OPERATIONS

MANAGEMNT
COMPANY NAME

GROUP MEMBERS

M.Aziz Subhani M08MBA015

Jamshaid Anayat M08MBA020
Mirza M.Babir Yousaf M08MBA053
Hafiz Arfan Butt M08MBA064
INTRODUCTION
• KFC is the world’s largest and most
famous restaurant, with chain in more
than 16 thousand and 200 locations in
world wide 100 countries.
• KFC and its franchise employees are
more than 200 thousand all over the
world.
• In 1997 KFC franchised with Gray
Mecanza International and started work
in Pakistan.
• After 10 years KFC has 45 outlets in
Pakistan.
History Of KFC
• At the age of 40 as an operator as a service station in
Corbin, Kentucky, Colonel return to his love of cooking
and began to cook and serve food to hungry travelers
from his own living quarters.

• The Colonel devised his recipe for fried chicken using a

secret blend of 11 herbs and spices the same blend
of recipe is still used in KFC all over the world and is
called the “Original Recipe”.

• Since 1950’s has grown at remarkable pace from one

roadside restaurant into an internationally renowned
restaurant chain and one of the largest chain in the
world.
• The Colonel remain KFC’s good will
Ambassador.

• The Colonel Died in 1980, at the age of 90

• Although the Colonel is no longer with us but

his philosophies of hardworking and excellent
services to be the no.1 priority of KFC, will
always be the part of KFC tradition.
 SLOGAN of KFC
• KFC specialized in Chicken and they say,

• “ No body is cooking like KFC today

and we are the chicken experts ”.

• “There is no competitor for spicy

chicken which is made by KFC”.
Mission Statement

• To be the leader in
western style quick
service restaurant
through friendly service,
good quality food and
clean atmosphere.
 Philosophy of KFC
Philosophy of KFC stands on the “Champs Program”

• Cleanliness
• Hospitality
• Accuracy
• Maintenance of
facilities
• Product quality
• Speed of Service
ORGANIZATIONAL
STRUCTURE
CUPOLA
CHIEF EXECUTIVE
(Rafique Rangoonwala,
Karachi)
Main Head Office

OPERATIONAL
GENERAL MANAGER
(Asim Hussain)

RESTAURANT GENERAL
MANAGER
Regional Office

RESTAURANT MANAGER

ASSISTANT RESTAURANT MANAGER

(Two in every branch)

SHIFT
SUPERVISOR
TEAM
MEMBERS
JAMSHAID ANAYAT
Current Market Situation:

• Market Share:

• The most recognize able brand in chicken with over

50% of market share

• Current Product review:

• Mighty Zinger Nuggets
• Zinger Burger Corn on the Cob
• Fish Zinger Burger Arabian Spice
• Salsa Twister Chicken Mania
• Chicken Burger Crispy Chicken Chunks
• Sub60 Hot & Crispy Soup
• Twister Cappuccino
Current Products Review
Current Products Review
Current Products Review
Pricing Strategy of Products

Price
• Sample of products that KFC offers,
how they set the prices of a product.

PRICING STRATEGY FOR TWISTER

 Manufacturing cost Rs.225/-

 5% market cost (Per Unit) Rs.5/-
 Total Cost Rs.230/-
 15% G.S.T+15% Retail Margin Rs.69/-
 Total Retail Price Rs.300/-
 Services

• KFC offered free

home delivery service
at specific branches
at specific cities
• They take 30 minutes
for delivery and
minimum order
delivery should
Rs.250/-
 Competitive Analysis
KFC McDonald’s
Spicy Products Burger and French Fries
Arabian Rice and Zinger Big Mac
Burger
Free Delivery Free Delivery
Chicken is eaten by every Beef is banned is some
community community
Local Staff, highly qualified Its staff consists of simple
because local staff can deal graduates and give them
better with customer training
KFC uses Top to Bottom and McDonlad’s uses Top to
Bottom to Top approach Bottom approach
to Management
KFC is co branding with No such cases
walls
Hafiz arfan butt
KFC SWOT ANALYSIS

S W
Strengths Weaknesses

O T
Opportunities Threats
 Strengths

• Brand Equity.
• KFC secret recipe of 11 herbs
species.
• Strong Market Share (over 50%)
• Strong Franchise and License
Fee revenues for cash flow.
• 2nd Only to McDonald’s in
Foreign Sales $550M
 Weaknesses

– Lack of knowledge about their

customers.
• Lack of relationship buildings
with employees
• Lack of focus on R&D
• Question of over franchising
leads to loss of control and
quality
 Opportunities
• They have the opportunities to
expand their sweet products.
• They can open more outlets to get
maximum market share.
• Home Meal Replacement Market
will exceed an estimated $577
billion by 2020
• New Leadership, Domestic
markets and Customer focus
 Threats
• Rated 83 out of 100 in term of
competitiveness.
• Increasing inflation rates directly
affects menu rates.
• Supermarkets and new
competitors.
• Increasing wage rates directly
affect menu prices
•  85% annual employee turnover
for fast –food market
Mirza M. Babir Yousaf
 Objectives of KFC

• Build an organization dedicated to excellence

• Consistently deliver superior quality and value in our
products.
• Maintain a commitment to innovation for continuous
improvement and grow, striving always to be the leader
in market place changes.
• Generate consistently to superior financials retums and
benefits our owners and employees.
• To establish a position in Pakistan as a leading WQSR
(Western Quick Service Restaurant) chain, serving
good value added services and innovative chicken
based products.
 Values of KFC

• Reward and respect the contribution of each

individual at KFC.
• Expand and update training with time and be
the best
• Be open, honest and direct in our dealing
with one another.
• Commit ourselves to the highest standard to
the personal and professional integrity at all
times.
• Encourage new and innovative ideas.
• Reward results not simple efforts.
• Work as a team.
 Issues of KFC
• EVERY CHICKEN TESTED
• K & N’s state-of-the-art Quality Assurance
Lab monitors the entire integration process
from live stock to feed and on the preparation
of ready-to-cook and cooked products.

• EVERY CHICKEN CERTIFIED

• K & N’s ensure food safety by implementing
the International HACCP(Hazzard Analysis
and Critical Control Points a Food Safety
System) and enjoy the unique privilege of
being the first and only HACCP certified
company in Pakistan producing chicken and
chicken products.
 SUPPLY CHAIN
MANAGEMENT
KFC works on supply chain management for
the need of

 TO Increase Operations.

 Increasing Levels Of Outsourcing.

 Increasing Transportation Cost.

 Competitive Pressure.

 Increasing Globalization.
 Supply Chain
 SUPPLIER.

 MANUFACTURING STORAGE.

 DISTRIBUTERS.

 RETAILERS.

 CUSTOMER
QUALITY MANAGEMENT
SYSTEM
Managing quality in a company
revolves around customer
expectations, defining product
specification based on these
expectations and subsequently
ensuring that the product being
manufactured conform to the
design specification.
 Quality System

• KFC recognize this fundamental by

using 2 complementary programs for
measuring quality.

• The Quality, Service and Cleanliness (QSC)

• For measuring quality of service outcomes.

• The Operation Facility Review (OFC)

• For measuring a restaurant’s process
implementation performance against KFC’s
process specifications.
QUALITY ASSURANCE
• Mr. Rafiq Rangoonwala, CEO
Cupola Pakistan, was recently
the recipient of the Big Leap
Forward Award.KFC Pakistan
was honored to receive the
award among 110 countries
and 800 participants. The
award was presented to Mr.
Rangoonwala by Mr. Graham
Allan, President, YUM
Restaurants International at a
recent conference in Prague,
Czech Republic.
• THAT’S ALL!

• THANK YOU.