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HISTORY

Colonel Harland Sanders, born September 9, 1890 His father died when he was just six year old.

At the age of forty he began cooking at a service


Station In 1976, he was ranked as a world second most Recognizable celebrity.

33,000 restaurants

840,000 employees

KFC Environment Organization environment can help or hurt management efforts to attain organizational goals

Internal Environment

External Environment

General Environment

Task Environment

KFC in Pakistan

Nazia Attique

KFCS MISSION STATEMENT

To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers.

KFCS MISSION STATEMENT


KFCS mission statement incorporates top managements vision about What is the nature of business Whom will KFC serve What type of environment should it has

KFCS GOALS
1. Goals directs KFCS resources & efforts towards fulfilling the mission. 2. Goals specify exactly where the the KFC wants to go & what must be achieved 3. Goals are the plains that will translate the mission into realty

KFCS GOALS

Operational

Strategic

Tactical

KFCS GOALS
Characteristics of goals: Challenging Attainable Measurable Time defined Relevant goals

KFCS OBJECTIVES
1.Stated objectives Product development Increase variety on menu Introduce desert menu Introduce buffet to restaurants

2. Increase profitability of KFC

Reduce overhead costs Increased efficiencies High quality products

KFCS OBJECTIVES
Implied objectives
Expansion of international operations to provide Increased percentage of overall sales growth Increased percentage of profit growth

Sana Amin

Decision Making
A decision is a choice made from among available alternatives that is expected to result in a favorable resolution to a problem.

Types of problems KFC faces


1- Crises problems: A crisis problem is critical situation that demands an immediate managerial decision. 2- Non-crises problems: When branch managers confront a non-crisis problem, they are dealing with a situation that must be solved but with out the urgency and immediacy of a crisis. 3- Opportunity problems: An opportunity problem is a situation that can be addressed in a way that gains KFC some significant advantage.

Types of decisions
1- Programmed decision: Managers makes a programmed decision when a situation occurs so often or is well structured that it can be handled through the use of preset decisions rules.
2- Non-programmed decisions: Non programmed decision is made in a situation that cannot be handled with a preset rules because the situation occurs infrequently, is unique or somewhat unstructured.

KFC Code of Ethics


Honest and truth worthy Reliable in carrying out responsibilities. Cooperate and constructive in all work undertaken. Fair and considerate of fellow employees, customers and are others persons. Committed to accomplishing all tasks. Economical in utilizing KFCs resources. Always respectable to customers and officials.

SWOT Analysis
Strengths:
1. KFCs secret recipe 2. Name recognition and reputation 3. Traditional customer loyalty 4. Improving operating efficiencies by reducing overhead and other operating costs can directly affect operating profit

Weaknesses:
1- Many sales of KFC lead to a confusing corporate direction. 2- KFC has a long time to market with new products. 3- Conflicting cultures of KFC and Pakistan 4- Difficult to handle franchise from America 5- Health conscious consumers 6- Increased start up costs

SWOT Analysis
Opportunities:
1- The upper KPK market 2- Wider children customer base 3- Murrees market opportunity 4- New distribution channels offer a significant growth opportunity.

Threats:
1- Increasing competition and rising sales of substitute products. 2- Changing preferences of consumers 3- Obstacles associated with expansion in Pakistan

Anam Jameel

Porters Five Forces Model

Threat of Potential Entrant:


Barriers in the industry: Brand Loyalty Brand loyalty of Kfc Absolute Cost advantage Economies of Scale Sources of economies of Scale: Discount on Bulk purchase Cost reduction Spreading of fixed cost over large output

Barganing power of Buyers:

Based on Porter's model, buyers are powerful in the following conditions:

When the buyers buy in large quantities as they can bargain for price reduction.
When the supply company depends highly on the buyer for large portion of its total orders.

Barganing Power of Suppliers:

The products have few substitutes and are important for the buying companies.
The buying companies are not important for suppliers have their businesses and they don't depend on them to operate their businesses. Therefore, suppliers have little incentive to improve quality or reduce prices

Threat of Substitute Products:

High threat of Substitute Products

Availability of substitutes in fast food industry


Kfc lost its market share over last two years

Rivalry among Existing firms:

Competitive Structure Companies are interdependent in this industry Exit barriers: strategic, economic and emotional factors that keep companies in the industry even when returns are low.

Shazia Eman

Comprehensive plans aimed at helping the organization achieve its goals are called strategies.

What do strategies contain?


Strategic of KFC contain following four components: Scope: The scope of strategy specifics the range of recipes offered, the operations performed, the market served and supplier relationships maintained. Competence: Competence is superiority or unique capability in one particular skill of an organization that directly relates to the organizations chosen scope e.g. uniqueness of KFC is fried chicken. Resource development: The way mgt of KFC uses available human, physical, finance, and information resources in resources development. Synergy: These describe the way various branches of KFC combine complement to enhance each other

Scope

+ competence + resource development + synergy

Comprehensive strategy

Levels of strategy
Strategic are normally developed at 3 levels in KFC. Corporate-level strategic: In this strategy over all direction of KFC is set, it defines the business of company and determine how resources will be allocated.Top mgt is responsible for formulate corporate-level strategy.

Business-level strategy: This is derived from corporate-level strategy and defines how KFC will compete in each branch, including its menu and market choices.
Functional-level strategy: This strategy support business-level strategy by specifying activities in each of the functional areas of every outlet of KFC-PAKISTAN. Branch mangers who head up that branch develop functional strategies...

Strategic mgt process depends upon 4 major steps Conduct a situational analysis: Review mission and goals Internal assessment External assessment SWOT analysis ( strength, weakness, opportunities, threats ) Corporate-level strategy Business-level strategy Functional-level strategy

Implement the strategy: Planning Organizing Leading Controlling

Maintain strategic control: Evaluate performance of branch Reporting Feedback

Maintain strategic control:


Conduct a situational analysis: Formulate organizational strategies:

Implementation of strategy

Maintain strategic control:

Isma Ihsan

Quality Assurance and Quality Control

Techniques to maintain Quality Internal Check

External Check

Management and Social Responsibilities


Primary Responsibility

Secondary Responsibility

Primary Responsibility
Economic Responsibilty

Secondary Responsibility
Corporarate Social Performance

Responsibility to Maximaze Organization Stake holders Profit Social Responsibility and Legal Responsibility organizational Performance

Area of Social Responsibilities 1. The Community 2. Natural Environment 3. Consumer Right 4. Culture