About

Founder
Harland Sanders

Founded
Sanders Court & Café (March 20.1930)
First Franchise
Salt Lake, Utah (September 24, 1952)

Headquarter
Louisville, Kentucky, U.S.

Number of Locations (2015)

21,487 (2017)
Revenue
US $23 Billion (2013)
Products
 Fried Chicken
 Chicken Sandwiches
 Wraps
 French Fries
 Soft Drinks
 Salads
 Desserts
 Breakfasts

General Introduction
KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from
his roadside restaurant in Corbin, Kentucky during the Great Depression. Sanders identified the
potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise
opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by
challenging the established dominance of the Hamburger. By branding himself as "Colonel Sanders",
Harland became a prominent figure of American cultural history, and his image remains widely used
in KFC advertising. However, the company's rapid expansion overwhelmed the aging Sanders and he
sold it to a group of investors led by John Y. Brown Jr. and Jack C. Massey in 1964.
KFC was one of the first American fast food chains to expand internationally, opening outlets
in Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and
1980s, it experienced mixed fortunes domestically, as it went through a series of changes in corporate
ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to
the spirits distributor Heublein, which was taken over by the R.J. Reynolds food
and tobacco conglomerate; that company sold the chain to PepsiCo. The chain continued to expand
overseas, however, and in 1987, it became the first Western restaurant chain to open in China. It has
since expanded rapidly in China, which is now the company's single largest market. PepsiCo spun
off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands.
 Founder
Harland Sanders was born in 1890 and raised on a farm outside Henryville, Indiana (near Louisville,
Kentucky). When Sanders was five years old, his father died, forcing his mother to work at a canning
plant. This left Sanders, as the eldest son, to care for his two younger siblings. After he reached seven
years of age, his mother taught him how to cook. After leaving the family home at the age of 13,
Sanders passed through several professions, with mixed success. In 1930, he took over a Shell filling
station on US Route 25 just outside North Corbin, Kentucky, a small town on the edge of
the Appalachian Mountains. It was here that he first served to travelers the recipes that he had learned
as a child: fried chicken and other dishes such as steaks and country ham. After four years of serving
from his own dining room table, Sanders purchased the larger filling station on the other side of the
road and expanded to six tables. By 1936, this had proven successful enough for Sanders to be given
the honorary title of Kentucky colonel by Governor Ruby Laffoon. In 1937 he expanded his restaurant
to 142 seats, and added a motel he purchased across the street, naming it Sanders Court & Café.
Sanders was unhappy with the 35 minutes it took to prepare his chicken in an iron frying pan, but he
refused to deep fry the chicken, which he believed lowered the quality of the product. If he pre-cooked
the chicken in advance of orders, there was sometimes wastage at day's end. In 1939, the first
commercial pressure cookers were released onto the market, mostly designed for steaming vegetables.
Sanders bought one, and modified it into a pressure fryer, which he then used to fry chicken. The new
method reduced production time to be comparable with deep frying, while, in the opinion of Sanders,
retaining the quality of pan-fried chicken.

KFC Management Functions

KFC management is following “POLCA”:
 P for “Planning”
 O for “Organizing”
 L for “Leading”
 C for “Controlling”
 A for “Assurance”
PLANNING
Is KFC Centralized or Decentralized?
 KFC is purely Centralized as all decisions are pre-documented and taken at upper level of
organization without any involvement at lower level.
 A new deal is launched in the market with agreement of all the HODs.
 HODs discuss their objectives with their team.
 Have a team environment in everyone work together.
Traditional Planning or Management by Objective (MBO) ?
 Planning of KFC is MBO.
 As all the issues and discussions are made & solved at upper level.
Strategic and Operational Planning:
KFC has strategic planning to increase its market worth value of the market and its market share.
They work on a well-defined strategic planning for this. They are working on operational plans for
example they only open up the branch where they can easily earned up to planned or desired revenue
even like KFC has open up its wheel for less cost and market penetrating in area like University
Road, Sargodha and Bahria Town. This is part of their operational plans once they will think they
have made the spot then they would open up its new branch. Operational plans also include
launching of new product to change or innovate its product line for customers.

Planning Policies:
Planning of KFC stands for “CHAMPS”
 C for Cleanliness
 H for Hospitality
 A for Accuracy
 M for Maintenance for Facilities
 P for Product Quality
 S for Speed of Service
Champs stands for our belief that the most important thing each of us can do is to focus on the
customer. It stands for our commitment to provide the best food and best experience for the best
value.

ORGANIZING
Organizing Strategy:
 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 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 middle & old age.
Managing Structure:
 CEO
 Head of Region
 Associate Regional Manager
 Finance Manager
 Administration Manager
 Human Resource Manager
 Operation Manager
 Brand Manager
 Auditor
 Consultant

 Area Manager
 Territory Manager
 LEADING
It is usually related with staff behavior towards employees, feedback by the employees to manager and
other top level offices and customers issues. HR management are usually responsible for such type of
issues that create hurdles in leading function.
Reward System:
 Employees are motivated through rewards.
 KFC also reward their employees in terms of promotion, incentive and pay off free meals
depending on the abilities of the employee and how much they perform well in accordance to
their job.
 A type of incentive is “My Body Growth”, in which employees are categorized on the basis of
their work. This is a rating up to 5, if an employee have 5 points then he/she can took up a
benefit of it in shape of bonuses.
Performance Management:
 Every employee do his/her work my keeping company’s objective in mind.
 Opportunities for employee development are identified.
 Employee performance that does not meet expectations are addressed.

CONTROLLING
Related with the controlling task and its revolution that how a manager control all inventory
management, all employees activities, assign tasks to employees and evaluate them with desired goals
and objectives.
HR Manager Controlling Strategies:
 Feedback Control
 Feed Forward Control
 Concurrent Control
 External Control
 Employee Discipline System
 Financial System
 Purchasing Control
 Inventory Control
 Statistical Control
Quality Control:
 Experienced quality managers are available at working hours.
 In case of monitoring strategies weight, strength, consistency, color, taste, reliability and
completion matters.
 Above factors differ the organization from competitors.
 No compromise on quality and standard.
Market Control:
 Skilled and experienced Market Managers are available.
  4 P’s (Product, Price, Place and Promotion) of marketing are used, also extended to more P’s
(Physical Evidence, People & Process).
 Basic purpose of this strategy is to launch company’s new product and keep an eye what
competitors are doing in reaction.
Financial Control:
 Department that controls all the financial transactions.
 UBM has to report all the financial activities required to be done or done to the finance
department directly.
Purchasing Control:
Purchasing depends upon the branches and area. Some area required huge supply of products and
some required limited. It has following factors.
 In-house purchasing
 Ware house purchasing
 Direct purchasing
 Indirect purchasing

SWOT ANALYSIS
Strengths
 Delicious and Well-liked recipes
(Finger Lick ‘in Good)
 Strongest category share amongst its
all competitors
 Widely recognized brand image (2nd
largest fast food brand)
 Strong cash flows generated via
Franchises and License Fee revenue)
 Main product is Chicken which is
eaten all over the world.
Opportunities
 Increase outlets
 Increase income of Urban in
Pakistan
 Shift of foods i.e. in cultural sense
 Introduce new recipes according to
local taste.
Weaknesses
 Most KFC products have close
substitutes in the market
 Franchising category is not
culturally sensitive
 Slow in reacting (product
innovations after long gaps)
 Inconsistent quality of service in
many outlets.
 Lack of control in Joint-venture
arrangements.
 Limited items.
Threats
 Bird Flu
 Animal care activists
 Intense competition
 Health conscious eating habits.
 Changing customers demand
 KFC and Pakistan
Headquarter:
 Main Clifton Road, Karachi, Pakistan.
Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala,
Sukkur & Murree) with more than 60 outlets nationwide.
Facts:
 Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals
directly dependent in KFC Pakistan.
 The Government of Pakistan receives over Rs.10 million per month from KFC Pakistan as
direct taxes.
 95% of all food and packing material used in KFC Pakistan is procured locally, which sums
up to a purchase of over Rs.35 million per month
 Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is a
huge amount for our construction industry.
Sales Promotion:
For sales promotion KFC has introduced different strategies such as Ramadan Package, Birthday
Package, Midnight Package and many other. Also they have introduced goods like watches,
keychain, coffee cup, T-shirt, toys etc. to the customers
Advertisement:
Press Advertisement
 Jang
 The News
 Dawn
 Magazines
Hoardings
In addition to regular hoarding, temporary hoarding for 2-3 months are also taken.
Commercials
Advertising on different Cable channels like Geo, Ary World, Ten Sports, Music channels, etc. and
also advertising on world call
Cable advertising