Kentucky Fried Chicken

Mission
To sell food in a fast, friendly environment that appeals to pride conscious,health minded consumers
(www.KFC.com).
Stated Objectives
1.Product development
Increase variety on menu
Introduce desert menu
Introduce buffet to restaurants2. Introduction on the Neighborhood Program with following:
Menu items target African Americans in major cities with the followingitems:
Greens
Macaroni and cheese
Peach cobbler
Red beans & rice
Menu items targeting Hispanics in major cities with the following items:
Fried plantains
Flan
Tres Leches1.
Implementation on non-traditional units including the following:
Shopping mall food courts
Universities
Hospitals
Airports
Stadiums
Amusement Parks
Office Buildings
Mobile Units1.

1. Increase profitability of KFC through the following:
Reduced overhead costs
Increased efficiencies
Improved customer service
Cleaner restaurants
Faster and friendlier service
Continued high quality products1.
Resolve franchise problems in the United States.
Implied Objectives
1.Expansion of international operations to provide the following:
Increased percentage of overall sales growth
Increased percentage of profit growth1.
Increased expansion of franchises into Mexico2.
Expansion of franchise operation beyond Central America3.
Continued promotion of healthier image through removal of the word"fried" from the name4.
Improve menu selection of rotisserie
Organizational Structure
History
Since its inception, KFC has evolved through several different organizationalchanges. These changes
were brought about due to the changes of ownership that followed since Colonel Sanders first sold KFC
in 1964. In 1964,KFC was sold to a small group of investors that eventually took it public.Heublein, Inc,
purchased KFC in 1971 and was highly involved in the day today operations. R.J. Reynolds then acquired
Heublein in 1982. R.J. took amore laid back approach and allowed business as usual at KFC. Finally,
in1986, KFC was acquired by PepsiCo, which was trying to grow its quick serverestaurant segment.
PepsiCo presently runs Taco Bell, Pizza Hut, and KFC
The PepsiCo management style and corporate culture was significantlydifferent from that of
KFC.PepsiCo has a consumer product orientation. PepsiCo found that themarketing of fast food was very
similar to the marketing of its soft drinks andsnack foods. PepsiCo reorganized itself in 1985. It divested
non-compatibleunits and organized along three lines: soft drinks, snack foods andrestaurants. PepsiCo
Worldwide Restaurants was created to create synergismbetween its restaurant companies.By the end of
1994, KFC was operating 4,258 restaurants in 68 foreigncountries. KFC is the largest chicken restaurant
and the third largest quick service chain in the world. Due to market saturation in the United
States,international expansion will be critical to increased profitability and growth.
Present Situation
The organization is currently structured with two divisions under PepsiCo.David Novak is president of
KFC. John Hill is Chief Financial Officer and ColinMoore is the head of Marketing. Peter Waller is head of
franchising whileOlden Lee is head of Human Resources. KFC is part of the two PepsiCodivisions, which
are PepsiCo Worldwide Restaurants and PepsiCo RestaurantsInternational. Both of these divisions of
PepsiCo are based in Dallas.
Structuring
Another strategy of KFC is currently working with is to improve operatingefficiencies. This in turn can
directly impact the operating profit of the firm. In1989, KFC centered on elimination of overhead costs
and increased efficiency.
This reorganization was in the U.S. operations and included a revision of KFCs
crew training programs and operating standards. They emphasized customerservice, cleaner
restaurants, faster and friendlier service, and continued high-quality products.In 1992, KFC continued
with another reorganization in its middle managementranks. They eliminated 250 of the 1500
management positions at corporateand gave the responsibilities to restaurant franchises and
marketingmanagers.