otb project

8/3/2019 Otb Project

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Kentucky Fried

ChickenReport based on study of

structure and culture of KFC

Submitted to:

Sir Raja Saad

Bahria university, Islamabad

Submitted by:

SALMAN ZAHID 01-

113082-032

MUZAMMIL ARIF 01-

113082-

USMAN ASLAM 01-113082-

NAEEM AMIN 01-

113082-


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Transmittal Letter

Research Associates

BUI Students

BAHRIA, UNIVERSITY ISLAMABAD

December 30, 2011

Sir Saad

Bahria, university Islamabad

Respected sir saad,

We are thankful to you that you have assigned aproject last week. we observed all structure andculture of KFC and we highlights those points which isnecessary for the organization.

We also appreciate you that you guide us very well inobservational study. The report has been prepared insystematic manner according to the requirements.While studying the report you will come to know aboutstructure and culture of the organization.

The SWOT analysis of KFC reveals their strength,weakness opportunities and threats. Followed by thesuggestion, that will definitely work if considered.

We will hope that you will like and appreciate ourreport and gives credit in future.

Yours Obediently,

Group Leader

SALMAN ZAHID


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Table of Contents

Executive Summary 1

Introduction

2

KFC Saloogan 2

History 3

KFC in Pakistan 4

Some Facts

4

Vision

5

Mission Statement

5

Culture 6

Organizational Structure and Design

6

Hierarchy of KFC in Pakistan7

Structure in Branch 7

Major Departments 8

Human Resource Management

8

Nutritional Information & Specific Ingredients9


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Social Responsibility

10

Strategy

10

International Expansion

10

Multi brand Innovation & Expansion:10

Global Franchise Fees10

Strong Cash Generation and Returns

10

International Operations

11

Founding Truths

12

External Environment

13

Competitors

13

Suppliers

13

Customers

13

The principal Of KFC

14

Analysis

15

Hdfh

16


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Bibliography

18

Page |

1

Executive Summary:

From the project we study many topicssome of these topics are:

Structure


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Culture Symbol Slogan Behavior External

environment

These points describeabout the KFCinternal and externalenvironment. The KFCculture has important aspects. They co-

ordinate and co-operate with employeesvery well.

They give awards and held ceremonies foremployees. Upper level management is therole model for all employees. Theycooperate with operatives and work in ateam structure. New employees are treatedvery well. The important aspect is that the

external environment like wars, trends,emergencies influenced their plans

The top management takes decisions withthe suggestions of employees. There is nomisunderstanding among employees andmanagement. They exit in clan culture.

Page |2

INTRODUCTION:


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The Global Company that serves you with same quality

and care throughout the world.

KFC is based in Kentucky, and is the worlds most

popular chicken restaurantchain.

8 million customers each day.

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.

KFC has more than 13,700 restaurants in more than 100

countries and territories around the world.

Food, fun & Festivity, this is

what KFC is all leading the

market since its inception.

Be it colonel sanders secret

original recipe chicken or the

hot & spicy version, every

bite brings a yum on our face.

KFC SALOGAN:At KFC we can proudly say.

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HISTORY: 1890 Colonel Harland Sanders, the founder of the KFC

Corporation, was born.
http://en.wikipedia.org/wiki/File:FirstKFC.jpghttp://en.wikipedia.org/wiki/File:Boycott_KFC.jpg


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1932 Colonel Sanders developed his special blend of

11 spices and herbs, which marked the beginning of his

famous Original Recipe chicken.

1935 The Colonel became known as the Kentucky

Colonel, this name is what later became incorporated inthe name Kentucky Fried Chicken.

1952, Col. Sanders started franchising his recipe door to

door financed by his $105.00 SS Check

1966 KFC went public with its franchises and special

chicken recipe.

1976 Colonel Sanders received an award for becoming

the worlds second most recognizable celebrity.

1980 Sadly, Colonel Sanders passed away. However,

his legacy carried on and is still widely recognizedtoday.

1997-Frist KFC restaurant opens in Pakistan in January

at Karachi. 1997-Frist KFC in Lahore in June at Barket market.

2000 KFC founded the Colonels Kids Charity to help

kids afford education and get a

good start in life.

2002 Tricon Global became Yum!

Brands, Inc., which it remains tothis day.

2011 Today there are 13,266

KFC franchises around the world,

5,525 in the U.S. alone.

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KFC IN PAKISTAN:Cupola is a Dubai based multinational company involved in

several business including, oil gas exploration, plastic cards,

retail markets and food franchising. Cupola holds the master

franchise rights to operate KFC in Pakistan.

SOME FACTS:


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Quoted from Yum! Brands, Inc., KFCs parent corporation.

Our passion, as a restaurant company, is to put a YUM on

people's faces around the world, satisfying customers every

time they eat our food and doing it better than any other

restaurant company. A&W, KFC, Long John Silver's, Pizza Hut,

and Taco Bell offer customers food they crave, comeback

value, and customer-focused teams. The unique eating

experience at each of our restaurants make our customers

smile and inspire their loyalty for life. Toward that end, our

750,000 associates around the world are trained to be

customer maniacs.

MISSION STATEMENT:

These are the basic mission of KFC.

Recognition: we find reasons to celebrate the achievements

of others and have fun doing it, is right up there with

Customer Focus and Belief In People. "Recognition is

everybody's responsibility," says Chicago restaurant manager

Adonis Chapel. He explains that since KFC started

encouraging informal recognition, things have really changed.

"You keep employees longer, they are happier, they work

better for you."

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CULTURE:


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The set of key values, beliefs, understandings and norms

that members of organization share. Employees deeply follow

the culture at surface level and higher level of organization.

Big on diversity in the workplace.

Promotes differences in

background, ethnic cultures, and

values.

Team-oriented environment.

Focuses on teaching everybody

something new .

Promotes unity in the workplace

Focuses on building relationships and creating diversity

and commitment within the company and amongst

employees and customers.

ORGANIZATIONAL STRUCTURE ANDDESIGN:

Kentucky Fried Chicken exhibits culture throughemployees by having a wide range of diversity. People and

employees belonging to an ethnic group often bring their

cultures with them, sometimes creating subcultures. These

subcultures are often derived from different customs, values,

languages, traditions, and beliefs. Since Kentucky Fried

Chicken values diversity, their management looks for ways to

create benefits for the entire organization.

KFC is part of a divisional structure, which is Yum!

Brands, Inc. Long John Silvers, A&W, Taco Bell, and Pizza Hut are

the other divisions.

Offers positions to many people; good for senior

executives.

Willing, responsive, and flexible to change and

growth.

KFC works to bring recognition and money to Yum!

Brands, Inc.

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HIERARCHY OF KFC INPAKISTAN:

STRUCTURE IN BRANCH:

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MAJOR DEPARTMENTS:Organization has the following major departments;

Human Resource

Accounts

Administration

I.T

Marketing

Finance

HUMAN RESOURCE MANAGEMENT:We wont make you wing it is KFCs motto when it

comes to training employees.

Training includes: Workbooks Quizzes On-the-job competency based training

Employees are encouraged to work together as a team KFC is committed to making

sure their people grow to theirhighest potential

KFC does their best to makethe job interesting and excitingfor worker.

Page |

9


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NUTRITIONAL INFORMATION AND

SPECIFIC INGREDIENTS

Zero Grams of Trans Fat:

The taste you love just got better. Starting in April 2007,

KFC proudly introduced a new recipe

that maintains all the delicious finger-

lickin' flavor of the Colonel's 11 herbs

and spices, but with Zero Grams of

Trans Fat per serving.

Food Allergies and Sensitivities:The allergen information is based

on standard product formulations and is current as of

November 2008. Variations may occur

due to differences in suppliers,

ingredient substitutions, recipe

revisions, and/or product production at

the restaurant.

Keep It Balance:

Mix together daily activity, a

sensible diet, and a little fun. What do

you get? A recipe for keeping your body balanced. The

exchange list is a meal planning system developed by

dietitians primarily for people with

diabetes. It groups together foods that

have similar carbohydrate, protein, fat,

and calories, and can be used as a

guide for planning balanced meals.

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SOCIAL RESPONSIBILITY:


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KFC has made it their responsibility to consumers thatthey will provide quality chicken in a fast, efficient way.

KFC sponsors a reward for senior citizens, those wholive life to the fullest and are recognized in theircommunity

KFC also has the Colonels Kids program, a charityorganization that helps kids become educated and growup in a better world than that which they have known.

STRATEGY:KFC has created a strategy that is focuses on strength and

opportunity. They want to expand internationally, offerconsumers more choices at their restaurants, and providegood services to their customers. They have incorporated agrowth strategy into their company because they fully intend

to be the largest fast food chicken corporation in the world;they seem to have already accomplished this goal, but alsointend to stay well ahead in the game by franchising KFCbuildings throughout every country in the world.

International Expansion:

KFC number-one goal is to drive global expansion withits category-leading brands.

Multi brand Innovation & Expansion:

KFC is the worldwide leader in multi branding, offering

consumers more choice and convenience at one restaurantlocation from a combination of two of the company's brands.

Global Franchise Fees:

Global franchise fees, a significant factor in annualprofits and cash flow, grew 6% to $866 million.

Strong Cash Generation and Returns:

KFC generated over $1.3 billion in cash from all sourcesin 2008, more than fully funding capital expenditure needs,allowing free cash flow for share repurchase, and some

repayment of debt. Return on invested capital is 18%, in therestaurant industry's top tier.

Page |

11

INTERNATIONAL OPERATIONS:

These are some international operations of KFC.


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KFC opened its first franchise overseas in January 1997

in Pakistan at Karachi.

KFC is a very diverse company and has 750,000 people

employed around the world.

KFC is devoted to Fried Chicken franchises are in

countries other than the United States.

The incredible success of this company has given it the

opportunity to compete globally with other corporations

and gain in popularity worldwide.

KFC franchises are located diversity and are willing to

give just about anyone a chance to begin their career by

working at one of their locations.

Expanding their global business is one of Yum! Brands,

Inc.s key growth strategies.

KFC (as a division of Yum! Brands) continues to grow

substantially throughout the world as a fast food

enterprise, and there is much more success and growth in

the future.

Page |

12

FOUNDING TRUTHS:

The founding truths are:

1) People Capability firstSatisfied customers and

profitability follow.


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2) Respond to the Voice of The CustomerNot just

listen.

3) The Restaurant General Manager Is Our #1 Leader

Not senior management.

4) Run Each Restaurant As If Its Our Only OneAvoid

the trap of the averages.

5) Recognition Shows You CarePeople leave when you

dont.

6) Great Operations and Marketing Innovation Drive

SalesNo finger pointing.

7) Operation Discipline through Process and

StandardsConsistency, not program of the

month.

8) Franchisees Are Vital AssetsOperate as one

system, not two.

9) Quality In Everything We DoEspecially the food.

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EXTERNAL ENVIRONMENT:

Customers


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Consumers continue to return to KFC because of

the quality and good prices of their food. KFC has a lot

of fans and continues to grow to provide better

customer service

Suppliers

Companies provide KFC with raw materials and

chicken In Pakistan KFC purchases the chicken from K &

N chicken. Over 95% items. KFC Pakistan has helped

develop the local economy from restaurant construction

to pap packaging. Important items produced and

bought locally include poultry products, cooking oil,

bakery products and raw materials.

Competitors

Chick Fila is KFCs biggest competitor, and quickly

growing in popularity. Other competitors include AFC

Enterprises and McDonalds. KFC has more then 80

percent share in the market.

Page |

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THE PRINCIPAL OF KFC:

Credibility: Being regarded by our stakeholders as beinga reliable source of knowledge.

Character: Conducting ourselves with honesty, integrity,

and spirit.

Communication: Facilitating free flow of information

about our activities. Always voicing our opinion and sharing

our concerns.

Creditworthiness: Total honesty in our business dealing,

as financially responsible partners, advisors andemployers.


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Commitment: Always seeking to be true to our word, but

doing what we do with energy and determination.

Capacity: Constantly seeking to reinforce and build our

capabilities to the point of always exceeding the

exceptions of others, but always doing so as part of ateam.

Coherence: Being clear to the point of transparency at all

times.

Conscientiousness: Striving for excellent- we believe

that there is no shortcut to hard work.

Charisma: Seeking to stand from the rest and employing

people who do.

Conceptual: Thinking with clarity, imagination andcommunicating this clearly.

Caring: Doing what we do with a deep commitment to

quality and bearing in mind the opinions of others.

Community: Believing that we have a deeper role to play

than just being business people and returning some of the

rewards that we reap.

Page |

15

ANALYSIS:The Kentucky Fried Chicken Corporation is a very

successful company that has grown to be the fast foodgiant it is today through good management practices and

good planning. Their mission statement is very clear:

recognition is key. They are all about diversity and

helping people growing in any way they can, and focus

on customer satisfaction as well. Their goals include

being the best in the business, which they have definitely

accomplished, and focusing on customer satisfaction as a

major part of their environment.KFC desires to offer good

food, comeback value, and customer-focused teams to


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consumers throughout the world; they want to have loyal

customers who will come back time and time again to

enjoy their food.

As a result of this project, we have learned a lot about

the company about the history and background of KFC as

a whole. There is a lot that goes on in the franchising

world that we never really knew anything about until

doing the research that went into preparing for this

project/presentation. KFCs grand strategy and the

organization as a whole is very impressive; through all

this research I (Sally) have gained a lot of respect and

admiration for what theyve been through to become the

giant, amazingly popular franchising company they aretoday.

The Kentucky Fried Chicken Corporation has done an

excellent job in the consumer market, both domestically

and abroad. Not only do they do a wonderful job of

planning, organizing, staffing, leading, and controlling,

but they have been very successful at achieving their

goals as well. Having done extensive research on the

company and its parent corporation, I feel like KFC hasbeen pretty successful overall and has done a good job

with hiring and retaining good employees and taking

care of their consumer base in every way possible.

Page |

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1) What does KFC stand for?

Kentucky Fried Chicken.

2) Is KFC an American Company?

KFC is an American brand. The local franchisee/investment

and management is Pakistani.


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3) Which company operates KFC in Pakistan?

Cupola Pakistan Ltd (CPL) owns and operates KFC in

Pakistan.

4) What does KFCs Colonel stand for?He was he founder of KFC concept and now only his visual

image is associated with KFC. He was an American who died

in 1980.

5) Does KFC sell 100% Halal chicken?

Yes.

6) Does KFC buy Chicken from Pakistan?

Yes from local suppliers K & NS and thus promoters the

local poultry industry.

7) Does KFC buy all its supplies from Pakistan?

Over 95% items. KFC Pakistan has helped develop the local

economy from restaurant construction to pap packaging.

Important items produced and bought locally include poultry

products, cooking oil, bakery products and raw materials.

8) How is KFC Pakistan promoting the local economy?

Employing over 1200 people in various capacities and thus

providing them with the livelihood. If each person directly or

indirectly contributes to support 05 family members, the

total number of depending on KFC is 6,000 souls; this is

other than the suppliers associated with KFC Pakistan.

Promoting the local supplier industry (construction related,

paper and packaging, cooking oil, machinery, poultry

products, bakery and confectionary items).

Page |

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Sales tax @ 15% being paid to the Government. Corporate

and individual Income tax. With holding tax on al payments

made to the suppliers, making them a part of the

documented economy. Payment to local Governmentdepartments for licenses and taxes. Foreign investment

coming into Pakistan.

9) Has KFC contributed in improving the standards of

Restaurant business in Pakistan?

KFC Pakistan has contributed in providing Halal and Hygienic

products to its customers and managed this through proper

training of its human resources. It has created competitive

level for other thus improving the overall industry standards.

10)What has KFC Pakistan done for children?

It provides a family like environment where children can also

come with their families or alone and enjoy the healthy and

hygienic food. Play areas are also provided for enjoyment.

KFC Pakistan team makes frequent school visit and educates

the children about different social issues. KFC Pakistan also

designs programs especially for children in order to involve

them in healthy activities. (Kiddy Fun Camp as an example)

11)Does KFC Pakistan support and social concerns?

Participating in social concerns like protecting the

environment. It also supports various social organizations

like Care and Kindness Society and visits handicapped

children (SOS and Fountain House) on occasions.

Also contributes an amount to celebrate the National

Occasions by sponsoring events arranged by the

Government.

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Bibliography:

The information about KFC is collected from

KFC Kentucky Fried Chicken | restaurants

Yum! Brands

www.kfcpakistan.com

www.kfc.com

Mr. M. ASIF the Assistant manager

Phone No.

We also went to visit and ask detail information about thestructure and culture of KFC Branch f-6 supper market.

Special Thanks:

Mr. Atif Nasir (Finance Manager)

Miss Asma (Operation Manager)
http://www.kfc.de/51/restaurants/http://en.wikipedia.org/wiki/Yum!_Brandshttp://www.kfcpakistan.com/http://www.kfc.com/http://en.wikipedia.org/wiki/Yum!_Brandshttp://www.kfcpakistan.com/http://www.kfc.com/http://www.kfc.de/51/restaurants/

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