KFC
KFC Corporation which is also known as Kentucky Fried Chicken is famous for its chicken recipe items throughout the world. It is a chain of fast food restaurants which is originally based in Louisville, Kentucky, USA and it was the first KFC introduced. It is also famous for its specialization in original recipe, grilled chicken, extra crispy which is the world’s most popular chain of chicken restaurant. The items which are served in the KFC are Honey bbq Wings, and fresh sandwiches which are specially made with Chicken. This Company has been an operating segment and has been a prestigious brand which is known as a concept of YUM! Brands since 1997. The company was accused by PepsiCo and marked as Tricon Global Inc which later on made a famous name throughout the world.
Every single day, more than 10 million are served at KFC restaurants. KFC has more than 100 countries and territories around the world. This chain of restaurants operates over 5000 restaurants inside the United States. There are also more than 36000 unit chain restaurants of KFC throughout the world. KFC is world famous for its unique and the same secret taste with the blend of its secret mixture of 11 herbs and original recipe fried chicken which has been preferred more than 5 decades ago, moreover it is also famous for its good quality and taste. The company operated with revenues in more than that of $11 billion which was reported in 2008.
Mission
The mission of KFC is none other than “Selling the food in a fast, friendly environment that appeals to pride conscious, health minded consumers.”
History
Harland Sanders in 1952 founder of the KFC was born and raised in Henryville,
Indiana.He works a s various profession in his early lives. He first served his
own made fried chicken in 1930 at the time when there was Great depression at a
gas station which he himself owned in
North Corbin, Kentucky. The dining area was
named as "Sanders Court & Café" and it was known to be a
successful work in that of the year 1936 in America. The governor of Kentucky
granted him with the title of honorary as Kentucky colonel as the rewards for his
great efforts and his contribution in the work on the state’s cuisine. In the
following year Sanders expanded his small restaurant to 140 seats, and also
added a motel which he placed across the street.During 1939, Sanders tried
changing his cooking way. He further cooked his frie chiken using pressure frier which he found as efficient
wat of cooking his recipe than that of what he did at the past. He used to deep
fry before but as he knew the advantage of the pressure fry and the chicken was
good he changed the cooking process and at last the same process was known to
to be the worlds famous original recipe by him. Pete Harman was the first
person to take him up on the offer at south salt lake utah. After some time they together opened a restaurant
, they opened "Kentucky Fried
Chicken" in 1952 which was the first KFC in the history. By the time
of 1960s, Kentucky Fried Chicken franchised
outlets was sold over 600 in both the United States and Canada and it became
one of the hit. The company also took over many Northern Ohio diner-style
restaurants, which were closed in 2004. Sanders sold the entire KFC franchising
operation in 1964 for $2 million US dollars which equals to somewhat of $14,027,987
today. Recently, some of the older KFC restaurants are famous in their own
right.
Stated Objectives
Objectives of KFC states various things like Increase variety on menu,
KFC was the first restaurant which Introduced desert menu,
The other main objective of KFC was to introduce buffet to restaurants”
KFC
offers the different menu items to different target cities in Africa and
Americas with the following items like Macaroni and cheese, Peach cobbler, Red
beans & rice and Greens. Furthermore the KFC’s targeted Hispanics in major
cities with the menu items like tress leaches, fried taints, flan etc. It has
also implemented on the nontraditional units which includes various Malls, food
courts, stadiums. Offices, Hospitals, Parks, hotels etc. the main objective of
the KFC is increasing the profitability by reducing the overhead costs. KFC
mainly focuses on increasing efficiency, improving customer service with clean restaurant.
The KFC believes on faster service which should be friendly and ensures the
high quality of food and take good health in consideration and provide and
serve healthier food throughout its outlets.
KFC mainly deals with Chicken pieces. It is famous for its fried chicken pieces. Wraps, salads and sandwiches are also other items offered in KFC while it primarily focuses on fried chicken. KFC also offers menu items of grilled and roasted chicken products throughout its entire outlet. Side dishes and desserts are also the unique and tastier dishes provided and are served in KFC. KFC also offers beef based products which include burgers or kebabs, pork based products such as ribs and other regional fare and they are mainly offered outside North America.
Harland Sanders’s secret recipe
The Sanders secret which consists of flavor of mixture11 herbs and spices that creates the famous chicken remains a successful trade. The clause for this recipe is given as "finger licking good". The different portions of this secret recipe are made at various different locations in the USA.The original recipe which is written by the sanders is kept safe in the vault in their corporate headquarters. After some investigation at the head quarters KFC disclosed the following details about the recipe and its security arrangements.
- The recipe, including exact amounts of each component, was found to be written with a pencil on a single sheet of notebook paper and was signed by Sanders.
- The recipe was secured and locked in a secure filing cabinet with two combination locks. The cabinet also included the vials of each and every information about the 11 herbs and spices used in the recipe.
- There was only access of two executive at a time which KFC refuses to disclose names of those executives or their title.
Organizational Structure
The organization is structured with two divisions under PepsiCo presently. The president of KFC is David Novak whereas John Hill is Chief Financial Officer and the head of marketing is Colin Moore. The head of franchising is Peter Waller whereas Olden Lee is head of Human Resources. Being the part of two PepsiCo divisions, both of these divisions of PepsiCo are based in Dallas.
Structuring of the company
The unique strategy implied by the KFC is that it is currently working with to improve operating efficiencies and effectiveness, which can directly reflect the overall profit maximization of the entire firm. They emphasized on best of their efforts on customer service, cleaner restaurants, faster and fast and friendlier service, and continued with hygienic high-quality products and so it proved to be one of the successful trade and brand throughout the world.
While in later 1992, KFC continued with reorganization process with its management in the middle in which they implemented and they strategically removed 250 of more than 1400 positions in the managements at corporate and gave the full responsibilities to restaurant franchises and marketing managers so as to broaden their business and understand the first hand service to its customers.
Strengths of the company
The most of the uniqueness of the company and the advantageous factors comes under its strengths which are as follows for KFC:-
1. KFC maintains the secret recipe throughout all its outlets.
2. Due to the name, recognition and reputation of the company KFC in the leading restaurant and known around the world.
3. the main other strength of KFC is the PepsiCo's in providing quality food and its fast service throughout the world.
4. KFC focuses on Traditional employee loyalty.
The main approach culture of KFC's has been followed as the Colonel Sanders' traditional approach to management. Before PepsiCo accused over KFC , the employees of KFC were benefitted with the pensions and also would be able to receive help with other non-income needs of the employees. With this kind of human resource management it creates loyalty and loyal workforce.
Despite KFC has also concentrates on meeting the demands of the society and understandings as the world today is more concerned with the health and demand of healthy consumables and healthy diets are preferred in the markets. Understanding the facts of the market KFC came out with many changes on its menu. Kfc also begun to promote its lunch and dinner buffets and also prepared many other recipes as per the demand and the taste of the market and meet the target market demand.
Besides those of the foods and recipes KFC has also applies the ways to meet the actual demand of consumables by the customers who wanted food in other nontraditional locations which automatically created demands and also satisfaction in customers.
Employee benefits offering in the KFC
Health and wellbeing of the employees:-
KFC provides office-based
employees and business-needs drivers various benefits delivering the Eye care
vouchers. It insures all the income protection for all staffs and their
salaries. Salaried employees are benefitted with private medical insurance. And
they also conduct employee assistance programs to create friendly environment
and motivate staffs.
Family-friendly perks in the
KFC:-
The Ad-hoc strategy of the
working arrangements to the staffs are arranged so as to deliver employees the
best work life. KFC also enhances maternity and paternity pay for those who are
salaried under the company. There are child care vouchers also which are
benefitted to the staffs in the KFC.
Holiday’s programs at KFC:-
There is a special holiday packages arranged which includes 20 days which is applied to all the staffs at all levels and also maximum 30 days those who have served a company for 10 years.
Other Benefits
Pensions are also arranged to all the contribution and contributors as per their respective salaried employee as stakeholder pension, defined benefit scheme and also a defined contribution scheme. There are other voluntary benefited programmers. KFC doesn’t let the good one go in vain so the company has structure of performance-based bonus and also rewards the reorganization schemes. Free meals are distributed to all staff on each shift. There are many other benefits the KFC delivers to the staffs at work so as to make an efficient human power and to create warm and friendly environment throughout the work life in KFC. KFC delivers warm hospitality inside the company throughout the world. And its main motive is to deliver customer satisfaction with the satisfaction of their employees and achieve a highest degree and unique status I the world of fast food restaurants and beverages. And that is why KFC remains on the top on the list of fast food.
MARKET ANALYSIS OF KFC
KFC is a
popular Fast Food Restaurant which operates in more than 75 countries and
territories throughout the world. It was founded by Colonel Harland D. Sanders.
It has been the most successful business in the field of fast food in the world
which had been listed in the New York Stock Exchange. In 1986 due to some
strategic conflict KFC was taken over by PepsiCo and had more than 7000 units
in more than 56 countries and territories. Later in 1997 PepsiCo turned its
business including famous restaurants like Pizza Hut, KFC and taco bell and
integrated to the new business named as Tricon Global Restaurants.
There
are many reasons why companies go global and spread over than domestic. Some of
the reasons are:-
1. Demand
and the market in the foreign territories
2. Due
to the saturation and over market in the domestic bazaar.
3. Due
to bandwagon effect
4. Due
to various advantage that it can grow more in the foreign markets and able to
produce different tastes
5. Due
to the low wages that could occur in the foreign countries for process and
increase profitability.
6. Could
create new markets and retain attention of customers easily because of greater
taste and new experience applied in the markets.
7. Due
to the technological advantages and mode of entry.
At the beginning
KFC had a traditional franchising strategy which was backboned by the theory of
the traditional management system which was led my ancient management personals
during KFC’s evolution which actually concerned with the emphasis on
standardization and also cutting off the various financial risks on the expense
of cultural control and sensitivity. But with some of the law of foreign
investment in china KFC’s strategy was not feasible in the Chinese market. If
KFC has to get a good reputation and excellent business then it has to take the
sensitivity and control of the cultural dimensions. KFC faced many problems in
franchising in past days due to its old strategy.
Some of
the responsible factors that influence the marketing decision and apply the
marketing mix are as follows:-
1. Family
2. Behaviors
and customers taste
3. Rate
of literate
4. Political
bodies
5. Tariffs
in trade (Export and Import duties)
6. Level
of market and its expansion
7. Laws
of the targeted market
8. Trade
agreements and laws.
First of
all before entering to a market and laying the business in it we need to have
through research on the market. This is the main function of marketing which
plays a vital role in collecting information and the information should be
valid updated and reliable which can help the marketer to make an appropriate
marketing decision and this would reduce the failure of the business further.
Marketing research plays a vital and important role in development of marketing
mix plan and it also reveals clear information about the market and the
placement of its right products.
According
to the research and analysis KFC mainly has two weaknesses. Finance and the
concentration on the single market. Its strength is that it is the pioneer of
its unique style of fry chicken making and good taste and great value of the
brand. Recently it is going to face problems because people are getting more
conscious in healthy foods and the demand is increasing for healthier and high
context health food. It is under crisis but it still has many options in the
markets.
KFC is
famous for its chicken fry taste and crispy and crunchy. It also doesn’t neglect
vegetarians, it has vegetarian items as in Bangalore India. This means you can
be veg and be at KFC still. KFC vegetarian menu is most famous as the reporter
says in India. More than 70 percent of the population in south India is
vegetarian. KFC launched paneer tikka and chicken in India so as to feel the
taste for the veg and non veg population. The strategy in the menu of KFC is
brand and standardization and balance localization. There are different ways
how the food is served and topped. It has taken care to maintain the style and
the production of its non veg items and veg items in India.
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