4. • Group Members:
Humayun Khalid Qurashi
Roll #. 04-R
B.Com(Hons.) 5th Semester
Muhammad Tayyab
Roll #. 03-R
B.Com(Hons.) 5th Semester
Muhammad Usman Zafar
Roll #. 30-R
B.Com(Hons.) 5th Semester
Muhammad Saddique
Roll #. 47-R
B.Com(Hons.) 5th Semester
Prepared by Humayun Khalid
5. 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
6. 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
7. Departments of KFC
• Marketing Department
• Finance Department
• Operation Department
• HRM Department
• Quality Control Department
Prepared by Humayun Khalid
8. 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
9. 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
10. Operation Department
Under 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
11. 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
12. 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
13. KFC Management Functions
KFC management is following the “POLCA”
P = Planning
O = Organizing
L = Leading
C = Controlling
A = Assurance
Prepared by Humayun Khalid
14. 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
15. 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
16. 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
17. Menu Plans
• KFC offers different types of products
Mighty Zinger
Zinger Burger
Chicken burger
Chicken Mania
ETC…
Prepared by Humayun Khalid
18. Marketing Mix Plans
Four P’s of Marketing Mix
Product
Price
Place
Promotion Marketing
Mix
Product
Price
Place
Promotion
Customers
comes again on
batter service
Prepared by Humayun Khalid
19. 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
20. 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
21. 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 Staff
Customer Service Team Member Food Service Team Member
Trainee Team Member
Prepared by Humayun Khalid
22. 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 Manager
Territory Manager Territory Manager Territory Manager Territory Manager
Prepared by Humayun Khalid
23. 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
Prepared by Humayun Khalid
24. 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
25. 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
26. 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
27. 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
28. 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
29. Performance Cont.
• Two Methods of evaluating the performance
management system.
360 degree feedback
My Growth Body
Prepared by Humayun Khalid
30. 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 employee's manager, peers, and
direct reports.
• Criteria
– Form of questions with rating scale
– Questions about staff behavior towards employees
Prepared by Humayun Khalid
31. 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
32. 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
33. 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
34. 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
35. 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.
• As KFC is using 360 degree feedback system.
A circle around the employees.
Prepared by Humayun Khalid
36. 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
37. 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
38. 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
39. 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
40. 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
41. 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
42. 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
43. 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
44. 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
45. Purchasing Control
• Purchasing depends on the restaurant
branches:
– In house purchasing
– Ware house purchasing
– Direct purchasing
– Indirect purchasing
Prepared by Humayun Khalid
46. 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
47. 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
49. 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
50. 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
51. 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
52. 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
53. 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
54. Comparison KFC and McDonald
KFC McDonald’s
Provide 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
can deal better with customer.
It’s staff consists of simple graduates and give
them training.
KFC uses Top to Bottom and Bottom to Top
approach to Management.
Mc. Donald’s uses Top to Bottom approach to
Management.
KFC is co-branding with walls. No such cases.
KFC use feedback system to ensure employees
performance.
No such system is used.
Prepared by Humayun Khalid
