Kfc Leadership & Management Paper

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Contents

Introduction ………………………………………………………………………2

Company background ………………………..…………………………………2

SWOT Analysis ………………………………………………………………….4Strengths ………………………………………………………………...5
Weakness …………………………………………………………….….5
Opportunities ……………………………………………………….…...6
Threats ……………………………………………………………..……6

Key Challenges …………………………………………………………………7

Evaluation key challenge with McKinsey’s 7s Model ………………………….9
McKinsey’s 7s Model …………………………………………………..9
Alternative approaches …………………………………………………12

Recommendation ……………………………………………………………….17

Conclusion ……………………………………………………………………...18

References ………………………………………………………………………20

Introduction

The report is mainly focusing on Kentucky Fried Chicken (KFC) company and has been divided into three categories at the aim of identifying the leadership and management issues in the company and suggest appropriate solutions to it. The tool that will be used in the first phase is the SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis which is used to point out the strengths and weaknesses of the company and also to identifying the leadership and management issues that exist within the organization. The second part of the report consists of the evaluation and rationalization of the management and leaderships issues identified in part 1 by using the McKinsey 7S Model to help to identify what types of changes that should be made and implemented in order to help the company to improve. In the last phase of the report, an overview of the company situation will be presented followed by suggested sets of recommendation and actions for KFC in order to overcome the key issues identified.

Company Backgroup

Kentucky Corporation (KFC), also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States which was started in the 1930 by Colonel Harland Sanders as a small franchise operation. Kentucky Fried Chicken is a very well-known restaurant in the world. It is rated at number 60 as the world most well-known brand by the BusinessWeek, while McDonald at number 9 and Nestle at number 23 (Badrishah, 2007). KFC remained the largest chicken restaurant chain and third largest fast-food chain. It held over 50 percent of U.S market in terms of the sales number and ended the year 1995 with over 9,000 restaurants worldwide. By end of the 1995, KFC have opened 234 new restaurants and is operated in 68 countries. In the year of 1997, the company has become a brand of YUM! Brands Inc. which is the world largest fast food chain who also operates Taco Bell, Long John Silver and Pizza Hut. Currently, the company owns and franchises more than 16,200 outlets in about 100countries and have employees of more than 24,000. KFC was the first fast-food chains to enter international market and has now developed one of the world’s most recognizable brands. KFC’s early entry into the fast food industry allowed the company to gain a strong brand name in the industry and dominate the chicken industry. KFC’s nearest competitor – Boston Market (formerly Boston Chicken) and Popeye’s held market share of 12.3 and 10.2 percent respectively while KFC held a market share of 58 percent in the chicken segment (KFC.com, 2007).

KFC’s global success is credited to its quality management which is the: Quality, Service and Cleanliness (QSC) program to review the quality of the service offered to the customers and to evaluate the company performance. Other than that, the understanding of the customers and satisfying their needs also contributed to KFC’s global success (Reynolds, 2001). Not only so, KFC also has also uses a special marketing tools to promote its product by means of combining PepsiCo product which is the beverage and the products of KFC itself, with these marketing idea, both company KFC and PepsiCo are both generating profits and it is an advantage for KFC since they no longer purchase beverages from...
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