Kentucky Fried Chicken Case Study and Presentation

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case study and a PPT 

1. Case Study -  This is a team assignment and my part that I need to work on is:

a. Offer a plan for implementation b. Determine measurements for effectiveness and efficiency c. Logical conclusion d. References 

My part needs to be 3-4 pages long, excluding references.

Refer to the file on "Conducting a Case Study" and the Case Study Rubric.  It is imperative to follow the criteria listed in the Case Study Rubric, "Conducting a Case Study" Guidelines, and the 6th edition of the APA Manual. 

2. PPT - The team is to prepare and submit a PowerPoint presentation of KFC. My part that I need to work on is 

a. Offer a plan for implementation b. Determine measurements for effectiveness and efficiency c. Logical conclusion d. References 

 


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KENTUCKY FRIED CHICKEN CASE STUDY OF KFC: ESTABLISHMENT OF A SUCCESSFUL GLOBAL BUSINESS MODEL By the mid 1950s, fast food franchising was still in its infancy when Harland Sanders began his cross-country travels to market “Colonel Sanders’ Recipe Kentucky Fried Chicken.” He had developed a secret chicken recipe with eleven herbs and spices. By 1963, the number of KFC franchises has crossed 300. Colonel Sanders, at 74 years of age, was tired of running the daily operations and sold the business in 1964 to two Louisville businessmen—Jack Massey and John Young Brown, Jr.—for $2 million. Brown, who later became the governor of Kentucky, was named president, and Massey was named chairman. Colonel Sanders stayed in a public relations capacity. In 1966, Massey and Brown made KFC public, and the company was enlisted on the New York Stock Exchange. During the late 1960s, Massey and Brown turned their attention to international markets and signed a joint venture with Mitsuoishi Shoji Kaisha Ltd. In Japan. Subsidiaries were also established in Great Britain, Hong Kong, South Africa, Australia, New Zealand, and Mexico in the late 1970s. Brown’s desire to seek a political career led him to seek a buyer for KFC. Soon after, KFC merged with Heublein, Inc., a producer of alcoholic beverages with little restaurant experience and conflicts quickly arose between the Heublein management and Colonel Sanders, who was quite concerned about the quality control issues in restaurant cleanliness. In 1977, Heublein sent in a new management team to redirect KFC’s strategy. New unit construction was discontinued until existing restaurants could be upgraded and operating problems eliminated. The overhaul emphasized cleanliness, service, profitability, and product consistency. By 1982, KFC was again aggressively building new restaurant units. In October 1986, KFC was sold to PepsiCo. PepsiCo had acquired Frito-Lay in 1965, Pizza Hut in 1977 with its 300 units, and Taco Bell in 1978. PepsiCo created one of the largest consumer companies in the United States. Marketing fast food complemented PepsiCo’s consumer product orientation and followed much the same pattern as marketing soft drinks and snack foods. Pepsi soft drinks and fast food products could be marketed together in the same restaurants and through coordinated national advertising. The Kentucky Fried Chicken acquisition gave PepsiCo the leading market share in three of the four largest and fastest growing segments in the U.S., quick-service industry. By the end of 1995, Pizza Hut held 28% of the $18.5 billion, U.S. pizza segment. Taco Bell held 75% of &5.7 billion Mexican food segment, and KFC held 49% of the $7.7 billion U.S. chicken fast food segment. Japan, Australia, and the United Kingdom accounted for the greatest share of the KFC’s international expansion during the 1970s and 1980s. During the 1990s, other markets became attractive. China with a population of over 1 billion, Europe and Latin America offered expansion opportunities. By 1996, KFC had established 158 company-owned restaurants and franchises in Mexico. In addition to Mexico, KFC was operating 220 restaurants in the Caribbean, and in Central and South America. Many cultures have strong culinary traditions and have not been easy to penetrate. KFC previously failed in German markets because Germans were not accustomed to take-out food or to ordering food over the counter. KFC has been more successful in the Asian markets, where chicken is a staple dish. Apart from the cultural factors, international business carries risks not present in the U.S. market. Long distances between headquarters and foreign franchises often make it difficult to control the quality of individual franchises. In some countries of the world, such as, Malaysia, Indonesia, and some others, it is illegal to import poultry, a situation that has led to product shortages. Another challenge facing KFC is to adapt to foreign cultures. The company has been most successful in foreign markets when local people operate restaurants. The purpose is to think like a local, not like an American company. As KFC entered 1996, it grappled with a number of important issues. During the 1980s, consumers began demanding healthier foods, and KFC’s limited menu consisting mainly of fried foods was a difficult liability. In order to soften its fried chicken chain image, the company in 1991, changed its name and logo from Kentucky Fried Chicken to KFC. In addition, it responded to consumer demands for greater variety by introducing several new products, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken as alternatives to its Original Recipe fried chicken. It also introduced a dessert menu that included a variety of pies and cookies. Soon after KFC entered India, it was greeted with protests of farmers, customers, doctors, and environmentalists. KFC had initially planned to set up 30 restaurants by 1998, but was not able to do so because its revenues did not pick up. In early 1998, KFC began to investigate the whole issue more closely. The findings revealed that KFC was perceived as a restaurant serving only chicken. Indian families wanted more variety, and the impression that KFC served only one item failed to enhance its appeal. Moreover, KFC was also believed to be expensive. KFC’s failure was also attributed to certain drawbacks in the message it sent out to consumers about it positioning. It wanted to position itself as a family restaurant and not as a teenage hangout. According to analysts, the ‘family restaurant’ positioning did not come out clearly in its communications. Almost all consumers saw it as a fast food joint specializing in a chicken recipe. KFC tried to revamp its menu in India. Cole slaw was replaced with green fresh salads. A fierier burger called Zinger Burger was also introduced. During the Navaratri festival, KFC offered a new range of nine vegetarian products, which included Paneer burgers. Earlier, KFC offered only individual meals, but now the offerings include six individual meals, two meal combos for two people, and one family meal in the non-vegetarian category. For vegetarians, there are three meal combos for individuals, along with meals for couples, and for families. KFC also changed its positioning. Now its messages seek to attract families who look not only for food, but also some recreation. Kids Fun Corner is a recreational area within the restaurant to serve the purpose. Games like ball pool and Chicky Express have been introduced for kids. The company also introduced meals for kids, which was served with a free gift. Over the years, KFC had learned that opening an American fast food in many foreign markets is not easy. Cultural differences between countries result in different eating habits. For instance, people eat their main meal of the day at different times throughout the world. Different menus must also be developed for specific cultures, while still maintaining the core product—fried chicken. One can always find original recipe chicken, cole slaw, and fries at KFC outlets, but restaurants in China feature all Chinese tea, and French restaurants offer more desserts. Overall, KFC emphasizes consistency and whether it is Shanghai, Paris, or India, the product basically tastes the same. Questions to consider: 1. Analyze the case and determine the factors that have made KFC a successful global business. 2. Why are cultural factors so important to KFC’s sales success in India and China? 3. Spot the cultural factors in India that go against KFC’s original recipe. 4. Why did Kentucky Fried Chicken change its name to KFC? 5. What PESTEL factors contributed to KFC’s positioning? 6. How does the SWOT analysis of KFC affect the future of KFC? KFC Case Study link https://www.mbaknol.com/management-case-studies/case-study-of-kfc-establishment-of-a-successfulglobal-business-model/ CASE STUDY GUIDELINES Abstract (75-100 words): on separate page Introduction: Overview of the organization Identify the type of business organization and strategies Key players Competitors Organizational Structure Organizational Strategy (low cost; differentiation; etc.) Body: (Label headings according to subject/content) Identify problems, issues, variables, and relationships related to the case Discuss problems and List symptoms Isolate critical issues Conduct SWOT analysis and discuss the components Strengths Weaknesses Opportunities Threats Conduct PESTEL analysis and discuss the components Political Economical Socio-Cultural Technological Environmental Legal-Regulatory Closing: Summary Discuss solutions and alternative solutions Discuss Christian and ethical repercussions within the context of the case Make recommendations (Recommendations do not need to be cited.) Offer a plan for implementation Determine measurements for effectiveness and efficiency Logical conclusion References CASE STUDY PAPER RUBRIC Campbellsville Unlversity School of Buliness and Economics Levels of Achievement A Format points) l. Compleæd in word application, typed, double spaced, on standard süc paper with margins of one iuch on all sides. Comolies fi:lly with the assigrureut. (10 poinrs) 2. Ruuing hoad and page number ia upper right-haod comer with five spaces botween runaing head ard page number. Complies firlly with the assignmenr (I0 poins) 3. On separate page, the L Completed ia word application, typed double spaccd, on standard sizo papor with margix of one inch on all sides. Complios mosdy with the assignmenl (8-9 points) 2. Runniug hoad and page nunber in upper right-hand oomer wità five spaces botween ruaning head and page number. Complies mosdy with the assigarnent. (8-9 points) word "Abstract,' cente¡ed oD paper followed by 75-100 word overvieu Comolies fully with rhe assignnent. ( 10 points) 3. On separate page, the word "Abstracf' centered o¡ paper followed by 75- I 00 word overview. Complies mostly \¡¡ith tàe assignment. (8-9 points) 4. Major headiags 4. Major headings oentered on page. Every word capiblized excspt articles, short prepositions, and coordinating conjuactions. Complies fully with rhe assiFment. (5 points) centered on page. Every word capiølizod oxcept artioles, short prepositions, and coordinating conjunctions. Complies mostly with the assigunent. (4 points) Unacceptable l. Completed in word application, typed, double .spaced, on standard size paper wit! margirc of one iaoh on all sidos. Complies adoqustely witl the assigamenl (7 points) 2. Running head ald page nunber in upper right-haad corner with fivc spaoes betweeu ruDljng head a¡d page number. Complies adequately with the assigDment (7 points) 3. Oa separate page, the l. Completed in word applicatioo, t¡'ped, double spaced, on sta:rdard size paper with margias of one inch on all sides. Does not comply adequaæly with tbe assignment (
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Explanation & Answer

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Running head: KFC

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Kentucky Fried Chicken
Student's Name
Institution Affiliation
Course
Professor's Name
Date

KFC

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Plan for Implementation
KFC's focus on global expansion in new international markets necessitates developing a
rigid and actionable plan to facilitate sustainability and development. The most effective method
to remedy its global expansion issues is to engage extensive and in-depth market research
(Anwar, 2017). Delving into research about target markets in India, Malaysia or Germany, will
allow the organization to gain insights into the consumer perceptions about their product and
franchise before expanding into the communities. To ensure the revenues pick up and KFC
strengthens its brand in an international market, it has to engage an internal research team or an
in-country research firm to assist them in collecting relevant market data about the cultures and
product perceptions. Focusing on the geographic location and developing appropriate market
research will enable the corporation's global expansion to be actionable.
To reinforce the plan requires the company to utilize an agile expansion approach.
Considering the insights from the extensive market research, the organization will formulate
strategies that foster small steps towards achieving the solutions to KFC's global expansion
challenges. The company will efficiently operate in international markets with agile
methodologies since it creates room for entry and exit without engaging in the taxing and
arduous entity setup processes. It will allow the company to reconcile its corporate practices with
the community culture to be sustainable in foreign markets.
Moreover, the plan will also entail creating a customer-centric culture. Caring about the
consumers will enable the company to boost its desirability and attract more custo...


Anonymous
Excellent resource! Really helped me get the gist of things.

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