• Aatiqa Bint e Ghazali.

• Asma Ibrahim.

• Farwa Ali.

• Hajra Batool

• Hummara Bashir.

• Jaweria Khalid.

• Shaista Anwar

Presented By

Our Organization

Introduction

• One of the leading fast food Franchise concepts of today.

• Products are made on the motto of "Crispy outside, juicy inside”.

• Started in 1930 by Harland Sanders the founder of KFC• Cupola holds the master franchise rights to operate

KFC in Pakistan since1999.• More than 10,000 outlets in the world.• 64 outlets in Pakistan.• North Region including Lahore, Rawalpindi and

Islamabad (Punjab).• South Region including Karachi and Hyderabad

(interior Sindh).

VISION AND MISSION

• VISION

To be leading integrated food services group in ASEAN region

delivering consistent quality products and excellent customer focused.

• MISSION

To maximize profitability, improve shareholder value and

deliver sustainable growth year after year.

• Build an organization dedicated to excellence.

• Consistently deliver superior quality and value in our products and services.

• Maintain a commitment to innovation for continuous improvement and grow, striving always to be the leader in the market place changes.

• Generate consistently superior financial returns and benefits our owner and employees.

Objectives

• Since beginning, KFC has presented itself and well competed, only through it delicious chicken.

• People from all over the world know KFC as the best chicken expert.

• Their chicken has always been unique in taste and has helped them in order to build their own identity in all over the world

Core competency

• KFC Pakistan provides 100% Halal and Hygienic products to its customers. It offers a variety of finger-licking products, some of which are as follows:

1. Crispy Fried Chicken

2. Zinger

3. Twister

4. Hotshots

5. Chicken Burger

6. Hot wings

7. Rice and Spice

8. Fish Zinger

9. Nuggets

10. Corn on the Cob

11. French Fries

PRODUCTS OF KFC

• Responsibilities:

• Responsible for all the human resource functions.

• such as policy, recruitment, IR, performance evaluation, compensation and benefit, and other general admin matters.

KFC Human Resource Management

HRM

Selection

• Selection based on :

Test

Physical Test

Behavioral Test

Team Skill Judge

Working Capacity

Communication Skill

Confidence

Body Language

Motivation Level

Selection Criteria

• KFC has developed an e-recruitment tool which gives potential employees the ability to apply for a job online.

• Job Description

• Person Specification.

Recruitment

• Trainee Managers• Responsible for assisting the Restaurant General Manager and Assistant

Managers in creating an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile.

• Skills & Abilities• Trainee Managers must have at least a year 10 education and 2 years work

experience in a managerial/supervisory role. • Must have excellent customer service skills and the ability to deal with

customers complaints • Excellent communication skills • Must have the ability to develop competent computer skills • Be able to motivate, delegate and co-ordinate

Example(Job description)

• Firms cannot just ‘sack’ workers

• Wide range of procedures and steps in dealing with workplace conflict

– Informal meetings

– Formal meetings

– Verbal warnings

– Written warnings

– Grievance procedures

Discipline

• Training “We won’t make you wing it” is KFC’s motto when it

comes to training employees. Training includes:

1) Workbooks

2) Quizzes

3) On-the-job competency based training

Employees are encouraged to work together as a team.

Training

• Christ Mendel , director of global risk management of Tricon Global Restaurant (an arm of Yum ! Brand ) stated that the company focuses on:

• Training and education for all their employees and managers .

• Substantial training programs for all front line people .

• The training has been integrated into the company 's broader management trainings that deal with issues as sexual harassment , hiring and firing practices ,interpersonal relationships , and conflict resolution .

Training(Cont)

• To enhance employee motivation KFC is using one to one meetings strategy.

• They have staff incentive programs, conventions, Champs Elysees.

• Includes the cleaning, hotel, maintenance, accuracy, speed of service and product quality etc.

• KFC sends e-mail, together with the memorandum to the

employees, the crew incentive programs etc.

Motivation

Reward System

• Employees are motivated.

• KFC also reward their employees in terms of promotion, incentive, payoff free meals depending on the level of the employee and how much they perform their job well.

• Bounces are given to the employees on the basis of "My growth body" points. If the person has 5 points he or she can get benefits in term of financial bonuses.

1. Business level Strategy

2. Corporate level strategy

3. Functional level strategy

Strategies

• Differentiation: By providing unique taste of chicken

• Re-establish and maintain an emphasis on clean and updated restaurants

paying close attention to service while maintaining product consistency .

• KFC has differentiated its products on the basis of “Food, fun & Festivity”,.

• KFC is sharing supply chain with Pizza Hut, which creates

the supply chain collaborative sharing effect. It decreases the cost also.

• In one word, KFC performed slightly better control

of product costs.

Business level Strategy

• Growth: Switched from franchise to company owned in their larger markets

• Interest in local community (Neighborhood)– Combing the two concepts in the same unit – Changed name and Logo

• Retrenchment: Introduced different menu items to keep up with local competitors

• Turnaround: Updated Technologies in Service and Production unit• Pay closely aligned with customer service and restaurant

performance• More responsibility assigned to franchisees and marketing

managers• Switched to highly performance based management strategies.

Corporate Level Strategies:

Functional Level Strategies

• By using segmentation.

• By using market development.

• By using product development.

• There are only two teams in KFC ( Chandni Chowk Branch)

• One team is Concentrating on resolving internal Conflicts between employees and employers through different procedures and committees:

If employee is unsatisfied with its team or management then he/she can easily resolve his/her issue

• Second team deals with the customer care satisfaction and try to improve technology and working conditions:

On different occasions customers offers and

discounts available.

Teams to handle critical situations :

• The competitive advantage of KFC is its position as the dominant firm.

• It currently enjoys 50% market share in Pakistan.

Competitive Advantage

KFC Management Functions

KFC management is following the “POLCA”

P = Planning

O = Organizing

L = Leading

C = Controlling

A = Assurance

Planning

• Strategic Plans

KFC has strategic planning to increase its market worth value of the market and its market share. They work on a well defined strategic planning for this.

• Operational Plans

• Include launching of a new product to change or innovate its product line for the customers.

• KFC policies are excellence for their standards which are shortly termed as CHAMPS i.e.C: Cleanliness

H: Hospitality

A: Accuracy

M: Maintenance

P: Product

S: Speed of Service.

KFC policies regulates around these standards,

hospitality is also with the employees regarding

their issues and privacy

POLICIES:

• Procedures are well described in CHAMPS standard library whose access is onlygiventothe employees

• There procedures/ rules include safety for its products as well as their employees by providing with sanitizers keeping kitchen environment clean and hygienic.

PROCEDURES/RULES:

Planning objectives

To expend our organization in all over the Pakistan.

To create and build superior quality for our

customers.

To follow Marketing Mix Strategies.

To Generate Superior financial return for KFC and

KFC’s employees.

Organizing

• Second pillar

• Concerns with Organizational structure, segmentation and targeting of customers

• Organization structure differs on operational level and cooperative level. The difference is due to working activities.

• The operational level management is concerned with the restaurant business and management and the cooperate level management is concerned with the business activities.

THE KFC MANAGEMENT HIERARCHY CHART

(OPERATIONAL LEVEL)

The KFC Management Hierarchy Chart(Corporate level in north region)

Factors Effecting Organizing

The Internal EnvironmentThis environment includes the factors that are close to the company and are controllable by the organization. Company Suppliers Customers Competitors Marketing Intermediaries

The External EnvironmentThis environment includes on those factors which are not controlled by the organization. Demographic Factors Natural Factors Technological Factors Political Factors Cultural Factors

Targeting

KFC is targeting upper class. Target market depends upon size and growth rate of population, company resources and structural attractiveness of market segment.

KFC target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products.

Target heavily on the youngsters as compared to the middle & old age.

Leading

• Third pillar

• Related with staff behavior towards employees, feedback by the employees to managers and other top level offices and customers issues.

• HR manager are responsible for the all related issues of employees and customers

Appraisal system

• Designed to serve the company's and employee's interests.

• Used to check the ability of Employees and to ensure that where they are standing.

• KFC is centralized as all the decisions are pre documented and taken at upper level of organization without any involvement at lower level.

• A new deal is launched in the market with agreement of all the heads of department.

• Head of department discuss the objectives with their team .

• Have a team environment in units where everyone works together.

• Hence from this we can also conclude that MBO approach is used by KFC management.

Is KFC centralized or decentralized?Traditional Planning OR MBO?

Controlling

• Forth pillar.

• Related with the controlling the task and its evaluation that how a manager control all inventory management, all employees activities, assign tasks to employees and evaluate them with desired goals and objectives.

HR manager control all activities into following ways

• Feed forward control

• Feedback control

• Concurrent control

• External control

• Employee discipline system

• Financial control

• Purchasing control

• Inventory control

• Statistical control

Feed forward control

• Feed forward controlling is done by the territory managers.

• Store monitoring and visits to factory to check its supplies and controlling.

• Done before finishing the Products.

Feedback Control

• Done by the supervisor of the branch or the assistant manager.

• Through comment cards, general interviews of employees about KFC management behavior and other related issues.

Concurrent control

• Done by the Unit Business Manager

• Done for the assurance of food quality by monitoring kitchen workers with number of visits during a day.

• To reduce wastages, and for superior quality products.

External control

• Yum brand representatives visit KFC restaurants.

• For standards and quality check up.

• No relaxation is given to Manager on any flaw.

Employee discipline system

• Disciplines are maintained in KFC as this is their core strategy.

• employment discipline is maintained by managers and are followed CHAMPS.

Financial control

• Department that sees all the financial activities.

• UBM has to report all the financial activities required to be done or done to the finance department directly.

Purchasing Control

• Purchasing depends on the restaurant branches:

– In house purchasing

– Ware house purchasing

– Direct purchasing

– Indirect purchasing

Inventory control

• Inventory is done several times a week one final time a month and at the end of the year.

• Inventory controls are looked after by UBM and AUBM.

Statistical control

• Control of the branch is taken care by the UBM and all these statistical data are given to the financial department at the end of the day, week, or month.

• KFC has teams with in the department and there are cross functional teams.

• Communication is channeled as mostly departments communicate in formal meetings e.g. in regional meetings.

• These meetings provide opportunities to share ideas among each other and also provide an insight what others are doing.

• Culture of KFC promotes team work.

Communication

SWOT ANALYSIS

Strengths Weaknesses

Opportunities Threats

KFC

Strengths

• Brand Equity.• KFC secret recipe of 11 herbs species.• Strong Market Share (over 50%)• Oldest and finest in Business• Loyal customers• Faces numerous advantages of being a Multinational

Organization e.g. economies of scale, government incentives etc and its good will in entire world.

• KFC has Competitive advantage in fast food industry because of its quality and variety of products of chicken.

• Product is their strength customers come here for product ignoring the prices.

• They don’t do much advertisement as awareness is there & they don’t find a need for advertisement.

Weaknesses

• Presence of Multinational competitors in the market e.g. McDonalds.

• Compressed hierarchy.

• Unhealthy fats:

• Over confidence on own product.

• Lack of knowledge about their customers.

• Lack of relationship buildings with employees.

• Lack of focus on R&D.

• Question of over franchising leads to loss of control and quality.

Opportunities

• Cheap and easy availability of labor

• Increase consumption of fast food has increased the market size.

• “All under one roof”

• Loyal customers

• New Leadership, Domestic markets and Customer focus

Threats

• Rated 83 out of 100 in term of competitiveness.

• High political instability.

• Animal diseases like bird flu.

• Compressed hierarchy can collapse the whole system of the management efficiency.

• Increasing inflation rates directly affects menu rates.

• 85% annual employee turnover for fast –food market.

Suggestions

• KFC should focus on the competitor’s product.

• KFC should organize its management hierarchy simple as for every employee and customer.

• KFC should focus on the eligibility of the employees.

• KFC should focus on the market surveys for the knowledge of customers.

• KFC should facilitate its employees by giving relaxation and bonuses.

• KFC should focus on its Research and Development Department.

• https://www.scribd.com/doc/81693211/Planning-Process-Kfc.

• http://www.afrbiz.com.au/case-studies/kfc-human-resources-to-meet-emerging-business-needs.

• https://pdfs.semanticscholar.org/ab1d/769d45deb5a0e03d147a04cb27fff30e6ae6.pdf

• https://www.scribd.com/doc/31608312/Structural-Analysis-KFC

References