Kentucky Fried Chicken Strategic Plan-Part One
Jeanette Cortez, Autumn Crowther, James Hopper
Fernando Manaloto, Joe Newkirk, and Rita Salem
International Strategic Planning and Implementation
March 31, 2011
Dr. Tim Becker, MBA
Kentucky Fried Chicken has been established as a franchise in Latin America and the focus of this plan will be the El Salvador franchise. The strategic management process is vital and a well laid out plan is necessary. Consequently, by evaluating the background of KFC, the outcome should lead to a clear mission and vision statement outlining the purpose and goals of the company. Also, the mission and vision will keep all shareholders informed of the objectives that should be met by KFC. “Defining the company mission is one of the most often slighted tasks in strategic management” (Pearce II & Robinson Jr., 2009, p. 42). A mission lays out the organization’s goals and basically specifies the purpose of the organization. Decisions and strategies can be established after environmental scanning is done along with a Situational Analysis (SWOT). The strategic process also involves frequently assessing the industry structure and choosing strategic plan options that help expand global operations. The two chosen strategic options that will be discussed will be product differentiation and cost leadership. This plan should give clarity on how the options and recommendations fit with both the competitive situation and the organizational situation. Background
Based in Louisville, Kentucky, Kentucky Fried Chicken (KFC) corporation is touted as the “world’s most popular chicken franchise” (KFC, 2011). KFC serves over 12 million customers in 109 territories and countries throughout the world (KFC, 2011). Famous for its Original Recipe Fried Chicken, there are “more than 5,200 restaurants in the United States and more than 15,000 units around the world” (KFC, 2011). This company whose inception was in a gas station back in 1930 by Colonel Harland Sanders is now owned and operated by Yum! Brands, Incorporated. As of 2008, Yum! had revenues in excess of $11 billion and was ranked #239 on the Fortune 500 list (KFC, 2011).
KFC Mission Statement, Vision and Strategy
KFC’s Mission Statement is:
“’The Association of KFC Franchisees, Inc. is united to protect, promote and advance the mutual interests of all member franchisees and the Kentucky Fried Chicken system.” (Association of Kentucky Fried Chicken Franchisees, Inc. 2006).
KFC’s parent company is Yum! Brands (Yum!). Yum!’s vision and strategy is “committed to continuing the success realized during our first ten years. Our success has only just begun as we look forward to the future, one which promises a long runway for growth, especially on an international level” (Yum!, 2011). KFC El Salvador also falls under Caribbean and Latin America Franchisee Association (CARIBLA). CARIBLA’s mission statement and objectives are “the mission of the CARIBLA Franchisee Association is to represent, promote, and protect the general interests of all member YUM franchisees in Latin America and the Caribbean” (CARIBLA, 2011).
- Contribute to maintain and improve the profitability the restaurants for the short and long term (supply chain management projects).
- Represent the members' interests in different areas.
- Defend and protect franchisees contractual rights.
- Communicate as one voice with YUM Restaurants International.” (Association Mission and Objectives, para. 1).
Strengths, Weaknesses, Opportunities and Threats
| |Beneficial |Harmful | |Internal |Strengths |Weaknesses | | |1. Purchase power of consumer is rising....
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