Professional Documents
Culture Documents
3
PART B Report (2639 words)..................................................................................................17
Executive summary.................................................................................................................17
2.0 THEME B Challenge - Employees hiring, training, and engagement..................................18
2.1 Recruitment process..........................................................................................................18
2.2 Training and Engagement.................................................................................................18
2.3 Recommendations for Employees hiring, training, and engagement...................................19
3.0 Theme C Challenge – Operational Problem (1090 words)..................................................21
3.1 Shift of Supply chain..........................................................................................................21
3.2 Limited menu....................................................................................................................21
3.3 Delivery and warehousing..................................................................................................22
3.4 Technical Problems...........................................................................................................22
3.5 Operational problems recommendations............................................................................23
Conclusion comments..............................................................................................................24
References..............................................................................................................................25
1. Part A slide Pack
Their mission is to raise and sustain the standard of the fast-food sector while
capturing the fast-food market. Even though KFC has consistently won Britain's Top
Employer for three years running, it has also been named one of the best
organisations in the UK. In terms of employee performance, it is now experiencing
some problems.
In the presentation, I discuss the key challenges that HR will face over the next five
years and the crucial role that organisational culture plays in shaping how HR
operates today. I close by offering suggestions for how my client might improve its
organisational culture and how doing so would increase the effectiveness of its
firm.
Amid the Great Depression, Harland Sanders, a businessman from Corbin,
Kentucky, started selling fried chicken from a small roadside stand. In 1952, the first
"Kentucky Fried Chicken" franchise opened its doors in Utah thanks to Sanders'
recognition of the potential of the restaurant franchising idea. By threatening the
hamburger's long-held monopoly on the fast-food market, KFC popularised chicken
and diversified the sector.
Sanders, who was getting older, was overwhelmed by the company's fast
development, so in 1964 he sold it to a group of investors headed by John Y.
Brown, Jr., and Jack C. Massey.
By the middle of the 1960s, KFC had opened restaurants in the UK, Mexico, and
Jamaica, making it one of the first fast food businesses to go global.
On the company website, it is said that KFC has 30,000 outlets and is available in
110 different countries and territories.
This graph depicts the rising number of KFC restaurants that opened globally
between 2010 and 2022, which came to a total of 26.9 thousand. (Statista 2023)
One of the most recognisable fast food restaurant brands in the world is KFC thanks
The pre-tax profit for KFC UK increased from £56 million to £59 million between
November 30, 2015, and December 4, 2016, on sales that increased from £465
The current anticipated yearly income for KFC UK and Ireland is $2.8B. In the UK
and Ireland, KFC UK and its franchisees operate hundreds of restaurants. According
to the company's financial statements, its average personnel count for the time
KFC's vision statement is brief and direct. This indicates that the business did not
convey its perspective and attitude to the public and important stakeholders
through lengthy conversations and discussions.
The KFC management is aware of how crucial it is to convey the company's basic
principles so that every employee can embrace them and adjust their behaviour
accordingly. But employees don't believe they have a chance to influence or
participate in workplace culture.
The worker will be given paid time off (PTO) and vacation after one year of
employment. Most workers receive only 37–40 hours of paid vacation each year.
Employees are given one complimentary meal every shift from the restaurant. On
the property, they have to eat it. The typical shift is four hours long, so if an employee
works a whole day, they can receive up to two meals.
Employee benefits will include a discount in addition to free lunches. For food goods
purchased from the store, a 50% discount is included.
KFC UK may improve itself by assessing the working circumstances for employees
by implementing these suggestions. This will help KFC UK expand its understanding
of the workplace.
The HR staff at KFC must create successful retention plans that put emphasis on
employee happiness, growth, and engagement. For employees to develop and rise
within the business, it may also entail offering continual training and development
opportunities.
Reference List
• McFadden,C. (2023). The History of KFC: Their Past and the Tech Building
Their Future. https://interestingengineering.com/culture/the-history-of-kfc-
their-past-and-the-tech-building-their-future
• Growjo.com (2023). KFC UK and Ireland Revenue and Competitors.
https://growjo.com/company/KFC_UK_and_Ireland
• Kilgannon, L. (2017). SALES CLOSE ON £500M AT KFC’S UK OPERATION.
https://www.insidermedia.com/news/south-east/sales-close-on-500m-at-kfcs-
uk-operation
• Priday, R. (2018). The inside story of the great KFC chicken shortage of 2018.
https://www.wired.co.uk/article/kfc-chicken-crisis-shortage-supply-chain-
logistics-experts
• Carrol, N. (2022). KFC UK sales fall as inflation crisis bites.
https://www.marketingweek.com/kfc-uk-sales-fall-inflation/
• Humphreys, S. (2023). why the right way forward is important to KFC.
https://www.nfuonline.com/updates-and-information/pip-2022-23-why-the-
right-way-forward-is-important-to-kfc
• Humphreys, S. (2023). why the right way forward is important to KFC.
https://www.nfuonline.com/updates-and-information/pip-2022-23-why-the-
right-way-forward-is-important-to-kfc
• Reed.co.uk (2023). Working at KFC UK and Ireland.
https://www.reed.co.uk/company-profile/kfc-uk-and-ireland-496
• Pathiaki, K. (2017). KFC fined £1m for health and safety offences.
https://www.thecaterer.com/news/restaurant/kfc-fined-1m-for-health-and-
safety-offences
• Statista (2023). Number of Kentucky Fried Chicken restaurants worldwide
from 2010 to 2022. https://www.statista.com/statistics/256793/kfc-restaurants-
worldwide-by-geographic-region/
• Statista (2023). KFC brand awareness, usage, popularity, loyalty, and buzz
among restaurant chain customers in the UK in 2022.
https://www.statista.com/forecasts/1335595/kfc-restaurant-chains-brand-
profile-in-the-uk
• Rainey,K. (2018). Okay, KFC’s Ad About Its Chicken Shortage Is Pretty Great.
https://www.grubstreet.com/2018/02/kfc-apologizes-for-uk-chicken-shortage-
with-fkc-we-are-sorry-ad.html
• Robinson, A. (2019). We went behind the scenes at a Kent KFC and found
out how their chicken is really made.
https://www.kentlive.news/whats-on/food-drink/went-behind-scenes-kent-kfc-
3054723
All Regards
PART B Report (2639 words)
Executive summary
I have created a study to assess the impact of two more HR problems that I predict
will affect KFC uk's workplace over the next five years after submitting my
presentation slide-pack on organizational culture to the strategic leadership team.
These new subjects include
The supply chain issue caused KFC outlets all around the UK to run out of chicken.
The cause of this was due to multiple problems in their supply chain. Bidvest, is a UK
based food logistical company that is partnered with other popular fast food chains.
Bidvest Logistics was KFC’s previous logistical partner. Additionally, KFC may want
to take into account the recommended solutions, such as educating DHL before
accepting contracts, in order to prevent the supply chain problems. There will also be
advice on how KFC can prevent operational issues from arising in the first place.
These suggestions will assist KFC and its supply chain in their efforts to foresee
potential operational dangers and to improve customer service in order to enhance
the company's image.
2.0 THEME B Challenge - Employees hiring, training, and engagement.
(1029 words)
Every HR department values the need to identify fresh talent. But it creates new
difficulties for the fast food sector. The skilled labor force in this field is well-known.
When trying to recruit prospective applicants, the KFC team encountered many
obstacles. Responding to market rivalry, the surge of picky job searchers, and the
requirement for precise information are all examples of this (Burea, 2022).
The HR management team at KFC must find effective strategies for luring diverse
candidates in light of upcoming problems (UOM, 2018). The best approaches may
be to advertise employment on social media and online, or more lately, to cooperate
with surrounding colleges to draw students and graduates. In order to recruit
qualified individuals, HRM can also offer advantages to workers such allowances,
flexible work schedules, and recommendations (UOM, 2018). The recruiting process
is a crucial component of hiring. The human resource management team at KFC is
responsible for making sure the hiring procedure is efficient, equitable, and inclusive.
It involves checking job descriptions and requirements to make sure they are
pertinent and inclusive. Additionally, the human resource management should
investigate the workers' backgrounds to ensure that they adhere to the established
standards in full. The retention of personnel should be a priority for human resources
departments in businesses. Similar importance is given to personnel management
and retention. It reduces the expense of hiring new employees and improves job
productivity (Sprockets, 2023). However, in the fast food sector, where there is a high
rate of staff turnover, employee retention is low, and this is true of the KFC franchise.
The HR staff at KFC faces a serious obstacle as a result.
2.2 Training and Engagement
Despite having a robust staff training program, KFC faces significant challenges in
maintaining consistency in the quality of training (Dynamic, 2019). It is challenging to
provide consistent training across all sites and regions given KFC's global presence
in several distinct nations and cultures. Another challenge for KFC is incorporating
changing trends and technology. To stay up with market innovations and software
upgrades, the fast-food business must improve its training program (Maze, 2018).
This endowment is time-consuming and expensive since it requires in-depth
research and strong financial backing.
Another issue that may not appeal as much to the younger generation is how each
individual perceives the sector. The typical working conditions in fast food
restaurants include low pay, long hours, and monotonous labor. It could be difficult to
find and keep motivated young staff given this image. Offering professional
development chances to staff is another difficulty the KFC business is having. Lack
of a defined career path deters employees from sticking with the organization or
investing in their job (Dynamic, 2019).
1. The HRM team at KFC must create successful retention strategies that put
emphasis on employee engagement, growth, and happiness in order to meet
this issue. To assist employees in developing and moving up the corporate
ladder, it may also involve offering continual training and development
opportunities (Sprockets, 2023). HRM might also put in place employee
recognition programs that honor and reward exceptional employee work and
accomplishments.Workplace culture is another important factor in employee
retention (Gilbert, 2022). The HRM team of KFC is responsible for ensuring a
friendly, welcoming, and happy working environment. It involves setting up a
workplace that values feedback, cooperation, and open communication.
Finally, HRM may give staff members chances to take part in corporate
gatherings and activities that foster camaraderie and socializing.
3. To solve these issues and boost employee engagement at the same time,
Kentucky Fried Chicken can implement a number of strategies or initiatives. A
competitive package with benefits like health insurance, paid time off, and
retirement plans is one of the numerous solutions. Good personnel who are
driven to stay with the firm can be attracted and kept with its assistance
(Shrm, 2022).The second answer is to give workers chances for professional
advancement. To assist employees develop new abilities and succeed in their
careers, KFC can offer training, mentoring, and career possibilities. Employee
commitment to work may be increased by using this strategy, which can
inspire and instill a feeling of ownership in them (How now, 2022).
The operational issue that KFC was having was caused by its supply chain. On
February 17, 2018, KFC said that its outlets were short of chicken because DHL,
one of its new delivery partners, was experiencing "teething problems." When
KFC introduced new delivery contracts to DHL in order to replace Bidvest
Logistics, the latter "was struggling to cope with supplying 900" (Allen and Allen,
2018) KFC restaurants. As a result, KFC was forced to close more than "500 KFC
stores" (Evening Standard, 2018), which resulted in angry KFC patrons who
turned up at closed KFC locations. As a result, the consumer posted grievances
on Twitter, Facebook, and Instagram. As the negative remarks on social media
became worse, KFC's image suffered and the firm ran out of chicken in the UK.
2018's Evening Standard
Additionally, the restricted menus that were ; the KFC locations that were open
continued to generate issues within the KFC restaurants as customers and KFC
staff clashed over the menu. A study claims that KFC made a terrible error by
hiring DHL despite labor union representatives warning the company that doing
so would be disastrous given DHL's inexperience in the food distribution industry.
In 2018 (Supply Management), A brief supply gap caused by DHL, KFC's new
logistics partner, led to the company's operating problem. DHL distributes
packages internationally and has a global supply network in more than 200
nations. DHL is under criticism because it lacks distribution skills for fresh meat
while dealing with a fast food chain. In comparison to KFC's previous logistics,
Bidvest has greater expertise supplying busy fast food chains with fresh food.
Additional well-known fast food chains served by Bidvest Logistics include Pizza
Hut, Burger King, Pizza Express, and more.
In addition to having trouble getting the chicken delivered, Metro UK claimed that
DHL was having trouble finding lorry drivers for their company. When the on-duty
lorry drivers attempted to transport a significant quantity of goods to their distributors,
they became caught in traffic, which caused the incorrect goods to be delivered to
the incorrect outlets. Unfortunately, KFC decided to approve the deal with DHL
before realizing that they might shift their food supply chain. Since DHL lacks
expertise in the food supply chain, KFC restaurants were unable to obtain fresh
chicken for a few days, and other KFC locations had to wait weeks. The difficulty with
the supply chain was also brought on by DHL's access to just one warehouse in
Rugby, which was a serious challenge for them because they lacked the room for
their goods. Additionally, the distance between the one warehouse and certain KFC
locations meant that supplies of chicken were delayed when cars were trapped in
traffic. When compared to KFC's previous logistics, Bidvest had more than six
warehouses, which made it simpler for them to supply KFC with their goods in a
more organized manner.
In addition, the supply chain was impacted due to DHL's need to swiftly adapt to a
new software system supplied by a third party called QSL. According to "technology
analyst Chris Green," who made this claim, DHL was unable to get the proper data
from KFC's order because it was unfamiliar with how to utilize the new software. Due
to unclear communication between the two parties, this resulted in DHL making
errors on KFC chicken orders, which produced an issue for KFC's supply chain.
1. Even though KFC dealt with the issue, it is crucial that it never arises again in
the future. Due to KFC's ignorance of DHL, there was a problem with the KFC
supply chain. KFC ought to have done its research on DHL's experience and
how it would impact the fast food chain before any contracts were accepted.
KFC need to have used a different strategy to address the supply chain issue.
For instance, it is advised that KFC managers spend more money on
educating their logistical partners since doing so would assist the distributors
understand what they are doing and what KFC wants them to do. Regarding
DHL, orders would not have been misplaced if KFC had instructed DHL on
how to utilize the new software system. Which would have resulted in
consumers being served at KFC locations with chicken that was delivered on
schedule. Additionally, training will assist DHL in learning more about KFC and
determining how quickly KFC desires their chicken to be delivered. DHL will
become more organized as a result, and it will be ready to recruit additional
delivery drivers to deliver to KFC locations.
2. Successful fast food restaurants like McDonalds have spent an entire day
training various logistical partners on how to show delivery drivers where to
deposit supplies and how to confirm orders. Due to this, McDonald's was able
to prevent supply chain issues and ensure that its vendors knew how they
wanted their deliveries to be made. The KFC manager could also think about
setting up trials with DHL. For instance, KFC may test delivery times for seven
days to see how quickly DHL can provide chicken to UK KFC locations.
Additionally, the testing will allow KFC to see if DHL can rapidly adjust to the
new software.
3. It is crucial that KFC management be more conscious of the fact that there
are more than 850 locations in the UK and that delivering fresh meat to every
KFC location throughout the UK won't always be possible from a single DHL
warehouse. Therefore, because there is only one warehouse, this issue has
resulted in deliveries being delivered late or not at all because delivery trucks
are backed up in traffic. In order for the items to be dispatched more quickly,
managers must choose a new logistics provider with additional warehouses. If
KFC wants to keep DHL as their partner in distribution, they might think about
having DHL deliver to KFC restaurants that are within 10 miles of their
warehouse and looking for new sources of local chicken suppliers that are
within 10 miles of other KFC stores. This will prevent delivery drivers from
getting stuck in traffic. Additionally, it will relieve some of the strain on a single
source. In connection with this, having additional logistical partners has
proven successful for McDonald's, the most well-known fast food chain
worldwide. They have the best supply chain since they have multiple logistical
partners to serve their franchisees in any area where there is a McDonald's
restaurant. (T1 2016 MPK732 Marketing Management (Cluster B), 2018)
Conclusion comments
There are several problems that need to be fixed as a result of the fast food
company's operating difficulties. Therefore, KFC has to make a number of
improvements, such as keeping a reliable logistics provider with the expertise
to ensure that fresh chicken is delivered on schedule to every KFC location in
the UK. This study also found that KFC management has to work on
enhancing their reputation among consumers by demonstrating to them that
KFC is devoted to giving them better service in order to make up for the
weeks’ worth of upset patrons.
References
Bureau of Labor Statistics. (2022). Labor force statistics from the current population
survey. Retrieved from https://www.bls.gov/cps/Case study - KFC (2023)
Sprockets. ;: https://sprockets.ai/case-study-kfc-employee-retention/
Dwesini, N. F. (2019). Causes and prevention of high employee turnover within the
hospitality industry: A literature review. African Journal of Hospitality, Tourism and
Leisure, 8(3), 1-15.
https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_38_vol_8_3__2019.pdf
Factors influencing turnover intention among fast food ... - HRMARS (2018) Human
Resource Management Academic Research Society. hrmars. ;:
https://hrmars.com/papers_submitted/5225/Factors_Influencing_Turnover_Intention_
among_Fast_Food_Restaurant_Managers.pdf
Gilbert, M. (2022) Workplace culture and how it affects employee retention, INC
Magazine. ;: https://www.inc.com/mandy-gilbert/workplace-culture-how-it-affects-
employee-retention.html
KFC: World Famous Fried Chicken. KFC.com. (2023). Retrieved April 28,
2023, fromhttps://www.kfc.com/aboutKurniawaty, K., Ramly, M., & Ramlawati, R.
(2019). The effect of work environment, stress, andjob satisfaction on employee
turnover intention. Management science letters, 9(6), 877-886.
http://growingscience.com/beta/msl/3122-the-effect-of-work-environment-stress-and-
job-satisfaction-on-employee-turnover-intention.htmlIis,
E. Y., Wahyuddin, W., Thoyib, A., Ilham, R. N., & Sinta, I. (2022). The Effect of
Career Development And Work Environment On Employee Performance With Work
Motivation As Intervening Variable At The Office Of Agriculture And Livestock In
Aceh. International Journal of Economic, Business, Accounting, Agriculture
Management and Sharia Administration (IJEBAS), 2(2), 227-236.
http://radjapublika.com/index.php/IJEBAS/article/view/191
Maze, J. (2018) KFC pushing new technology for its workers, Restaurant Business.
Restaurant Business. ;: https://restaurantbusinessonline.com/workforce/kfc-pushing-
new-technology-its-workers
. Shrm (2022) SHRM state of the Workplace Report 2021-2022, SHRM. SHRM. ;:
https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Pages/
SHRM-State-of-the-Workplace-Report-.aspx
The impact of KFC’s human resource practices on the KFC employee’s ... (2019)
dynamic publisher. www.dynamicpublisher.org. ;:
http://www.dynamicpublisher.org/gallery/6-ijsrr-d-2426-f.pdf
7. Evening Standard. (2018). What caused the KFC chicken shortage and when
can I eat it again?. [online] ;: https://www.standard.co.uk/news/uk/kfc-chicken-
shortage-what-caused-the-fast-food-giant-to-run-out-of-chicken-and-when-
will-the-poultry-a3771186.html
8. Allen, F. and Allen, F. (2018). Here’s why KFC ran out of chicken and what
their cheeky apology was about. [online] The Sun. ;:
https://www.thesun.co.uk/money/5611251/kfc-run-out-chicken-kentucky-fried-
chicken-stores-open-now-near-me-apology/
11. Best Food Logistics. (2018). Best Food Logistics | Specialists in Supply Chain
Solutions. [online] ;: https://bestfoodlogistics.com
19. Evening Standard. (2018). What caused the KFC chicken shortage and when
can I eat it again?. [online] ;: https://www.standard.co.uk/news/uk/kfc-chicken-
shortage-what-caused-the-fast-food-giant-to-run-out-of-chicken-and-when-
will-the-poultry-a3771186.html
20. BBC News. (2018). KFC crisis ’caused by depot chaos’. [online] ;:
https://www.bbc.co.uk/news/uk-england-coventry-warwickshire-43142498
[Accessed 12 Dec. 2018].
21. https://www.researchgate.net/profile/Lisa_Ellram/publication/
235251758_Characteristics_of_Supply_Chain_Management_the_Implications
_for_Purchasing_Logistics_Strategy/links/58535d8a08ae0c0f32227b5a.pdf
22. https://www.researchgate.net/profile/Lisa_Ellram/publication/
235251758_Characteristics_of_Supply_Chain_Management_the_Implications
_for_Purchasing_Logistics_Strategy/links/58535d8a08ae0c0f32227b5a.pdf
23. https://www.researchgate.net/profile/Lisa_Ellram/publication/
235251758_Characteristics_of_Supply_Chain_Management_the_Implications
_for_Purchasing_Logistics_Strategy/links/58535d8a08ae0c0f32227b5a.pdf
24. https://www.google.co.uk/amp/s/mpk732t12016clusterb.wordpress.com/
2016/05/14/distribution-and-logistics/amp/
25. https://www.google.co.uk/amp/s/mpk732t12016clusterb.wordpress.com/
2016/05/14/distribution-and-logistics/amp/
26. http://www.tlimagazine.com/sections/packaging-and-warehousing/2364-
mcdonalds
27. http://campaignlive.com/
28. https://www.campaignlive.com/article/plucky-pr-counters-chicken-fck-up/
1485750
29. http://google.co.uk/
30. https://www.google.co.uk/amhp/s/amp.ft.com/content/223d4df0-1595-11e8-
9376-4a6390addb44
31. https://www.google.co.uk/amhp/s/amp.ft.com/content/223d4df0-1595-11e8-
9376-4a6390addb44
32. Supply Chain Dive. (2018). KFC recovers from DHL disruption, but at a cost.
[online] ;: https://www.supplychaindive.com/news/KFC-chicken-shortage-DHL-
settlement-recovery/523193/
33. Supply Management. (2018). KFC was ‘warned DHL would fail’. [online] ;:
https://www.cips.org/en-GB/supply-management/news/2018/february/kfc-
warned-that-dhl-would-fail-its-supply-chain-says-union/
35. boulton, c., Dunn, J. and Marketing, D. (2018). What do KFC and DHL have in
common?
36. FUBAR as numerous KFC UK outlets close following chicken outage. [online]
diginomica. ;: https://diginomica.com/2018/02/19/kfc-dhl-fubar-as-uk-outlets-
close-following-chicken-outtage/
37. Weaver, M. (2018). KFC was warned about switching UK delivery contractor,
union says. [online] the Guardian. ;:
https://www.theguardian.com/business/2018/feb/20/kfc-was-warned-about-
switching-uk-delivery-contractor-union-says