PRODUCTION AND

OPERATION
MANAGEMENT OF KFC
SUBMITTED By
SAGAR 0221MBA055
DOVE SHARMA0221MBA023
DIVYA SEHGAL0221MBA041
ANSHUL BHATIA0221MBA046
HRITHIK TANWAR0221MBA032
 INTRODUCTION
• KFC (Kentucky Fried Chicken) is an American Fast
food restaurant chain headquartered in Louisville, that
specializes in Fried chicken.
• It is the world's second-largest restaurant chain (as measured by
sales) after McDonald's, with 22,621 locations globally in 150
countries as of December 2019.The chain is a subsidiary of 
Yum! Brands, a restaurant company that also owns the 
Pizza Hut and Taco Bellchains .
• KFC was founded by colonel Harland Sanders (1890–1980), an
entrepreneur who began selling fried chicken from his roadside
restaurant. Sanders identified the potential of the
restaurant Franchising concept and the first "Kentucky Fried
Chicken" franchise opened in Salt lake City,  in 1952.
• KFC popularized chicken in the fast-food industry, diversifying
the market by challenging the established dominance of
the Hamburger. expand internationally, opening outlets in
Canada, the United kingdom, Mexico and Jamaica by the mid-
1960s.
 Quality
• As the largest fast-food chain in both Malaysia and Brunei, KFC is
committed to serve only Finger Lickin' Good food. Through a series of
stringent food safety procedures, we provide customers with high quality
products including our Original Recipe® fried chicken with 11 secret
herbs and spices.
• Our quality control begins from the supply of all the raw materials. An
annual supplier audit is conducted by an international third party auditing
company appointed by YUM. Audits are also carried out by a team of food
technologists from the KFC Quality Assurance Department to ensure food
safety, quality systems, packaging facility, distribution and transportation.
 Purchasing 
• This is also considered one of the important components of operations
management. This component ensures that the business organization
has enough raw materials for production to supply the future demand
from the market. Purchasing raw materials can be done as a
centralized, decentralized, or a combined strategy.
• Centralized purchasing is when a single department is responsible for
purchasing raw materials for the entire production process.
Decentralized purchasing is when each department or branch in the
production process purchases their own raw materials separately based
on their individual ne
 Location Strategies 
• This is considered one of the important components of operation
management. The business has to select the right location for its
existence and growth. There are many factors that need to be
considered when selecting the right location for the business. Business
should be located in a place where it can easily access the raw material
for the production, it should have enough space to maintain inventory,
costs such as transportation should be reasonable, the environmental
factors should be favorable (weather conditions, political and
economical conditions) and it should have convenient access to the
target market. Apart from these identified factors, the business should
be established in the selected place at a reasonable cost.
Supply chain management
• Supply chain management is also a critical
source of competitive advantage for the
QSR brands. All the leading brands that
enjoy a strong competitive moat in the
global market have focused on managing
their supply chains. KFC’s supply chain
has helped it maintain its quality standards
and achieve cost-effectiveness. While the
brand faced a severe supply chain crisis a
few years ago, it has transformed its
supply chain strategy since then.
 MARKETING
• Another critical source of competitive advantage in the QSR industry
is marketing. The industry is marked by heavy competition. There are
several brands competi/ng for market share in the industry. So, all the
leading brands focus heavily on marketing. To achieve faster growth,
they invest in menu innovation, customer service and marketing. Apart
from digital channels, KFC uses its store and outdoor advertising for
promotions. Social media is also a key marketing channel KFC utilizes
for promotions and customer engagement. Yum brands spent more
than $1 billion on advertising in 2020.
Menu innovation:

• One of the key attractions of KFC is its diversified menu. The

company serves a wonderful and diversified menu of mainly chicken
items. It has also included some vegetarian items on the menu to
attract vegetarian customers. With time, the company has continued to
invest in menu innovation to make it more attractive for the customers
worldwide. For example, the company introduced a 
new chicken sandwich in 2021. It is available across all KFC
restaurants in the United States. It introduced new items in 2020 as
well. THe company keeps expanding and changing its menu
composition to suit the changing tastes and preferences of the
customers worldwide.
Resilient business model
• KFC’s business model is mainly franchisee based or 99% of its stores
are operated by franchisees. The company has expanded its business
footprint globally. However, it has a strong and resilient business
model that responded well during the crisis. Its resilient business
model is a leading strength that has helped the company achieve
superior sales and revenue.
Customer experience:

• An important aspect of the restaurant business is the customer

experience. Superior customer experience leads to higher customer
loyalty, superior sales, and higher revenue. Customer experience is a
critical factor that affects consumer behavior and leads to repeat
purchases. A superior customer experience depends on several factors
including customer service, product quality, marketing, technology
and in-store experience. KFC has focused on all these areas to offer its
customers a superior experience. Its focus on customer experience has
transformed into higher sales and superior growth. 
 Conclusion
• In conclusion, KFC as a well-known and advanced fast food product store generally has aclassic down-
down command communication strategy structure. The use of technology andthe implementation of the
KFC portal is a huge advantage for KFC as all employees haveemail in the system. All official
communications are done within the portal allowingmanagers and employees to be constantly monitored.
Employees are allowed to providefeedback and submit complaints directly to general managers through
the KFC portal. This isalso a good step to make everyone's voice heard that there is a communication
strategy likethis and can explore more deeply
• Successful change implementation often requires a quick sense of ever changing situationsand market to
clearly define goals and modes to achieve them. When it comes to KFC, themanagement should quickly
sense the risks and requirements the pandemic has imposed on16 the food and beverage industry as well as
derive quick strategies to accommodate it. Forexample, KFC management sensed the urgency to
temporarily put down their slogan, fingerlickin good' in response to the pandemic. Similarly, KFC should
also sense the need forcompetitive advantage among the competitors to survive through pandemic. By
quicklysensing the changes of the external environment, it would be very effective in managing theinternal
changes that are required since it enables KFC to identify the specific changesneeded in organization and
clearly define and communicate the changes to employees in avery effective manner