Managerial Policy
Kentucky Fried Chicken
Presented by:
Muhammad Farhan Akhtar
The Evolution of KFC
•
1939 – Colonel Sanders develops his original recipe chicken
•
1952 – Kentucky Fried Chicken is Formed
•
1952 – 1997 KFC grows into national Restaurant Chain
– Many owners and stake holders along the way.
•
1986 – PepsiCo’s acquisition of KFC
•
1997 – Tricon Global Restaurants Inc is formed as a spin-off from PepsiCo
•
2002 – Tricon changes its corporate name to YUM! Brands
•
2007 – KFC introduces its Zero grams Trans Fat recipe
KFC in Pakistan
Vision / Mission Statement
• Vision
To sell food in a fast, friendly environment that appeals to
pride conscious, health minded customers
• Mission
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. The UNIQUE EATING
EXPERIENCE at each of our restaurants MAKE OUR
CUSTOMER SMILE and inspire their loyalty for lift. Toward
that end, our associates around the world are trained to be
CUSTOMER MANIACS.
Goals
• 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 growth, striving
always to be the leader the market place
changes.
• Generate consistently superior financial returns
and benefit our owners and employees.
Products
Chicken Mania
Hot Shots
Hot wings
Family Feast
Zinger
Mighty Zinger
Rice n Spice
Wings n Rice
Wow Meal
Nuggets
Twister
Xtreme Zinger
SWOT Analysis
STRENGTHS
S1. Good Taste
S2. Brand Equity
S3. Global Experience
S4. Operations
S5. Trademark Recipes
S6. Strong Customer Focus
OPPORTUNITIES
O1. Increase outlets
O2. Undeveloped market abroad
O3. Increase trends to take meal
out of home
O4. Earn big profits as the
population grows
O5. Availability to increase the
number of franchise to other
countries.
THREATS
T1. New entrants / better quality brands
T2. Health conscious eating habits
T3. Animal care activists
T4. No support from government
agencies
T5. Intensive Competition
SO – Strategy
•Introduced new recipes (S1,S2,O3)
• Increase numbers of outlets in
different countries (S3,O5)
• Capture customer by introducing new
deals (S6,O4)
ST – Strategy
•Introduce healthier recipes (S5,T2)
• Differentiate as one providing in fastest
service (S2,S4,T1)
• Engage in CSR activities (S2,S4,T3)
WEAKNESSES
W1. High price
W2. Image of ‘Fried’
W3. Only chicken related recipe
W4. Most of the product having
close substitution in market
W5. Inconsistent Quality of service
in many outlets.
W6. Lack of control in Jointventure arrangements.
WO – Strategy
•Introduce cheaper items in the menu
(W1,O3)
• Change the image of KFC from fried to
Healthy (W2,O3)
• Offer cow meat and vegetable food
also (W4,O4)
WT– Strategy
•Work on the image of a healthy fast
food chain through advertising (W2,T2)
• Develop a strong culture of strong
service (W5,T5)
Recommendations
• Short Term
–
–
–
–
–
Introduce new recipes suited to local taste
Introduce cheaper items in the menu
Introduce healthier recipes
Differentiate through good services
Work on the image of a healthy fast food chain through
advertising
• Long Term
–
–
–
–
Change the image of KFC from fried to ‘healthy’
Open up new outlets
Engage in CSR activities related to animals & environment
Develop a strong culture of good service
Internal Factor Evaluation (IFE)
(IFE) Cont....
External Factor Evaluation (EFE)
(EFE) Cont....
Competitive Profile Matrix (CPM)
BCG Matrix
Strong
3.0 to 4.0
IFE Total Weighted Score
Average
2.99 to 2.0
Weak
1.99 to 1.0
3.0 to 4.0
I
II
III
2.0 to 2.99
IV
V
VI
1.0 to 1.99
Internal-External Matrix (IE)
VII
VIII
IX
EFE Total Weighted Score
Low
Medium
High
IFE = 2.78
EFE = 3.20
Grand Strategy Matrix
Rapid Market Growth
•
•
•
•
•
•
Weak
Competitive
Position
Quadrant II
Market Development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quadrant III
•
Retrenchment
•
Concentric
diversification
•
Horizontal
diversification
•
Conglomerate
diversification
•
Liquidation
Quadrant I
•
Market Development
•
Market penetration
•
Product development
•
Forward integration
•
Backward integration
•
Horizontal integration
•
Concentric
diversification
Quadrant IV
•
Concentric
diversification
•
Horizontal
diversification
•
Conglomerate
diversification
•
Joint ventures
Slow Market Growth
Strong
Competitive
Position
THANK YOU