strategic planning on ‘kfc’
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By Manjindar
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The art and science of developing andemploying instruments of national power on a
synchronised and integrated fashion to achievetheatre, national and/or multinationalobjectives
The calculation of objectives, concepts, and
resources within acceptable bounds of risk tocreate more favourable outcomes than mightotherwise exist by chance or at the hands ofothers
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One of the largest quick food service systems inthe world.
Went public in 1966 and listed on New Yorkstock exchange in 1969
KFC franchised by YUM! Brand Inc. is theworld largest in terms of system units
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Mission:
United to protect, promote and advance the
mutual interests of all member franchisees andKentucky Fried Chicken System
Vision:
Committed to continuing the success realizedduring the first ten years and promising the longrun way growth.
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Contribute to maintain and improve theprofitability of the restaurants to for the short
and long term Represent the members interests in different
areas
Defend and protect franchisees contractualrights
Communicate as one voice
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Demographic Factors
Natural Factors
Technological factors
Political factors
Cultural Factors
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Entry:
Not Difficult for a fast food restaurant to enter
the market
Brand Name is already established
Buyer/Supplier Bargaining Power:
Individuals buyers has no bargaining power Helping local suppliers by giving themtechnological support to improve their productsand hence suppliers bargaining power is low
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Substitutes:
Traditional dinning, ready to eat foods are
substitutes
Substitutes products would be pizza, burgers,sandwiches etc.
Rivalry: Little Rivalry with similar fast-food chains
Core products are different, as in they selldifferent kinds of fast-foods
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Strengths:
Strong trademarks recipes
ranks highest among all chicken restaurantchains for its convenience and menu variety
Weaknesses:
Lack of knowledge about their customers Loosing market share as other chicken chainincreased sales at a faster rate
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Opportunities:
Baby boomers aged 35 to 50 continued the largest
customer group for fast-food restaurants Introducing new food items and products canincrease its market share and profits
Threats:
The competitors have successfully captured thelarge market share
The local restaurants in different countries pose athreat to the company
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KFC manages their debts and liability wisely
Net Profit Margin ~ 10.57%
Return on Equity ~ 77.61%
Debt/Equity Ratio ~ 1.82
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Marketing:
Should incorporate different level of membership
within the organisation Could employ a point system where customer riseto the next level of membership
Cost Strategies:
Developed strong relations with suppliers that usecheap ingredients
Flexible in supply chain and productdifferentiation
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Expanding Geographically:
The strategy is to open new restaurants in cities
with population of more than 150,000 With rapid urbanization, city residential areas arebecoming more crowded
Product Differentiation:
To increase profits by increasing consumerdemand and decreasing the demand of priceelasticity
Is most impacted by location service, and physicalcharacteristics
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Product:
Needs improvement in their hot-menu, should
make it more dynamic by introducing new meals New items should be introduced by varying thetaste
Price:
Price is always the primary concern for consumers,so KFC should adopt certain strategies to attractcostumers
KFC could introduce discount packages forfamilies, employees, students etc.
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KFC is based in Louisville, Kentucky and issubsidiary of YUM! Brands
KFCs grip on market is extremely solid andstrong
KFC could expand even more by applyingcertain innovative strategies which werediscussed above.