Professional Documents
Culture Documents
KFCII
KFCII
Angeles Flores
Rene Guillarme
Yvette Minjares
Jarvis Mullahan
Armando Robles
Denise Simon
KFC Facts
• KFC is based in Louisville, Kentucky, and is the world’s most
popular chicken restaurant chain.
• Founded by Colonel Harland Sanders in 1952.
• More than 11,000 outlets
• 85 countries and territories around the world.
• 8 million customers each day.
• Yum! Brands is run by David Novak,
Chairman & CEO
• KFC Division is run by Cheryl Bachelder,
President and Chief Concept Officer
From $105 to 7.2 Billion in 50 years
• 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check
• 1964, Col Sanders had more than 600 franchised outlets in the US and Canada.
• 1964, Sold his interest in his company for $2 million to a group of investors.
• 1966, KFC went public
• 1969, Listed on the NYSE
• 1971, KFC was acquired by Heublein Inc. for $285 million.
• 1982, Heublein & KFC Inc. was acquired by RJ Reynolds
• 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.
• 1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.
• 2002, Tricon changed it's corporation name to Yum! Brands, Inc. .
• NOW:
– Yum Brands, Inc. is the world's largest restaurant company in terms of system units with
nearly 32,500 in more than 100 countries and territories.
– Yum! Brands, Inc., is a Fortune 300 company
– Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.
– Current Market Cap value on the NYSE is 7.2 Billion
Yum! Financial Data & Trends
In Past 5 Years:
Debt Ratio has dropped 25%
Net Income after Taxes has increased 31%
Profit Margin has increased 41%
Yum! Brands, Inc. International Presence & Competition
*In Thousands
KFC Domestic & International
Internal Analysis Functional Areas
Finance/Accounting
Since 2001, Yum Brands Inc. has outperformed the market
• Strengths • Weaknesses
– Multibranding Strategy – Conflicting Corporate
Cultures
– Name recognition and
Reputation – No defined target market
– Targeting Non-Traditional
Outlets
External Factors OT
• Opportunities • Threats
– International Appeal to – PETA
American products
– Consumer health food
– Economies of Scale trend
and Scope
– Saturated fast food
– The downturn of the industry
US economy
Space Matrix
• Industry Strength
CA IS
• Environmental
Stability
• Financial Strength ES
BCG Matrix
Asia Europe
?
USA
Americas
Additional Matrices
• IE Matrix Strong
THE IFE TOTAL WIEGHTD SCORES
Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
3.0 2.0 1.0
4.0
THE EFE Asia 20% US 67%
TOTAL
WIEGHTED 3.0
SCORES
Americas 7%
Europe 6%
2.0
1.0
Market Development
KFC will introduce their present and new products and
services into new geographic/demographic areas.
Product Development
Bring back rotisserie chicken
Concentric Diversification
Add more to KFC product & service variety to the
patients
Implementations
• Market Research
• Determine area’s demand to determine boundaries
• Expand menu
• Healthier choices
• Meals will be sold at cost
• Determine effects on budget
Long-term company objective