Kfc Case Study

Topics: KFC, Fast food, Yum! Brands Pages: 7 (1849 words) Published: November 16, 2011
KFC Case Study - Presentation Transcript
1. Case Study: Kentucky Fried Chicken and the Global Fast-Food Industry 2. Relevant Case Facts - History
* Early Life of Colonel Sanders
* Sander’s First Franchise in 1952
* New Management/culture for Kentucky Fried Chicken after KFC sale for $2M * Acquisition of KFC by Pepsico/Tricon Global
* Heublein Makes Changes in 1970
* 1980’s Profit and Expansion
3. From $105 to 7.2 Billion in 50 years
* 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check * 1964, Col Sanders had more than 600 franchised outlets in the US and Canada. * 1964, Sold his interest in his company for $2 million to a group of investors. * 1966, KFC went public

* 1969, Listed on the NYSE
* 1971, KFC was acquired by Heublein Inc . for $285 million . * 1982, Heublein & KFC Inc . was acquired by RJ Reynolds * 1986, RJ Reynolds & KFC , was acquired by PepsiCo, Inc . $840 million . * 1997, PepsiCo, Inc . spined-off of its qsr’s into independent Tricon Global Restaurants . * 2002, Tricon changed it's corporation name to Yum! Brands, Inc . . * NOW:

* Yum Brands, Inc . is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. * Yum! Brands, Inc ., is a Fortune 300 company

* Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001. * Current Market Cap value on the NYSE is 7.2 Billion 4.  
5. Problem/Issue
* How would KFC maintain a market leadership in the global fast-food industry * Issue:
* A competitive marketing strategy in the international market focused on the Latin American countries 6. Internal Analysis Functional Areas
* Finance/Accounting
* Since 2001, Yum Brands Inc. has outperformed the market * Computer Information Systems
* Newly established Computer information system
* Marketing
* Positioning among competitors is favorable
* unconventional methods of distribution
* multibranding
* Management
* Objectives and goals are measurable and achievable * Team empowerment
* Productions/Operations
* Constant improvement on quality of chicken
* Producer and operators are strategically located 7. SWOT ANALYSIS: Strengths
* The Management style of Col. Sanders was to rely on the basic goodness of the people around him and trust the franchisees to play fair. * KFC is a Market leader : World’s largest chicken restaurant chain and third largest fast-food chain in 2000 * Key Success Factor (KFC):

* Location
* Effective store management/cleanliness
* Key to continued growth was to find, motivate, and retain hard-working and entrepreneurial managers and franchisees around the globe * In addition to short term profits, store managers were also responsible for building local public relations, maintaining employee morale, developing customer good-will, keeping tab on the competing chains and creating a legacy of special chicken cooking recipe. * Overall market image also became increasingly clear. 8. Strength

* KFC had a refocused international strategies to grow its company and franchise restaurant base all over the world. * Competitive marketing strategy: Developed three types of chicken: Original recipe (pressure cooked) Extra crispy (fried) Tender roast (roasted) * Distribution strategy

* - First, focused on building smaller restaurants in...
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