Kentucky Fried Chicken Essay

The bill is in general center oning on Kentucky Fried weakly interacting massive particle (KFC) confederacy and has been divided into three categories at the discipline of mentioning the leadership and anxiety issues in the companion and suggest appropriate solutions to it. The instrumental role that leave behind be procedured in the first phase is the wad (Strengths, Weaknesses, Opportunities, Threats) abridgment which is used to point out the strengths and weaknesses of the corporation and in addition to identifying the leadership and commission issues that go within the physical composition.The second part of the report represents of the evaluation and rationalization of the counsel and leaderships issues place in part 1 by using the McKinsey 7S Model to help to identify what types of budges that should be made and implemented in order to help the confederation to improve. In the last phase of the report, an all overview of the beau monde government agen cy will be presented come uped by suggested sets of recommendation and actions for KFC in order to overcome the discover issues identified.Company Backgroup Kentucky Corporation (KFC), alike cognize as Kentucky Fried Chicken, is a reach of fast viands restaurants based in Louisville, Kentucky, in the United States which was started in the 1930 by Colonel Harland Sanders as a small immunity carrying out. Kentucky Fried Chicken is a real well-known restaurant in the man. It is rated at number 60 as the founding near well-known shop by the BusinessWeek, while McDonald at number 9 and Nestle at number 23 (Badrishah, 2007).KFC remained the largest sniveller restaurant chain and ordinal largest fast- f ar chain. It held over 50 part of U. S commercialise in terms of the gross gross sales number and ended the year 1995 with over 9,000 restaurants worldwide. By end of the 1995, KFC halt open up 234 refreshing restaurants and is operated in 68 countries. In th e year of 1997, the family has croak a marker of YUM nones Inc. which is the world largest fast food chain who similarly operates Taco Bell, ample John Silver and Pizza Hut. Currently, the familiarity owns and franchises more than 16,200 outlets in near 100countries and deplete employees of more than 24,000. KFC was the first fast-food gyves to picture international grocery and has now developed one of the worlds nigh recogniz open brands.KFCs early introduction into the fast food effort allowed the political party to gain a strong brand pull in in the industry and hold the white-livered industry. KFCs nearest challenger Boston Market (formerly Boston Chicken) and Popeyes held market share of 12. 3 and 10. 2 percent respectively while KFC held a market share of 58 percent in the chicken segment (KFC. com, 2007). KFCs global achievement is credited to its step management which is the Quality, Service and Cleanliness (QSC) political platform to canvass the prime(prenominal) of the helper offered to the nodes and to evaluate the company performance.Other than that, the understanding of the clients and satisfying their involve also contri thoed to KFCs global success (Reynolds, 2001). Not only so, KFC also has also uses a special merchandising as wellls to gain its product by means of combining PepsiCo product which is the beverage and the products of KFC itself, with these marketing idea, two company KFC and PepsiCo are both generating profit and it is an advantage for KFC since they no longer purchase beverages from outside company. KFC primarily cheat ons chicken pieces, wraps, salads and sandwiches. period its primary snap is fried chicken, KFC also offers a line of grilled and roast chicken products, side dishes much(prenominal) as mashed potato, sweet corn, coleslaw and desserts. KFC also uses the fixing strategy while designing the circuit board in KFC as a itinerary to adapt to the local taste and refinement b y also offering hollo based products such as hamburgers or kebabs, pork based products such as ribs and early(a) regional fare. On the new(prenominal) hand, judging by the current market growth in chinaware, KFC have indifferent the Chinese ethnical elements into its westbound management style, hence forming an inter-cultural management mode.Chinas rapid economic development has clear its door for the fast-food industry and enable KFC to use localization strategy to let Chinese to have the chance to experience western lifestyle with traditional Chinese cultural embedded in it (China Daily, 2004). At present, on that point are more than 1,000 restaurants in China and they are now increase at the rate of average 200 stores per year. In 2010, Yum Brand, the parent company of KFC Corporation expects 36% of their global $2 billion operate profits from 3700 restaurants in China.The success of KFC in China has lead Yum Brand Inc to be the nearly successful foreign company in Chi na with 40% market share outstripping challengers like McDonalds (Turner, 2011). Such management mode by KFC has proved that the company has the flexibility to adapt to different cultural and environmental changes. SWOP Analysis SWOT is a tool for auditing the strategies and the environment of an organization for decision making. And it can be build as Strengths, Weakness, Opportunities and Threats. (Pahl & Richter, 2007)Strengths KFC is recognize as the second largest fast food manacles in the world, the first which being took by its main competitor, McDonalds * Holding over one-half of the market shares in the fast food industry. * Occupied the china market, KFC defeat McDonald and become the largest fast food chain in China market which contain 1. 3 billion population. * It have been globally recognised and experienced and having strong market in Mexico, Middle East and Asia such as China, Japan, Korea, Thailand and Malaysia. * Earn huge revenue from the franchises and lic ensing fees. The most major strength of the company is their Brand Equity.* Its secret recipe allowed KFC to set itself unconnected in the industry and maintained victory in the fast food market. * either year, the profits of the company increases. * KFC have a quality management which called Quality, Service and Cleanliness (QSC) program use to judge the quality of its service offered to the customers and to measure the company performance. Weaknesses * Least focus about their product research and development, they more concerned about their branches expending. Inconsistent quality of serve in many outlets by nearly of its franchises had damaging the brand name and company reputation.* Inflexibility of prices sweep up shapes it unaffordable to middle class race. * Imbalanced entrance of the franchises to different markets at one time especially too concern the Chinese market has passing decreased its global growth rate. Opportunities * excessively expanded its target mar ket focus to family and friends of all age brackets, KFC also targeting and enticing the young customer which age amidst 18 to 24 years old. dependability of the chicken meat used as the people are scared of infections from cover beef globally.* Focus in Chinese market which known as the worlds faster growing market. * increase and effective operate specially radical givey and drive though services * Induction of new products other than chicken including fish and vegetable in most of its carte du jour in reality the complete menu is balanced and healthy which aim to attract the customers considerably. * Position itself strongly in the global markets, with a vision of increasing market value and market share.Threats * guest began to demand more healthy and extraneous food but KFC was faced with a limited menu and majority consist of fried foods * Faced by slowed sales growth in the fast-food industry, other segments of the industry have turned to new menu offerings, as th ey have very few products other than their selection Fried chicken. * Customer shift to other brand that offering the same products which in overturn rates on the prices. * Less sparing deals are being offered compare to its biggest competitor McDonalds who offer more cost-effective products.KFCs Key Challenges KFC Corporation, being one of the largest fast-food chains in the world usually will have challenges that the company will have to overcome in order to turn back their market share and reputations. But however, KFC restaurants rough the world have various complaints regarding its services domiciliated. It has been reported in United States that a customer was offended by the style in which she was served. Customers complained that the employees were rude, lazy and negligent to her family and other customers.In the eye of management, a sizeable services will help for t he long term customer relationships. But however, KFC in USA failed to actualise the importance of it as employees were not inclined a proper training regarding rock-steady customer services (Eisenback et. al, 2008). According to some of the staff in KFC, there is a lack of communication between the marketing surgical incision and the operation of KFC. Marketing department whitethorn not give stainless details on the new promotions and new products to the KFC operation nor clearly explain to them about the campaign.This lead to many problems for the operation police squad as they may be broken in about the promotion or voucher and hence might not be able to explain the details to customers with enquiries. In addition, it could affect the efficiency and effectiveness of operation as crewmembers may not be familiar with the new marketing strategies and may not be able to sell the products as the corporate hopeed them to be (Lan & Mahmood, 1995). Additionally, KFC in China has also been reported that some KFC restaurants have failed to change their frying rock oil for four long time and also failed to provide fresh soy sauce milk for customers.The restaurants has been caught for changing the dates for replacing the oil for the purpose of passing examination by district inspectors from the company, and whats more, the employees also channelise packing and changed the time on unsold items to make customers believe that they were eating freshly watchful products. The condition of kitchen is also reported to be very unclean and the employees did not follow the food safety regulation such as wearing caps when preparing foods. (China Times, 2009). Despite of the corporate rules on standard operation and regulations, employees at KFC a great deal ignore them.Such disaster in KFC would destroy the companys brand reputation although KFC Corporation claimed that they did provide training booklets which include questions on cross-contamination of food, but because of the lack of supervision, the employees would act whatever they want and ignoring the rules set by the management. The mission of KFC is people be the first, customers be the focus (Yum eating place International, 2003) but however, it is found that KFC did not take proactive approach on audience to customers and employees.There is no systematic customer survey for its products and services. It relies on the branch managers and public relation officers to get the customers opinion. Although the website of KFC has a customer service comment box for customers to send suggestion, but KFC ignore those customers who are not computer savvy. Many customers were complaining that customer did not have access to a customer service number and those who were able to reach customer service often received no response.The failure of KFC to deliver efficient service proved that the management does not show concern to their customers and did not make any improvement to take care of the customers complaints and thought. Customers are viewed as an important asset of a company and therefor e any complaints or opinions from them should be valued by the company (Eisenback et. al, 2008) Other than that, even though KFC has fitted human resources but they are deficient the capabilities.Its mother ompany, PepsiCo, makes wrong decision in its corporate level strategy. They centralize and tightens the subordination over existing KFC managers and such actions causes the put away of the employee morale. In addition, PepsiCo also limits the rights and situations of the franchisees right and power and intents to compete and acquire the franchisees units. Such accident has caused a dispute which last for 7 years until 1966. This also make the company performance to drop and drive put down KFCs market shares (Chu, 2003).