Organizational Dynamics of KFC. PEST Analysis of KFC. Organization Structure of KFC. Organization Change of KFC. Culture at KFC.

1. KFC – Kentucky Fried Chicken
Section:B Group:9

2. Introduction
• Founded by Harland Sanders in 1930.
• Fast food restaurant chain that specializes in Fried Chicken.
• KFC is a subsidiary of Yum! Brands, one of the largest restaurant
companies in the world.
• By December 2013, there were 18,875 KFC outlets in 118
countries and territories around the world.
• Most restaurants are furnished with images of the company
founder, Colonel Harland Sanders.

3. “Our passion, as a restaurant
company, is to put a YUM on people's
faces around the world, satisfying
customers every time they eat our
food and doing it better than any
other restaurant company”.

4. Organizational
Environment
Political
Economic
Social
Technological
Macro Environment

5. Political Economic
PEST Analysis
Technological Social

6. • Political
The political factors includes the government policies as KFC being
a foreign company to many countries so they have to obey the
policies of the Government of a particular country where the
business activities are being carried out. KFC has handled this
situation very tactfully and has obeyed the policies of the
Government as prescribe by the government in order to run this
kind of business.
Pricing policies, labelling of GM foods, animal rights campaign and
1998: BSE.

7. • Economic
•Income of the people
•The consumption behavior of the people plays an important role.
•Franchising facilitates set ups
•Support from major suppliers
•Growing market

8. • Social
•KFC target all the class including the upper class, upper middle
and lower middle class.
•Increased Vegetarianism
•They adapt the culture of the country where they are setup

9. • Technological
•KFC has strategy to introduce new technology whenever they think
that it is a time to introduce new technology.
•KFC always support the work of research & development in order
to introduce the new technology.
•Investment in technological innovations
Computer ordering (till system)

10. Organization
Environment Company
Competitor Consumer
Micro Environment

11. Competition
The fast food market in
the world is highly
competitive and KFC
faces a wide number
of direct and indirect
competitors. KFC’s
main competitors are
fast food chains such
as McDonald’s and
Domino’s
Consumer
KFC’s customer market
consists solely of the
consumer market.
KFC’s products are
bought by individuals
(males, females,
singles, and families).
Therefore, the product
range KFC offer should
appeal to as many
people within this
consumer market as
possible, to ensure that
the maximum amount
of products can be sold

12. Organizational Structure
CEO
Head
(North)
Head
(South)
Head
(West)
Head
(East)
Corporate Level

13. Divisional Head
Associate Regional
Manager
Finance
Administration
H.R.
Operations
Brand
Audit
New Concept
Corporate Level

14. Area
Manager
Territory
Manager
Territory
Manager
Territory
Manager
Territory
Manager

15. Area Manager
Territory
Manager
Restaurant
Manager
Assistant
Manager
Trainee
Manager
C.R.O
Staff
Operational Level

16. Organizational Change
• Since its inception, KFC has evolved through several different
organizational changes. These changes were brought about due
to the changes of ownership that followed since Colonel Sanders
first sold KFC in 1964.
• In 1964, KFC was sold to a small group of investors that
eventually took it public. Heublein, Inc., purchased KFC in 1971
and was highly involved in the day to day operations. R.J.
Reynolds then acquired Heublein in 1982.

17. Organizational Change (contd.)
• R.J. took a more laid back approach and allowed business as
usual at KFC. Finally, in 1986, KFC was acquired by PepsiCo.
The PepsiCo management style and corporate culture was
significantly different from that of KFC.

18. Why work at KFC?

19. Culture at KFC
• KFC believes in ALL people and create an environment where
everyone can contribute and live up to their potential
• Recognition is an integral part of the culture – they celebrate
things big and small
• Team members give each other recognition cards for on-the-spot
appreciation of a job well done and you’ll notice special pins on
employee uniforms for an accomplishment or milestone service
anniversary
• “We love celebrating the achievement of others and have lots of
fun doing it” – and this is a big reason our culture is renowned for
positive energy, teamwork, and fun

20. Practicing the Culture
• KFC aims to put a smile on the face of all their guests, but the
same goes for all their team members
• KFC makes a commitment to offer a great guest experience and
make the same commitment to their employees by providing
career opportunities in a safe and rewarding work environment
• Whether an employee are a Financial Analyst at the KFC U.S.
Restaurant Support Center in Louisville, Kentucky or a Shift
Supervisor at a restaurant in Austin, Texas, all share the same
heritage of great food, great service, and great jobs!

21. Values-Driven Recruitment
• To look for customer centric people.
• Looking for three character traits while recruiting-
• Respect for the customers
• Cheerfulness
• Neediness
• Team working ability