kfc presentation

Prepared by Humayun Khalid


WelcomeTo KFC

PRESENTATION


• Group Members:Humayun Khalid QurashiRoll #. 04-RB.Com(Hons.) 5th Semester

Muhammad TayyabRoll #. 03-RB.Com(Hons.) 5th Semester

Group B

Muhammad Usman ZafarRoll #. 30-RB.Com(Hons.) 5th Semester

Muhammad SaddiqueRoll #. 47-RB.Com(Hons.) 5th Semester


KFC

• History• One man operation• Starts in 1930 by Harland Sanders the founder of KFC• Named as the dining area "Sanders Court & Cafe."• In 1939 "Sanders Court & Café” was rebuilt named as

KFC.• In 1960, 190 KFC franchisees and 400 franchise units in

the U.S. and Canada.

• Cupola• Cupola holds the master franchise rights to operate KFC

in Pakistan since1999.


KFC in Pakistan

• 63 outlets working in Pakistan• North Region including Lahore, Rawalpindi and

Islamabad (Punjab).• South Region including Karachi and Hyderabad

(interior Sindh).


Departments of KFC

• Marketing Department• Finance Department• Operation Department• HRM Department• Quality Control Department


Marketing Department

• All Planning tools for marketing• Under Marketing Manager• Use of 4 P’s (Product, Price, Place,

Promotion) and Extended P’s (Physical Evidence, People and Process)

• Basic purpose of the marketing department is to advertise its products in the market and keep eye on the competitors that what they are doing.


Finance Department

• Provides close support the business manager on the financial implication of business strategies.

• All final accounts of business transactions.

• Finance Department analysis the business results and prepares the monthly and quarterly review of business operations.


Operation Department

Under Operation Manager.

Following operations and functions.• Cooking• Cleanliness• Administration of restaurant.• Complaint • Handling of the customers • Daily order to procurement Department • Day to day demand forecasting • Daily lectures to crew people • Trained the employees


HRM Department

• Under HR Manager• To provide highly qualified and competent

employees to organization.• Reviewing application form• Interviewing applicants• Inducting new employees• Appraising employees performance• Make a decision about the employees

training • Provide a career advice to subordinates


Quality Control Department

• Under Quality Manager• Monitoring the quality weight, strength,

consistency, color, taste, reliability, finish.

• Differentiate the organization from the competitors

• No compromise on quality standards


KFC Management Functions

KFC management is following the “POLCA” P = Planning O = Organizing L = Leading C = Controlling A = Assurance


Planning

• First pillar• Strategic Plans

Increase its market worth value of the market and its market share.

• Operational PlansInclude launching of a new product to change or innovate its product line for the customers.


CHAMPS

• A philosophy of Management• Abbreviation of – C:Cleanliness– H:Hospitality– A:Accuracy–M:Maintenance– P:Product Quality– S:Speed of Serve


Planning objectives

To expend our organization in all over the Pakistan.To create and build superior quality for our

customers.To follow Marketing Mix Strategies.To Generate Superior financial return for KFC and

KFC’s employees.


Menu Plans

• KFC offers different types of products

Mighty Zinger

Zinger Burger

Chicken burger

Chicken Mania

ETC…


Marketing Mix Plans

Four P’s of Marketing MixProductPricePlacePromotion

Marketing Mix

Product

PricePlace

Promotion

Customers comes again on batter service


Supply Chain Management Planning

• Includes on the full process related with the supply of raw material includes on the chicken, spices and packing material.

• To increase operation.

Objectives– To increase the level of outsourcing.– Increase transportation cost.– Competitive pressure.– Increase globalization.– Supplier.– Manufacturing storage.– Distributers– Retailers.– Customers.


Organizing

• Second pillar• Concerns with Organizational structure,

segmentation and targeting of customers• Organization structure differs on operational

level and cooperative level. The difference is due to working activities.

• The operational level management is concerned with the restaurant business and management and the cooperate level management is concerned with the business activities.


THE KFC MANAGEMENT HIERARCHY CHART

(OPERATIONAL LEVEL)

Area Manager

Territory Manager

Restaurant manager

Assistant Manager

Trainee Manager

Shift Supervisor/Customer Relation Officer

All Stars

Two Stars

Star Staff

Customer Service Team Member Food Service Team Member

Trainee Team Member


THE KFC MANAGEMENT HIERARCHY CHART

(COOPERATE LEVEL IN NORTH REGION)

CEO

Head of North

Associate Regional Manager

Finance Administration Human Resource Operation Brand Audit New Concept

Area Manager

Territory Manager Territory Manager Territory Manager Territory Manager


Factors Effecting Organizing

The Internal Environment

This environment includes the factors that are close to the company and are controllable by the organization. Company Suppliers Customers Competitors Marketing Intermediaries

The External Environment

This environment includes on those factors which are not controlled by the organization. Demographic Factors Natural Factors Technological Factors Political Factors Cultural Factors


Segmentation

• Geographic segmentation

Based on nations, states, regions, countries, cities or neighborhood.

• Demographic segmentation

Based on an age, gender, family size, income, education, occupation, religion, race and nationality.

• Psychographic

Based on buying power level of the customers• Behavioral

Based on occasions, benefits, User Status, Readiness Status, Attitude towards Product


Targeting

KFC is targeting upper class. Target market depends upon size and growth rate of population, company resources and structural attractiveness of market segment.

KFC target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products.

Target heavily on the youngsters as compared to the middle & old age.


Leading

• Third pillar• Related with staff behavior

towards employees, feedback by the employees to managers and other top level offices and customers issues.

• HR manager are responsible for the all related issues of employees and customers


Cont.

•Performance of Management

–A process of ensuring employees performance.–Consists on three phases:

• Setting expectations for employee performance • Maintaining a dialogue between supervisor and employee to

keep performance on track, • Measuring actual performance relative to performance

expectations.


Purpose of the performance management system

• Work performed by employees is according to KFC’s goals.

• Employees have clear understanding with expectations.

• Award and bonus salary for ensuring performance• Opportunities for employee development are

identified.• Employee performance that does not meet

expectations is addressed.


Performance Cont.

• Two Methods of evaluating the performance management system.360 degree feedback My Growth Body


360 degree feedback System

• 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports.

• Criteria– Form of questions with rating scale– Questions about staff behavior towards employees


360 degree feedback System Cont.

• 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective when done properly

• 360 Feedback as a Performance Appraisal Tool to measure employee performance these things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process.


360 Cont. Measures

• 360 feedback measures behaviors and competencies.

• 360 assessments provide feedback on how others perceive an employee.

• 360 feedback system addresses skills such as listening, planning, and goal-setting.

• A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness.


My Growth Body

• This scale was introduced by the HR department of KFC in 2000-01.

• Used to measure the performance of their employee.

• Rank their employee as a good performer or a bad performer.


How Goals and Objectives are linked with Performance Management?

• Example:• Three employees having target 6 million..• Two achieve 10 million and one achieve 6

million.• The first two employees are best performance

management skill.• Includes on self assessment, employees

behavior towards suppliers and customers.


Appraisal system

• Designed to serve the company's and employee's interests.

• Used to check the ability of Employees and to ensure that where they are standing.

• As KFC is using 360 degree feedback system. A circle around the employees.


Reward System

• Employees are motivated.• KFC also reward their employees in terms of

promotion, incentive, payoff free meals depending on the level of the employee and how much they perform their job well.

• Bounces are given to the employees on the basis of "My growth body" points. If the person has 5 points he or she can get benefits in term of financial bonuses.


Controlling

• Forth pillar.• Related with the controlling the task and

its evaluation that how a manager control all inventory management, all employees activities, assign tasks to employees and evaluate them with desired goals and objectives.


HR manager control all activities into following ways

• Feed forward control• Feedback control• Concurrent control• External control• Employee discipline system• Financial control• Purchasing control• Inventory control• Statistical control


Feed forward control

• Feed forward controlling is done by the territory managers.

• Store monitoring and visits to factory to check its supplies and controlling.

• Done before the finishing the Products.


Feedback Control

• Done by the supervisor of the branch or the assistant manager.

• Through comment cards, general interviews of employees about KFC management behavior and other related issues.


Concurrent control

• Done by the Unit Business Manager• Done for the assurance of food quality by

monitoring kitchen workers with number of visits during a day.

• To reduce wastages, and for superior quality products.


External control

• Yum brand representatives visit KFC restaurants.

• For standards and quality check up.• No relaxation is given to Manager on any flaw.


Employee discipline system

• Disciplines are maintained in KFC as this is their core strategy.

• employment discipline is maintained by managers and are followed CHAMPS.


Financial control

• Department that sees all the financial activities.

• UBM has to report all the financial activities required to be done or done to the finance department directly.


Purchasing Control

• Purchasing depends on the restaurant branches:– In house purchasing–Ware house purchasing– Direct purchasing– Indirect purchasing


Inventory control

• Inventory is done several times a week one final time a month and at the end of the year.

• Inventory controls are looked after by UBM and AUBM.


Statistical control

• Control of the branch is taken care by the UBM and all these statistical data are given to the financial department at the end of the day, week, or month.


SWOT ANALYSISStrengths

Weaknesses

Opportunities

Threats

KFC


Strengths• Brand Equity.• KFC secret recipe of 11 herbs species.• Strong Market Share (over 50%)• Strong Franchise and License Fee revenues for cash flow.• Oldest and finest in Business• Loyal customers• Faces numerous advantages of being a Multinational Organization e.g.

economies of scale, government incentives etc and its good will in entire world.

• KFC has Competitive advantage in fast food industry because of its quality and variety of products of chicken.

• Employees are its strength who stands strong with its organization.• Product is their strength customers come here for product ignoring the

prices.• Hospitality standards are strength; standards are very high they don’t bear

ignorance regarding product.• They don’t do much advertisement as awareness is there & they don’t find

a need for advertisement.


Weaknesses

• Presence of Multinational competitors in the market e.g. McDonalds.

• Compressed hierarchy.• More work from same people if worker is not trained

for that job.• Over confidence on own product. • 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

• Cheap and easy availability of labor• Increase consumption of fast food has increased the

market size.• “All under one roof”• Loyal customers• New Leadership, Domestic markets and Customer

focus


Threats

• Rated 83 out of 100 in term of competitiveness.• High political instability.• Animal diseases like bird flu.• Compressed hierarchy can collapse the whole system

of the management efficiency.• Increasing inflation rates directly affects menu rates.• 85% annual employee turnover for fast –food market.


Suggestions

• KFC should focus on the competitor’s product.• KFC should organize its management hierarchy simple

as for every employee and customer.• KFC should focus on the eligibility of the employees.• KFC should focus on the market surveys for the

knowledge of customers.• KFC should facilitate its employees by giving

relaxation and bonuses.• KFC should focus on its Research and Development

Department.


Comparison KFC and McDonaldKFC McDonald’s

Provide Chicken Spicy Products. Provide Chicken and French Fries.

Arabian Rice and Zinger Burger. Big Mac.

Free Delivery. Free Delivery.

Chicken is eaten by every community. Beef is banned is some community.

Local Staff, highly qualified because local staff can deal better with customer.

It’s staff consists of simple graduates and give them training.

KFC uses Top to Bottom and Bottom to Top approach to Management.

Mc. Donald’s uses Top to Bottom approach to Management.

KFC is co-branding with walls. No such cases.

KFC use feedback system to ensure employees performance.

No such system is used.


Questions and Answers.


Thank You!


So it’s the time to decide which one you would

choose!!!


OR


ALLAH HAFIZ

kfc presentation

Documents

quality manager

founder of kfc

kfc franchisees

kfc history

marketing manager use

procurement department

operational level management

menu plans kfc