KFC Exploring Strategy Essay

SummaryYou are introduced to KFC organization. A fast- food for thought chain restaurant comes from North Corbin, Kentucky that f squanderuring fried chicken. KFC is recognized as the dress hat fried chicken with its original 11 herbs recipes and produce most fried chicken to the world. What makes KFC still remain strongly while other companies are seek to find a spot in the securities industry? To answer this question, you will be finding come on KFC strategic profile, vision, mission and values that is created and brought towards clients. Understanding the confederacy strategic development and how the Corporate and Business level create and develop strategies and knowing what your competitors are doing. We will acknowledge about its customers perception, innovation and international strategy. What has KFC been doing to bring out its staffs, how innovation is created, what changes the companies has make and how did it result. The strategy synopsis and main focus on home count ry competitive advantage developed from home country. At the residue of this report, you will be fit to perceive the organization values in rear to create competitive advantages that make the business sustainable in the front end and future.1.0 Introduction1.1 BackgroundKFC (originall(a)y known as Kentucky Fried Chicken) a subsidiary of Yam Brands. Together with Taco Bell, Long John Silvers and pizza Hut they are forming the worlds largest restaurant system with more than 32,500 outlets in 118 countries worldwide. KFC was founded by an entrepreneur named Harland Sanders in North Corbin, Kentucky, 1930. He started by selling fried chicken at his roadside restaurant during The Great Depression and discovered the potential of fast-food restaurant franchising concepts. Since then he expanded his first liberty market in Utah and foreseen a rapid successful business.1.1.1 Company Vision/Mission/ObjectiveThe companys vision statement is to be To be the leading integrated food servic e group in the ASEAN region delivering consistent quality products and excellent customer-focused service. Its purpose is to bring battalion from all religions, ages and backgrounds together to enjoy good food, proper food at reasonable pricesKFC mission is about reasons to Celebrate their come acrossments of others and convey funs doing it by customers focus and intuitive feeling in people. Recognition is everybodys responsibilities (Adonis Chapel, 2008)In achieving its vision and mission KFC plans to offer a healthy circuit card to customers. Providing customers with their best and making customers with smile every cartridge clip they eat at KFC in order to make repeated and potential customers. On the other hands, all associates deficiency to be trained to be customers maniacs. KFC has invented few fillings for healthier choices to meet diametric theatrical roles of customers and expectation. They still continue to expand their business to get more customers purchasing their food1.1.2 arise(www.business-docs.co.uk/documents/swot-analysis-template)Below table is SWOT analysis of KFC in 2013StrengthsKFC has earned the second largest sales in 2013 among those fast-food restaurantsSecret homemade 11 herbs recipesFirst western food style to establish in ChinaSubsidiary of the second largest fast-food in the world together with of KFC, Pizza Hut and Taco BellOffering the most original and the advantage of market leader among restaurants offering chickens as their primary boardWeaknessesToo many anonymous suppliers that caused the excessive antibiotics in used chickenExperience mellow employee swage as they always short of long term staffs Unhealthy menu, most of items are deep friedNot focusing on advertisement inclineNegative publicityWeak in marketing effectsOpportunitiesInnovation on healthy menu in order to target different type of customersProviding customers needs by offering 24hour services, drive through and home deliveryExpending on the v ariety of food choices, non only chicken capability harvest-home in Asian countries much(prenominal) as Vietnam, Malaysia and PhilippinesThreatsLawsuits against the company for its unsafe chickenConsumers are more concerned about their health and tend to quash on fast and oily foodUps and downs currency rates in different countriesMore people are following the trend of healthy eat1.1.3 PESTEL(www.dineshbakshi.com/igcse-business-studies/external-environment/revision-notes/63-external-environment-factors)KFC combines three major elements PESTEL which areP- Political KFC political analysis is their directive to run the restaurant. They use politics to solve the problem. Because the claim of excessive antibiotics in chicken. They made a loss in their profits. chief operating officer of Yum Chinese operations apologized to the public for the mistake and did a makeover menu for China to revive its sales and image.S- Social analysis which supports the operations progress. It may invol ve culture, values, norms, behaviour and belief of a particular country and they have social activities for the environment. Malaysia is a Muslim country. In order to visualise and satisfy its people, KFC has get off the other meat in their menu. 100% chicken used is Halal certificate. It is a way to respect a countrys religion and its people.T- Technological the most important element in order to be competitive and follow up your competitors and trends. Without modern applied science a company will collapse in the market. KFC was the first to introduce new baking system in their restaurant. Preparation process which involves cooking, frying and all other works are seen in front of customers.1.2 Strategic DevelopmentHow does KFC create and develop strategies(www.functionformulabusinessstrategy.blogspot.sg/2010/10/strategic-visioning.html)1.2.1 Corporate levelHeadquarters are set(p) in Louisville, Kentucky. Working as a strong organization at the corporate level, its headquarters first made KFC as a basic copy focusing on limited menu, low price meals and convenience. Chairman and CEO of Yum, David C. Novak is in control of the operations. He makes most important decisions that will affect the whole organization. His key focus are 1) build leading brands across China in every signifi foundationt category 2) drive aggressive international enlargement and build strong brands everywhere 3) dramatically cleanse U.S. brand views, consistency and returns and 4) drive industry-leading, long-term shareholder and franchisee value (source Taking people with you, David Novak, 2007)1.2.2 Business LevelIn 1987 KFC was the first western restaurant to open in China the brand has since grown rapidly throughout the island. KFC adapts its menu internationally to suit regional tastes, and there are over three hundredKFC menu items worldwide. The company is now the largest restaurant chain in China. Sam Su is the chairman and CEO of Yums Chinese operations. At the Busines s Level, the regional executive must have the understanding in the taste and culture of its country, to make some changes from the original menu that will satisfy the citizen tho wont affect the Corporate Level menu. Other than chicken, KFC in China is serving pork and skewers as well. compose keeping the original fried chicken but adding more items to interest customers and more various selections. Porridge is to a fault being served because Chinese used to believe that ingest a hot bowl of porridge in the morning is good for health and it is not too heavy. By inventing more items on the menu, Sam Su has only not targeted to the young people, but besides people at different ages. Menu includes an average of 50 different menu items per store as he believes different people have different tastes.1.2.3 BCGBesides fried chicken, KFC is also known for its delicious Zinger burger, which is at Star and the second best selling in store. Zinger burger is high for both market share and g rowth. Rice and Spice, newly invented item, high for market share but low growth. Twister is low for market share but high for market growth, certainly public acceptance. Arabian rice is low at both market share and growth. Today we hardly see it on the menu as it has recently removed.(www.download-reports.blogspot.sg/2011/09/new-product-development-at-kfc.html)1.2.4 Porters 5 forces framework for KFC(www.hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1)Force 1 provide of SuppliersSuppliers are in control of providing KFCs raw materials. Suppliers have the right to decide whether they still want to carry on contract with buyer. Any other buyers want to duplicate KFC menu they can just approach this supplier and offer a better price. If the supplier cut off the contract KFC will lose its market.Force 2 Power of BuyersKFC is in charge of making decision of which suppliers to get from. The amount of poultry used for KFC daily use is numerous. So suppliers must be a ble to translate the necessary amount without fail and ensuring that their raw materials are hygiene standard. Last year in China, KFC was having problem with its suppliers for the excessive antibiotics used in chicken. KFC immediately cut off more than 1,000 their suppliers after the scandal has affected the companys image.Force 3 Threat of new EntrantsNew entrants are companies that recently calculate in the same market and provide the same food. Radix Fried Chicken also specializes in fried chicken and has grabbed customers attention by electrical switch their taste. Radix Fried Chicken was found in 2013 while KFC has started since 1930.Force 4 Threats of Substitute or ServicesPopeyes is known for Louisiana kitchen. Their menu and taste are mostly similar to KFC. While KFC is specialised for its chicken Popeyes also offer customer few seafood choices such as tempura and shrimp. They also invent biscuit and chicken mashed potato on their menu. Popeyes is also offering free Wi-Fi .Force 5 Rivalry among existing competitorsMcDonalds is KFC strongest competitors which also offering its menu items similar to KFC. Speed of service is extremely competitive and set meal price is mostly the same. McDonalds has been offering its drive thru and 24hour services for years when KFC just recently tried out but only available in certain places.2.0 Critical themes2.1Customers(www.imeeta.wordpress.com/2012/04/27/business-strategy-bowmans-clock/)As evaluated, KFC is at position 3 which is Hybrid (moderate price andmoderate differentiation). Menu items offered like fried chickens, burgers, wings, drumsticks, side dishes, carbonated beverages and desserts are similar to other fast food restaurants such as McDonalds, Popeyes, and Burger King. Services are at tip stop speed comparing to other restaurants in the fast-food chain. KFC is always public acceptance and first option when they think of the phrase fried chicken at an affordable price.2.2 InnovationIn order to achieve a c ompanys success, staffs need to be encouraged. David C. Novak CEO and chairman of Yum Brands, was recognized as one of the quick-serve industrys Top 10 Most Innovative People on QRS Magazine. On his interview with The CEO TV show- Interviewing Americans top CEO he shared his learning while creating one of the most American products. He believed that people get excited about news and in the food business people love to try new things. The specific thing of what a CEO should do is extremely focus by looking and his own people and the way they do things. Driving innovation by getting out of the company and see what other people are doing. Listen to the voice of our customers, connect with them, and always reach for new innovations and excellence in everything they do He innovate his business by learning from his competitors in order to keep consistence. Innovation by peoples inspiration he said. David C. Novak devotes much of his duration to personally train leadership skills for the companys management staffs and franchisees, emphasizing teamwork and a belief in people that rewards and recognizes customer-focused behavior. In KFC there is no favoritism for old staffs. People after retirement can join KFC as a front clean-up staff.2.3 International strategyKFC Chinas global growth base on go global, act local by understanding the local culture, economic and regulatory differences becomes the key element to perform the businesss success. First KFC identified what the local like and dislike from customers feedback. Then they adapt the fast-food model to fit the local cuisine and culture. You wont be able to find such thing called chicken with Sichuan spicy sauce, rice, egg tarts, and soybean milk on American menu. Chinese people use to in eat large group so KFC hascreated larger value meal as well. They also hire local management staffs to take good care of customers and understand their way of local doing business well. The company also follows Chinese strict fo reigner investment laws and in action with local producers.3.0 Conclusion3.1 ValueKFC aims to achieve value by creating quality food at a reasonable price and convenient service. Making customer satisfaction as a precedency and fulfill customers demands in order to meet their satisfaction. They have also developed value menu for kids and school children with lower prices, value meal and combo for large group of people to share instead of buying each person individually. Value is also created for royal staffs and who are rewarded with good customer services.3.2 Competitive advantageKFC biggest competitive advantage is being the first fast-food restaurant chain to grow globally. They have gain popularity among years in the fast food chain featuring fried chicken. KFC is well-known for its homemade 11 herbs secret recipes and the leader market among those restaurants selling the same food. Secondly the company is in charge of conniption the lowest price for others to follow. If any r estaurant goes lower than that they will fail in the market share.3.3 SustainabilityFor the last 84 years KFC has remained sustainable in the market. In 2016 KFC established the eco environment program by reducing the volume of water used and carbon footprint, encouraging energy efficiency and sensible material use. They have been working with Carbon Trust and to reduce their emissions. KFC is playing its part to reduce the environmental impact and protect our planet.4.0 RecommendationsJudging on the company business strategy, KFC should improve on its menu by creating for more choices of healthier food options. The purpose is to target different type of customers, customers with special needs or diet or people with obesity problems. They can offer brown rice or whole meal riceinstead of white rice, steamed chicken, boiled veggies. Or they can follow up with McDonalds by offering KFCs caf, serving cakes, hot and cold coffee or tea, more ice pickaxe options for the kids craving. In addition, they may also expand their areas for 24hour services and drive through for the convenience of late customers.References1. The Associated Press (2011, October). Colonel Sanders secret recipes discovered manuscript reveals KFC founders favorite hometown foods. Retrieved April 18, 2014, from http//www.nydailynews.com/life-style/eats/colonel-sanders-secret-recipes-discovered-manuscript-reveals-kfc-founder-favorite-hometown-foods-article-1.975651 2. Brady, D. (2012, March). KFCs Big Game of Chicken. Retrieved April 19, 2014, from http//www.businessweek.com/articles/2012-03-29/kfcs-big-game-of-chicken 3. ENP Newswire (2014, March 28). KFC China Launches New Menu and Marketing Strategy Nationwide Milestone Signifies succeeding(prenominal) Phase of Companys Aggressive and Comprehensive Plan to Restage KFC in China. Retrieved April 20, 2014, from http//smart-grid.tmcnet.com/news/2014/03/28/7749628.htm 4. Harvard Business School (2011, June 17). KFCs Explosive Growth in China. Retr ieved April 20, 2014, from http//hbswk.hbs.edu/item/6704.html 5. Jurevicius, O. (2013, March 10). KFC SWOT analysis 2013. Retrieved April 19, 2014, from http//www.strategicmanagementinsight.com/swot-analyses/kfc-swot-analysis.html 6. Kassidy Emmerson, K. (2006, March 10). The History of Colonel Harland Sanders and His Kentucky Fried Chicken. Retrieved April 19, 2014, from http//voices.yahoo.com/the-history-colonel-harland-sanders-his-kentucky-23199.html 7. KFC Development (n.d.). Sustainability. Retrieved April 19, 2014, from http//www.kfcdevelopment.co.uk/sustainability.aspxtab_greenfacts 8. Lencioni, P. M. (2010). The Five Temptations of a CEO A Leadership Fable. Hoboken John Wiley & Sons. 9. Liu, W. K. (2008). KFC in China Secret recipe for success. Singapore John Wiley & Sons (Asia. 10. Novak, D. (2012). Taking people with you The only way to make big things happen. New York Portfolio/Penguin. 11. Novak, D. (2007). The education of an accidental CEO Lessons learned from the trai ler park to the corner office.