Multinational company: Kentucky Fried Chicken (KFC)

The MNC I choose to profile is none other than the great KFC, the company that s ruling !akistan these days" #et s see $hat makes it the %est amongst all others"

Kentucky Fried Chicken &'er'ie$

KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain, specializing in Original Recipe , !"tra Crispy#, $wister and Colonel's Crispy %trips chicken with homestyle sides& !very day, nearly eight million customers are served around the world& KFC's menu includes Original Recipe chicken, made with the same great taste Colonel 'arland %anders created more than a hal()century ago& Customers around the globe also en*oy more than +,, other products, (rom a Chunky Chicken -ot -ie in the .nited %tates to a salmon sandwich in /apan& KFC has more than 00,,,, restaurants in more than 1, countries and territories around the world& 2nd in 3uite a (ew .&%& cities, KFC is teaming up with sister restaurants, 245, 2ll)2merican Food#, Long /ohn %ilver's, $aco 6ell and -izza 'ut, selling products (rom the popular chains in one convenient location& KFC is part o( 7um8 6rands, 9nc&, which is the world's largest restaurant system with over +:,;,, KFC, 245 2ll)2merican Food#, $aco 6ell, Long /ohn %ilver's and -izza 'ut restaurants in more than 0,, countries and territories&
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From ()*+ to ,"- .illion in +* years

Kentucky Fried Chicken, pioneered by Colonel 'arland %anders, has grown to become one o( the largest 3uick service (ood service systems in the world ) with more than a billion <(inger lickin' good< Kentucky Fried Chicken dinners served annually in more than 1, countries and territories& 6ut success didn't come easily& 9n )/01 'arland's (ather died, (orcing his mother to enter the work(orce to support the (amily& 2t the tender age o( si", young 'arlan was responsible (or taking care o( his younger siblings and doing much o( the (amily's cooking& 2 year later he was already a master o( several regional dishes& Over the course o( the ne"t +, years, %anders held *obs ranging (rom streetcar conductor to insurance salesman, but throughout it all his skill as a cook remained& $he Cook 6ecomes a Colonel 9n )02*, the then =,)year)old %anders were operating a service station in Corbin, Kentucky, and it was there that he began cooking (or hungry travelers who stopped in (or gas& 'e didn't have a restaurant yet, so patrons ate (rom his own dining table in the station's humble living 3uarters& 9t was then that he invented what's called <home meal replacement< ) selling complete meals to busy, time)strapped (amilies& 'e called it, <%unday >inner, %even >ays a 5eek&< 2s %anders' (ame grew, ?overnor Ruby La((oon made him a Kentucky Colonel in )02+ in recognition o( his contributions to the state's cuisine& 5ithin (our years, his establishment was listed in >uncan 'ines' <2dventures in ?ood !ating&< 2s more people started coming strictly (or the (ood, he moved across the street to increase his capacity& Over the ne"t decade, he per(ected his secret blend o( 00 herbs and spices and the basic cooking techni3ue that is still used today& $he Colonel's Cooking %preads 5orldwide

9n )0++, con(ident o( the 3uality o( his (ried chicken, the Colonel devoted himsel( to developing his chicken (ranchising business& Less than 0, years later, %anders had more than @,, KFC (ranchises in the .&%& and Canada, and in )013 he sold his interest in the .&%& company (or A: million to a group o( investors including /ohn 7& 6rown /r& Bwho later became governor o( KentuckyC& .nder the new owners, Kentucky Fried Chicken Corporation grew rapidly& 9t went public in )011, was listed on the Dew 7ork %tock !"change in )010 and eventually was ac3uired by -epsiCo, 9nc& in )0/1& 9n )00,, -epsiCo, 9nc& spun)o(( o( its 3uick service restaurants) including KFC)into an independent restaurant company, $ricon ?lobal Restaurants, 9nc& $oday, the restaurant company Bnow 7.E8 6rands, 9nc&C, is the world's largest in terms o( system units with nearly +:,;,, in more than 0,, countries and territories& .ntil he was (atally stricken with leukemia in )0/* at the age o( F,, the Colonel traveled :;,,,,, miles a year visiting KFC restaurants around the world&

KFC strategy:
0& -rimary ob*ective is to take advantage o( the potential growth in other countries, to establish a strong position and to develop their image& Key success (actors areG !ver continuing cost %avings through R4> 9nnovations and use o( new technologies to work e((iciently $hese success techni3ues will lower costs and increase pro(its in the industry&
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KFC uses an integrated low costHdi((erentiation leadership, since i( can count on its brand name and original taste and recipes to be uni3ue while at the same time compete on price using the bene(its o( cost savings (rom economies o( scale&

4d'ertising 5trategy:
KFC's logo used (rom 0FFI until Dovember :,,@

!arly television advertisements (or KFC regularly (eatured Colonel %anders licking his (ingers and talking to the viewer about his secret recipe, and by the 0F@,s both the Colonel and the chain's striped bucket had became well)known& $he bucket as product placement can be seen in the hands o( both 2nnette Funicello and >wayne 'ickman in 0F@;'s 'ow to %tu(( a 5ild 6ikini, and was also (eatured prominently in the 0F@1 -eter %ellers vehicle, $he -arty& $he Colonel made appearances as himsel( in /erry Lewis's $he 6ig Eouth B0F@IC, 'erschell ?ordon Lewis' 6last)O(( ?irls B0F@IC and 2l 2damson's 'ell's 6loody >evils B0FI,C, as well as an appearance in 0F@1 on Rowan 4 Eartin's Laugh)9n& >espite his death in 0F1,, %anders remains a key symbol o( the company in its advertising and branding& $hroughout the mid 0F1,s, KFC called on 5ill Jinton %tudios to produce a series o( humorous, claymation ads& $hese most o(ten (eatured a cartoon)like chicken illustrating the poor (ood 3uality o( competing (ood chains, mentioning prolonged (reezing and other negative aspects& $J ads also (eatured Foghorn Leghorn advising 'enery 'awk to visit the restaurant (or better chicken& 9n the 0F1,s, KFC was an associate sponsor (or /unior /ohnson's D2%C2R 5inston Cup %eries cars, with such drivers as >arrell 5altrip, Deil 6onnett, and$erry Labonte& 9n 0FFI, KFC brie(ly re)entered the D2%C2R 5inston Cup %eries as sponsor o( the K:@ >arrell 5altrip Eotorsports Chevrolet with driver Rich 6ickle at the6rickyard =,,& 2 co)branded Long /ohn %ilver's and KFC 6y the late 0FF,s, the stylized likeness o( Colonel %anders as the KFC logo had been modi(ied& KFC ads began (eaturing an animated version o( <the Colonel< voiced by Randy Luaid with a lively and enthusiastic attitude& 'e would o(ten start out saying <$he Colonel here8< and moved across the screen with a cane in hand&

$he Colonel was o(ten shown dancing, singing, and knocking on the $J screen as he spoke to the viewer about the product& $he animated Colonel is uncommon today& %till using a humorous slant, the current KFC campaign revolves mostly around customers en*oying the (ood& 9t also (eatures a modi(ied version o( Lynyrd %kynyrd's <%weet 'ome 2labama< as the theme song (or practically all its commercials, though the restaurant actually hails (rom Kentucky& 9n :,,@, KFC claimed to have made the (irst logo visible (rom outer space, though Readymi" has had one since 0F@;& KFC says <9t marked the o((icial debut o( a massive global re)image campaign that will contemporize 0=,,,,)plus KFC restaurants in over 1, countries over the ne"t (ew years&< $he logo was built (rom @;,,,, one)(oot)s3uare tiles, and it took si" days on site to construct in early Dovember& $he logo was placed in the Eo*ave >esert near Rachel, Devada&M=;N 9t is located in the northern section o( Rachel, Devada at +I&@=@,OD 00;&I;,IO5 & Eany KFC locations are co)located with one or more o( 7um8 6rands restaurants, Long /ohn %ilver's, $aco 6ell, -izza 'ut, or 245 Restaurants& Eany o( these locations behave like a single restaurant, o((ering a single menu with (ood items (rom both restaurants&

$he resurrected Kentucky Fried Chicken logo One o( KFC's latest advertisements is a commercial advertising its <wicked crunch bo" meal<& $he commercial (eatures a (ictional black metal band called <'ellvetica< per(orming live, the lead singer then swallows (ire& $he commercial then shows the lead singer at a KFC eating the <wicked crunch bo" meal< and saying <Oh man that is hot<& 9n :,,I, the original, non)acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and (ood packaging, as well as some restaurant signage& 9n :,0,, an advertisement was shown in 2ustralia showing an 2ustralian cricket (an giving 5est 9ndies (ans KFC chicken to keep them 3uiet&
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$he ad sparked a debate over racism in the ad, suggesting that all black people eat (ried chicken& Fried chicken was eaten by black slaves because it was cheap and easy to make& $hough KFC stated that it was <misinterpreted by a segment o( people in the .%< the ad was later pulled (rom $J& 'owever, several 2ustralian commentators have e"pressed the opinion that the ad is not racist, because this is not a racial stereotype in 2ustralia and the cricket (ans in the ad are not 2(rican 2merican, but 5est 9ndies cricket supporters Bthe 5est 9ndies Cricket $eam was playing a$est cricket series against the 2ustralian Cricket $eam at the time o( the adC&

!hilosophies and !ractices:

KFC recognizes a strict social responsibility& $hey have been working on di((erent philosophies to help the society on the whole&

)" !retty in pink: KFC undergoes colorful makeo'er to raise a$areness of %reast cancer and attempt record setting donation" (This highlight $as seen in the ne$s) For First Time 6'er, Iconic KFC .ucket 7ill 8o !ink, 4long $ith 8lo%al 9ead:uarters and Colonel s Classic 5uit, in 5upport of 5usan 8" Komen For the Cure;
LO.9%J9LL!, K7 ) -ink is the new black Band redC, at least at KFC restaurants nationwide& From one local restaurant to the world corporate head3uarters, Kentucky Fried Chicken is getting a brand)wide pink (aceli(t P and encouraging others to *oin in, (or breast cancer programs at the national and local levels& $hese are some o( the reviews o( employees and customers about the whole idea& KFC is *oining the (ight against breast cancer with a national Q6uckets (or the Cure#R campaign aimed at educating more women about breast health, generating support (or the cause and attempting to make the single largest donation in the history o( %usan ?& Komen (or the Cure& 6uckets (or the Cure# launches today and runs through Eay :+& Q$hrough our 6uckets For the Cure# campaign, the KFC (amily nationwide is helping to reach millions o( women and men with breast health education, and
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attempting to make the single largest donation ever to %usan ?& Komen (or the Cure in an e((ort to help end breast cancer (orever,R said /avier 6enito, e"ecutive vice president o( marketing and (ood innovation (or KFC& Q6ut we donSt want our e((orts to stop at our restaurantsS doors& 5e are asking that everyone nationwide *oin our e((orts to raise awareness (or this important cause by going pink too&R $o help generate awareness o( the disease that will a((ect one in eight women in the .&%&, KFC has taken the unprecedented step o( changing the color o( its iconic bucket (rom red to pink P a (irst (or the (amous brand that traces its beginning to the 0F+,s& $he commemorative pink buckets pay tribute to +I@ cancer survivors and those who have lost their battle by (eaturing their names on packaging& 6etween now and Eay :+, :,0,, KFC will be dedicating the special pink buckets to %usan ?& Komen (or the Cure, with KFC restaurant operators having donated ;, cents (or each pink bucket purchased by the operator be(ore Eay F, :,0,& $wenty) (ive percent o( the (unds raised (rom this promotion will go directly to the local 2((iliates o( %usan ?& Komen (or the Cure& $he (unds will be used (or local breast cancer education, screening and treatment programs& QKFC and its (ranchisees' support allow us to continue our li(e)saving work (unding research, providing breast health education and screenings and providing direct help (or millions o( women and men in communities across the .nited %tates,R said Katrina Ec?hee, %enior Jice -resident ) ?lobal 6usiness >evelopment and -artnerships (or Komen& Q$he (unds they raised will not only (und vital research but local communities that support survivors, patients and their (amilies& 5e are very grate(ul (or KFCSs generosity and help&R $he KFC Colonel, known (or his classic white suit and ribbon tie, will embrace the brand's Qpink)i(icationR by donning a new pink suit at a number o( public events (rom now through Eay :+& KFCSs Q5hite 'ouseR global head3uarters has also T(ollowed suitS by going pink via e"terior pink lighting and ribbons& !ven the Commonwealth o( Kentucky has rallied behind the brandSs e((orts thanks to First Lady o( the Commonwealth /ane 6eshear, who will light both the ?overnorSs mansion and the Kentucky %tate Capitol building pink through Eay +& Q!ach year between :,1,, and +,:,, women are diagnosed with breast cancer, making it the second leading cause o( death (or women in Kentucky,R said Ers& 6eshear& Q$hrough my 'orses and 'ope initiative, the annual Celebration o( 'ope
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and working with Churchill >owns to sponsor T-ink OutS day at the Kentucky Oaks, 9 am committed to educating women about breast cancer& $he ?overnor and 9 encourage all Kentuckians and 2mericans to *oin us in partnering with Kentucky Fried Chicken to T?o -inkS to increase awareness (or breast cancer&R

-" There<s more to KFC than great food" 7e promote education, di'ersity and animal $elfare in a num%er of positi'e $ays"

$he KFC ColonelSs %cholars -rogram is about you, your dreams and aspirations, and the perseverance to succeed& $his program is o((ered to high school seniors planning to attend a public in)state college or university $he KFC Colonel's %cholars -rogram is looking (or high school seniors with entrepreneurial drive, strong perseverance, demonstrated (inancial need, and who want to pursue a college education at an accredited public institution in the state they reside& $he KFC ColonelSs %cholars -rogram is about you, your dreams and aspirations, and the perseverance to succeed& $his program is o((ered to high school seniors planning to attend a public in)state college or university& %tudents who meet the criteria may apply online to become a KFCSs ColonelSs %cholar& %tudents selected (or this scholarship are eligible to receive up to A:,,,,, to complete a bachelorSs degree program&

2" =i'ersity is more than a philosophy at KFC, it is part of our founding 9o$ 7e 7ork Together principles" &ur glo%al culture is acti'ely de'eloping a $orkforce that is di'erse in style and %ackground, $here e'eryone can make a difference

For us, diversity is not a target ) it's a way o( li(e and a way o( doing business& !veryone can and does make a di((erence in our organization& One o( our '55$: principles ) 6elieve in all -eople ) underscores the importance o( actively seeking diversity in othersU believing everyone has the potential to make a di((erenceU and coaching and supporting every individual to grow to their (ull capacity& $his adds perspective and depth to everything we do& 5e've also (ound that a diverse team makes (or better problem solvers, services all our customers more e((ectively, and
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creates a richer culture (or all o( us to en*oy& 9n our company)owned operations in the .&%& (or e"ample, about +, percent o( our associates are Caucasian and the remaining I, percent are 'ispanic, 2(rican 2merican andHor 2sian& Einorities and women made up @= percent o( our e"ternal management hires and =0 percent o( internal management hires BpromotionsC in :,,I& 5e are also increasing the representation o( 2(rican 2mericans, 'ispanics and women among our key talentHdecision makers, and growing the pipeline o( diversity in our mid)level manager ranks& 2ll o( our brands have leadership initiatives (ocused on high)potential diversity talent, and all leaders serve as mentors& 9n addition, last year each o( the brand presidents went into their communities to provide business)growth coaching (or local networks o( minority businesses& Eaking progress in diversity is a business priority and the work o( everyone in our system& $his commitment is re(lected in >avid Dovak's annual goals, or <6lue Chips&< 5e also have a dedicated ?lobal >iversity and 9nclusion O((icer who guides our strategy and a number o( initiatives that enhance our inclusive workplace&
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>um? .rands is committed to conducting %usiness in an ethical and responsi%le manner" To encourage compliance $ith all legal re:uirements and ethical %usiness practices, >um has esta%lished a 5upplier Code of Conduct for it<s @"5" suppliers

7.E8 6rands, 9nc& B<7um<C is committed to conducting its business in an ethical, legal and socially responsible manner& $o encourage compliance with all legal re3uirements and ethical business practices, 7um has established this %upplier Code o( Conduct Bthe <Code<C (or 7um's .&%& suppliers B<%uppliers<C& Compliance with Laws and Regulations %uppliers are re3uired to abide by all applicable laws, codes or regulations including, but not limited to, any local, state or (ederal laws regarding wages and bene(its, workmen's compensation, working hours, e3ual opportunity, worker and product sa(ety& 7um also e"pects that %uppliers will con(orm their practices to the published standards (or their industry& !mployment -ractices
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5orking 'ours 4 ConditionsG 9n compliance with applicable laws, regulations, codes and industry standards, %uppliers are e"pected to ensure that their employees have sa(e and healthy working conditions and reasonable daily and weekly work schedules& !mployees should not be re3uired to work more than the number o( hours allowed (or regular and overtime work periods under applicable local, state and (ederal law& Don)>iscriminationG %uppliers should implement a policy to e((ectuate all applicable local and (ederal laws prohibiting discrimination in hiring and employment on the grounds o( race, color, religion, se", age, physical disability, national origin, creed or any other basis prohibited by law& Child LaborG %uppliers should not use workers under the legal age (or employment (or the type o( work being per(ormed in any (acility in which the %upplier is doing work (or 7um& 9n no event should %uppliers use employees younger than 0= years o( age& Forced and 9ndentured LaborG 9n accordance with applicable law, no %upplier should per(orm work or produce goods (or 7um using labor under any (orm o( indentured servitude, nor should threats o( violence, physical punishment, con(inement, or other (orm o( physical, se"ual, psychological, or verbal harassment or abuse be used as a method o( discipline or control& Doti(ication to !mployeesG $o the e"tent re3uired by law, %uppliers should establish company)wide policies implementing the standards outlined in this Code and post notices o( those policies (or their employees& $he notices should be in all languages necessary to (ully communicate the policy to its employees& 2udits and 9nspections !ach %upplier should conduct audits and inspections to insure their compliance with this Code and applicable legal and contractual standards& 9n addition to any contractual rights o( 7um or .ni(ied Foodservice -urchasing Co)op, LLC B<.F-C<C, the %upplier's (ailure to observe the Code may sub*ect them to disciplinary action, which could include termination o( the %upplier relationship& $he business relationship with 7um and .F-C is strengthened upon (ull and complete compliance with the Code and the %upplier's agreements with 7um and .F-C& 2pplication $he Code is a general statement o( 7um's e"pectations with respect to its %uppliers& $he Code should not be read in lieu o( but in addition to the %upplier's obligations as set out in any agreements between 7um or .F-C and the %upplier& 9n the event o( a
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con(lict between the Code and an applicable agreement, the agreement shall control&

+" KFC is as committed to the en'ironment as $e are to our food and customers" Aead more a%out the steps $e ha'e taken to reduce our en'ironmental footprint and plans for impro'ement mo'ing for$ard
KFC is as committed to the environment as we are to our (ood and to our customers& 5e are proud o( the steps we have taken so (ar to reduce our environmental (ootprint and are committed as a brand to do even more in the in (uture& 9tSs an ongoing *ourney that weSre on and we want to keep you P our customers ) in(ormed along the way8 Check out some interesting (acts on what we are already doing today and be sure to check back with us (or more news on our green initiatives& Our -ackaging 2ll KFCSs paper bags are 0,,V recycled content0 2ll KFCSs in)store napkins are 0,,V recycled content: +,V o( every KFC 6ucket Lid is made out o( recycled content+ 6y Eay, more than F,V o( our paperboard packaging will be %ustainable Forestry 9nitiative B%F9C certi(ied=

Our Restaurants $he interior lighting used in all company)owned .&%& KFC restaurants have been converted to more e((icient models, which has resulted in a carbon reduction e3uivalent to taking I@+ cars o(( the road (or one year& 2ll company)owned .&%& KFC restaurants use !nergy %tar appliances where (easible, and currently use the highest energy e((icient oven o( any available on the market today& For all new or (or replacements in e"isting .&%& company)owned KFC restaurants, KFC uses high)e((iciency air conditioners& 9n addition, programmable thermostats have been installed in all company)owned stores, delivering a carbon reduction e3uivalent to providing annual electricity to ;+: homes& KFC)$aco 6ell opened its (irst QgreenR or L!!> BLeadership in !nergy and !nvironmental >esignC restaurant in Dorthhampton, Eassachusetts, achieving
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?old certi(ication P one o( L!!>Ss highest certi(ications& Franchisees are e"ploring ways to be more energy e((icient by switching to energy e((icient lighting and using programmable thermostats.

)" >um? .rands, parent company of KFC, is committed to the humane treatment of animals"
7um8 6rands is the owner o( restaurant companies and, as such, does not own, raise or transport animals& 'owever, as a ma*or purchaser o( (ood products, we have the opportunity, and responsibility, to in(luence the way animals supplied to us are treated& 5e take that responsibility very seriously, and we are monitoring our suppliers on an ongoing basis to determine whether our suppliers are using humane procedures (or caring (or and handling animals they supply to us& 2s a conse3uence, it is our goal to only deal with suppliers who promise to maintain our high standards and share our commitment to animal wel(are& $o assist us in that e((ort, 7um8 6rands (ormed the KFC 2nimal 5el(are 2dvisory Council, which consists o( highly regarded e"perts in the (ield& $he Council provides us with in(ormation and advice based on relevant data and scienti(ic research& $he 2nimal 5el(are 2dvisory Council has been a key (actor in (ormulating our animal wel(are program& 9n consultation with our Council, KFC has developed guidelines and audit programs (or our suppliers in the broiler industry& 5e were also a prominent player in the *oint e((ort conducted by the Dational Council o( Chain Restaurants and the Food Earketing 9nstitute to develop comprehensive guidelines (or all species o( (arm animals& KFC has implemented a (arm level audit program ) a program which is industry) leading in the areas o( poultry care and handling& Latest Kentucky Fried Chicken 'eadlines KFC 9ntroduces $he A; Eadden DFL 6o" Featuring 7our KFCBRC Favorites 2nd 2 Eadden DFL Cup KFC -icks Louisville 2rtist 2s $he 5inner O( 9ts 'hitmaker' :,,F Contest For 2mateur %ongwriters
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KFC $o Close Restaurants $o 'elp Raise Eoney 2nd 2wareness For 9ssue O( ?lobal 'unger From Chicken Legs $o %ea LegsG KFC Launches First)ever <(loat $hru< Restaurant $o -romote Dew Jalue Eenu 9tems Fill 'er .p For $he FourthG KFC $ops O(( ?as $anks B2nd %tomachsC $his 'oliday 5eekend $o 9ntroduce $he Dew KFCBRC A; Fill).p 6o" KFC $eams .p 5ith Eusic 9cons Ec Lyte 2nd >avid 6anner 9n %earch O( $he De"t 'ot ''itmaker' %hould KFC Replace Colonel %anders 2s 6rand 9conW Cast 7our Jote 2nd 'elp 2merica >ecide Kentucky Fried Chicken Cooks .p Chari)$'sG 2 KFC -hilanthropic Fashion First

2 %econd ColonelW KFC Launches %earch For Dew Face O( Kentucky ?rilled ChickenB$EC KFC %erves .p 2 %econd %ecret RecipeG Kentucky ?rilled ChickenB$EC

5tandards: B9 (ound this written on their website Bthis is what they demand P standardsC
2t 7um8 6rands, we connect success(ul pro(essionals like you to brands people crave8 5e leverage your e"perience by helping you become a multi)unit (ranchisee with some o( the biggest brands in the business& Our proven process supports you every step o( the way with development e"perts, business coaches and a peer network o( more than 0,:,, e"perienced (ranchisees, all part o( the 7um8 Jalue Detwork& 9t's a way to set you apart& 0& >o 7ou 'ave 5hat 9t $akesW Capability& Commitment& Capital& 5hile 7um8 Franchising is a (antastic opportunity (or manyU it may not be (or everyone& 'ave a look at the (ollowing criteria to see i( 7um8 is right (or youG :& >o you have a passion (or operationsW $he restaurant business is a hands on business +& 2re you committed to building people capabilityW Eulti)unit ownership re3uires you to be a team builder
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=& >o you have capital to growW 7ou and your partners must have at least A+@,,,,, in li3uid assets ;& $he 7um8 Jalue Detwork consists o( many programs and support sta(( all (ocused on enabling you to compete, includingG 6rand Recognition Customer 2ttraction Competitive 2dvantage Franchise Jalue %ystem Eulti).nit ?rowth !conomic %tability 6rands that ?ive 6ack to the Community >evelopment !"pertise 2ccess to Financing %olid 6usiness %upport Luality On)boarding 4 $raining Reliable %upply Chain Return on 9nvestment

$his is the attitude they needG B>our dri'e" >ou re Team" &ur .rands" It can %e a po$erful com%ination?C

4nalysis of KFC:
%5O$ analysisG %trengthsG 6rand !3uity %econd only to Ec>onalds in (oreign sales A;;, million !mployee Loyalty $argeting Don) $raditional Outlets %trong cash (lows ?enerate A0 billion each year Jery strong internationally B.K, Eiddle !ast, $hailand, China, /apan& Korea, Ee"icoC %trong Franchise and License Fee revenues (or cash (lows
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 9nteractive relationship marketing %trong trademarks recipes Ranks highest among all chicken restaurant chains (or its convenience and menu variety Largest multi)branded restraint in the world 0,, KFC and -izza 'ut combos @,, KFC and $aco 6ell combos 5eaknessG Recent drop in sales (or KFC Failed to rank in top :, in growth in :,,, %ame store sales declined Lack o( point o( scale scanning system 2dmitted inability to provide 3uality service Lack o( knowledge about their customers Lack o( relationships building with employees, customers and suppliers Luestion o( over (ranchising leads to loss o( control and 3uality Lack o( (ocus on R4> Con(licting corporate cultures

OpportunitiesG ?rowth o( 01):= age demographics 9ncrease in .% median income 9nternational bee( scare (rom Qmad cowR, Qboo(R and Qmouth diseaseR 'ome meal replacement market will e"ceed an estimated A;II billion by :,:, $argeting to grow ethnic markets P 2sian, 2merican and 'ispanic Dew leadership >omestic markets .pdating restaurants 6alanced menu Customers (ocus 9ncrease delivery service !conomies o( scale

$hreatsG Rated 1+ out o( 0,, in terms o( competitiveness 9ncreasing wages rates directly a((ect menu prices
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1;V annual employees turnover (or (ast P (ood market %uper markets and new competitors threaten 'RE market 9nternational !"change Rates 'ealth trend away (rom (ried (oods Changing customers demands Luality o( %ervice (ocus %aturated Food industry

Internal 4nalysis Functional 4reas

FinanceH2ccounting

%ince :,,0, 7um 6rands 9nc& has outper(ormed the market

Computer 9n(ormation %ystems Dewly established Computer in(ormation system Earketing -ositioning among competitors is (avorable .nconventional methods o( distribution Eulti)branding Eanagement Ob*ectives and goals are measurable and achievable $eam empowerment -roductionsHOperations Constant improvement on 3uality o( chicken -roducer and operators are strategically located

5pace MatriD
X Competitive 2dvantage X 9ndustry %trength X !nvironmental %tability F%

Aggressive Position

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Financial %trength C2 9%

!%

.C8 MatriD of KFC done considering it in different countries across the glo%e:

.C8 MatriD

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4lternati'es that KFC took to pre'ent decline in market:

X KFC 'ospice >inners P >elivering a caring outreach to the terminally ill B%OC X KFC Ca(eterias P O((ering dishes competitors do not B%OC X KFC ?rocery -roducts P $he Cornel is always home B%OC

Aecommendations and Conclusion:

X X X

Earket ResearchG >etermine areaSs demand to determine boundaries !"pand menuG 'ealthier choices Eeals will be sold at costG >etermine e((ects on budget

Long term strategy should beG

X

0& :& +& =&

KFC is a publicly traded company with responsibilities to all share holders& 6y becoming a more Qsocially responsibleR corporation it can attract a new type o( investor while retaining our current stock holders& 6en 4 /erries 4 %tarbucks have bene(ited (inancially by promoting their Qsocially responsible corporationR KFC is already hoping to achieve this by becoming synonymous with hospice& B'ospice delivers meals to the terminally ill nationwideG $hese meals are delivered directly to the patient in their own home becauseG -olitical 4 %ocial 9mage 2dvances KFCSs name recognition and reputation Q%ecret RecipeR !"pands employee loyalty

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