 GROUP MEMBER’S :

- Fairuz binti Aluwi KK1080334

- Rozana Abd Rahman KK1080070
- Masriani Abd Malek KK1080066
KFC began with Colonel Harland Sanders. He discovered his
penchant for cooking when he was only 9 years old. Through
the years he grew up to become a personage the world knows
as Colonel Sanders, founder of KFC.
He reached celebrity status in 1952, when he decided to
franchise his famous Kentucky Fried Chicken recipe blends of
11 herbs and spices to the rest of America. By the early 70's,
that special recipe reached Malaysia.
Today, KFC Malaysia continues to serve finger lickin' good,
succulent pieces of chicken. The flavourful blends of 11 herbs
and spices give KFC's delicious aroma. With the chicken's
natural juices sealed-in, leaving a special mouth watering
taste that cannot be replaced. KFC prides itself as a fast-food
restaurant that give customers great tasting chicken with a
selection of home-styled side dishes and desserts to make a
wholesome, complete and satisfying meal.
 Kentucky Fried Chicken(KFC) is a chain of fast food restaurants based
in Louisville, Kentucky, in the United States. KFC has been a brand and operating
segment, termed a concept of Yum! Brands since 1997 when that company was
spun off from PepsiCo as Tricon Global Restaurants Inc.
 KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its
primary focus is fried chicken, KFC also offers a line of grilled and roasted
chicken products, side dishes and desserts. Outside the USA, KFC offers beef
based products such as hamburgers or kebabs, poutine, pork based products
such as ribs and other regional fare.
 The company was founded as Kentucky Fried Chicken by Colonel Harland
Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930.
Although Sanders died in 1980, he remains an important part of the company's
branding and advertisements, and "Colonel Sanders" or "The Colonel" is
a metonym for the company itself. The company adopted KFC, an abbreviated
form of its name, in 1991. Newer and remodeled restaurants will adopt the new
logo and name, while older stores will continue to use the 1980s signage.
Additionally, Yum! continues to use the abbreviated name freely in its
advertising.
 Every day, more than 12 million customers are served at KFC restaurants in 109
countries and territories around the world. KFC operates more than 5,200
restaurants in the United States and more than 15,000 units around the world.
KFC is world famous for its Original Recipe® fried chicken made with the same
secret blend of 11 herbs and spices Colonel Harland Sanders perfected more than
a half-century ago. Customers around the globe also enjoy more than 300 other
products.

 In addition, to support our core activities, KFC are extensively involved in poultry
production and processing, as well as a host of ancillary businesses such as
vegetable farming, baking and sauce production. After a successful restructuring
exercise, KFCH has emerged as a strong player in the Malaysian corporate world
with a high reputation for excellent products, efficient friendly service and
financial strength. Indeed, KFCH is the only KFC restaurant operator in the world
whose Western Quick Service Restaurant market share is greater than that of
McDonald's. KFCH is part of QSR Brands Bhd (QSR Brands) – a leading, fully-
integrated quick-service restaurant enterprise and the local franchisee and
operator of the KFC and Pizza Hut restaurants. QSR Brands is in turn a subsidiary
of Kulim (Malaysia) Berhad, a conglomerate focusing mainly on palm oil
operations, oleochemicals, biodiesel production and quick service restaurants.

 The vision of company KFC is a to be the leading integrated food services group
in the Asia Pacific region based on consistent quality products and exceptional
customer-focused service. Besides that, the mission of company KFC is a to
maximise profitability, improve shareholder value and deliver sustainable growth
year after year.
 KFCH invests in a variety of related activities that
support our core restaurant business. This integrated
structure is crucial to our operations, providing
consistent support services; a stable source of quality
chicken at very competitive prices; better cost control;
and the ability to supply the fast-expanding open
poultry market, locally and abroad.

Our processing plants process poultry for restaurants

throughout KFCH, and focus on achieving cost-
efficiency while maintaining halal and high quality
standards.

 Ayamas Food Corporation Bhd is Malaysia's
foremost poultry integrator and its operations
consists of breeder farms and hatchery, feedmills,
poultry farms, contract broiler farming and
processing and further processing plants. The
Ayamas operations supply whole chicken and cut
chicken parts and further processed chicken
products to the domestic market as well as to
export markets such as Singapore, Bangladesh,
Brunei, Hong Kong and the Middle East.
 Feedmill
 Our modern, computer-controlled feedmill began
operation in 1990 with an installed capacity of 120,000
metric tons per annum. Since then, the demand for its
high quality poultry feed has prompted us to increase
the feedmill's capacity to 160,000 metric tons per
annum. One of the largest single feedmills in Malaysia,
it supplies to all its breeder farms, broiler farms and
contract farms.
 Located at Port Klang, Malaysia's premier port, the
feedmill imports the best quality feed grains and raw
materials from Asia, Australia, Europe, the USA and
South America. It conducts regular quality control
laboratory tests at every stage of production. The feeds
are specially formulated to ensure that specific
nutritional requirements are met for the optimal
growth and liveability of the chickens.
 Breeder Farms
 In 1988, KFCH started breeder farms with
exclusive rights from Ross Breeders of Scotland. A
premier breed, the fast-growing Ross broilers are
noted for their good body conformation,
liveability, efficient feed conversion and high
meat yield.
 Each year, some 320,000 parent stocks are
imported and housed in our five breeder farms.
The farms produce 36 million day-old chicks per
annum, catering to the KFCH's requirements.
 We keep abreast of new breeding technology to
ensure the highest quality day-old-chicks. The
breeders are reared in temperature-controlled
chicken houses and fed with nutritionally
formulated-feeds to optimize production.
 Strict sanitation and bio-security controls are
practiced in the farms at all times. Each chicken
house is well spaced out from the others so as to
minimize disease outbreak and contamination. A
diagnostic laboratory monitors the health of the
breeders and the quality of the chicks produced.
 Hatchery
 The hatchery uses incubators and hatchers
imported from Chickmaster, USA. Here, an
evaporative cooling system creates an
environment conducive to the hatching process.
To ensure quality chicks, strict sanitation
procedures are practiced. In addition, the chicks
are delivered in KFCH delivery trucks to ensure
their arrival at the farms in good condition.
 Contract Broiler Farms
 In order to meet its broiler requirements Ayamas
Food Corporation operates a highly efficient
contract broiler farming system. Day-old-chicks
and feed are supplied to 100 contract farmers
throughout Malaysia. The Company's qualified
field extension specialists pay regular visits to
these farms to check that the established
husbandry practices and feeding programmes are
followed.
 To further motivate the contract farmers,
incentives and fees are paid based on their
performance and the quality of the chickens
reared. Upon reaching the desired weight, the
chickens are sent to the Ayamas processing plants
in Port Klang, Penang and Johor.
 Ayamas has recently taken further steps to expand
its poultry production to meet increasing
consumer demand. Its target is to raise monthly
fresh bird production from three million to four
million.
 In 2003, Ayamas launched a joint programme with
the Department of Veterinary Services and Bank
Pertanian Malaysia to help more poultry farmers
become contract broiler farmers for KFCH. To
further upgrade and expand its contract farming
operations, Ayamas conducts regular seminars for
its contract farmers. Annual awards are also given
to outstanding contract farmers in recognition of
best farming practices.
 Poultry Processing
 KFCH engages in primary processing and secondary
poultry processing.Primary processing involves the
halal slaughtering and production of chicken and
chicken parts to the required specifications.
Secondary processing involves the processing of
poultry products into convenience foods like burgers,
nuggets, kiev, bologna, smoked chicken, satay,
sausages, chicken balls, etc. to be marketed under the
Ayamas brand name.
 Each day, our three plants process 140,000 birds. The
Ayamas plant in Port Klang, Malaysia, is one of the
largest poultry processing plant in the country and
one of the largest in the Asia Pacific region. It has
modern equipment and processes more than 85,000
birds per day and 1,500 metric tonnes of secondary
processed poultry products per month. Our new
poultry processing plant was built in Johor state and
started operating in December 2008 with line capacity
of 4,000 birds per hour.
 Our emphasis on processing quality has won
international recognition, including awards from
Yum! Brands International. Yum! Brands
International is the world's largest restaurant system
with over 37,000 KFC, Pizza Hut, Taco Bell, Long John
Silver and A&W and WingStreet restaurants in more
than 110 countries.
 The company is HACCP, ISO 9001 and Halal certified
in its management systems, to provide assurance that
the products are manufactured under stringent
quality control safe and hygienic condition and to
boost the confidence of the Muslim population. The
systems are supported by an ISO 17025 accredited in-
house microbiological laboratory. Currently,
secondary processed products are exported to
Singapore and Brunei. East and elsewhere.
History
Since its inception, KFC has evolved through several different
organizational changes. These changes were brought about due to
the changes of ownership that followed since Colonel Sanders first
sold KFC in 1964. In 1964, KFC was sold to a small group of investors
that eventually took it public. Heublein, Inc, purchased KFC in 1971
and was highly involved in the day to day operations. R.J. Reynolds
then acquired Heublein in 1982. R.J. took a more laid back approach
and allowed business as usual at KFC. Finally, in 1986, KFC was
acquired by PepsiCo, which was trying to grow its quick serve
restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut, and
KFC. The PepsiCo management style and corporate culture was
significantly different from that of KFC.
PepsiCo has a consumer product orientation. PepsiCo found that the
marketing of fast food was very similar to the marketing of its soft
drinks and snack foods. PepsiCo reorganized itself in 1985. It
divested non-compatible units and organized along three lines: soft
drinks, snack foods and restaurants. PepsiCo Worldwide Restaurants
was created to create synergism between its restaurant companies.
By the end of 1994, KFC was operating 4,258 restaurants in 68
foreign countries. KFC is the largest chicken restaurant and the third
largest quick service chain in the world. Due to market saturation in
the United States, international expansion will be critical to
Present Situation
The organization is currently structured with two divisions
under PepsiCo. David Novak is president of KFC. John Hill is
Chief Financial Officer and Colin Moore is the head of
Marketing. Peter Waller is head of franchising while Olden
Lee is head of Human Resources. KFC is part of the two
PepsiCo divisions, which are PepsiCo Worldwide Restaurants
and PepsiCo Restaurants International. Both of these
divisions of PepsiCo are based in Dallas.
Structuring
Another strategy of KFC is currently working with is to
improve operating efficiencies. This in turn can directly
impact the operating profit of the firm. In 1989, KFC
centered on elimination of overhead costs and increased
efficiency. This reorganization was in the U.S. operations and
included a revision of KFC’s crew training programs and
operating standards. They emphasized customer service,
cleaner restaurants, faster and friendlier service, and
continued high quality products. In 1992, KFC continued with
another reorganization in its middle management ranks. They
eliminated 250 of the 1500 management positions at
corporate and gave the responsibilities to restaurant
franchises and marketing managers.
Market development
KFC will introduce their present and new products and services into
new geographic / demographic.

Product development
Bring back rotisserie chicken.

Concentric diversification
Add more to KFC product and variety service to the public
consumers.

KFC company’s invests in variety of related activities that support

our core restaurant business. this integrated structure is crucial to
our operations, providing consistent support services a stable
source of quality chicken at very competitive price better cost
control and the ability to supply the fast-expanding open poultry
market, locally and abroad. The efficient management in KFC
organization that was give the increase profitable of their
companies.

In KFC management, they are manage by own manager in different

department. That will make the KFC organization more efficient.
There are six stages in their department 1 st . Area Managers, 2 nd
Restaurant General Managers.3 rd Assistant Managers.4 th Trainee
 The Recipi Scaling and Food cost is features with vendor
purchasing management that was installed in all KFC
branch locations. These locations were connected via VPN
using ADSL technology.
 KFC is develop technology in one key human resources
processes recruitment and selection. Encourage people to
apply for positions via a recruitment website.
 KFC have quick service successful restaurant brand that
dives sales and profit. This is because the technology used
good to customer service.
 1)Saved by the Pressure Cooker
Thanks to technology, in 1939 pressure cooker was introduced. Pressure
cooker allow liquid to boils at higher temperature. Water for example
normally boils at 100 degree Celcius, but with a pressure cooker the
sealed lid doesn't allow air or liquid to escape and enable water to boils
higher at 125 celcius. This significantly shortened the time for cooking
and as an added advantage, the nutrients (hence the taste) are retained
making the food more delicious. Since the boiling point is much higher,
this would also kill more germs and make the food last longer. It should
be noted that The Colonel spotted the pressure cooking technique just
weeks after it was introduced. This means he was always looking for ways
to improve the taste and the time it takes to cook the famous kentucky
fried chicken.
 2) Time means money
 Every minutes saved means less time waiting and more satisfaction to the
customers. This would also encourage a first time buyer to become repeat
customers. The Colonel is also a smart guy. He can read the writing on the wall.
By early 1950s, he probably heard rumours that an Interstate Highway is going to
be built BYPASSING his town. This could have a devastating effect on his
business. He is now probably under serious dilemma. When the Interstate was
finally opened in 1955, it caused a huge diversion of traffic away from his town.

 3) Improving operating efficiencies by reducing overhead and other operating
costs can directly affect operating profit.
 Due to the strong competition in the US, the fast-food chains are reluctant to
raise prices to increase profit. Many of the chains are turning to operating
efficiencies to increase profit. For many companies, operating efficiencies are
achieved through improvements in customer service, cleaner restaurants, faster
and friendlier service, and continued high-quality products.

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THE END