Multinational company: Kentucky Fried Chicken (KFC) The MNC I choose to profile is none other than the great KFC, the company that’s ruling Pakistan these days. Let’s see what makes it the best amongst all others.

Kentucky Fried Chicken Overview

KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain, specializing in Original Recipe®, Extra Crispy™, Twister® and Colonel's Crispy Strips® chicken with homestyle sides.

Every day, nearly eight million customers are served around the world. KFC's menu includes Original Recipe® chicken, made with the same great taste Colonel Harland Sanders created more than a half-century ago. Customers around the globe also enjoy more than 300 other products, from a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan.

KFC has more than 11,000 restaurants in more than 80 countries and territories around the world. And in quite a few U.S. cities, KFC is teaming up with sister restaurants, A&W, All-American Food™, Long John Silver's, Taco Bell and Pizza Hut, selling products from the popular chains in one convenient location.

KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500 KFC, A&W All-American Food™, Taco Bell, Long John Silver's and Pizza Hut restaurants in more than 100 countries and territories.

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From $105 to 7.2 Billion in 50 years

Kentucky Fried Chicken, pioneered by Colonel Harland Sanders, has grown to become one of the largest quick service food service systems in the world - with more than a billion "finger lickin' good" Kentucky Fried Chicken dinners served annually in more than 80 countries and territories. But success didn't come easily.

In 1896 Harland's father died, forcing his mother to enter the workforce to support the family. At the tender age of six, young Harlan was responsible for taking care of his younger siblings and doing much of the family's cooking. A year later he was already a master of several regional dishes. Over the course of the next 30 years, Sanders held jobs ranging from streetcar conductor to insurance salesman, but throughout it all his skill as a cook remained.

The Cook Becomes a Colonel

In 1930, the then 40-year-old Sanders were operating a service station in Corbin, Kentucky, and it was there that he began cooking for hungry travelers who stopped in for gas. He didn't have a restaurant yet, so patrons ate from his own dining table in the station's humble living quarters. It was then that he invented what's called "home meal replacement" - selling complete meals to busy, time-strapped families. He called it, "Sunday Dinner, Seven Days a Week."

As Sanders' fame grew, Governor Ruby Laffoon made him a Kentucky Colonel in 1935 in recognition of his contributions to the state's cuisine. Within four years, his establishment was listed in Duncan Hines' "Adventures in Good Eating."

As more people started coming strictly for the food, he moved across the street to increase his capacity. Over the next decade, he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today.

The Colonel's Cooking Spreads Worldwide

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In 1955, confident of the quality of his fried chicken, the Colonel devoted himself to developing his chicken franchising business. Less than 10 years later, Sanders had more than 600 KFC franchises in the U.S. and Canada, and in 1964 he sold his interest in the U.S. company for $2 million to a group of investors including John Y. Brown Jr. (who later became governor of Kentucky).

Under the new owners, Kentucky Fried Chicken Corporation grew rapidly. It went public in 1966, was listed on the New York Stock Exchange in 1969 and eventually was acquired by PepsiCo, Inc. in 1986. In 1997, PepsiCo, Inc. spun-off of its quick service restaurants- including KFC-into an independent restaurant company, Tricon Global Restaurants, Inc. Today, the restaurant company (now YUM! Brands, Inc.), is the world's largest in terms of system units with nearly 32,500 in more than 100 countries and territories.

Until he was fatally stricken with leukemia in 1980 at the age of 90, the Colonel traveled 250,000 miles a year visiting KFC restaurants around the world.

KFC strategy:

1. Primary objective is to take advantage of the potential growth in other countries, to establish a strong position and to develop their image. Key success factors are:

Ever continuing cost Savings through R&D Innovations and use of new technologies to work efficiently

These success techniques will lower costs and increase profits in the industry.

2. KFC uses an integrated low cost/differentiation leadership, since if can count on its brand name and original taste and recipes to be unique while at the same time compete on price using the benefits of cost savings from economies of scale.

Advertising Strategy:

KFC's logo used from 1997 until November 2006

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Early television advertisements for KFC regularly featured Colonel Sanders licking his fingers and talking to the viewer about his secret recipe, and by the 1960s both the Colonel and the chain's striped bucket had became well-known. The bucket as product placement can be seen in the hands of both Annette Funicello and Dwayne Hickman in 1965's How to Stuff a Wild Bikini, and was also featured prominently in the 1968 Peter Sellers vehicle, The Party. The Colonel made appearances as himself in Jerry Lewis's The Big Mouth (1967), Herschell Gordon Lewis' Blast-Off Girls (1967) and Al Adamson's Hell's Bloody Devils (1970), as well as an appearance in 1968 on Rowan & Martin's Laugh-In.

Despite his death in 1980, Sanders remains a key symbol of the company in its advertising and branding.

Throughout the mid 1980s, KFC called on Will Vinton Studios to produce a series of humorous, claymation ads. These most often featured a cartoon-like chicken illustrating the poor food quality of competing food chains, mentioning prolonged freezing and other negative aspects. TV ads also featured Foghorn Leghorn advising Henery Hawk to visit the restaurant for better chicken.

In the 1980s, KFC was an associate sponsor for Junior Johnson's NASCAR Winston Cup Series cars, with such drivers as Darrell Waltrip, Neil Bonnett, andTerry Labonte.

In 1997, KFC briefly re-entered the NASCAR Winston Cup Series as sponsor of the #26 Darrell Waltrip Motorsports Chevrolet with driver Rich Bickle at theBrickyard 400.

A co-branded   Long John Silver's   and KFC

By the late 1990s, the stylized likeness of Colonel Sanders as the KFC logo had been modified. KFC ads began featuring an animated version of "the Colonel" voiced by Randy Quaid with a lively and enthusiastic attitude. He would often start out saying "The Colonel here!" and moved across the screen with a cane in hand.

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The Colonel was often shown dancing, singing, and knocking on the TV screen as he spoke to the viewer about the product.

The animated Colonel is uncommon today. Still using a humorous slant, the current KFC campaign revolves mostly around customers enjoying the food. It also features a modified version of Lynyrd Skynyrd's "Sweet Home Alabama" as the theme song for practically all its commercials, though the restaurant actually hails from Kentucky.

In 2006, KFC claimed to have made the first logo visible from outer space, though Readymix has had one since 1965. KFC says "It marked the official debut of a massive global re-image campaign that will contemporize 14,000-plus KFC restaurants in over 80 countries over the next few years." The logo was built from 65,000 one-foot-square tiles, and it took six days on site to construct in early November. The logo was placed in the Mojave Desert near Rachel, Nevada.[45] It is located in the northern section of Rachel, Nevada at 37.6460°N 115.7507°W .

Many KFC locations are co-located with one or more of Yum! Brands restaurants, Long John Silver's, Taco Bell, Pizza Hut, or A&W Restaurants. Many of these locations behave like a single restaurant, offering a single menu with food items from both restaurants.

The resurrected Kentucky Fried Chicken logo

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot".

In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage.

In 2010, an advertisement was shown in Australia showing an Australian cricket fan giving West Indies fans KFC chicken to keep them quiet.

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The ad sparked a debate over racism in the ad, suggesting that all black people eat fried chicken. Fried chicken was eaten by black slaves because it was cheap and easy to make. Though KFC stated that it was "misinterpreted by a segment of people in the US" the ad was later pulled from TV. However, several Australian commentators have expressed the opinion that the ad is not racist, because this is not a racial stereotype in Australia and the cricket fans in the ad are not African American, but West Indies cricket supporters (the West Indies Cricket Team was playing aTest cricket series against the Australian Cricket Team at the time of the ad).

Philosophies and Practices:

KFC recognizes a strict social responsibility. They have been working on different philosophies to help the society on the whole.

1. Pretty in pink: KFC undergoes colorful makeover to raise awareness of breast cancer and attempt record setting donation.

(This highlight was seen in the news)For First Time Ever, Iconic KFC Bucket Will Go Pink, Along with Global Headquarters and Colonel’s Classic Suit, in Support of Susan G. Komen For the Cure®

LOUISVILLE, KY - Pink is the new black (and red), at least at KFC restaurants nationwide. From one local restaurant to the world corporate headquarters, Kentucky Fried Chicken is getting a brand-wide pink facelift – and encouraging others to join in, for breast cancer programs at the national and local levels.

These are some of the reviews of employees and customers about the whole idea.

KFC is joining the fight against breast cancer with a national “Buckets for the Cure™” campaign aimed at educating more women about breast health, generating support for the cause and attempting to make the single largest donation in the history of Susan G. Komen for the Cure. Buckets for the Cure™ launches today and runs through May 23.

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“Through our Buckets For the Cure™ campaign, the KFC family nationwide is helping to reach millions of women and men with breast health education, and attempting to make the single largest donation ever to Susan G. Komen for the Cure® in an effort to help end breast cancer forever,” said Javier Benito, executive vice president of marketing and food innovation for KFC. “But we don’t want our efforts to stop at our restaurants’ doors. We are asking that everyone nationwide join our efforts to raise awareness for this important cause by going pink too.”

To help generate awareness of the disease that will affect one in eight women in the U.S., KFC has taken the unprecedented step of changing the color of its iconic bucket from red to pink – a first for the famous brand that traces its beginning to the 1930s. The commemorative pink buckets pay tribute to 376 cancer survivors and those who have lost their battle by featuring their names on packaging.

Between now and May 23, 2010, KFC will be dedicating the special pink buckets to Susan G. Komen for the Cure, with KFC restaurant operators having donated 50 cents for each pink bucket purchased by the operator before May 9, 2010. Twenty-five percent of the funds raised from this promotion will go directly to the local Affiliates of Susan G. Komen for the Cure. The funds will be used for local breast cancer education, screening and treatment programs.

“KFC and its franchisees' support allow us to continue our life-saving work funding research, providing breast health education and screenings and providing direct help for millions of women and men in communities across the United States,” said Katrina McGhee, Senior Vice President - Global Business Development and Partnerships for Komen. “The funds they raised will not only fund vital research but local communities that support survivors, patients and their families. We are very grateful for KFC’s generosity and help.”

The KFC Colonel, known for his classic white suit and ribbon tie, will embrace the brand's “pink-ification” by donning a new pink suit at a number of public events from now through May 23. KFC’s “White House” global headquarters has also ‘followed suit’ by going pink via exterior pink lighting and ribbons. Even the Commonwealth of Kentucky has rallied behind the brand’s efforts thanks to First Lady of the Commonwealth Jane Beshear, who will light both the Governor’s mansion and the Kentucky State Capitol building pink through May 3.

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“Each year between 2,800 and 3,200 women are diagnosed with breast cancer, making it the second leading cause of death for women in Kentucky,” said Mrs. Beshear. “Through my Horses and Hope initiative, the annual Celebration of Hope and working with Churchill Downs to sponsor ‘Pink Out’ day at the Kentucky Oaks, I am committed to educating women about breast cancer. The Governor and I encourage all Kentuckians and Americans to join us in partnering with Kentucky Fried Chicken to ‘Go Pink’ to increase awareness for breast cancer.”

2. There's more to KFC than great food. We promote education, diversity and animal welfare in a number of positive ways.

 

The KFC Colonel’s Scholars Program is about you, your dreams and aspirations, and the perseverance to succeed. This program is offered to high school seniors planning to attend a public in-state college or university

The KFC Colonel's Scholars Program® is looking for high school seniors with entrepreneurial drive, strong perseverance, demonstrated financial need, and who want to pursue a college education at an accredited public institution in the state they reside.

The KFC Colonel’s Scholars Program is about you, your dreams and aspirations, and the perseverance to succeed. This program is offered to high school seniors planning to attend a public in-state college or university. Students who meet the criteria may apply online to become a KFC’s Colonel’s Scholar. Students selected for this scholarship are eligible to receive up to $20,000 to complete a bachelor’s degree program. 

3. Diversity is more than a philosophy at KFC, it is part of our founding How We Work Together principles. Our global culture is actively developing a workforce that is diverse in style and background, where everyone can make a difference

For us, diversity is not a target - it's a way of life and a way of doing business. Everyone can and does make a difference in our organization. One of our HWWT2 principles - Believe in all People - underscores the importance of actively

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seeking diversity in others; believing everyone has the potential to make a difference; and coaching and supporting every individual to grow to their full capacity. This adds perspective and depth to everything we do. We've also found that a diverse team makes for better problem solvers, services all our customers more effectively, and creates a richer culture for all of us to enjoy.

In our company-owned operations in the U.S. for example, about 30 percent of our associates are Caucasian and the remaining 70 percent are Hispanic, African American and/or Asian. Minorities and women made up 64 percent of our external management hires and 41 percent of internal management hires (promotions) in 2007.

We are also increasing the representation of African Americans, Hispanics and women among our key talent/decision makers, and growing the pipeline of diversity in our mid-level manager ranks.

All of our brands have leadership initiatives focused on high-potential diversity talent, and all leaders serve as mentors. In addition, last year each of the brand presidents went into their communities to provide business-growth coaching for local networks of minority businesses.

Making progress in diversity is a business priority and the work of everyone in our system. This commitment is reflected in David Novak's annual goals, or "Blue Chips." We also have a dedicated Global Diversity and Inclusion Officer who guides our strategy and a number of initiatives that enhance our inclusive workplace.

4. Yum! Brands is committed to conducting business in an ethical and responsible manner. To encourage compliance with all legal requirements and ethical business practices, Yum has established a Supplier Code of Conduct for it's U.S. suppliers

YUM! Brands, Inc. ("Yum") is committed to conducting its business in an ethical, legal and socially responsible manner. To encourage compliance with all legal requirements and ethical business practices, Yum has established this Supplier Code of Conduct (the "Code") for Yum's U.S. suppliers ("Suppliers").

Compliance with Laws and RegulationsSuppliers are required to abide by all applicable laws, codes or regulations including,

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but not limited to, any local, state or federal laws regarding wages and benefits, workmen's compensation, working hours, equal opportunity, worker and product safety. Yum also expects that Suppliers will conform their practices to the published standards for their industry.

Employment PracticesWorking Hours & Conditions: In compliance with applicable laws, regulations, codes and industry standards, Suppliers are expected to ensure that their employees have safe and healthy working conditions and reasonable daily and weekly work schedules. Employees should not be required to work more than the number of hours allowed for regular and overtime work periods under applicable local, state and federal law.

Non-Discrimination: Suppliers should implement a policy to effectuate all applicable local and federal laws prohibiting discrimination in hiring and employment on the grounds of race, color, religion, sex, age, physical disability, national origin, creed or any other basis prohibited by law.

Child Labor: Suppliers should not use workers under the legal age for employment for the type of work being performed in any facility in which the Supplier is doing work for Yum. In no event should Suppliers use employees younger than 14 years of age.

Forced and Indentured Labor: In accordance with applicable law, no Supplier should perform work or produce goods for Yum using labor under any form of indentured servitude, nor should threats of violence, physical punishment, confinement, or other form of physical, sexual, psychological, or verbal harassment or abuse be used as a method of discipline or control.

Notification to Employees: To the extent required by law, Suppliers should establish company-wide policies implementing the standards outlined in this Code and post notices of those policies for their employees. The notices should be in all languages necessary to fully communicate the policy to its employees.

Audits and InspectionsEach Supplier should conduct audits and inspections to insure their compliance with this Code and applicable legal and contractual standards. In addition to any contractual rights of Yum or Unified Foodservice Purchasing Co-op, LLC ("UFPC"), the Supplier's failure to observe the Code may subject them to disciplinary action, which

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could include termination of the Supplier relationship. The business relationship with Yum and UFPC is strengthened upon full and complete compliance with the Code and the Supplier's agreements with Yum and UFPC.

ApplicationThe Code is a general statement of Yum's expectations with respect to its Suppliers. The Code should not be read in lieu of but in addition to the Supplier's obligations as set out in any agreements between Yum or UFPC and the Supplier. In the event of a conflict between the Code and an applicable agreement, the agreement shall control.

5. KFC is as committed to the environment as we are to our food and customers. Read more about the steps we have taken to reduce our environmental footprint and plans for improvement moving forward

KFC is as committed to the environment as we are to our food and to our customers. We are proud of the steps we have taken so far to reduce our environmental footprint and are committed as a brand to do even more in the in future. It’s an ongoing journey that we’re on and we want to keep you – our customers - informed along the way!

Check out some interesting facts on what we are already doing today and be sure to check back with us for more news on our green initiatives.

Our Packaging

All KFC’s paper bags are 100% recycled content1 All KFC’s in-store napkins are 100% recycled content2 30% of every KFC Bucket Lid is made out of recycled content3 By May, more than 90% of our paperboard packaging will be Sustainable

Forestry Initiative (SFI) certified4

Our Restaurants

The interior lighting used in all company-owned U.S. KFC restaurants have been converted to more efficient models, which has resulted in a carbon reduction equivalent to taking 763 cars off the road for one year.

All company-owned U.S. KFC restaurants use Energy Star appliances where

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feasible, and currently use the highest energy efficient oven of any available on the market today.

For all new or for replacements in existing U.S. company-owned KFC restaurants, KFC uses high-efficiency air conditioners. In addition, programmable thermostats have been installed in all company-owned stores, delivering a carbon reduction equivalent to providing annual electricity to 532 homes.

KFC-Taco Bell opened its first “green” or LEED (Leadership in Energy and Environmental Design) restaurant in Northhampton, Massachusetts, achieving Gold certification – one of LEED’s highest certifications.

Franchisees are exploring ways to be more energy efficient by switching to energy efficient lighting and using programmable thermostats.

6. Yum! Brands, parent company of KFC, is committed to the humane treatment of animals.

Yum! Brands is the owner of restaurant companies and, as such, does not own, raise or transport animals. However, as a major purchaser of food products, we have the opportunity, and responsibility, to influence the way animals supplied to us are treated. We take that responsibility very seriously, and we are monitoring our suppliers on an ongoing basis to determine whether our suppliers are using humane procedures for caring for and handling animals they supply to us. As a consequence, it is our goal to only deal with suppliers who promise to maintain our high standards and share our commitment to animal welfare.

To assist us in that effort, Yum! Brands formed the KFC Animal Welfare Advisory Council, which consists of highly regarded experts in the field. The Council provides us with information and advice based on relevant data and scientific research. The Animal Welfare Advisory Council has been a key factor in formulating our animal welfare program.

In consultation with our Council, KFC has developed guidelines and audit programs for our suppliers in the broiler industry. We were also a prominent player in the joint effort conducted by the National Council of Chain Restaurants and the

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Food Marketing Institute to develop comprehensive guidelines for all species of farm animals.

KFC has implemented a farm level audit program - a program which is industry-leading in the areas of poultry care and handling.

Latest Kentucky Fried Chicken Headlines

KFC Introduces The $5 Madden NFL Box Featuring Your KFC(R) Favorites And A Madden NFL Cup

KFC Picks Louisville Artist As The Winner Of Its 'hitmaker' 2009 Contest For Amateur Songwriters 

KFC To Close Restaurants To Help Raise Money And Awareness For Issue Of Global HungerFrom Chicken Legs To Sea Legs: KFC Launches First-ever "float Thru" Restaurant To Promote New Value Menu Items

Fill 'er Up For The Fourth: KFC Tops Off Gas Tanks (And Stomachs) This Holiday Weekend To Introduce The New KFC(R) $5 Fill-Up Box

KFC Teams Up With Music Icons Mc Lyte And David Banner In Search Of The Next Hot 'Hitmaker' 

Should KFC Replace Colonel Sanders As Brand Icon? Cast Your Vote And Help America Decide 

Kentucky Fried Chicken Cooks Up Chari-T's: A KFC Philanthropic Fashion First

A Second Colonel? KFC Launches Search For New Face Of Kentucky Grilled Chicken(TM)

KFC Serves Up A Second Secret Recipe: Kentucky Grilled Chicken(TM)

Standards:

(I found this written on their website (this is what they demand – standards)

At Yum! Brands, we connect successful professionals like you to brands people crave! We leverage your experience by helping you become a multi-unit franchisee with

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some of the biggest brands in the business. Our proven process supports you every step of the way with development experts, business coaches and a peer network of more than 1,200 experienced franchisees, all part of the Yum! Value Network. It's a way to set you apart. 

1. Do You Have What It Takes? Capability. Commitment. Capital.While Yum! Franchising is a fantastic opportunity for many; it may not be for everyone. Have a look at the following criteria to see if Yum! is right for you:

2. Do you have a passion for operations? The restaurant business is a hands on business

3. Are you committed to building people capability? Multi-unit ownership requires you to be a team builder

4. Do you have capital to grow? You and your partners must have at least $360,000 in liquid assets

5. The Yum! Value Network consists of many programs and support staff all focused on enabling you to compete, including:

Brand Recognition Customer Attraction Competitive Advantage Franchise Value System Multi-Unit Growth Economic Stability Brands that Give Back to the Community Development Expertise Access to Financing Solid Business Support Quality On-boarding & Training Reliable Supply Chain Return on Investment

This is the attitude they need:

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“Your drive. You’re Team. Our Brands. It can be a powerful combination!”

Analysis of KFC:

SWOT analysis:

Strengths:

Brand Equity Second only to McDonalds in foreign sales $550 million Employee Loyalty Targeting Non- Traditional Outlets Strong cash flows Generate $1 billion each year Very strong internationally (UK, Middle East, Thailand, China, Japan. Korea,

Mexico) Strong Franchise and License Fee revenues for cash flows Interactive relationship marketing Strong trademarks recipes Ranks highest among all chicken restaurant chains for its convenience and

menu variety Largest multi-branded restraint in the world 100 KFC and Pizza Hut combos

600 KFC and Taco Bell combos

Weakness:

Recent drop in sales for KFC Failed to rank in top 20 in growth in 2000 Same store sales declined Lack of point of scale scanning system Admitted inability to provide quality service Lack of knowledge about their customers Lack of relationships building with employees, customers and suppliers Question of over franchising leads to loss of control and quality Lack of focus on R&D Conflicting corporate cultures

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Opportunities:

Growth of 18-24 age demographics Increase in US median income International beef scare from “mad cow”, “boof” and “mouth disease” Home meal replacement market will exceed an estimated $577 billion by 2020 Targeting to grow ethnic markets – Asian, American and Hispanic New leadership Domestic markets Updating restaurants Balanced menu Customers focus Increase delivery service Economies of scale

Threats:

Rated 83 out of 100 in terms of competitiveness Increasing wages rates directly affect menu prices 85% annual employees turnover for fast – food market Super markets and new competitors threaten HRM market International Exchange Rates Health trend away from fried foods Changing customers demands Quality of Service focus Saturated Food industry

Internal Analysis Functional Areas

Finance/Accounting

Since 2001, Yum Brands Inc. has outperformed the market

Computer Information Systems

Newly established Computer information system 

Marketing

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Positioning among competitors is favorable Unconventional methods of distribution Multi-branding

Management

Objectives and goals are measurable and achievable

Team empowerment 

Productions/Operations Constant improvement on quality of chicken Producer and operators are strategically located

Space Matrix

• Competitive Advantage

• Industry Strength

• Environmental Stability

• Financial Strength

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CA

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BCG Matrix of KFC done considering it in different countries across the globe:

BCG Matrix

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Alternatives that KFC took to prevent decline in market:

• KFC Hospice Dinners – Delivering a caring outreach to the terminally ill (SO)

• KFC Cafeterias – Offering dishes competitors do not (SO)• KFC Grocery Products – The Cornel is always home (SO)

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Asia Europe

USA

Americas

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Recommendations and Conclusion:

• Market Research: Determine area’s demand to determine boundaries• Expand menu: Healthier choices• Meals will be sold at cost: Determine effects on budget

Long term strategy should be:

• KFC is a publicly traded company with responsibilities to all share holders. By becoming a more “socially responsible” corporation it can attract a new type of investor while retaining our current stock holders. Ben & Jerries & Starbucks have benefited financially by promoting their “socially responsible corporation”

• KFC is already hoping to achieve this by becoming synonymous with hospice. (Hospice delivers meals to the terminally ill nationwide: These meals are delivered directly to the patient in their own home because:

1. Political & Social Image2. Advances KFC’s name recognition and reputation3. “Secret Recipe”4. Expands employee loyalty

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