strategic planning on ‘kfc’

7/31/2019 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.

strategic planning on ‘kfc’

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