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Prepared by Humayun Khalid

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Prepared by Humayun Khalid

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Welcome To KFCPRESENTATION Prepared by Humayun Khalid

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• Group Members:Humayun Khalid Qurashi Muhammad Usman ZafarRoll #. 04-R Roll #. 30-R B.Com(Hons.) 5th SemesterB.Com(Hons.) 5th SemesterMuhammad Tayyab Muhammad SaddiqueRoll #. 03-R Roll #. 47-RB.Com(Hons.) 5th Semester B.Com(Hons.) 5th Semester Prepared by Humayun Khalid

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KFC• History• One man operation• Starts in 1930 by Harland Sanders the founder of KFC• Named as the dining area "Sanders Court & Cafe."• In 1939 "Sanders Court & Café” was rebuilt named as KFC.• In 1960, 190 KFC franchisees and 400 franchise units in the U.S. and Canada.• Cupola• Cupola holds the master franchise rights to operate KFC in Pakistan since1999. Prepared by Humayun Khalid

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KFC in Pakistan• 63 outlets working in Pakistan• North Region including Lahore, Rawalpindi and Islamabad (Punjab).• South Region including Karachi and Hyderabad (interior Sindh). Prepared by Humayun Khalid

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Departments of KFC• Marketing Department• Finance Department• Operation Department• HRM Department• Quality Control Department Prepared by Humayun Khalid

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Marketing Department• All Planning tools for marketing• Under Marketing Manager• Use of 4 P’s (Product, Price, Place, Promotion) and Extended P’s (Physical Evidence, People and Process)• Basic purpose of the marketing department is to advertise its products in the market and keep eye on the competitors that what they are doing. Prepared by Humayun Khalid

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Finance Department• Provides close support the business manager on the financial implication of business strategies.• All final accounts of business transactions.• Finance Department analysis the business results and prepares the monthly and quarterly review of business operations. Prepared by Humayun Khalid

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Operation DepartmentUnder Operation Manager.Following operations and functions.• Cooking• Cleanliness• Administration of restaurant.• Complaint• Handling of the customers• Daily order to procurement Department• Day to day demand forecasting• Daily lectures to crew people• Trained the employees Prepared by Humayun Khalid

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HRM Department• Under HR Manager• To provide highly qualified and competent employees to organization.• Reviewing application form• Interviewing applicants• Inducting new employees• Appraising employees performance• Make a decision about the employees training• Provide a career advice to subordinates Prepared by Humayun Khalid

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Quality Control Department• Under Quality Manager• Monitoring the quality weight, strength, consistency, color, taste , reliability, finish.• Differentiate the organization from the competitors• No compromise on quality standards Prepared by Humayun Khalid

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KFC Management FunctionsKFC management is following the “POLCA”  P = Planning  O = Organizing  L = Leading  C = Controlling  A = Assurance Prepared by Humayun Khalid

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Planning• First pillar• Strategic Plans Increase its market worth value of the market and its market share.• Operational Plans Include launching of a new product to change or innovate its product line for the customers. Prepared by Humayun Khalid

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CHAMPS• A philosophy of Management• Abbreviation of – C:Cleanliness – H:Hospitality – A:Accuracy – M:Maintenance – P:Product Quality – S:Speed of Serve Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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Menu Plans• KFC offers different types of products Mighty Zinger Zinger Burger Chicken burger Chicken Mania ETC… Prepared by Humayun Khalid

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Marketing Mix PlansFour P’s of Marketing MixProduct Customers ProductPrice comes again on batter servicePlacePromotion Promotion Marketing Mix Price Place Prepared by Humayun Khalid

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Supply Chain Management Planning• Includes on the full process related with the supply of raw material includes on the chicken, spices and packing material.• To increase operation.Objectives – To increase the level of outsourcing. – Increase transportation cost. – Competitive pressure. – Increase globalization. – Supplier. – Manufacturing storage. – Distributers – Retailers. – Customers. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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THE KFC MANAGEMENT HIERARCHY CHART (OPERATIONAL LEVEL) Area Manager Territory Manager Restaurant manager Assistant Manager Trainee Manager Shift Supervisor/Customer Relation Officer All Stars Two Stars Star StaffCustomer Service Team Member Food Service Team Member Trainee Team Member Prepared by Humayun Khalid

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THE KFC MANAGEMENT HIERARCHY CHART (COOPERATE LEVEL IN NORTH REGION) CEO Head of North Associate Regional Manager Finance Administration Human Resource Operation Brand Audit New Concept Area ManagerTerritory Manager Territory Manager Territory Manager Territory Manager Prepared by Humayun Khalid

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Factors Effecting OrganizingThe Internal Environment This environment includes the factors that are close to the company and are controllable by the organization.  Company  Suppliers  Customers  Competitors  Marketing IntermediariesThe 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 Prepared by Humayun Khalid

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Segmentation• Geographic segmentation Based on nations, states, regions, countries, cities or neighborhood.• Demographic segmentation Based on an age, gender, family size, income, education, occupation, religion, race and nationality.• Psychographic Based on buying power level of the customers• Behavioral Based on occasions, benefits, User Status, Readiness Status, Attitude towards Product Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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 Prepared by Humayun Khalid

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Cont.• Performance of Management – A process of ensuring employees performance. – Consists on three phases: • Setting expectations for employee performance • Maintaining a dialogue between supervisor and employee to keep performance on track, • Measuring actual performance relative to performance expectations. Prepared by Humayun Khalid

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Purpose of the performance management system• Work performed by employees is according to KFC’s goals.• Employees have clear understanding with expectations.• Award and bonus salary for ensuring performance• Opportunities for employee development are identified.• Employee performance that does not meet expectations is addressed. Prepared by Humayun Khalid

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Performance Cont.• Two Methods of evaluating the performance management system. 360 degree feedback My Growth Body Prepared by Humayun Khalid

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360 degree feedback System• 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employees manager, peers, and direct reports.• Criteria – Form of questions with rating scale – Questions about staff behavior towards employees Prepared by Humayun Khalid

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360 degree feedback System Cont.• 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective when done properly• 360 Feedback as a Performance Appraisal Tool to measure employee performance these things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. Prepared by Humayun Khalid

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360 Cont. Measures• 360 feedback measures behaviors and competencies.• 360 assessments provide feedback on how others perceive an employee.• 360 feedback system addresses skills such as listening, planning, and goal-setting.• A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness. Prepared by Humayun Khalid

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My Growth Body• This scale was introduced by the HR department of KFC in 2000-01.• Used to measure the performance of their employee.• Rank their employee as a good performer or a bad performer. Prepared by Humayun Khalid

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How Goals and Objectives are linked with Performance Management?• Example:• Three employees having target 6 million..• Two achieve 10 million and one achieve 6 million.• The first two employees are best performance management skill.• Includes on self assessment, employees behavior towards suppliers and customers. Prepared by Humayun Khalid

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Appraisal system• Designed to serve the companys and employees interests.• Used to check the ability of Employees and to ensure that where they are standing.• As KFC is using 360 degree feedback system. A circle around the employees. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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 Prepared by Humayun Khalid

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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 the finishing the Products. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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External control• Yum brand representatives visit KFC restaurants.• For standards and quality check up.• No relaxation is given to Manager on any flaw. Prepared by Humayun Khalid

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Employee discipline system• Disciplines are maintained in KFC as this is their core strategy.• employment discipline is maintained by managers and are followed CHAMPS. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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Purchasing Control• Purchasing depends on the restaurant branches: – In house purchasing – Ware house purchasing – Direct purchasing – Indirect purchasing Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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SWOT ANALYSIS Strengths Weaknesses KFCOpportunities Threats Prepared by Humayun Khalid

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Strengths• Brand Equity.• KFC secret recipe of 11 herbs species.• Strong Market Share (over 50%)• Strong Franchise and License Fee revenues for cash flow.• 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.• Employees are its strength who stands strong with its organization.• Product is their strength customers come here for product ignoring the prices.• Hospitality standards are strength; standards are very high they don’t bear ignorance regarding product.• They don’t do much advertisement as awareness is there & they don’t find a need for advertisement. Prepared by Humayun Khalid

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Weaknesses• Presence of Multinational competitors in the market e.g. McDonalds.• Compressed hierarchy.• More work from same people if worker is not trained for that job.• 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. Prepared by Humayun Khalid

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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 Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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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. Prepared by Humayun Khalid

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Comparison KFC and McDonald KFC McDonald’sProvide Chicken Spicy Products. Provide Chicken and French Fries.Arabian Rice and Zinger Burger. Big Mac.Free Delivery. Free Delivery.Chicken is eaten by every community. Beef is banned is some community.Local Staff, highly qualified because local staff It’s staff consists of simple graduates and givecan deal better with customer. them training.KFC uses Top to Bottom and Bottom to Top Mc. Donald’s uses Top to Bottom approach toapproach to Management. Management.KFC is co-branding with walls. No such cases.KFC use feedback system to ensure employees No such system is used.performance. Prepared by Humayun Khalid

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Questions and Answers. Prepared by Humayun Khalid

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Thank You! Prepared by Humayun Khalid

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So it’s the time todecide which one you would choose!!! Prepared by Humayun Khalid

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ORPrepared by Humayun Khalid

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ALLAH HAFIZ Prepared by Humayun Khalid