Running head: STRATEGIC PLAN-PART ONE

Kentucky Fried Chicken Strategic P an-Part One !eanette C"rte#$ Autu%n Cr"&ther$ !a%e' ("))er Fernand" *ana "t"$ !"e Ne&kirk$ and Rita Sa e% Internati"na Strategic P anning and I%) e%entati"n STR+G* ,-1 *arch .1$ /011 1r2 Ti% 3ecker$ *3A

STRATEGIC PLAN-PART ONE

Intr"ducti"n Kentucky Fried Chicken ha' 4een e'ta4 i'hed a' a 5ranchi'e in Latin A%erica and the 5"cu' "5 thi' ) an &i 4e the E Sa 6ad"r 5ranchi'e2 The 'trategic %anage%ent )r"ce'' i' 6ita and a &e aid "ut ) an i' nece''ary2 C"n'e7uent y$ 4y e6a uating the 4ackgr"und "5 KFC$ the

"utc"%e 'h"u d ead t" a c ear %i''i"n and 6i'i"n 'tate%ent "ut ining the )ur)"'e and g"a ' "5 the c"%)any2 A '"$ the %i''i"n and 6i'i"n &i kee) a 'hareh" der' in5"r%ed "5 the "48ecti6e' that 'h"u d 4e %et 4y KFC2 91e5ining the c"%)any %i''i"n i' "ne "5 the %"'t "5ten ' ighted ta'k' in 'trategic %anage%ent: ;Pearce II < R"4in'"n !r2$ /00=$ )2 >/?2 A %i''i"n ay' "ut the "rgani#ati"n@' g"a ' and 4a'ica y ')eci5ie' the )ur)"'e "5 the "rgani#ati"n2 1eci'i"n' and 'trategie' can 4e e'ta4 i'hed a5ter en6ir"n%enta 'canning i' d"ne a "ng &ith a Situati"na Ana y'i' ;SAOT?2 The 'trategic )r"ce'' a '" in6" 6e' 5re7uent y a''e''ing the indu'try 'tructure and ch""'ing 'trategic ) an ")ti"n' that he ) eB)and g "4a ")erati"n'2 The t&" ch"'en 'trategic ")ti"n' that &i 4e di'cu''ed &i 4e )r"duct di55erentiati"n and c"'t eader'hi)2 Thi' ) an

'h"u d gi6e c arity "n h"& the ")ti"n' and rec"%%endati"n' 5it &ith 4"th the c"%)etiti6e 'ituati"n and the "rgani#ati"na 'ituati"n2 3ackgr"und 3a'ed in L"ui'6i e$ Kentucky$ Kentucky Fried Chicken ;KFC? c"r)"rati"n i' t"uted a' the 9&"r d@' %"'t )")u ar chicken 5ranchi'e: ;KFC$ /011?2 KFC 'er6e' "6er 1/ %i i"n cu't"%er' in 10= territ"rie' and c"untrie' thr"ugh"ut the &"r d ;KFC$ /011?2 Fa%"u' 5"r it' Origina Reci)e Fried Chicken$ there are 9%"re than ,$/00 re'taurant' in the Cnited State' and %"re than 1,$000 unit' ar"und the &"r d: ;KFC$ /011?2 Thi' c"%)any &h"'e ince)ti"n &a' in a ga' 'tati"n 4ack in 1=.0 4y C" "ne (ar and Sander' i' n"& "&ned and ")erated 4y Du%E

STRATEGIC PLAN-PART ONE 3rand'$ Inc"r)"rated2 A' "5 /00-$ Du%E had re6enue' in eBce'' "5 F11 4i i"n and &a' ranked G/.= "n the F"rtune ,00 i't ;KFC$ /011?2 KFC *i''i"n State%ent$ Hi'i"n and Strategy KFC@' *i''i"n State%ent i': 9@The A''"ciati"n "5 KFC Franchi'ee'$ Inc2 i' united t" )r"tect$ )r"%"te and ad6ance the %utua intere't' "5 a %e%4er 5ranchi'ee' and the Kentucky Fried Chicken 'y'te%2: ;A''"ciati"n "5 Kentucky Fried Chicken Franchi'ee'$ Inc2 /00I?2 KFC@' )arent c"%)any i' Du%E 3rand' ;Du%E?2 Du%E@' 6i'i"n and 'trategy i' 9c"%%itted t" c"ntinuing the 'ucce'' rea i#ed during "ur 5ir't ten year'2 Our 'ucce'' ha' "n y 8u't 4egun a' &e ""k 5"r&ard t" the 5uture$ "ne &hich )r"%i'e' a "ng run&ay 5"r gr"&th$ e')ecia y "n an internati"na e6e : ;Du%E$ /011?2 KFC E Sa 6ad"r a '" 5a ' under Cari44ean and Latin A%erica Franchi'ee A''"ciati"n ;CARI3LA?2 CARI3LA@' %i''i"n 'tate%ent and "48ecti6e' are 9the %i''i"n "5 the CARI3LA Franchi'ee A''"ciati"n i' t" re)re'ent$ )r"%"te$ and )r"tect the genera intere't' "5 a %e%4er DC* 5ranchi'ee' in Latin A%erica and the Cari44ean: ;CARI3LA$ /011?2 O48ecti6e' - C"ntri4ute t" %aintain and i%)r"6e the )r"5ita4i ity the re'taurant' 5"r the 'h"rt and "ng ter% ;'u)) y chain %anage%ent )r"8ect'?2 - Re)re'ent the %e%4er'J intere't' in di55erent area'2 - 1e5end and )r"tect 5ranchi'ee' c"ntractua right'2 - C"%%unicate a' "ne 6"ice &ith DC* Re'taurant' Internati"na 2: ;A''"ciati"n *i''i"n and O48ecti6e'$ )ara2 1?2

STRATEGIC PLAN-PART ONE Strength'$ Aeakne''e'$ O))"rtunitie' and Threat'

Beneficial Internal Strength' 12 Purcha'e )"&er "5 c"n'u%er i' ri'ing2 /2 *"re than ha 5 "5 Sa 6ad"ran' inc"%e i' ')ent "n 5""d2 .2 Rec"gni#ed &"r d&ide 4rand na%e ;1,$000 &"r d-&ide "cati"n'2 >2 Kua ity and 5re'hne'' regu ated thr"ugh"ut e6ery 5ranchi'e2 ,2 O55er' ch"ice' "5 "ca 5""d "n %enu2 External O))"rtunitie' 12 On ine Sa e' a''i't )r"5it'2 /2 Intr"ducti"n "5 ne& )r"duct'2 .2 EB)an'i"n due t" ri'ing ec"n"%y ;C"ntinua Gr"&th? >2 On y current "cati"n in ca)ita city L San Sa 6ad"r arge't hu4 5"r tra6e er'2 Threat' 12 F"reign )r"duct' are current y 5a'hi"na4 e 4ut intere't c"u d decrea'e2 /2 Ec"n"%ic c i%ate 'ta4i ity2 .2 L"ca 'u)) ier' are %ini%a 2 >2 9P" " Ca%)er": i' a Sa 6ad"rian 4rand and &e e'ta4 i'hed chicken eatery2 Harmful Aeakne''e' 12 Frachi'e c"'t i' high2 /2 C"%)etiti"n i' high in the indu'try2 .2 S%a c"untry )")u ati"n2

>

>2 *any 5a't 5""d c"%)etit"r' 'uch a' 3urger King$ *c1"na d'$ Pi##a (ut$ etc2

Pr"duct 1i55erentiati"n The g"a "5 )r"duct di55erentiati"n i' t" increa'e )r"5it' 4y increa'ing c"n'u%er de%and and decrea'ing the de%and "5 )rice e a'ticity2 Organi#ati"n' ty)ica y atte%)t t" di55erentiate their )r"duct' thr"ugh )hy'ica characteri'tic'$ "cati"n$ 'er6ice$ and 'u48ecti6e i%age di55erence'2 KFC@' )r"duct di55erentiati"n i' %"'t i%)acted 4y "cati"n$ 'er6ice$ and )hy'ica characteri'tic'2 C"n'u%er' 6a ue a 6ariety "5 )r"duct' and 4ecau'e each c"n'u%er ha' di55erent ta'te'$ the "rgani#ati"n &i atte%)t t" )ry c"n'u%er' a&ay 5r"% current c"%)etit"r' 4y "55ering )hy'ica y di55erentiated )r"duct'2 KFC %u't di55erentiate it'e 5 6ertica y$ %eaning the c"%)any &i 'et it'e 5 a)art 5r"% c"%)etit"r' 4y the actua 7ua ity "5 it' )r"duct' ;Aa d%an and !en'en$ n2d2?2 ("&e6er$ KFC@' %anage%ent %u't &i'e y ch""'e u)"n it' "cati"n'2 The

STRATEGIC PLAN-PART ONE c"%)any@' arge't c"%)etit"r$ P" " Ca%)er"$ ")erate' in 1> di55erent "cati"n' in E Sa 6ad"r and )"'e' a high threat t" the c"%)any2 In additi"n t" "cati"n$ an "rgani#ati"n@' )r"duct' are

high y di55erentiated 4y 'er6ice2 Aith the )re'ence "5 P" " Ca%)er"$ KFC %u't n"t "n y re y "n g""d 5""d 4ut a '" )r"6ide eBce)ti"na cu't"%er 'er6ice that &i retain it' cu't"%er 4a'e2 C"'t Leader'hi) The c"'t eader'hi) 'trategy target' a 4r"ad %arket2 KFC ha' de6e ")ed 'tr"ng re ati"n' &ith 'u)) ier' that u'e chea) ingredient'2 Additi"na y$ the "rgani#ati"n ha' the ca)ita re7uired t" increa'e )r"ducti"n in a''et'2 Ahi e thi' ty)e "5 in6e't%ent re)re'ent' a 4arrier t" entry that %any "rgani#ati"n' %ay n"t "6erc"%e$ thi' i' an ad6antage 5"r the "rgani#ati"n2 Further%"re$ KFC@' 5 eBi4i ity in 'u)) y chain'$ )r"duct di55erentiati"n$ and ea'e in their )r"ducti"n' gi6e' the "rgani#ati"n' a c"%)etiti6e edge "6er it' c"%)etit"r' (QuickMBA.com, 2010). Conclusion KFC i' 4a'ed in L"ui'6i e$ Kentucky and i' 'u4'idiary "5 Du%E 3rand'$ and ")erate' in "6er 10= c"untrie'2 A KFC 't"re in E Sa 6ad"r ")erate' under three %i''i"n 'tate%ent' "5 Du%E$ the A''"ciati"n "5 KFC Franchi'ee'$ and CARI3LA2 KFC ha' rec"gni#a4 e 'trength'$ &eakne''e'$ "))"rtunitie' and threat' t" 4e e6a uated 4e5"re 5urther eB)an'i"n in E Sa 6ad"r2 Pr"duct di55erentiati"n and c"'t eader'hi) are ad6antage' that KFC uti i#e' in edging "ut c"%)etit"r'2 Rec"%%endati"n' KFC ha' ch"ice' t" %ake in eB)anding in E Sa 6ad"r2 One rec"%%endati"n i' 5"r KFC t" c"ntact the "ne KFC ")erat"r in E Sa 6ad"r t" )er'uade hi%+her t" ")en %"re 5ranchi'e' in San Sa 6ad"r &ith a g"a "5 gaining %"re na%e rec"gniti"n t" eB)and int" "ther E Sa 6ad"ran citie'2 KFC@' 'trength' and na%e rec"gniti"n &i create %"re "))"rtunitie' in E Sa 6ad"r2

STRATEGIC PLAN-PART ONE An"ther rec"%%endati"n i' t" ha6e the "ne 5ranchi'ee t" 5ind "ut i5 intere't in ")ening

ne& KFC 't"re' eBi't' a%"ng E Sa 6ad"r@' entre)reneur'2 The 5ranchi'ee c"u d 4e )aid a 4"nu' 5"r recruiting a)) icant' that recei6e 5ranchi'e a))r"6a 2 3"th "5 the'e rec"%%endati"n' de)end "n KFC e7ua ing "r 'ur)a''ing 5""d 7ua ity and cu't"%er 'er6ice "5 chie5 ri6a $ P" " Ca%)er"$ and 4y u'ing )r"duct di55erentiati"n and c"'t eader'hi)2

STRATEGIC PLAN-PART ONE

Re5erence' Kentucky Fried Chicken ;/011?2 Retrie6ed 5r"% KFC &e4'ite "n *arch /M$ /011: &&&2k5c2c"%2 A''"ciati"n "5 Kentucky Fried Chicken Franchi'ee'$ Inc22 ;/00I?2 Association of Kentucky Fried Chicken Franchisees, Inc.2 Retrie6ed 5r"% htt):++&&&2ak5c52c"%+hi't"ry2ht% CARI3LA Franchi'ee A''"ciati"n2 ;/011?2 CARIBLA2 Retrie6ed 5r"% &e4'ite "n *arch /-$ /011: htt):++&&&2cari4 a2c"%+a''"ciati"nN%i''i"n2ht% Pearce II$ !2 A2$ < R"4in'"n !r2$ R2 32 ;/00=?2 Strategic management: Formulation, im lementation, and control ;11th ed2?2 Waldman and Jensen. (n.d.). Product Differentiation & Strategy. Retrieved rom htt):++c"ur'e'2u%a''2edu+re'ecM./+d"c'+Aa d%anO/0andO/0!en'enO/0Cha)terO/01.2 )d5 Kuick*3A2c"%2 ;/010?2 Strategic !anagement. Retrie6ed 5r"% htt):++&&&27uick%4a2c"%+'trategy+generic2'ht%