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Labuan International Campus
Faculty of International Finance

GT 00903
Kentucky Fried Chicken (KFC) : A Managerial Analysis


NurJalilah Binti Radzuan
Hariaty Binti Hairudin
Zalikha Binti Tarjeh
NurJanna Binti Macapagal
Vanessa Eva Anak Derai
Nur Faidah Binti Sali
Nur Alyaa Nazirah Binti Mohd Nayri







SEMESTER 2, 2015/2016

Table of Content





Company background
Vision and Mission
Nature of Business
Location and Employees



Organization's Strategy
Customers and Constituents



Organization of firm
Formal Structure (Organizational Charts)
Managing Change


Leadership Style
Leadership Styles
Leadership style used by the leaders of the organization
Motivational Environment


Innovative Practices
Organization’s Innovative Managerial Practices
Ethical dilemmas
Sources Of "Employee Empowerment







List of Appendix:
Attachment 1: xxx
Attachment 2: xxx
Attachment 3: xxx




in 1955. (Sanders’ First Franchise in1952. Sanders dressed with clad in a white suit and shirt and black string tie. On that time. the Colonel signed on his first franchise in Salt Lake City. His journey with KFC started when he opened a gas station in Corbin. Kentucky. In recognition to Colonel Harland Sanders of his contributions to the state’s cuisine. Demand of his cooking rose. Sanders convinced several other restaurant owners to add his Kentucky Fried Chicken to their menus. operator. There are around more than 18. Utah to Pete Harman who owned a hamburger restaurant. Indiana. supporting a white mustache and goatee while carrying a cane.000 KFC outlets in 115 countries and territories around the world. Over the next four years. Sander have moved the business in 1956 to Shelbyville.referenceforbusiness. He start to enjoyed cooking the food his mother had taught him for his family and an occasional customer in the back room of his gas station using his own dining table. Within some family problem. In 1952. Sanders incorporated rather than struggle to live on his savings and Social Security and the following year took his chicken recipe to the road. Unfortunately. there still have no restaurant. his recipe was franchised to more than 600 outlets in the Canada and United States. sell his method by doing demostrarions on-site. In his young. (Robert J.americanantiquities. when he was 12 years old Sanders left home and school to work as a farm developer. Sanders lost his father in 1896 and this make his mother to worked two jobs to support the family. KFC: Company Profile. in 1935. Sanders had done variety of jobs such as painter. Kentucky and by 1963. so he expand ta a facility with a 142-seat restaurant.html). Begin back in Corbin. Harland Sanders in his ‘30s start his service by serve people to the patrons of his service station. a motel and a gas station. Retrieved from http://www.The founder of KFC. To expressed his energy and enthusiasm.html) KFC that stand for Kentucky Fried Chicken is the one of largest fast food chain. insurance salesman. 3 . (The Early Life of Colonel Sanders. Kentucky in 1929. service-station operator and many more. Harland Sanders served people by his own in the living quarters of his service station. Harland Sanders was born on 9 September 1890 on a small farm in Henryville. Retrieved from http://www. and franchiser in the world known today. but he. Governor Ruby Laffoon made him a Kentucky Colonel.

0 COMPANY BACKGROUND 4 .html) In one year promoting Kentucky Fried Chicken. there are offer from an investor group headed by John Y. (New Management for Kentucky Fried Chicken. (29-year-old) graduate of the law school in University of Kentucky and John (Jack) Massey. In Sanders already have 17 employees and travelled far away and he was successful clearing $300. Brown and Massey owned national and international franchise rights while Sanders maintain ownership of the Canadian Brown. Jr.referenceforbusiness. Kentucky Fried Chicken got ranked at 6th among food-service companies. Retrieved from http://www.000 before taxes and Kentucky Fried Chicken was getting too large for Sanders to handle it alone.000 for public appearances. Over three years operation.html) 2.Retrieved from http://www.referenceforbusiness. Nashville financier for $2 million and a peryear salary of $40.

 Weaknesses KFC was losing market share as other chicken chain increased sales at a faster rate. [KFC Holdings (Malaysia) Berhad] Mission : To maximize VISION AND MISSION Vision : To be the leading integrated food services group in the Asia Pacific region based on consistent quality products and exceptional customer-focused service.2.0 PLANNING 3. KFC have been ranked at the highest among all chicken restaurant chains for its convenience and variety of the menu.( 31/12/2008 SK. [KFC Holdings (Malaysia) Berhad] 2.Ansari/kfc-swot-presentation-presentation) KFC also remainded their customer’s loyalty because of the authenticity of the taste and the strong trendmarks recipes.1 ORGANIZATION’S STRATEGY SWOT analysis :  Strengths Kentucky Fried Chicken (KFC) Holdings continued to dominates the chicken segment with states of 4.2 NATURE OF BUSINESS 2.3 LOCATION AND EMPLOYEES 3. improve shareholder value and deliver sustainable growth year after year.4 billion in 1999. (31/12/2008 5 .slideshare. Thus. It failed to rank in top 20 in growth 2000.

Nowadays. coleslaw. with the lifestyle of people changing due to growing awareness about healthier food where people now look for something healthy. Kentucky Fried Chicken (KFC) were one of the companies that produce fast food. For children meals. 3. For examples.  Threats KFC are saturated fast food markets in the developed economies.2 CUSTOMERS AND CONSTITUENTS Customers People who are buying the Kentucky Fried Chicken (KFC) Holdings product. KFC also have threats from other eating restaurants. they also introducing new products to its only chicken range. question of over franchising leads to loss of control and quality of their product.Ansari-www. rice. Its have suitable menu for children and KFC have lack of focusing on R&D (Research and Development). Burger 6 . 3. There are no limits of ages to eating Kentucky Fried Chicken (KFC).slideshare.3 COMPETITORS When we talk about business. there are a lot of competitors towards your product same goes to Kentucky Fried Chicken (KFC) Holdings. Example. they have a bun. Furthermore. In addition.SK.Ansari/kfc-swot-presentationpresentation) They also have lack of knowledge about their customers. KFC have home meal delivery which can make their customer easy to eat their food without going out. KFC provided mini meal and mighty meal special for children while adults having many type of meals that suitable for them such as snack plate and dinner plate. McDonalds. There are a lot of competitors toward fast food companies such Pizza Huts. potatoes besides chicken in the dish.  Opportunities KFC have increasing demand for healthier food such as each of the menu have balance food pyramid in their meal. they also provide toys to attract customers to buy their product. Thus.

defining and delegating responsibility and authority. 4. If the companies want to know their customer’s taste. The structured of the organization represented by an organization chart which is contain a graphic representation of the chain of a command within an organization. Organizing also involves the decision made for the structure of an organization which known as organizational design decision. Subway and many more. This companies competed in many way for examples. Organizing also shown that the design of the individual job that decide about the responsibilities and duties of the individual jobs. price. variety of menu. [http://www. The menu that have been provided must followed the taste of customer. Allen organization is a process of identifying and grouping the to be] 4. The price was the main reason because if your companies sell product at the higher price then you may lost your customers which can make your company loss profit while other companies have lowest price they will gain profit. they must do research or survey on that. An organization is a structure manned by group or individual who working together to achieve common goals.1 FORMAL STRUCTURE (ORGANIZATION CHART) 7 .King. According to Louis A. and establishing relationship for purposes of enabling the people to work with effectively together in accomplish the objectives.0 ORGANIZATION OF FIRM Organizing is a process where the managers have to develop an organization structure and allocating human resources to ensure the accomplishment of objectives. This also can be one of the reason for the companies to competed with each other. Next.publishyourarticles.

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com. operating department. Last but not least. Under the human resources they have a territory manager and branches.. marketing department. Moreover. they have a Chairman and Vice Chairman as top managers. managers every territory as a team leader. Human resources.BOARD OF DIRECTOR TOP MANAGERS KFC HOLDING (MALAYSIA) BHD [http://www. Which are the finance] TYPE OF BOARD MEMBERS NAME CHAIRMAN DATO AYUB BIN MION VICE CHAIRMAN AHAMAD BIN MOHAMAD MANAGING DIRECTOR / CHIEF EXECUTIVE OFFICER JAMALUDIN BIN MD ALI INDEPENDENT NON EXECUTIVE DIRECTOR TAN SRI DATO' DR YAHYA BIN AWANG INDEPENDENT NON EXECUTIVE DIRECTOR HASIM BIN BABA INDEPENDENT NON YAM TENGKU SULAIMAN SHAH ALHAJ ABNI ALMARHUM EXECUTIVE DIRECTOR SULTAN SALAHUDDIN ABDUL AZIZ SHAH ALHAJ NON INDEPENDENT NON EXECUTIVE DIRECTOR DATIN PADUKA SITI SA'DIAH SHEIKH BAKIR NON INDEPENDENT NON EXECUTIVE DIRECTOR DATUK ISMEE BIN ISMAIL The company that we choose is Kentucky Fried Chicken Holding (Malaysia) Bhd. quality control department and human resources department.kfcholdings. Non-Independent NonExecutive manager and Independent Non-Executive managers as a middle managers. Chief executive officer. 9 . marketing department and operating department as a first-line managers. finance department. quality and control department. Therefore. KFC Holding (Malaysia) Bhd have a five main department under the Managing Director. they use line and staff authority.

mission and strategic. The Chairman as a leader in an organization.) Which is them use a rigid and tightly hierarchical relationship. Sets agenda such as vision. David A. 10 . Independent non. Page 183. Normally the characteristic of independent non-executive director is they as a significant shareholder.KFC Holding (Malaysia) Bhd choose mechanistic organization in their organising. Robbins. He also ensures it is an effective working group at the head of the company. formation and centralization. he also responsible for coordinating the company in internally and externally with its strategic vision. The Vice Chairman as an assistant to help chairman handle the board members. task of non-independent non-executive director for helping in develop strategy and constructive challenge. they have an authority in removing and appointing the top managers. centralized decision authority and taller structure. (Stephen P. Mechanistic organization is a bureaucratic organization. Managing director or chief executive officer as a supervisor in an organization. a structure that high in specialization. Besides that. Chairman usually from a bigger shareholders but it depends on decision on meeting with all the shareholders a board members. In addition.executive director. Fundamentals of management. they use clear chain of command. In addition. He has given effect the decisions and policies of the board. Mary Coulter. 2015. the vice chairman also do a task for make sure they can achieve their vision. They also have a close relationship with any of the directors in board director. It is because. Moreover. The Chairman also must make sure all board members receive clearly and accurate information. The managing director must have a good communication with other because they must handle and make a deal with franchise. DeCenzo. They monitor performance the top managers for make sure their company can achieved goals and objectives satisfying themselves .

colour and so on. Make a decision to addition the new employees or to rid of the employees who have a problem. They must have backup planning in every step they take too make such they do not face a big problem. trained the employees. Census Bureau. They take care of humanity among the employees. It is because.2 DECISION-MAKING In psychology.Marketing department should provide all the tools for marketing. Referring to M. John. Human resource department take care about employees. cooking.McFarland city". Last. handling the customer and so on. Such as new recipe. Finance department is a very important department in every firm or organization. This department have a responsibility on monitoring the quality in every product their made. Their responsibility is to make sure all of the plan will going on without problem. Retrieved July 12 2014 from 11 . Every decision-making process produces a final choice that may or may not prompt action. They also will make an interview and give training to new employees. They also must make a good planning who to manage the money to continue their business. U. This include cleanliness. taste of chicken. wherein an executive forms a conclusion about what must be done in a given situation. a decision is an act of choice. Operating department have a link with worker at restaurant to make sure their business can operate smoothly. either it is according to standard or not. weight every serve.S. Such as. They have to compare with a quality standards.C Farland in management. They have a responsibility to provide high quality employees in the organization. (2010) "2010 Census Interactive Population Search: CA . the quality control department. they controlling the account and all the transaction. customer complaint. promotions planning and the competitors around them. Decision-making is the process of identifying and choosing alternatives based on the value and the preferences of the decision maker. 4. (Macbride. decision-making is regarded as cognitive process resulting in the selection of a belief or a course of action among several alternatives possibilities.

2016. http://www. 12 . A decision represent a course of behaviour chosen from a number of possible alternatives. These factor are.https://en. These are also known as limiting factors. it is clear that decision-making is concerned with selecting a course of action from among alternatives to achieve a predetermined objective. option so on so forth. April 5 2016. April 5. obstacles in the way of finding proper solution. The first and the foremost are to identifying a decision problem. size. controlling for city characteristics and own-chain effect.(ibid) The next important process of decision making is to weighting the There are many relevant factors such as price. More specifically.(pretzi. Secondly. There are a few steps of decision-making process. manufacturer. While the factors of demand expansion is more likely to explain MacDonald’s positive spillover on KFC. From this KFC issue. so the decision maker which is the manager should weight the items in order to give them correct priority in the decision._California#References). The problem can be explained as a question for and appropriate solutions. The manager should consider critical and strategic factors in defining the problem. we are focusing on two potential relevant factors that is market learning which is the entry behaviour of rival may reveal valuable information about the market size and growth rate that a firm can utilize in its subsequent decisions.slideshare.(gustea. Decision criteria are the factors that are important and relevant to resolving the MacDonald’s and KFC are more likely to increase a number of outlet in a city where their rival has a larger scale of presence. Next relevant factors are demand expansion which the existence of rival chain may help to cultivate consumers taste for Western-style fast food and expand the potential demand. decision-making-businessmanagement/25659/ ). in fact. Referring to the problem that faced by the Kentucky Fried Chicken Company which is KFC and MacDonald’s are considred direct competitors in the Western fast-food category. model. identifying decision criteria. From this definitions. The criteria identified in the relevant factors of identifying decision criteria of the decision making process aren’t all equally important. the relevant factor of market learning is more likely to expand the positive effect that Kfc exerts on MacDonald’s.

As new product launching would certainly attract customers to come. sweepstakes. The following are the four important points to be kept in mind in selecting the best from various alternatives: 1) Risk element involve in each course of action against the expected gains. 2016. From the relevant factor of the previous process that is market learning. KFC should launch its sales promotion conjunction with the new product launching. this is how the manager analyzing which alternatives can be chosen as a decision to solve the problem. Selecting the best alternatives is the following steps in decision making process. a direct marketing can be very useful as it updating the consumers with news constantly. The next decision making process is analyzing the ). Thus. analyzing alternatives require manager to call on present knowledge. foresight. in conjunction with the launch of KFC cards. past experience. Regarding the promotion strategy in direct marketing. inform and remind customers to purchase KFC meals especially internet direct marketing. Generally. drawing competition etc would certainly grab the customers mind to revisit KFC again. and also scientific acumen.(ibid). there are many ways in marketing aspects to be included as a alternatives. the manager can conclude that the information of the KFC are spreading widely and constantly to the customers throughout the direct marketing. In the promotion strategy. the next step is to develop alternative solutions. Thus KFC should utilize consumer contact details to persuade. The other promotion strategy is a sales promotion. 13 . Consequently. (slideshare. manager can never be sure of the actual outcome of each alternatives. From this.slideshare. The main aim of developing alternative solutions is to have the best possible decision out of the available alternative courses of action. http://www. The other promotion strategy is a sales promotion that would eventually increasing the repetition sales of KFC itself.After that. After defining and analyzing the problem. the implementation period is ongoing as it is priority to update customers with news every month. the followed process of decision making is developing alternatives. For instance. June 5. new members would register and filled up their contact details. hence the sales promotion like lucky draw. In developing alternative solutions the manager come across creative or original solutions to the problem. the manager has to select the best alternative which is not an easy task. After developing various alternatives.

KFC had developed one of the most recognizable brands outstrip its most competitive rival. For instance. drawing competition etc would certainly grab the customers mind to revisit KFC again. April ). an action that must be taken as new product launching would certainly attract customers to come.S market in terms of sales and ended 1995 with over 9000 restaurant worldwide. 4. hence the sales promotion like lucky draw. Kentucky Fried Chicken Company remained the world’s largest chicken restaurant chain and third largest fast food chain it held over 50 percent of the U. Under this step. MacDonalds.slideshare. the last stages in decision making process is to evaluating the decision. implementing the decision. We must have right type of people to carry out our decisions. Their calibre. http://www. Finally. Last but not least.(slideshare. the manager has decide to take an action to select the sales promotion of the promotion strategy as the best alternative in solving the problem that faced by KFC. 2016.One of the first fast food chains to international during the late 1960’s. 2016.2) Economy of effort involve in each alternatives such as securing the desire result with the least efforts 3) Proper timing of the decision and action 4) Final selection of decision is also affected by the limited resources available at our disposal. April 5. ( ). This involves appraising outcome of the decision along with the questioned matters such as was the problem solved ? Did the alternative chosen in step 6 and implemented in step 7 accomplish the desired result ? Indeed. understanding. As the manager decide to take an action to select the sales promotion of the promotion strategy as the best alternative in solving the problem that faced by KFC. intelligence and skill will finally determine what they can and cannot do. 5) Human resources are always limited. http://www.3 MANAGING CHANGE 14 . the manager has to put the selected decision into an action and also conveying the decision to those affected and to obtaining their comment. sweepstakes.

The organizational changes eventually changes the cultures of organization. the KFC have to prepare spicy fried chicken for the consumer at the asia. [https://www.3.1 Consumer Theres are few thing that always change and the organization have to respond to the changing that occur in the environment of the business. vision and objectives the company to makesure that the main objectives is achieved by the company. For example. Different country have a consumer that have a different tastes where the KFC organization have to make a new recipe to suit the consumers tastes. many organization fast food using a new technologies to increase the productivity. the Asian people like to eat spicy food so.3 Changes of Procedure And Technology The KFC has to make an improvement in term of the technology in accordance with the evolution of the technology.2 Organizational Changes A few past year ago. Employee also have to adapt the change that might happen in organization which they could meet with a new leadership style and new environment according to task and responsibilities. The KFC have to organize their organization based on the product service that they provides. Nowadays. KFC Organization have to organize the new recipe for the company to meet consumer tastes. Consumer from different country also have a different tastes. This technology have been used most of the fast food 15 .4.php] 4. the organization changing but the organization still make a change based on the mission. The change in the tastes of consumer could happen. KFC has evolved several organizational changes due to the changes of the ownership that followed since Colonel Sanders first sold KFC in 1964. the organization have to organising how to solve the problem that related with customers. 4. First of all. KFC organization uses ROS (restaurant based ordering system) that they used in operation level which this technology taking orders will inform the chefs inside the kitchen to work on the order placed.ukessays.

They have to plan a new strategies in order to compete with other fast food restaurant. Google glass certainly. The price also plays an important role to compete with another fast fod restaurant. The benefits of this technology is cutting the time between taking the order and informing the chef.yumcsr. serving a learning tool and showcasing how to improve training through technology. This way more efficient and save the time and the workers more comfortable and easy to work. job task and schedule The organization also have to manage the change that happen in term of the work and schedule in organization. Within the new technology that applies the effectiveness and efficient of the organization is increases.4 The Competition Today the development in fast food industry rose sharply and cause the competition between the fast food restaurant become more challenging.[http://www.3. KFC organization compete with other which the KFC launched the big marketing strategies to introduce the new look KFC in term new recipe and new packaging] 4. The more variety in KFC will make its different from the other fast food restaurant.accountingweb. KFC also used google glass platform to explore how the team member train respond to the fastchanging restaurant environment. KFC study the price that they should put that affordable to all society so they can compete with another fast food restaurant. fries and fried shrimp. The people that does not like fried chicken can prefer the fried today.5 Changes In work. KFC often make special promotion prices for the customers and the other example that we can see is KFC give a more cheap price for sets dinner and lunch. They condense an 80 page instruction manual into an interactive video that would play on screen the size of fingerprint. This KFC also create a new recipe such as introduce the new hambuger. According to the new environment fast food restaurant theres have changing in the work and schedule for the KFC employee. [] 4. job tasks 16 . KFC manage the change in work and schedule by given the employee new courses and informed the employee about the changing.3. The KFC organization have to be able to compete with other fast food restaurant like Pizza Hut and McDonald. The organization also deal with the human resources department to given a new work. This variety menu will make a KFC as a favourite restaurant.

Managers should be a good leader and have a strong leadership skill to make sure all the staff are always motivated and encourage to do their work. abilities. pp. There a six style in leadership. Regent University) Leadership is what leaders do. Vol. the leader must be effective in all situation to make sure everything is run smoothly. To be a good leader. responsible and dedicated leader. It is effective when employees are motivated and wanting development. (An integrative definition of leadership) To be a good. Firstly. It is the development manager. patience and teamwork are very important because we are work in same organization. It is motivates by providing opportunities for professional development. 5. It is a process of leading a group influencing that group to achieve its goals.0 LEADERSHIP STYLE 5. 2006. trains. emotional. and skills and focuses the follower(s) to the organization’s mission and objectives causing the follower(s) to willingly and enthusiastically expend spiritual. The human resources department will prepare the suitable schedule for employee which they also summarized all the characteristics and jobs tasks for every stage employee. coaching managers may persist rather than exit a poor performer. and physical energy in a concerted coordinated effort to achieve the organizational mission and objectives. Leaders is someone who can influence others and who has managerial authority. Leader means one or more people who selects.1 LEADERSHIP STYLES In every and each company. There are a lot of leadership style in management that can be practise to achieve company goals. equips.and schedule that suit with the employee.( 2006 School of Leadership Sttudies. knowledge. there will be a leader who will lead all the staff to do their own specific duty. (International Journal of Leadership Studies. 1 Iss 2. coaching style has the primary objective of long-term professional development of employee. 6-66) 17 . and influences one or more follower(s) who have diverse gifts. The leader will motivate the worker by given them a training and time for the workers to make them compatible with new changes. The leader also give an important role to motivate about the changing. It will ineffective when performance discrepancy is too great.

It is effective when people are highly motivated or contempt while ineffective when workload requires assistance from others. The last is pacesetting style has the primary objective of accomplishing tasks to a high standard of excellence.weebly. avoids conflict and emphasize good personal relationship among employees.2 LEADERSHIP STYLE USED BY THE LEADERS OF THE ORGANIZATION The style use by the leader in Ketuncy Fried Chicken(KFC) are the [http://managementviews. They include team member in the decision making process. In that programme they provide group interactive session. they become frustrated and resentful at the micromanaging. participative or democratic style has the primary objective of building commitment and consensus among employees because it encourages employee input in decision making. they need guidance on what to do. it will gives employees clear direction and ineffective when employees are]democratic syle of management. 18 .Secondly. They enhance open communication and give everyone the opputunity to express concerns and their ideas. Others is directive or coercive style has the primary objective of immediate compliance from employees. 5. the do it myself manager. It is very effective when there is a crisis and least effective when employees are highly skilled. Thirdly. It will effective when used to other styles and least when there is crisis situations needing direction. It is effective when staff have experience and credibility but least effective when there is a crisis. completely transparent interface in those to leadership positions and including all of the restaurant manager and the chairman. closely controls employees. Also. Next is authoritative or visionary style has the primary objective of providing long-term direction and vision for employees. They build the Yum University that provides the training and development programme. no time for meetings. affiliative style has the primary objective of creating harmony among employees and between manager and employees.

the safety needs of the employees. United Kingdom] Recognition. Mostly it is related with the leader’s considerations. gathering outside the organization and many else. Uxbridge. employees are willing to put more effort and improve themselves. and supportiveness Always reward the team member. employee discount. This shows that recognition is one on the effective motivational environment. Brunel University. United Kingdom.PDF] Based on the research that made by the students in Virginia polytechnic institute and State University. As a leader.lib. acknowlegdement is one of the top desires of employees which motivate and keep them productive in work. KFC employees have highly vote on ‘holding celebrations for success’. it shows that consideration is widely used. Also. [ https://theses. could make them more obey to their leader as they have a good relationship. 5. Some example of acknowledgement is paychecks. Based on the result of research done by Annowar from Brunel University. So this employee discount could make them easier to support their own company and love to work with the company. Therefore. One of the employer said that KFC has a great employee discount. Considerations include the behavior of the leader such as praise for the subordinate achievement. This responsibility are factors cause Also. Next. Motivating the employees is important as it could make the employees to work harder and achieve the goal of the organization.3 MOTIVATIONAL ENVIRONMENT Motivation in the organization of KFC is the need of set of force that initiates to achieve the goal. It could determine the productivity and better performance.vt. [Annowar Hossain. KFC are providing the workers with job security assurance.Usually leader in KFC will always engage with their subordinates. 19 . As this feedback actually make the employees feel cared. they had make a friendliness relationship. This feedback helps the employees to improve their performance. Managers provide motivational environment for their employee by ‘supervisor relation’. Supervisor’s feedback is one of it. Such. Uxbridge. friendliness.

20 .com/Motivation. The KFC part of Yum! Group relies on a networked cross-functional culture to deliver rapid fire innovations throughout the year.0 INNOVATIVE PRACTICES 6.000 kilograms of fabris to landfill. tastes and wants is not resricted to digital businesses. for conversion to 25.php] KFC is using one to one meeting strategy. a fibre technology company.000 square metres of Superfelt carpet underlay. When faced with logistics of disposing of about 60. the employees can share their thoughts and idea which can help to improve their way to run the shop. to be sold commercially. Also. 6.1 ORGANIZATION’S INNOVATIVE MANAGERIAL PRACTICES Its difficult to find an organization today that would openly reject innovation. so we are always striving for better ways to meet the customer’s need whether they know yet or not. In this face to face communication. they worked with their supply chain network to sustainably transfer the uniforms to Pcific NonWovens.000 old uniforms as KFC switched to new uniforms last year.Last but not least. If there is a bottleneck. the managers could make the employees satisfaction through motivation. it must first realize that innovation is more complex than forging ahead with the first decent suggestion that comes along. KFC launches a new product at least every four weeks. Kentucky Fried Chicken(KFC) also has innovate constantly rapidly and totally. Thus. instead in sending 7. we fall behind. But if the company hopes to produce a steady flow of new and creative ideas. This buzzword has become the mantra of every company seeking to provide the latest and greatest solutions to its industry’s problems. 2 Employees are also encouraged to come up with new ideas on how to benefit the business and community in other ways. This is the innovatiom that has been made by KFC : 1 Anticipating and defining future customer’s need. Which means they are appreciated and this could increase their loyalty to KFC.yolasite. [ http://kfcmanagement.

teaching life skills that are crucial to any person in the workplace such as. high standards. Failing to trust employees with important information is a sure indicator of old thinking and will slow performance. Share business information. involve your people and let them be part of the solution. strong work ethics. allowing users to access their smartphones without getting grease or chicken on the devices.3 Providing permission to fail fast. Through a series of online training models. front line customer service and educating our team in a structured modern way through our nationally accredited training cooks. Global fast-food giant KFC has developed an ultra-thin. providing wellness assesments and tips on healthy eating. the initiative helps employees improve their work life balance. The degree to which an organisation innovates with speed is directly in propotion to their ability to work across functions. It can be connected to a smartphone via Bluetooth . KFC Australia launched a Wellness initiative to help employees learn more about healthy living. 4 Developing an interconnected networked culture across teams. 5 KFC encourages digital dining. 7 KFC encourage employess wellbeing. KFC Australia opens the door to many opportunities beyond the day-today job activities of a Team Member. e-mail and surf the internet while eating. In August 2012. 6 Building people and capability. KFC SOPAC managing director Tony Lowings and SportsBet CEO Cormac Barry will be joining other leaders in sharing their culture building strategies at Human Synergistics “ Business Done Better” culture and leadership conference in Melbourne and Sydney in the coming month. 21 . allowing users to text. Bluetoothconnected keyboard that replaces traditional tray liner. time mangement skills.

McDonald also is the one of the largest franchises in the United Stated and their top menu include hamburger. Many people like KFC product because it’s delicious and it’s a finger licking good . As we know customers usually want to purchase the product at the reasonable price with high quality and fulfill what they want.ehow.[ http://www. 22 . In other words. an ethical dilemma is any situation in which guiding cannot determine which course of action is right or wrong. their regular customers will prepare to buy the other fast food than ] According to this situation KFC must maintain its delicious product so their customer not prepare to buy other fast food such as McD.[ http://www. KFC is well known as the best fast food maker and have many franchise all over the world but if their customer start cannot buy KFC because of the low nutrition and over taking the fast food can lead to obesity their sale will decrease then they loss in their profit.6. McNuggets and French Fries.marketlineinfo. If all their customer start to care for their health and in living in a healthy life KFC company could decrease their sale. Other than that. cheeseburger. KFC product is high in calorie and low nutrition that lead to an obesity.html ] As for Kentucky Fried Chicken (KFC) also facing many ethical dilemma for example dilemma in production. But the fact information reported in everywhere and every research that the fast food has low nutrition and most people do not know the consequences for over taking the fast food for their body or health. This is what KFC company being worry of. KFC also must make new menu but still maintain their original taste to attract people to test their new menu and the customer will not boring with the same ETHICAL DILEMMAS An ethical dilemma known as moral dilemma. As we know McDonald (McD) is the one of best competitor for KFC. KFC can do the promotion to attract more people to buy their product so it can gain more sell from it and also can compete with other fast food industry. Second dilemma that KFC company faced is competition from other fast food company. is a situation wherein moral precepts or ethical obligations conflict in such a way that any possible resolution to the dilemma is morally intolerable. This is because when KFC’s taste is already different with the original taste and it is not delicious as before.

solving quality problems.[ Ryan. employee can make a quick decision when comunicate with customers. scheduling workloads.html ] Empowerment involves increasing the decision making discretion of workers.Kentucky Fried Chicken’s management also doing the same thing. Besides. suppliers can benefit from successful operation of the organization by receiving orders which enable to keep in business. KFC also need the supplier for supplied their materials for making the product. On the other hand.2000 ] But if the relationship between the company with the suppliers not strong they cannot deal the cheapest possible price.Dilemma in relationship with supplier is also ethical dilemma that KFC faced. Gasparski and Enderle. they are developing budgets. It is easily to conclude that the organization relies on its suppliers for materials it need. For example. In modern day. KFC must buy the materials from their supplier with the cheapest possible price so they can decrease their cost to make their product but when their relationship between their suppliers not to strong they cannot deal the best price while the suppliers usually want to make the best possible deal to maximize their profit on sale. Kentucky Fried Chicken also follow up that function when critical situation. Supplier is the one who supplied the materials and equipment for the operation of the organization. [ 23 .3 SOURCES OF EMPLOYEE EMPOWERMENT Employee empowerment makes a workplace in which employees have a sure level of self-rule and obligation regarding choice making with respect to their particular authoritative work tasks. For example. and engaging in similar activities that until very recently were viewed exlusively as part of the manager’s job.Millions of individual employees and employee teams are making the key operations that directly affect their work. 6.The management team continuous improve their marketing and also their customer.ehow. controlling inventories. That is why. one of the reason many companies are empowering employees is the need for quick decisions by those people who are most knowledgeable about the issue. upgrades their morale and enhances the work product’s quality. employee empowerment increases the employees’ awareness of other's expectations.By employee empowerment.

They tend to find a ways in order to improve their company by search the renovation from customers and competitors. 24 . To be always in track.Moreover. technology also has contributed to the increases in employee empowerment. that organizational downsizings left many managers with larger spans of control. in Malaysia. With this action we can say that Kentucky Fried Chicken has a strategic planning for their company. Kentucky Fried Chicken managers face unique challenges in leading empowered employees who are not physically present in the workplace as the Thecnology and the Manager’s Job box discusses. working skills and experience to do their jobs competently. Kentucky Fried Chicken has a realistic planning in their organization. there a lots of diseases that Malaysian face. managers had to empower their people. As example. 7. so Kentucky Fried Chicken take the opportunity by serve a healthy food. Kentucky Fried Chicken show us that a strategically organization and an efficiency leadership will lead us to be success. Kentucky Fried Chicken will always be on trend to attract customers. In addition. Colonel Harland Sanders have shown us on how to lead an organization from nothing to something. The founder of Kentucky Fried Chicken (KFC). In order to cope with the increased work demands.0 CONCLUSION Based on all of the facts about how Kentucky Fried Chicken managed their company shown that they have a very strategically management with efficient and effectively production to achieved a lots of successful within all of the years from Kentucky Fried Chicken have be started until now. It can improve employees knowledge. also they manage to find out their weakness in order to increases company profit a day by a day. To be a successful company.

This can be conclude that KFC have alert on all of sense that lead the company to be a successful company. Kentucky Fried Chicken have shown us about something successful need to be improve with an innovate way then just have a static management. 25 . well on making a decision also tend to take an opportunity that can give company a higher profit. Kentucky Fried Chicken are trying to have a lots of ideas from other not just from a top leaders.Strategically organize their department with very specific obligation for bring a higher profit. Last but not least. By lead a company using democratic ways.