Introduction

Kentucky Fried Chicken

KFC (abbreviation of Kentucky Fried Chicken) is a chain of fast food restaurants known for their fried 
chicken. It was started by Colonel Sanders in Corbin, Kentucky in 1952. They are now all over the 
world. They not only sell chicken, but also other food like salads and french fries.
 
What is unique about KFC?
For KFC, the unique concept starts with its red and white striped restaurants and continues with the
face of its legendary founder Colonel Sanders, the nation's eighth most-used trademark.

1ST STEP – VISION, MISSION and VALUES

The distinction between a strategic vision and a mission statement is fairly clear-cut: A strategic
vision portrays a company’s future business scope (“where we are going”), whereas a
company’s mission statement typically describes its present busi- ness and purpose (“who we
are, what we do, and why we are here”).
A well-conceived mission statement conveys a company’s purpose in language specific enough
to give the company its own identity.
A company’s values are the beliefs, traits, and behavioral norms that company personnel are
expected to display in conducting the company’s business and pursuing its strategic vision and
mission.

VISION
To be leading integrated food services group in ASEAN region delivering consistent quality products and
excellent customer focused.

MISSION
To maximize profitability, improve shareholder value and deliver sustainable growth year after year.

CORE COMPETENCY/VALUES
  Since beginning, KFC has presented itself and well competed, only through it delicious chicken.
 People from all over the world know KFC as the best chicken expert.
 Their chicken has always been unique in taste and has helped them in order to build their own
identity in all over the world

2ND STEP - OBJECTIVES

Objectives are an organization’s performance targets, the results management wants to
achieve.
Stretch objectives set performance targets high enough to stretch an organization to perform at
its full potential and deliver the best possible results.
Financial objectives relate to the financial performance targets management has established for
the organization to achieve.
Strategic objectives relate to target outcomes that indicate a company is strengthening its
market standing, competitive vitality, and future business prospects.

OBJECTIVES
 Build an organization dedicated to excellence.
 Consistently deliver superior quality and value in our products and services.
 Maintain a commitment to innovation for continuous improvement and grow, striving always to
be the leader in the market place changes.
 Generate consistently superior financial returns and benefits our owner and employees.

3RD STEP – CRAFTING A STRATEGY

Corporate strategy is orchestrated by the CEO and other senior executives and establishes an
overall game plan for managing a set of businesses in a diversified, multibusiness company.
Corporate strategy addresses the questions of how to capture cross-business synergies, what
businesses to hold or divest, which new markets to enter, and how to best enter new markets
by acquisition, by creation of a strategic alliance, or through internal development.
Business strategy is primarily concerned with building competitive advantage in a single
business unit of a diversified company or strengthening the market position of a nondiversified
single business company. Business strategy is also the responsibility of the CEO and other senior
executives, but key business-unit heads may also be influential, especially in strategic decisions
affecting the businesses they lead.
Functional-area strategies concern the actions related to particular functions or processes
within a business. Lead responsibility for functional strategies within a business is normally
delegated to the heads of the respective functions, with the general manager of the business
having final approval over functional strategies. For the overall business strategy to have
maximum impact, a company’s marketing strategy, production strategy, finance strategy,
customer service strategy, product development strategy, and human resources strategy should
be compatible and mutually reinforcing rather than each serving its own narrower purpose.
 Operating strategies concern the relatively narrow strategic initiatives and approaches for
managing key operating units (plants, distribution centers, geographic units) and specific
operating activities such as materials purchasing or Internet sales. Operating strategies are
limited in scope but add further detail to functional-area strategies and the overall business
strategy.

STRATEGIES

1. Business level Strategy

 Differentiation: By providing unique taste of chicken
 Re-establish and maintain an emphasis on clean and updated restaurants paying close attention
to service while maintaining product consistency.
 KFC has differentiated its products on the basis of “Food, fun & Festivity”,.
 KFC is sharing supply chain with Pizza Hut, which creates the supply chain collaborative sharing
effect. It decreases the cost also.
 In one word, KFC performed slightly better control of product costs.

2. Corporate level strategy

 Growth: Switched from franchise to company owned in their larger markets
 Interest in local community (Neighborhood)
– Combing the two concepts in the same unit
– Changed name and Logo
 Retrenchment: Introduced different menu items to keep up with local competitors
 Turnaround: Updated Technologies in Service and Production unit
 Pay closely aligned with customer service and restaurant performance
 More responsibility assigned to franchisees and marketing managers
 Switched to highly performance based management strategies. Corporate Level Strategies:

3. Functional level strategy

 By using segmentation.
 By using market development.
 By using product development.

4TH STEP – EXECUTING THE STRATEGY

The task of implementing and executing the strategy also necessitates an ongoing analysis of the
efficiency and effectiveness of a company’s internal activities and a managerial awareness of
new technological developments that might improve business processes. In most situations,
managing the strategy execution process includes the following principal aspects:
 Staffing the organization to provide needed skills and expertise.
 Allocating ample resources to activities critical to good strategy execution.
 Ensuring that policies and procedures facilitate rather than impede effective execution.
 Installing information and operating systems that enable company personnel to perform
essential activities.
 Pushing for continuous improvement in how value chain activities are performed.
 Tying rewards and incentives directly to the achievement of performance objectives.
 Creating a company culture and work climate conducive to successful strategy
execution.
 Exerting the internal leadership needed to propel implementation forward.

Staffing the organization to provide needed skills and expertise.

Recruitment:
KFC has developed an e-recruitment tool which gives potential employees the ability to
apply for a job online.
 Job Description
 Person Specification.
Example. Trainee Managers - responsible for assisting the Restaurant General Manager
and Assistant Managers in creating an energetic and valuable work environment, which is
committed to serving the best chicken at the fastest speed and with a smile.

Skills & Abilities

 Trainee Managers must have at least a year 10 education and 2 years work
experience in a managerial/supervisory role.
 Must have excellent customer service skills and the ability to deal with
customers complaints
 Excellent communication skills
 Must have the ability to develop competent computer skills
 Be able to motivate, delegate and co-ordinate

Selection Criteria:
Selection based on:
  Test
 Physical Test
 Behavioral Test
 Team Skill Judge
 Working Capacity
 Communication Skill
 Confidence
 Body Language
 Motivation Level
Ensuring that policies and procedures facilitate rather than impede effective execution.
Policies:
KFC policies are excellence for their standards which are shortly termed as CHAMPS i.e.
C: Cleanliness
H: Hospitality
A: Accuracy
M: Maintenance
P: Product
S: Speed of Service.
KFC policies regulates around these standards, hospitality is also with the employees
regarding their issues and privacy.
Pushing for continuous improvement in how value chain activities are performed.
Training:
Training “We won’t make you wing it” is KFC’s motto when it comes to training
employees.
Training includes:
1) Workbooks
2) Quizzes
3) On-the-job competency based training
Employees are encouraged to work together as a team.
Tying rewards and incentives directly to the achievement of performance objectives.
Reward System:
 KFC also reward their employees in terms of promotion, incentive, payoff free meals
depending on the level of the employee and how much they perform their job well.
 Bounces are given to the employees on the basis of "My growth body" points. If the
person has 5 points he or she can get benefits in term of financial bonuses.
Creating a company culture and work climate conducive to successful strategy execution.
Discipline
 Firms cannot just ‘sack’ workers
 Wide range of procedures and steps in dealing with workplace conflict
– Informal meetings
– Formal meetings
– Verbal warnings
 – Written warnings
– Grievance procedures
Installing information and operating systems that enable company personnel to perform
essential activities.
Performance of Management
A process of ensuring employees performance. Consists of three phases:
 Setting expectations for employee performance
 Maintaining a dialogue between supervisor and employee to keep performance on
track.
 Measuring actual performance relative to performance expectations.
Exerting the internal leadership needed to propel implementation forward.
Allocating ample resources to activities critical to good strategy execution.

5TH STEP – EVALUATING AND ANALYZING

The fifth stage of the strategy management process evaluating and analyzing the external
environment and the company’s internal situation and performance to identify needed
corrective adjustments is the trigger point for deciding whether to continue or change the
company’s vision, objectives, strategy, and/or strategy execution methods.
A company’s vision, objectives, strategy, and approach to strategy execution are never final
managing strategy is an ongoing process, not an every-now-and-then task.
o KFC Management Functions
KFC management is following the “POLCA”:
 Planning
 Strategic Plans - KFC has strategic planning to increase its market worth value of
the market and its market share. They work on a well defined strategic planning
for this.
 Operational Plans - Include launching of a new product to change or innovate its
product line for the customers.
 Organizing
 Concerns with Organizational structure, segmentation and targeting of
customers
 Organization structure differs on operational level and cooperative level. The
difference is due to working activities.
 The operational level management is concerned with the restaurant business
and management and the cooperate level management is concerned with the
business activities.
 Leading
 Third pillar
 Related with staff behavior towards employees, feedback by the employees to
managers and other top level offices and customers issues.
  HR manager are responsible for the all related issues of employees and
customers
 Controlling
 Fourth Pillar
 Related with the controlling the task and its evaluation that how a manager
control all inventory management, all employees activities, assign tasks to
employees and evaluate them with desired goals and objectives.

HR manager control all activities into following ways

 Feed forward control - done by the territory managers. Store monitoring and
visits to factory to check its supplies and controlling. Done before finishing the
products.
 Feedback control - done by the supervisor of the branch or the assistant
manager. Through comment cards, general interviews of employees about KFC
management behavior and other related issues.
 Concurrent control - done by the Unit Business Manager for the assurance of
food quality by monitoring kitchen workers with number of visits during a day to
reduce wastages, and for superior quality products.
 External control - Yum brand representatives visit KFC restaurants. For
standards and quality check up. No relaxation is given to Manager on any flaw.
 Employee discipline system - Disciplines are maintained in KFC as this is their
core strategy, employment discipline is maintained by managers and are
followed CHAMPS.
 Financial control - Department that sees all the financial activities and has to
report all the financial activities required to be done or done to the finance
department directly.
 Purchasing control - depends on the restaurant branches: – In house purchasing
– Ware house purchasing – Direct purchasing – Indirect purchasing
 Inventory control - done several times a week one final time a month and at the
end of the year. Inventory controls are looked after by UBM and AUBM.
 Statistical control - Control of the branch is taken care by the UBM and all these
statistical data are given to the financial department at the end of the day,
week, or month.

Simply finetuning the strategic plan and continuing with efforts to improve strategy execution
are sufficient.
o Teams to handle critical situations:
There are only two teams in KFC.
 One team is Concentrating on resolving internal Conflicts between employees
and employers through different procedures and committees:
If employee is unsatisfied with its team or management then he/she can
easily resolve his/her issue
  Second team deals with the customer care satisfaction and try to improve
technology and working conditions:
SWOT ANALYSIS

 Strengths
 Brand Equity.
 KFC secret recipe of 11 herbs species.
 Strong Market Share (over 50%)
 Oldest and finest in Business
 Loyal customers
 Faces numerous advantages of being a Multinational Organization e.g. economies of scale,
government incentives etc and its good will in entire world.
 KFC has Competitive advantage in fast food industry because of its quality and variety of
products of chicken.
 Product is their strength customers come here for product ignoring the prices.
 They don’t do much advertisement as awareness is there & they don’t find a need for
advertisement.
 Weaknesses
 Presence of Multinational competitors in the market e.g. McDonalds.
 Compressed hierarchy.
 Unhealthy fats
 Over confidence on own product.
 Lack of knowledge about their customers.
 Lack of relationship buildings with employees.
 Lack of focus on R&D.
 Question of over franchising leads to loss of control and quality.
 Opportunities
 Cheap and easy availability of labor
 Increase consumption of fast food has increased the market size.
 “All under one roof”
 Loyal customers
 New Leadership, Domestic markets and Customer focus
 Threats
 Rated 83 out of 100 in term of competitiveness.
 High political instability.
 Animal diseases like bird flu.
 Compressed hierarchy can collapse the whole system of the management efficiency.
 Increasing inflation rates directly affects menu rates.
 85% annual employee turnover for fast –food market.

Suggestions
 KFC should focus on the competitor’s product.
  KFC should organize its management hierarchy simple as for every employee and customer.
 KFC should focus on the eligibility of the employees.
 KFC should focus on the market surveys for the knowledge of customers.
 KFC should facilitate its employees by giving relaxation and bonuses.
 KFC should focus on its Research and Development Department.

STRAMA: Gamble J. Essentials of Strategic Management. The Quest for Competitive Advantage 6ed
2019.pdf - Google Drive

KFC: KFC Management (slideshare.net)

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