Managerial Policy

Kentucky Fried Chicken

Presented by:
Muhammad Farhan Akhtar
 The Evolution of KFC
• 1939 – Colonel Sanders develops his original recipe chicken

• 1952 – Kentucky Fried Chicken is Formed

• 1952 – 1997 KFC grows into national Restaurant Chain

– Many owners and stake holders along the way.

• 1986 – PepsiCo’s acquisition of KFC

• 1997 – Tricon Global Restaurants Inc is formed as a spin-off from PepsiCo

• 2002 – Tricon changes its corporate name to YUM! Brands

• 2007 – KFC introduces its Zero grams Trans Fat recipe

KFC in Pakistan
 Vision / Mission Statement
• Vision
To sell food in a fast, friendly environment that appeals to
pride conscious, health minded customers
• Mission
Our passion, as a restaurant company, is to put a YUM on
people’s faces around the world, SATISFYING CUSTOMERS
every time they eat our food and DOING IT BETTER than
any other restaurant company. The UNIQUE EATING
EXPERIENCE at each of our restaurants MAKE OUR
CUSTOMER SMILE and inspire their loyalty for lift. Toward
that end, our associates around the world are trained to be
CUSTOMER MANIACS.
 Goals
• 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 growth, striving
always to be the leader the market place
changes.
• Generate consistently superior financial returns
and benefit our owners and employees.
 Products

Chicken Mania Hot Shots Hot wings Family Feast

Zinger Mighty Zinger Rice n Spice Wings n Rice

Wow Meal Nuggets Twister Xtreme Zinger

 SWOT Analysis
STRENGTHS
S1. Good Taste
S2. Brand Equity
S3. Global Experience
S4. Operations
S5. Trademark Recipes
S6. Strong Customer Focus
OPPORTUNITIES SO – Strategy
O1. Increase outlets •Introduced new recipes (S1,S2,O3)
O2. Undeveloped market abroad • Increase numbers of outlets in
O3. Increase trends to take meal different countries (S3,O5)
out of home • Capture customer by introducing new
O4. Earn big profits as the deals (S6,O4)
population grows
O5. Availability to increase the
number of franchise to other
countries.
THREATS ST – Strategy
T1. New entrants / better quality brands •Introduce healthier recipes (S5,T2)
T2. Health conscious eating habits • Differentiate as one providing in fastest
T3. Animal care activists service (S2,S4,T1)
T4. No support from government • Engage in CSR activities (S2,S4,T3)
agencies
T5. Intensive Competition
WEAKNESSES
W1. High price
W2. Image of ‘Fried’
W3. Only chicken related recipe
W4. Most of the product having
close substitution in market
W5. Inconsistent Quality of service
in many outlets.
W6. Lack of control in Joint-
venture arrangements.
WO – Strategy
•Introduce cheaper items in the menu
(W1,O3)
• Change the image of KFC from fried to
Healthy (W2,O3)
• Offer cow meat and vegetable food
also (W4,O4)
WT– Strategy
•Work on the image of a healthy fast
food chain through advertising (W2,T2)
• Develop a strong culture of strong
service (W5,T5)
 Recommendations
• Short Term
– Introduce new recipes suited to local taste
– Introduce cheaper items in the menu
– Introduce healthier recipes
– Differentiate through good services
– Work on the image of a healthy fast food chain through
advertising
• Long Term
– Change the image of KFC from fried to ‘healthy’
– Open up new outlets
– Engage in CSR activities related to animals & environment
– Develop a strong culture of good service
Internal Factor Evaluation (IFE)
(IFE) Cont....
External Factor Evaluation (EFE)
(EFE) Cont....
Competitive Profile Matrix (CPM)
BCG Matrix
 Internal-External Matrix (IE)
IFE Total Weighted Score
IFE = 2.78 Strong Average Weak
EFE = 3.20
3.0 to 4.0 2.99 to 2.0 1.99 to 1.0
3.0 to 4.0
High

I II III
EFE Total Weighted Score

2.0 to 2.99
Medium

IV V VI
1.0 to 1.99
Low

VII VIII IX
 Grand Strategy Matrix
Rapid Market Growth
Quadrant II
• Market Development
• Market penetration
• Product development
• Horizontal integration
• Divestiture
• Liquidation
Weak
Competitive
Position Quadrant III
• Retrenchment
• Concentric
diversification
• Horizontal
diversification
• Conglomerate
diversification
• Liquidation
Slow Market Growth
Quadrant I
• Market Development
• Market penetration
• Product development
• Forward integration
• Backward integration
• Horizontal integration
• Concentric
diversification Strong
Competitive
Quadrant IV Position
• Concentric
diversification
• Horizontal
diversification
• Conglomerate
diversification
• Joint ventures
THANK YOU