3. Introduction
• One of the leading fast food Franchise concepts
of today.
• Products are made on the motto of "Crispy outside,
juicy inside”.
• Started in 1930 by Harland Sanders the founder of KFC
• Cupola holds the master franchise rights to operate
KFC in Pakistan since1999.
• More than 10,000 outlets in the world.
• 64 outlets in Pakistan.
• North Region including Lahore, Rawalpindi and
Islamabad (Punjab).
• South Region including Karachi and Hyderabad
(interior Sindh).
4. VISION AND MISSION
• VISION
To be leading integrated food services group in ASEAN region
delivering consistent quality products and excellent customer
focused.
• MISSION
To maximize profitability, improve shareholder value and
deliver sustainable growth year after year.
5. • Build an organization dedicated to excellence.
• Consistently deliver superior quality and value in our
products and services.
• Maintain a commitment to innovation for continuous
improvement and grow, striving always to be the leader
in the market place changes.
• Generate consistently superior financial returns and
benefits our owner and employees.
Objectives
6. • Since beginning, KFC has presented itself and well
competed, only through it delicious chicken.
• People from all over the world know KFC as the best
chicken expert.
• Their chicken has always been unique in taste and
has helped them in order to build their own identity
in all over the world
Core competency
7. • KFC Pakistan provides 100% Halal and Hygienic products to its customers.
It offers a variety of finger-licking products, some of which are as follows:
1. Crispy Fried Chicken
2. Zinger
3. Twister
4. Hotshots
5. Chicken Burger
6. Hot wings
7. Rice and Spice
8. Fish Zinger
9. Nuggets
10. Corn on the Cob
11. French Fries
PRODUCTS OF KFC
8. • Responsibilities:
• Responsible for all the human resource functions.
• such as policy, recruitment, IR, performance
evaluation, compensation and benefit, and other
general admin matters.
KFC Human Resource Management
11. • Selection based on :
Test
Physical Test
Behavioral Test
Team Skill Judge
Working Capacity
Communication Skill
Confidence
Body Language
Motivation Level
Selection Criteria
12. • KFC has developed an e-recruitment tool
which gives potential employees the ability to
apply for a job online.
• Job Description
• Person Specification.
Recruitment
13. • Trainee Managers
• Responsible for assisting the Restaurant General Manager and Assistant
Managers in creating an energetic and valuable work environment, which
is committed to serving the best chicken at the fastest speed and with a
smile.
• Skills & Abilities
• Trainee Managers must have at least a year 10 education and 2 years work
experience in a managerial/supervisory role.
• Must have excellent customer service skills and the ability to deal with
customers complaints
• Excellent communication skills
• Must have the ability to develop competent computer skills
• Be able to motivate, delegate and co-ordinate
Example(Job description)
14. • Firms cannot just ‘sack’ workers
• Wide range of procedures and steps
in dealing with workplace conflict
– Informal meetings
– Formal meetings
– Verbal warnings
– Written warnings
– Grievance procedures
Discipline
15. • Training “We won’t make you wing it” is KFC’s motto when it
comes to training employees. Training includes:
1) Workbooks
2) Quizzes
3) On-the-job competency based training
Employees are encouraged to work together as a team.
Training
16. • Christ Mendel , director of global risk management of
Tricon Global Restaurant (an arm of Yum ! Brand )
stated that the company focuses on:
• Training and education for all their employees and
managers .
• Substantial training programs for all front line people .
• The training has been integrated into the company 's
broader management trainings that deal with issues as
sexual harassment , hiring and firing practices
,interpersonal relationships , and conflict resolution .
Training(Cont)
17. • To enhance employee motivation KFC is using one to one
meetings strategy.
• They have staff incentive programs, conventions, Champs
Elysees.
• Includes the cleaning, hotel, maintenance, accuracy, speed of
service and product quality etc.
• KFC sends e-mail, together with the memorandum to the
employees, the crew incentive programs etc.
Motivation
18. 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.
20. • Differentiation: By providing unique taste of chicken
• Re-establish and maintain an emphasis on clean and updated restaurants
paying close attention to service while maintaining product consistency .
• KFC has differentiated its products on the basis of “Food, fun & Festivity”,.
• KFC is sharing supply chain with Pizza Hut, which creates
the supply chain collaborative sharing effect. It decreases the cost also.
• In one word, KFC performed slightly better control
of product costs.
Business level Strategy
21. • Growth: Switched from franchise to company owned in their larger
markets
• Interest in local community (Neighborhood)
– Combing the two concepts in the same unit
– Changed name and Logo
• Retrenchment: Introduced different menu items to keep up with
local competitors
• Turnaround: Updated Technologies in Service and Production unit
• Pay closely aligned with customer service and restaurant
performance
• More responsibility assigned to franchisees and marketing
managers
• Switched to highly performance based management strategies.
Corporate Level Strategies:
23. • There are only two teams in KFC ( Chandni Chowk Branch)
• One team is Concentrating on resolving internal Conflicts
between employees and employers through different
procedures and committees:
If employee is unsatisfied with its team or management
then he/she can easily resolve his/her issue
• Second team deals with the customer care satisfaction and
try to improve technology and working conditions:
On different occasions customers offers and
discounts available.
Teams to handle critical situations :
24. • The competitive advantage of KFC is its
position as the dominant firm.
• It currently enjoys 50% market share in
Pakistan.
Competitive Advantage
25. KFC Management Functions
KFC management is following the
“POLCA”
P = Planning
O = Organizing
L = Leading
C = Controlling
A = Assurance
26. Planning
• Strategic Plans
KFC has strategic planning to increase its market
worth value of the market and its market share. They
work on a well defined strategic planning for this.
• Operational Plans
• Include launching of a new product to change or
innovate its product line for the customers.
27. • KFC policies are excellence for their standards
which are shortly termed as CHAMPS i.e.
C: Cleanliness
H: Hospitality
A: Accuracy
M: Maintenance
P: Product
S: Speed of Service.
KFC policies regulates around these standards,
hospitality is also with the employees regarding
their issues and privacy
POLICIES:
28. • Procedures are well described in CHAMPS
standard library whose access is onlygivento
the employees
• There procedures/ rules include safety for its
products as well as their employees by
providing with sanitizers keeping kitchen
environment clean and hygienic.
PROCEDURES/RULES:
29. 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.
30. 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.
33. 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
34. 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.
35. 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
36. 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.
37. • KFC is centralized as all the decisions are pre documented
and taken at upper level of organization without any
involvement at lower level.
• A new deal is launched in the market with agreement of
all the heads of department.
• Head of department discuss the objectives with their
team .
• Have a team environment in units where everyone works
together.
• Hence from this we can also conclude that MBO
approach is used by KFC management.
Is KFC centralized or decentralized?
Traditional Planning OR MBO?
38. 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.
39. 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
40. 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 finishing the Products.
41. 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.
42. 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.
43. External control
• Yum brand representatives visit KFC
restaurants.
• For standards and quality check up.
• No relaxation is given to Manager on any flaw.
44. Employee discipline system
• Disciplines are maintained in KFC as this is
their core strategy.
• employment discipline is maintained by
managers and are followed CHAMPS.
45. 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.
46. Purchasing Control
• Purchasing depends on the restaurant
branches:
– In house purchasing
– Ware house purchasing
– Direct purchasing
– Indirect purchasing
47. 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.
48. 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.
49. • KFC has teams with in the department and there are
cross functional teams.
• Communication is channeled as mostly departments
communicate in formal meetings e.g. in regional meetings.
• These meetings provide opportunities to share ideas among
each other and also provide an insight what others are doing.
• Culture of KFC promotes team work.
Communication
51. Strengths
• Brand Equity.
• KFC secret recipe of 11 herbs species.
• Strong Market Share (over 50%)
• 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.
• Product is their strength customers come here for product
ignoring the prices.
• They don’t do much advertisement as awareness is there
& they don’t find a need for advertisement.
52. Weaknesses
• Presence of Multinational competitors in the
market e.g. McDonalds.
• Compressed hierarchy.
• Unhealthy fats:
• 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.
53. 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
54. 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.
55. 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.
competency based training- Employees are encouraged to work together as a team-
They are working efficiently on operational plans for example they only open up the branch were they can easil yearn up to more than desired or planned revenue even like KFC has open up its wheels for less cost and market penetrating in areas like Thokar Niaz Baig and Bahria Town this is part of their operational plans once they will think they have made the spot then they would openup its new branch.
