Final Management Project on

Kentucky Fried Chicken (KFC)

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Company description
 Chicken Restaurant
 Original recipe is fried chicken, others are Extra
Crispy Chicken, buttermilk biscuits and home
style sides.
 located in Louisville, Kentucky.
 Founded by Colonel Harland Sanders more than
70 years ago.
 20,500 outlets of KFC in more than 125
countries.
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Purpose of the project
 Finding out History, Functions,
Operations, Services.
 Decision making, organizational structure and
planning.
 Knowing about its ethical background.
 Then giving suggestions and recommendations
about the management.

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Decision Making
Decision Making Process:
1. Identifying Problem
2. Developing Alternative
3. Analyzing Alternative
4. Selecting Alternative
5. Implementing Alternative
6. Evaluation of decision effectiveness

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Approaches to Decision Making
1. Rationality

2. Intuition Based

3. Evidence Based

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Types of Decisions and
Decision Making conditions
 Programmed decisions for Structured problems.

 Nonprogrammed decisions by Top Management

for Unstructured problem

 They claim most of the problems are structured

and we have programmed decisions for them.

 They don’t use any biases while deciding

anything.
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 Team members are trained initially, instructed and
encouraged while working.

 They take feedback through internet and don’t use any

comment card.

 They follow design thinking and want new innovative

ideas.

 For motivation they reward those team members whose

innovative ideas are successfully implemented.

 Big data is handled by their own software “Murshid

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Sidath”.
A - 8 Pillars B - 6 Pillars

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Inside of the KFC

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Organizational Design:
1. A System /
framework
within an
organization
that define the
2. hierarchy,
3. line of authority,
4. allocation of
rights to its
employees,
5. Identifies the job
characteristics
and 11
 1. Work Specialization

2. Departmentalization

3. Chain of command

6 - Elements 4. Span of Control

5. Centralization-
Decentralization

6. Formalization

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1. Work Specialization:

Team
Counter Cooking

Services

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 2. Departmentalization:
Geographical
Functional
Purchasing
department,
Audit Department,

HR department
Maintenance
department,
Finance DPT,
Quality Check
(QC) Department,
Engineering 14
Department
 Decision/Proble CEO

3. Chain of
mcommand:
Operational manager
• Whom to answer / follow to whom.
Area manager

RGM

ARGM

Shift managers

ProbleTeam members
m 15
 4. Span of Control:
Two Companies:

A KFC
• Number of
functions,
people, or
things for which
an individual is
responsible.

Span of Control = 10
to 14
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5. Centralization-Decentralization:

• Decisions
• Solution
• New Idea
• Control process

Centralized
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 6. Formalization:

They are highly

formalized.

They follow rules and

policies.

Their work is highly documented.

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 KFC uses Mechanistic Structure:

1. High Degree Of
Complexity
2. Clear Chain Of
Command
3. Formalization
4. Centralization
5. Effective Spain Of
Control

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 KFC
1. Matrix and Project
Approach:
2. Telecommuting:
3. Compressed
Workweeks,
flexible time and
Job sharing..?

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 Contingent Workforce:

Contingent
Workforce:

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Goal-setting approach.
 While setting goals they apply MBO(Management by
objectives) approach.

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Mission statement:
 KFC mission statement is to be
leading integrated food services group
in ASEAN region delivering consistent
quality product and excellent
customer focused service to maximize
profitability, Improve shareholder
value and delivering sustainable
growth year after year.
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SMART GOALS:
SPECIFIC:
they are leading integrated food in ASEAN.

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Measurable
They want to just lead in asean not in the whole world

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ATAINNABLE:
They have their own resources and capabilities, using
them they can attain their goal.

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RELEVANT:
everyone wants to enjoy the taste of kfc although its leading
too, and they are diversifying their own business of recipe ,
they are not adding any other irrelevant business.

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TIME FAME:
In Pakistan they have set goals to open 22 more
stores and there must be 100 stores by 2019. It shows
they are time being.

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 Contingency factors in planning:
 Two contingency factors affect choices of plans:
1) Organizational level:
 According to RGM strategic planning is done by CEO, tactical
planning is done by middle managers (Operational manager,
Area manager and RGM) and operational planning is done by
lower managers (ARGM and shift managers)
STRATAGIC PLAN(CEO) Middle manager(T.P) 1stline
manager

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2) Environmental Uncertainty:
 In the uncertain environment planning and
decisions of the CEO Is highly flexible; he
does whatever is being suggested by the
managerial staff.

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Planning approaches:
 Employees Involvement:
 They involve employees (Managerial staff) while
planning.
 In uncertain environment they are specific but
flexible; their lower staffs are allowed to suggest
anything. If anybody suggested something and its
implementation went successful, he would be
rewarded with bonuses and surprises.

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 Strategic Planning:
 KFC owned by YAM: Strategic plans set by the CEO of
YUM!

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 Goals:
Stated and real goals
Their goals are stated and real.
RGM KFC Sukkur said our goal is to increase and maintain
the quality in fast food in world industry.
Although they do their best in real.

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 Mission:
 The mission of KFC is to be an internationally
renowned fast food industry in the world and to
increase and maintain the quality in fast food in
world industry. Their aim is to capture the fast food
market

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 SWOT
ANALYSIS

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Internal
Analysis
Strengths
1. Delicious and well liked recipes.
2. Strongest category among nearest
competitors.
3. Well Global Penetration.
4. Well recognised brand logo.
5. Strong Cash Flow via franchisee
and license fee.
6. Staff
Weaknesses
1. Most KFC items have close
substitutes in market.
2. No product innovations.
3. Lack of control in joint venture
arrangements
4. Inconsistent quality of service in
many outlets.
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External Analysis
Opportunities
1) Undeveloped markets in many
countries.
2) Increased 18-25 age group
3) Increasing trends to take meal out of
homes.
4) Trend of Home delivery
Threats
1. Other cheap alternatives available.
2. Changing health trends of customers.
3. High calorie food.
4. Competitors (Pizza town, McDonalds
Panno Aqil)
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Corporate and Competitive
Strategy
 Yam will use corporate strategy and KFC
will use competitive strategy.

 KFC is using competitive strategy and in it

KFC is not using cost leadership strategy,
but it is using differentiation strategy.
Focus strategy is not used by them.

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 Competitive advantages of
KFC
 Quality
 Social Media
 Sustaining
 Well trained staff
 Integrity

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Current strategic management
issues
1. The need for the leadership
 Raza pir Bhai ,the CEO of the
Pakistan KFC, is very strategic
planner in dynamic
environment he works with the
other managers to make
decision.
2. The need for strategic
flexibility.
 According to the (RGM) he
said that CEO always co
operate with others and then
make any planning with the 40
Use of Contemporary
Strategies
E- Business Customer Service
Strategy

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 Ethics and its role in
management
1. Integrity and Honesty.
2. Word of mouth about Competitors.
3. The use of neat and clean pots in their process of the
production.
4. Social development.
5. Employment and Human Right.
a) Protection of wages
b) Guarantee payments
c) Health security
d) Fixed time of work
6. Legal Scheduled
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Suggestions for improvement in
management
1. Should add vegetarian and nutrition
food.
2. Cost Leadership Strategy
3. Less costly products for middle class.
4. Delivery Service in rural areas.
5. Should increase advertising
strategies in rural areas.
6. Must have big parking area in Sukkur
City.
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