I.

COMPANY BACKGROUND
A. AREAS OF OPERATION

KFC uses various tools and techniques to determine the best selection of
its location, such as factor rating method, cost-profit-volume analysis, and
transportation and simulation models. KFC considers lot of factors in designing
their facility. Since they are operating in a saturated and a highly competitive
market, they need to keep the prices low. For this, they choose locations that are
available at low costs. All these decisions will help them to keep the price of their
product low. They locate their outlets where proper infrastructure is available and
where there is abundance of skilled labor. This can reduce labor cost as they are
easily available and easy access to stores for consumers is possible. Most of the
stores of KFC are franchised, which reduces their maintenance efforts. They
simply conduct regular quality checks to ensure that all the required standards
are met. Their facility layout decisions are influence by the volume of production,
fragility of the product, nature of the service to be provided and the costs required
to build the operations area. Their outlets are brightly lit, with attractive color
schemes and comfortable seating arrangement and a warm and welcoming staff.
Their suitable and quick cooking process, superior service makes it desirable
among consumers. This effective layout helps them in easy supervision, smooth
coordination which leads to high flexibility and efficiency. This also reduces
bottlenecks and reduces materials handling costs

B. CORE VALUES
 OUR SERVICE VALUES

At KFC, we have a passion for food, and serve it with pride. We believe
that you should come to work as the best version of yourself and treat every
guest like a friend. And it’s our job to ensure that every guest leaves happy.
  OUR FOOD

Our food is always craveable. We are the original fried chicken experts,
and everything we do celebrates our passion for serving finger lickin’ good food.
Whether it’s a spin on our world-famous iconic recipes, innovative ways to serve
fried chicken, or new menu items inspired by our original roots, everything we
make must be uniquely KFC. We’re proud to serve wholesome, abundant, hot
meals the way they should be served—made with high-quality fresh chicken,
freshly prepared by real cooks in our kitchens

 OUR RESTAURANTS

We’re not about novelty for novelty’s sake. We have deep roots and we
have an original founder. We cook our chicken from scratch and our restaurants
celebrate that story. We use natural, high-quality materials and have all the
conveniences to make our guests feel welcome and comfortable. From our table
designs to the sounds in our restaurants, we create a friendly and lively place
that makes you want to stay and enjoy your time with friends or family. We are
always evolving in the name of chicken, from innovating new ways to order to
creating exciting new restaurant formats, we are not afraid to constantly try new
things that make it easier to enjoy our chicken.

C. BRAND SHARE & MARKET SHARE

The profitability of individual companies depends on efficient operations

and effective marketing. Large companies have advantages in purchasing,
finance, and marketing whereas small companies can compete effectively by
offering superior food or service. According to the Global market share report,
McDonald' has the largest market share in the Fast-food industry with 21.4% in
2019 while Kentucky Fried Chicken (KFC) ranked number three with the largest
market share of 2.82% respectively, and the other fast foods chains taking the
rest. McDonald's is still the leading quick-service restaurant (QSR) chain in the
United States. In 2020, the company generated close to 40.5 billion U.S. dollars;
about 19 billion U.S. dollars. Kentucky Fried Chicken is one of the largest quick-
service chains in the world. In 2020, the KFC brand was valued at just over 5.4
billion U.S. dollars, up from the previous year's total of 5.11 billion U.S. dollars.
D. PRODUCT OFFERS & SERVICES
KFC was founded by Colonel Harland Sanders, an entrepreneur who
began selling fried chicken from his roadside restaurant in Corbin, Kentucky
during the Great Depression.

Type of Product: Fried chicken Hamburgers Chicken sandwiches Wraps

French fries’ soft drinks Milkshakes Salads Desserts Breakfast

What does food service do at KFC?

Key crew member job duties include serving customers and preparing
food. Customer service responsibilities include greeting customers, taking orders,
and completing customer transactions on the cash register.

E. SUPPLY & DISTRIBUTION

KFC was founded as Kentucky Fried Chicken by Colonel Harland Sanders

in 1952. The company adopted the abbreviated form of its name in 1991. KFC
primarily sells chicken pieces, wraps, salads and sandwiches. Outside North
America, KFC offers beef-based products such as hamburgers or kebabs.
Colonel Sanders started franchising Kentucky Fried Chicken in the 1950s. By the
early 1960s, KFC was sold in over 600 franchised outlets in both the United
States and Canada. One of the longest-lived franchisees of the older Col.
Sanders' chicken was the Kenny Kings chain. Supply chain of KFC uses some,
out of the blue concepts Behind the rapid development, efficient and smooth
logistics system is a KFC a powerful weapon ahead of the competition.

1. the fast-moving consumer goods supply chain requirements

Fast moving consumer goods (FMCG, Fast Moving Consumer Goods or
CPG, Consumer Package Goods), refers to the rapid consumption of
consumers, need to constantly repeat purchase of products, typically fast-
moving consumer goods, including cosmetic products, food and beverage
and tobacco.
 CPG market is a typical mass consumer market, the market capacity. With
the improvement of living standards, consumer demand preferences change
faster, the product tends to fierce competition, this time, the enterprise should
have a supply chain thinking. CPG supply chain must have a keen ability to
capture market opportunities, rapid response capability and a shorter
structure. To this end, establish a customer demand-driven pull supply chain,
enhance product promotion, and ensuring the procurement of raw materials
and inventory control, to make fast food chain to build a more efficient supply
chain, to ensure and consolidate the business in the market position to
provide strong support for the extended enterprise.

2. the logistics of the supply of KFC

 Supplier Management

KFC products are the main raw materials (Chicken, mashed potatoes,
seasoning) determined by the head office supplier, usually raw materials
(bread, beverage puree, vegetables, packaging, etc.) by the district level has
confirmed that the suppliers. KFC a “star system (STAR SYSTEM)” a
selection of alternative suppliers, which is specifically for a global assessment
of supplier management system in China since 1996, full implementation of
the supplier. This assessment system consists of five areas: quality, technical,
financial, reliability, and communication. Every three to six months of regular
assessment and evaluation throughout the year were, from KFC’s technical
department and the purchasing department were assessed at the end of the
composite score will determine the supplier of the volume of business in the
next year in the share.

 the supply of logistics model based on DRP

KFC supply process is: The restaurant will be reported to branch
distribution center order demand, the latter after an order to the supplier, the
supplier delivery to the distribution center, distribution center under the line
delivery. This mode of operation of the logistics supply thought to follow DRP,
 DRP system includes two three input files and output plans, namely: the main
demand planning, inventory files, supply the resource file; procurement plans,
distribution plans.

II. COMPANY’S VISION AND MISSION

A. VISION AND MISSION STATEMENT
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.