Northumbria University
PT NTB BALSCM 21
Name: Jorris Ng Suet Teng
Student ID: w21068666
Critical Organizational Analysis
2022YL_HR9610HSK31
Table of Contents
Executive Summary ................................................................................................................................ 3
Introduction and Rationale on the Choice of Organization ................................................................ 3
Choice of Theoretical Perspective ......................................................................................................... 4
Justification on the Choice of Symbolic Theoretical Perspective and the Impact on Writing
Approach ............................................................................................................................................. 4
Critical Literature Review ....................................................................................................................... 5
Symbolic Perspective on Culture ........................................................................................................ 5
Critical Evaluation of the Practices and Behaviors of KFC .................................................................... 6
Conclusion .............................................................................................................................................. 9
Bibliography .......................................................................................................................................... 10
Executive Summary
Introduction and Rationale on the Choice of Organization
Kentucky Fried Chicken (KFC) is one of the largest and most popular fast-food chains in the
world, known for its signature fried chicken and secret blend of 11 herbs and spices (Yum!
Brands RSC, 2023). The company was founded in 1930 in North Corbin, Kentucky (Verma,
2021) and has since expanded to over 22,000 locations in 140 countries (Farooq, 2023). KFC
is a subsidiary of Yum! Brands, Inc., which also owns other popular fast-food chains such as
Pizza Hut and Taco Bell. The company has a strong brand reputation and is recognized for its
high-quality food and commitment to customer satisfaction. In this essay, I will be
evaluating the practices and behaviors within KFC with regards to the corporate culture.
Through the evaluation, I will be identifying problematic areas to discuss improvement
measures.
The reason KFC was chosen as the organization for this essay is because of its widespread
popularity, which makes it easier to get information about the company's culture and
practices. There are many noteworthy aspects of KFC's corporate culture to discuss, such as
how the corporation can maintain its values while adapting to industry and consumer
changes. As part of their core values, KFC commits to encourage their employees to
embrace the company’s beliefs which also leads to 71% of their employees being motivated
by the company’s vision and mission statement (Edrawsoft, 2023). Therefore, this suggests a
convinced relationship between the cultural aspects of KFC with their management strategy
on influencing the behaviors of their employees.
One of the key elements of KFC’s culture is their focus on delivering excellence customer
service and high-quality food with their signature recipe for fried chicken. They are
constantly putting great efforts to maintain cultural excellence to which they have
extensively set up a leadership training program called “Taking People with You” to all of
their restaurants around the world that reportedly amount to around 39,000 stores in 2012
(Yum! Brands, 2012). However, with the growing challenges in supply chain and global
inflation, it is critical for KFC to address the impending crisis in manpower shortage and
growing expenses yet upholding their core culture to maintain food and service quality.
Choice of Theoretical Perspective
Justification on the Choice of Symbolic Theoretical Perspective and the Impact on
Writing Approach
The symbolic perspective focuses on the meanings, beliefs, and symbols that shape
organizational culture and behaviour (Nickerson, 2021). KFC's strong food quality are
evidently displayed in their marketing communications, iconic retail outlets, uniforms, and
food packaging. This paper examines how KFC manages cultural aspects for operational
effectiveness. This seems to work perfectly with the symbolic perspective, which aims to
construct theories that demonstrate how notions like culture, identity, and performance fit
together in a logical manner. (Hatch, 2018).
In contrast to the contemporary perspective, which refrains from claiming truth in favor of
collecting anecdotes on individual and collective conflicts that are just coming to the surface
(Indeed Editorial Team, 2022), the symbolic perspective aims to comprehend and
demonstrate changes in policies over key influences on performance. Therefore, unlike the
symbolic perspective, which prioritizes economic efficiency, the contemporary perspective
is unconcerned with such matters. With this in consideration, the symbolic perspective has
been selected because the cultural and symbolic aspects of KFC play a significant role in
shaping its identity and behaviour. The symbolic perspective will be a better choice to
conduct the organizational analysis on KFC.
The symbolic perspective emphasizes the significance of comprehending how the broader
cultural and social framework in which organizations operate shapes them. As selling
American fast food in many foreign markets is not straightforward and cultural variations
across nations result in varied eating habits (Gzipwtf.com, 2021), KFC must examine the
impact of cultural aspects on the business performance in different countries in order to
develop effectively on a worldwide scale. We may also look at the broader cultural context, where
upstream investors and downstream consumers are putting more pressure on the food and beverage
industry to adopt healthier options (Singh, 2023). The symbolic perspective drives the writing
approach to assess how larger socioeconomic patterns and cultural norms have an impact
on KFC's culture.
Furthermore, the symbolic perspective accentuates the importance of comprehending how
power is allocated and used within an organization. KFC's authority structure consists of six
levels (BioSidmartin, 2019), with clear lines of authority and decision-making power
extending from the top management to lower tiers of the corporation. Power distribution
affects company culture and decision-making. This can lead to a deeper investigation of how
the management style has shaped KFC's culture and its potential negative impacts on the
company's decision-making and performance. Therefore, the symbolic perspective serves as
a useful prism through which to examine KFC's corporate culture. By studying KFC's culture's
symbolism, one may better understand how it affects the company's ability to strategize
management for success.
Critical Literature Review
Symbolic Perspective on Culture
Organizational culture has been the topic of extensive research and debate in the field of
organizational theory. In reference to the Schein’s model of organization culture, culture is
defined as the shared beliefs, value systems, practices, and symbols that affect the behavior
of the people inside an organization from a symbolic perspective (Schein, 2010). Culture is
viewed as a symbolic and meaning-rich manifestation that shapes organizational behavior
and identity. In the symbolic perspective, it is dynamic and constantly evolving, influenced
by the organization's employees and surroundings. The symbolic perspective stresses the
importance of comprehending and managing corporate culture, which can adversely impact
behavior and performance.
A corporate culture establishes standards for how individuals should behave and interact, as
well as how effectively they perform as a team. It is asserted that company culture has a
direct impact on consistent performance by demonstrating a long-term commitment to
service excellence which fosters brand loyalty (Craig, 2017). This is critical for KFC since their
mission statement and values place a strong emphasis on quality and customer service
excellence. A strong culture provides employees a sense of identity and purpose, which
fuels their commitment for food quality and customer service. Schein's theory implies that a
strong culture may help an organization stand out from competitors. KFC's mission is to be
customers' favorite. This factor has a significant impact on the Company’s operation. To
become a popular site, KFC alters its menu and recipes to satisfy consumers' likes for fast
food products such as cheeseburgers and fries (Edrawsoft, 2023). As part of their global
expansion strategy, KFC also innovates new products to please consumers from all around
the world such as KFC Thailand’s shrimp doughnuts, Singapore’s egg tarts and Australia’s
nacho box (Kelso, 2019).
The cultural web framework is also a great study that analyze and understand the implicit
and explicit assumptions, beliefs, and values that shape an organization's culture (Johnson,
Whittington, & Scholes, 2012). The framework asserts that an organization's culture is
shaped by a complex web of elements, including stories, rituals and routines, symbols,
power structures, organizational structure, and control systems (Mind Tools Content Team,
2022). Symbolic elements such as storytelling, rituals, and artifacts serve as important
channels for the transmission of shared culture (Jenkins, 2022). Stories play a significant role
in shaping the identity of KFC, according to the Cultural Web Framework. For example, KFC's
origin story highlights the company's commitment to uphold their founder’s passion to
quality and its roots as a southern-style eatery (Yum! Brands RSC, 2023). KFC has been
successful in embedding itself in popular culture through the use of storytelling in its
marketing efforts. For example, their marketing efforts seeks out to create emotional
connection to resonate with customers and create a memorable brand experience (Hong,
2015).
Rituals and routines are also important from the symbolic perspective because they serve as
physical and tangible expressions of an organization's cultural identity and values (Mind
Tools Content Team, 2022). For example, KFC's routine employee training programs
emphasize quality and customer service. Rituals and routines including employees' uniforms
and linguistic behavior training are examples used to strengthen the company's culture. The
company's packaging, menu boards, and promotional items also reflect its culture and
values. These components emphasize KFC's southern origins and commitment to quality
and customer service. It is critical to make a good impression on both external and internal
customers in order to drive company success and efficiency.
Thus, the literature on corporate culture from a symbolic approach implies that a strong and
distinct culture plays an important role in driving organizational performance and efficiency.
This is especially true for KFC, whose cultural identity is inextricably linked to its brand and
serves as a crucial differentiator between the organization and its competitors. In
conclusion, culture is vital for KFC since it serves to strengthen the company's brand
identity, boost staff morale and retention, encourage consumer loyalty, and drive business
performance. However, KFC must reconcile their culture of excellence with the requirement
to be cost-effective and efficient. In order to keep its competitive edge in the future, the
organization must continue to cultivate and keep evolving its culture.
Critical Evaluation of the Practices and Behaviors of KFC
KFC's cultural practices and behaviors are geared toward reinforcing the company's beliefs
and cultural identity. Thus, we may analyze KFC's strategies for maintaining their culture
of excellence. KFC has long prided itself on offering the best quality and service. However, as
the organization grows and evolves in the face of economic constraints, it must critically
examine its practices and behaviors to identify possible challenges in meeting expectations.
This section will assess KFC's organizational culture using the symbolic perspective to
identify issues and provide recommendations.
One of the key issues that KFC faces is to maintain its culture of excellence in view of the
fast-moving consumer trends and global expansion. Balancing exploration and exploitation
are viewed as a critical challenge for organizations in establishing long-term success from a symbolic
perspective (Nooteboom, 2003). Exploration involves uncovering new possibilities, ideas, and
inventions, whereas exploitation maximizes efficiency and effectiveness with current resources and
abilities. It will be critical for KFC to uphold its culture of excellence as it expands in order to promote
progress and thrive with competition. To stay profitable, the organization must strike a balance. KFC
faces several key challenges to maintain its culture of excellence, including competition, global
expansion, changing customer expectations, workforce turnover, technology developments, and
sustainability. These issues are made harder by escalating labor, supply, and technology costs.
To address this issue, KFC should encourage experimentation to identify innovative and
cost-effective approaches while aligning innovation with quality. Creating a roadmap for
decision-making and resource management and fostering an open, innovative culture can
help to achieve this. Spending less and innovating more is the key to overcome KFC's
impending challenges. Innovation may boost productivity, meaning the same input
generates more (European Central Bank, 2017). According to how Stephen Wunker and
Jennifer Law explain it in "costovation," businesses must learn to abandon preconceived
notions, take a new look at the market, and aggressively focus on what customers want
(Wunker & Luo Law, 2018). Some of the creative yet cost-effective ways that KFC can
consider includes simplifying the products and effective self-service solution (Kaplan, 2018).
Focus on customer-important features and boldly cut the rest. KFC may analyze sales and
menu dynamics to determine consumer habits. Thus, the organization may concentrate on
quality and buying power for its core product. This helps preserve quality without
compromising consumer preferences. Innovative self-service solutions enabling customers
to place orders will also help address manpower shortages and rising labor costs.
Another issue is that the KFC's hierarchical structure may jeopardize its culture and decisionmaking. New generations want to be addressed as "human beings," not "human doings"
(Sharma, 2022). People seek a workplace that respects their real identities. They want their
voice to be heard in a position of authority. A hierarchical structure can lead to bureaucratic
processes and decision-making, which can slow down the implementation of new ideas or
initiatives (Gaille, 2018). It can also stifle creativity and innovation, as employees may feel
discouraged from taking risks or sharing new ideas that challenge the status quo. Therefore,
it is recommended that KFC implement a more decentralized and transparent decisionmaking process inside the organization. This may be achieved through encouraging
employees at all levels to take on more responsibility and independence at work, as well as
by giving them opportunity to share their views and opinions. KFC should also build a more
structured feedback system that facilitates transparency. Performance reviews and a
procedure for reporting and addressing power and decision-making issues are
routine examples.
Finally, the issue with KFC culture keeping up to pace with the societal trends is also a
challenge to maintain its customer popularity and loyalty. With the brewing “health agenda”
over the recent years, KFC definitely is one of the critical targets from the public audience
on their compliance efforts with the evolving dietary aspirations and sustainability trends.
Even with inflation, 84% of customers prioritize wellbeing and health when purchasing food,
according to Deloitte Insights. Furthermore, 55% of customers are willing to pay more for
the ideal nutritious meals as they enhance their well-being (Johnson, et al., 2022). KFC is
also facing competition from new businesses that provide healthier choices. The market
became decentralized as service stations, super markets, pharmacies, and coffee houses
started selling ready-to-eat food. KFC's culture and sociocultural surroundings have long
been intertwined, for example, KFC’s fast-food culture prioritizes convenience, speed, and
affordability. This aligns major cultural trends and norms, where busy lifestyles and the
demand for quick, convenient food have grown. However, in order to remain relevant, KFC
must consider the public's rising concerns about healthy living.
Promoting openness to change is a feasible solution. To enhance KFC's culture of change, a
robust communication channel is necessary to help employees and consumers understand
the necessity and benefits of change. KFC may innovate to improve dietary aspects while
focusing on its signature fried chicken, showing conformity with healthier trends. For
example, KFC can explore using healthier choice of oil for frying their signature chicken
products (Thakker, 2023). The company can also look into their recipe to reduce the amount
of sodium used which over consumption may leads to critical health problems such as high
blood pressure and heart diseases (Kathleen M. Zelman, 2009).
Henceforth, the symbolic perspective enhances the study of how these factors impact the
organization's performance and behavior and highlights areas for improvement. KFC can
stay ahead of the competition by addressing cost issues with innovation to sustain its
culture of excellence, fostering a more collaborative and inclusive management structure,
and adapting to evolving environmental trends.
Conclusion
In conclusion, the symbolic perspective provides a useful framework for analyzing KFC's
culture because it facilitates in uncovering the fundamental cultural values and concepts
that influence the organization, its workforce, and its connection with the broader cultural
and social environment. According to this perspective, several issues of KFC has been
identified that require attention, including maintaining its culture of excellence in the face
of rising costs, fostering coordination and transparency in their hierarchical management
system, and addressing the need for change initiatives to keep up with evolving
environmental trends.
To overcome these challenges, KFC should concentrate on establishing an innovative culture
that promotes efficiency and cost-effectiveness while remaining true to their mission of
excellence. Through the implementation of an open communication and transparency
culture, the organization should also seek to foster a more collaborative and inclusive
management style that invites engagement and feedback from all workers. Furthermore,
KFC should foster an open culture in order to embrace change initiatives that will help the
organization stay relevant with evolving trends in the broader societal culture.
It is worth noting that the symbolic perspective emphasizes the significance of
comprehending the function of symbols and artifacts in building corporate culture. In the
instance of KFC, the company's mission and reputation for quality and service excellence are
important symbols that form the organization's culture and values. The corporation should
continue to nurture and promote these symbols to ensure that they correspond with the
organization's overall goals and strategies and that they continue to stimulate innovation
and change.
In summary, KFC has achieved great success through its culture of excellence; nevertheless,
as the company grows and evolves, it is critical that it continues to nurture and improve its
culture in order to preserve its competitive advantage in the future. By addressing the
concerns raised in this paper, KFC can ensure that it continues to be a global leader in the
fried chicken fast-food industry driving global advancement and change.
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