equity and franchise network. Since it as founded, KFC has always shown a profound respect for the cultures and traditions of all the countries where the company markets its products. It accepts cultures and social diversity and rejects discrimination based on ethics, religion or on any other grounds. Employees how work at the KFCs headquarters’ come from 70 different nations. Culture within the organization is very professional and yet flexible at the same time. Its policies, rules and regulations and inter departmental culture is very open. Attitudes, behaviors and working environment are such that it motivates and encourages other employees to feel comfortable and wanted in the organization. It’s very friendly yet 30 professional organizations. KFC people call themselves a family and thus keep their working relations accordingly. The broader the responsibility of a KFC manager, the more the following specific criteria should be considered, in addition to professional skills, practical experience and result focus: •Personal commitment and courage. This includes the capacity and the willingness to take initiatives and risks as well as to maintain composure under pressure. •Ability to motivate and to develop people, addressing all those issues that allow others to progress in their work and to develop their capabilities.
  20. 20. •Curiosity and open-mindedness as well as a high level of interest in other cultures and life- styles. This also includes a commitment to continuous learning and improving, as well as to sharing knowledge and ideas freely with others. •A taste for initiative together with the ability to create a climate of innovation and to think outside the box. This implies the right to make a mistake but also the readiness to correct it and to learn from it. •Willingness to accept change and the ability to manage it. •Adaptability of thought and deed, taking into account the specificity and the complex it of the environment. •International experience and understanding of other cultures.
  21. 21. Motivation Motivation is the process by which person’s effect are energized, directed and sustained toward attaining goals. SWOT Analysis Strengths - Strengths can be found internally in a company and can be used to the company’s advantage. The strengths identified are as follow: a) Name recognition and reputation KFC’s early entrance into the fast-food industry in1954 allowed KFC to develop strong brand name recognition and a strong foothold in the industry. b) PepsiCo’s success with the management of fast food PepsiCo used many of the promotion strategies that it has used to marked soft drinks and snack food .By the time PepsiCo bought KFC in 1986, the company already dominated two four largest and fastest-growing segments of the fast food industry. c) Traditional employee loyalty KFC’s culture was built largely on Colonel Sanders back approach to management. Before the acquisition of KFC by PepsiCo, employees at KFC enjoyed good benefits, pension and could receive help with other no income needs. This kind of ‘personal’ human resources management makes for loyal workforce.
  22. 22. d) KFC’s secret recipe The secret recipe has long been a source of advertising and allowed KFC to set itself apart. Also, KFC was the first chain to enter the fast –food industry, just before McDonald’s, which opened its first store a year later and the “secret recipe” was the initial home replacement strategy. e) Improving opening efficiencies KFC is reducing overhead and other operating costs that directly affect perating profit. Operating Efficiencies is achieved by KFC through improvements in customer service, cleaner restaurants, fasters and friendlier service and continued high-quality products. Weaknesses Weaknesses are also found internally like strengths. However, can limit a company’s potential. The weaknesses for KFC are identified as follow: a) KFC has a long time to market with new products. - The chicken segment of the fast food industry, innovation was never a primary strategy for KFC. However, during the late 1980’s other fast food chains, such as McDonald’s, began to offer chicken as a menu option. During this time, McDonald’s had already introduced the McChicken while KFC was still testing its own chicken sandwich. This delay significantly increased the cost of developing consumer awareness for the KFC sandwich. Opportunities Opportunities represent external finding which can enhance a company’s performance. Opportunities that KFC can take advantage of are a follow: a) Dual branding - This strategy helps to “improve economies of scale within its restaurant operating”. For many companies that own more than one fast-food chain, dual branding is an ideal way to expand
  23. 23. quickly and increase profit. The companies no longer need to wait for the store to be built or spend time and money looking for the location. b) New distribution channels Consumers are demanding fast food in non-traditional locations, such as shopping malls, universities, hospitals and other high traffic areas. Consumers are demanding greater convenience when purchasing. Threats Threats to a company are those business characteristics that endanger the company’s position within its industry as well as jeopardize its profits. The threats that KFC faced with include the following: a) Increasing competition KFC faced slow sales growth in the fast-food industry, other segments of the industry have turned to new menu offerings, and McDonald’s introduced its McChicken sandwich. Domino’s has introduced chicken wings to its menu. Pizza hut has tried marinated, rotisserie-cooked chicken. b) Changing preferences of consumers. Consumers began to demand healthier food and KFC was faced with a limited menu consisting, mainly of fried foods ,KFC to change its image as a fried chicken chain, changed its logo to KFC in 1991, KFC has introduced Oriental Wings , Popcorn Chicken and Honey BBQ chicken as alternatives to its Original Recipe fried chicken. KFC is promoting its lunch and dinner buffet. c) Increase prices of wheat and corn flakes Prices of wheat and corn have doubled over the past year or so, according to the US based Earth Policy Institute. This means higher prices of food products made directly from them. This directly affects the cost of KFC.
  24. 24. Threat of entry from new competitors a) Economies of scale: The threat of new entrants can be reduced because most of the established companies in the industry have economics of scale advantage. For instance, PepsiCo has improved its economies of scale within its business operation by adopting the dual branding strategy. Therefore, this enables KFC to improve its customer base by increasing its menu offerings. This will help KFC to reduce the threat of new entrants because they will not able to compete in the market and hold high cost disadvantages compare to the already established firms. b) Government regulation Government regulation and other diplomatic procedure make it difficult for new competitors to enter the market. The result is that renowned fast- food industry are facing competition with local entrepreneurs who has the basic understanding of local language, culture, costumers, law, financial markets and marketing characteristics. Many of the companies are overcoming this problem by adopting the strategy of franchising with the local entrepreneurs. The reason behind such as a strategy is that Fast Food Industry contains a huge profit. c) Brand loyalty In fast-food industry, as it is found in the case brand loyalty is the only identity here for their presence. As the name implies like KFC, McDonald, Pizza Hut, Burger King and all the other Fast food Chains has their strong customer base. Another important thing in Fast – food industry is the taste of food. It is a matter of habituation. There is a natural loyalty to the brand for the taste. So, Brand loyalty is high and as a matter of fact industry is unattractive for the new competitor.
  25. 25. RESEARCH & DEVELOPMENT STRENGTH OF KFC KFC has been operating for several years now, however the weakness of those company is that they didn’t give important to the research and development. KFC must invest forcefully in research and development for them to be at edge on technology. This could help the company transform technological advances features are established by rivals especially that they are now in the industry whereby technology is the prime driver of change. It is a necessity to have focus on the research and development especially in the critical areas not only to avoid stretching the company’s resources too thin but also to intensity the firm’s proficiency and to master the technology for them to become the leader in a certain technology or product category.
  26. 26. RECOMMENDATIONS • Product differentiation KFC faces a lot of threat from its substitutes, especially with growing health concerns among its customer. Health and obesity issues associated with KFC food have diluted the trust people once had in them. Hence, the reason, substitute pressure is there. KFC has tried launching salads and promoted production using vegetable oil in the past in foreign companies. Its served items cater the demands of this market in countries. KFC choose differentiation strategy by emphasizing the preparation of food with high quality ingredients as well as unique recipes and special seasoning to provide appealing, tasty and attractive food at competitive prices. As the diversity of products in order to gain its competitiveness in the fast food industry, it may increase the variety of menu products and give customer more choices. Different packaging of its menu may also increase the variety of menu. So KFC should try and differentiate its products one other lines than only chicken to capture other segment in the fast food industry .product differentiation in the fast food industry exist but is not quite high and generally the products are perceived as commodities so their choice largely depends. This industry’s customer are characterized as highly price sensitive so they can easily switch to a product that is like in quality and service but offered at lower price .product differentiation does play a role in the growth of a business. • Better communication channel. Lack of communication in the operation ,would lead to many problems inconsistency of products and services may occur due to misunderstanding of different internal departments.it is therefore recommended that KFC should provide more communication channel for gathering opinion so as to improve the service quality.
  27. 27. • Enhancement on valve of product and services. As shown in the strategies of KFC, it tries to minimize the costs, the recentralized trainings for crewmembers, the bulk purchase of production ingredients and materials and so forth. In the other word, cost leadership is not a business strategy that it mainly takes. Quality is always something that customer look for. With unique recipe and tasty chicken as well as other innovative menu items, KFC may have more sustainable competitiveness achieved by its differentiation strategy. • Adopt different pricing strategy to attract the customers. Price is always a primary, concern for the customer therefore, they should adopt certain strategy to attract the customer, and it can only be done by lowering the prices.it could be by introducing some discount packages for families, employees, students or regular customer. The membership card can be used to provide certain extra valve to the customer.it can gain sustainable competitive advantage by either cost or differentiation. If firm achieve differentiation, it can charge premium prices and gain higher margins. • Environment friendliness. It can develop a competitive advantage for itself by introducing environment friendliness concept as it has been introduced in Malaysia. The restaurant is designed to environmental goals that include cutting energy and water consumption by 30%. • Promotional campaigns.
  28. 28. KFC has large customer equity, but being a market symbol, a company should strive for having more actual customer. KFC should work for having more solid marketing departments. They should organize and run proper advertisement campaign. It would definitely be an incremental factor for their sales. They can also use the brand promotions. They can set up the promotional campaigns. All the need is an effective marketing department to facilitate the promotional activities. • Ways for gathering customer feedback As mentioned in marketing strategy, marketing team relies on customer’s feedback for choosing their marketing promotion. Customer’s feedback means high sale on volume and positive sales revenue.it, however, may not reflect the positive customer’s feedback on sales. Whenever a new product is out in the market, it may lead to sudden sales increase of that particular product as customers may want to try something new .however, it may not mean that the product is popular because product may be a fad. It therefore is suggested that marketing team in KFC should carry out more comprehensive market researches on product development. • Lack of employee training. Proper training of staff engaged in maintarance of service quality should be provided to deal all such issues at local level. According to the manager, sometimes an issue regarding the services happens. At present they are not focusing on the training in their some outlets, so they should provide proper training to their employees because in fast food.
  29. 29. • Increasing expected retaliation by establish blocking positions. Price cuts can be done when you have cost advantage which can come from economies of scale, vertical linkages with the valve chain of suppliers and channels, geographic location and discretionary policies keeping in mind KFC. CONCLUSION KFC is a global company with a diverse and ever-changing workforce, faces significant challenges in operating their businesses internationally but they faces those challenges strategically, adapt with policies to these markets. KFC built a diverse foundation to operate as a local business in international markets. Criticism work can motive toward success. Though criticism rose about KFC but it could not hinder its success because of their policy and strategy. A proverb goes on “prosperity’s right hand is industry” by expanding its operations globally KFC facilitated its success and become famous to worldwide, which proves that “Fame is the perfume of heroic deeds”. Besides that, KFC Company also has received a good response from customers although there are still have many competitors such as McDonald, pizza and others. KFC gives more priority to society. The main three reasons why KFC stands out as my favorite fast food restaurant is because of the service provided, the affordable prices, and of course the great quality food. KFC has always maintained an old age feel and it is apparent because they still use the original recipe. Also, there are many KFC’s around the world and I have been to one in South Korea and it was the same if not better quality than the establishments stateside. In my opinion, KFC also has brought my
  30. 30. family together many nights and I have always viewed it as one of the best suppliers of fresh flavorful chicken which is the reason why in my opinion it is the best fast food chain. REFERENCES • http://www.planetfeedback.com // Kentucky fried chicken menu choices • http://www.psopk .com /media /new.php • http://www.kfc diversity .com • http://www. kfc motivation.com • http://www.kfc organizational culture.com • http://www.kfc organizational changes.com • http://www.kfc organizational behaviour.com

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