Kentucky Fried Chicken
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Acknowledgement
First of all, our gratitude to All-Mighty ALLAH who gave us the energy, the motivation and the wisdom to accomplish this research task. Writing a successful text requires a team effort and we have enjoyed working with excellent teammates. Throughout the process of writing the report, many
people stepped forward with tremendous efforts that allowed us to accomplish our stated goals. We would like to recognize the sincere and devoted efforts of many people who added their input to the processes of developing this Project Report. As stated in the developing story section, we received invaluable advices and suggestions during the development and revision process.
Purpose Of The Project The purpose of this project is to find out the History, Functions, Operations and Services of KFC . Then do give suggestions and recommendations and in the end to conclude the effect of the implementations.
people stepped forward with tremendous efforts that allowed us to accomplish our stated goals. We would like to recognize the sincere and devoted efforts of many people who added their input to the processes of developing this Project Report. As stated in the developing story section, we received invaluable advices and suggestions during the development and revision process.
Purpose Of The Project The purpose of this project is to find out the History, Functions, Operations and Services of KFC . Then do give suggestions and recommendations and in the end to conclude the effect of the implementations.
Executive Summary
This project gives a brief detail of Fast Food Industry in Pakistan The Final Project gives the brief snap shot of Situational Analysis on Fast Food Industry Industry.. The SWOT SWOT analysis analysis indicate indicates s the Strength Strength,, Weakne Weakness, ss, Opportu Opportuniti nities es and Threats of the KFC.
To get reasonable market share in Fast Food Industry required a reasonable amount of capital to open up outlets in different locations, plants with high definition equipments for food processing and for designing a distribution distribution channel form plant to outlet. Also huge
amount required for the marketing to sell their product at different locations and to establish the positing in the mind of potential customers. The The mark market et lead leader er in Fast Fast Food Food Indu Indust stry ry is KFC KFC and and its its majo majorr comp compet etit itor ors s are are McDonald, McDonald, Pizza Hut. KFC is sticked with their original recipe but McDonald have huge assortment of its products. KFC have strong bard name and famous for its quality products and services. KFC major target segment and consumption is associated with the geographic as well as economic economic conditions of a place. As the target segment segment of the KFC is upper and middle class so the main outlet are in the urban area specially in the big cities like Lahore, Karachi, Faisalabad, Islamabad and Peshawar.
TABLE OF CONTENT
CH#1:
OPERATION MANAGEMENT ………………………… …………………………………………………..1 ………………………..1 PROJECT MANAGEMENT ………………………… …………………………………………………..…. ………………………..…. 2 FORECASTING …………………………… ……………………………………………………… ……………………………………...2 …………...2 GOODS AND SERVICES SELECTION ………………………………………....3 QUALITY MANAGEMENT …………………………………………………… ……………………………………………………...4 ...4 STRATEGIES …………………………… ……………………………………………………… ………………………………………..4-5 ……………..4-5 SUPPLY CHAIN MANAGEMENT ……………………………………………….6 ……………………………………………….6
CH#2
KFC PROFILE…………………………………………………………………….7 PRODUCTS………………………………………………………………………..8 MENUE ITEMS……………………………………………………………………8-9 OTHER PRODUCTS………………………………………………………………10 DISCOUNTED PRODUCTS……………………………………………………...10 NUTRITIONAL PRODUCTS…………………………………………………….11 FACTS ABOUT KFC……………………………………………………………..11 KFC AND PAKISTAN……………………………………………………………12 PRODUCT MARKET……………………………………………………..............13-14 MARKET SHARE…………………………………………………………………15-16 CUSTOMER MARKET…………………………………………………………...17-19 MARKET PROGRAMMES……………………………………………………….20-21 PRICING PRACTICES…………………………………………………………...22 SWOT ANALYSIS………………………………………………………………..22-23 PROMOTION………………………………………………………………………24 OPERATIONS……………………………………………………………………..25 FORECAST………………………………………………………………………..25-27 QUALITY MANAGEMENT………………………………………………………27 MARKETING STRATEGIES……………………………………………………..28 LOCATION STRATEGY………………………………………………………….29 HUMAN RESOURCE MANAGEMENT ………………………………………...30-32 SUPPLY CHAIN MANAGEMENT……………………………..………………....32
CH#4
SUGGESTIONS…………………………………………………………………….33
CH#5
RECOMMENDATIONS …………………………………………………………...35 REFERENCES ………………………………………………………………………36
CHAPTER #1
OPERATIONS MANAGEMENT:
Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want. The purvey of OM ranges from strategic to tactical and operational levels. Representative strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains.
Tactical issues include plant layout and structure, project management methods, and equipment
selection and replacement. Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and materials handling, and equipment maintenance policies.
PROJECT MANAGEMENT: Project management is a carefully planned and organized effort to accomplish a specific (and usually) one-time objective, for example, construct a building or implement a major new computer system. Project management includes developing a project plan, which includes defining and confirming the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the resources needed, and determining budgets and timelines for completion. It also includes managing the implementation of the project plan, along with operating regular 'controls' to ensure that there is accurate and objective information on 'performance' relative to the plan, and the mechanisms to implement recovery actions where necessary. Projects usually follow major phases or stages (with various titles for these), including
feasibility, definition, project planning, implementation, evaluation and support/maintenance. (Program planning is usually of a broader scope than project planning, but not always
FORECASTING : Forecasting is the process of estimation in unknown situations. Prediction is a similar, but more
general term. Both can refer to estimation of time series, cross-sectional or longitudinal data. Usage can differ between areas of application: for example in hydrology, the terms "forecast" and "forecasting" are sometimes reserved for estimates of values at certain specific future times, while the term "prediction" is used for more general estimates, such as the number of times floods will occur over a long period. Risk and uncertainty are central to forecasting and prediction. Forecasting is used in the practice of Customer Demand Planning in every day business forecasting for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces both statistical forecasting and a consensus process. Forecasting is commonly used in discussion of time-series data.
GOODS AND SERVICES SELECTION: In economics, economic output is divided into physical goods and intangible services . Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax. We satisfy our needs and wants by buying goods and services. Goods are items you can see and touch, such as a book, a pen, salt, shoes, hats, a folder etc. Services are provided for you by other people, such as; doctor ,a lawn mower worker, a dentist, haircut and eating in restaurants.
QUALITY MANAGEMENT: Quality management can be considered to have three main components: quality control, quality
assurance and quality improvement. Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality.
STRATEGY: Strategy is a process that can allow an organization to concentrate its limited resources on the
greatest opportunities to increase sales and achieve a sustainable competitive advantage. A
marketing strategy should be centered around the key concept that customer satisfaction is the main goal.
LOCATION STRATEGIES: Location Strategies, provides retailers, shopping center developers and advisors with decision-
making location research. Location Strategies meets clients’ needs by delivering straightforward, candid and customized reports, enabling clients to make sound financial decisions. Location Strategies provides all the advantages of an in-house research department ,offering depth of experience without the fixed overhead.
HUMAN RESOURCE STRATEGIES AND JOB DESIGN Leading organizations are places where people know the strategy and goals, feel respected and valued, understand their role, and know how to succeed. You can create these conditions; thus increasing organizational success and productivity while reducing risk. Effective human capital strategy and practices are directly related to higher levels of financial and market success. Work arrangement (or rearrangement) aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through job design, organizations try to raise productivity levels by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement in meeting the increased challenge
and responsibility of one's work. Job enlargement, job enrichment, job rotation, and job simplification are the various techniques used in a job design exercise.
SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand, and measuring performance globally."
CHAPTER # 2
KFC Profile Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFC provides the ultimate chicken meals for a chicken loving nation. Be it colonel sanders secret original recipe chicken or the hot & spicy version, every bite brings a yum on our face. At KFC we proudly say, “We do chicken right”. Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the
chicken Experts. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers.
Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45 outlets nation-wide.
Products Packaging :
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep the chicken crispy by wicking away excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most KFC locations in the US.
Menu Items
Chicken:
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the Original Recipe fried chicken. Introduced in April 2009. KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line. The regular sandwiches are served on either a sesame seed or corn dusted roll and are made from either whole breast fillets (fried or roasted), chopped chicken in a sauce or fried chicken strips. The Snackers line are value priced items that consist of chicken strips and various toppings. In the UK , Australia and New Zealand, sandwiches are referred to as "burgers"; there is the chicken fillet burger (a chicken breast fillet coated in an original-recipe coating with salad garnish and mayonnaise) and a Zinger Burger (as with the former but with a spicier coating and salsa). Both of these are available as "tower" variants, which include a slice of cheese and a hash brown. A variety of smaller finger food products are available at KFC including chicken strips, wings, nuggets and popcorn chicken. These products can be ordered plain or with various sauces, including several types of barbecue sauces and buffalo sauce. They also offer potato wedges. Several pies have been made available from KFC. The Pot Pie is a savory pie made with chicken, gravy and vegetables. In the second quarter of 2006, KFC introduced its variation on Shepherd's pie called the Famous Bowl. Served in a plastic bowl, it is layered with mashed
potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served with a biscuit. The bowl had been available at KFC's special test market store in Louisville since the third quarter of 2005. The KFC Twister is a wrap that consists of either chicken strips or roasted chicken, tomato,
lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the Twister is sold in two varieties: 1) the Grilled Twister (chicked strips), and 2) the Grilled Mexican twister/Spicy Toasted Twister (UK) (chicken breast supplemented by tortilla chips and salsa, UK: adds only salsa to pepper mayonnaise), KFC Fillers are a 9" (22 cm) sub, available in four varieties over the summer period. Shish kebab - in several markets KFC sells kebabs.
OTHER PRODUCTS: Other product included • • • • •
Coleslaw The Boneless Banquet Chili Cheese Fries Parfait desserts Sara Lee Desserts
Discontinued Products:
The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the Boston Market chain's roasted chicken products, and a healthier mindset of the general public avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole
roaster or a half bird. Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'. Instead of whole and half birds, customers were given quarter roasted chicken pieces. For a time, customers could request chicken "original", "Extra Tasty Crispy" or "Tender Roast". Chicken Little sandwich – a value oriented sandwich that sold for $0.39(USD) in the U.S. during the late 1980s and early 1990s. It was a small chicken patty with mayonnaise on a small roll, similar to White Castle's mini chicken sandwich. Extra Tasty Crispy (ETC) – Chicken much like the Extra Crispy served today, except ETC was prepared using chicken that had been soaking for 15 minutes in a special marinade machine. There is some speculation that the marinade may have been made with trans-fats, and KFC boasts to no longer use trans-fats in their chicken, the known ingredients were garlic and chicken stock. In the summer of 2007, KFC started marketing the chicken just as "Extra Crispy" without the marinade. Kentucky Nuggets were a chicken nugget product available at KFC until 1996. No reason has been given for their discontinuation. Smokey Chipotle – Introduced in April 2008. The chicken was dipped in chipotle sauce then doubled breaded and fried. It has been discontinued since August 2008. Nutritional Value:
KFC formerly used partially hydrogenated oil in its fried foods. This oil contains relatively highlevels of trans fat, which increases the risk of heart disease. The Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of making it use other types of oils or make sure customers know about trans fat content
immediately before they buy food.
Facts: Serving delicious, fresh and hygienic food and at the same time providing to customer with the ultimate entertainment; KFC also plays in the economics development of our country. •
Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan.
•
The Government of Pakistan receives over Rs.10 million per month from KFC Pakistan as direct taxes.
•
95% of all food and packing material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.35 million per month.
•
Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is a huge amount for our construction industry.
KFC and Pakistan…Growing Together .
KFC’s Customers
KFC’s customers generally choose the restaurant they will eat at based on quality, rapidity, and variety of items. KFC’s customers are also really price sensitive and will go elsewhere if they find that the value is not worth the price. They can also be characterized by being people that want to be served fast and be out of the restaurant in no time.
Product Markets Product Types, Varieties, and Trends
Promotional Deals
1-Chicken Deal= Rs.150 (2-Pcs Chicken + 1Rg Drink) 2-Value Deal
Growth Market:
As the world is now becoming a global village and now the eating habits is also being global so Pakistan is one of the suitable country for fast food industry. From last decade many national and internal companies opened their fast food outlets in Pakistan and also it is still very attractive market for the newcomers who are willing to invest in the Fast Food Industry. Government Policy
Especially there are no as such limitations imposed by the Government for those who want to invest in Fast Food Industry. Capital requirement
To get reasonable market share in Fast Food Industry required a reasonable amount of capital to open up outlets in different locations, plants with high definition equipments for food processing and for designing a distribution channel form plant to outlet. Also huge amount required for the marketing to sell their product at different locations and to establish the positing in the mind of potential customers.
Learning and Experience
In the Fast Food Industry learning and knowledge is very important for new entrant but also for the employees which is helpful to establish new born business successfully.
Market Share Comparison of KFC & its competitor outlets in Pakistan:
KFC McDonald Pizza Hut
Number of Outlets 60 20 34
KFC MC Donald Pizza Hut
Sales Volumes and Trends:
KFC McDonald Pizza Hut
Average Daily Sales by one outlet Rs. 215000 145000 115000
Daily Sales by the all outlets Rs. 4,250,000 2,900,000 1,680,000
Sales Per Month
Rs. 127,500,000 87,000,000 60,400,000
140000000 AverageDaily Salesbyone outlet
120000000 100000000
Daily Sales by the all outlets
80000000 60000000
Sales Per Month
40000000 20000000 0
F K
o n D c M
z a z i P
Competitor Analysis Work Sheet
In the chicken Burger chain and Pizza segment, the main competitors of KFC are McDonald and Pizza Hut. In Pakistan KFC is the market leader because it is the first international chain that opened its out let in country and also having huge number of outlet as compared to rest of the competition.
Customer Markets Segments of KFC
In this portion of project we will discuss that how many segments KFC is serving for its products and what strategy they are using for these segments.
Market segmentation
The commonly used basis for segmenting the consumer market may be grouped in following categories, which are selected by the KFC for its products and services.
1) Geographic Segmentation
KFC major target segment and consumption is associated with the geographic as well as economic conditions of a place. As the target segment of the KFC is upper and middle class so the main outlet are in the urban area specially in the big cities like Lahore, Karachi, Faisalabad, Islamabad and Peshawar and Motor ways. 2) Demographic Segmentation
Age:
People from all age groups (Focus Kids 6-12 years)
Sex:
Both Male & Female
Occupation:
People from all walks of life
Income:
Rs. 15,000/- and above
Religion:
Deal in Hilal Foods Only, Especially targeted to Muslims in Pakistan,
Life style Pattern •
Fun, Entertainment, enjoyment is the basic idea of the Target market of KFC Customers
•
For families, Kids, individuals and couples
AIO-Act ivies, Interest and Opinions •
Target Market like fun, Entertainment
•
Target customers like to test new products
•
Target customers like to play different games
•
Target customers Participate in different positive activities
Usage Patterns and Behavior
There is a little seasonal effect on the product demand, in winter season the demand of the product will be on high scale and in summer season the demand will be little decrease because it is a hot and spicy product so customer likes to take it in cool atmosphere. Product. KFC products are available only at lunch, Dinner and also mostly outlet remain open till 2am, Our Target Market mostly uses products in Lunch and Dinner.
Specific End Benefit o
Products are Hygiene,
o
Products have unique taste,
o
Product will be available in all outlets so it is easy access able product for end consumer.
o
Products are also available at doorstep through Home Delivery Services,
o
KFC is a fast food Restaurant so it provide the quick service delivery to its customers,
Psychographics Segmentation
The social class, which is included in the target group of KFC, is consumer from upper class and middle class. They enjoy getting the services of KFC due to the status and time constraint. The consumer has wide range of personalities from dynamic to interesting. From self confident to extra vested, from adventuresome to social able. The personality of a person makes a lot of difference in buying power.
The lifestyle of consumer varies from flashy, liberal modern to dull conservative and backward. It is a very important factor which very much influences the buying pattern of the consumer. People will be mostly influenced by high quality, healthful richness and branding of product. . Target Market A target market is defined as a group of customers (people or organization) at whom seller specifically intends to aim its marketing efforts. For this purpose company must analyze three components: •
Consumer
•
Buying Power
•
Social and psychological factors influencing buying patterns
With the increase in literacy rate and high disposable income people awareness about health and expectation about services increased. This means Fast Food Industry has market in each age group of society. Due to increased industrialization the income and the life standards are improving. But the new generation is becoming modern and their life style is totally changed and they like Fast food rather than traditional food items.
Marketing Programs Advertising and Promotional Programs:
KFC Management is using both types of Mediums to promote its brands, •
ATL-Above the Line-Electronic Media
•
BTL-Below the Line- Print Media
Promotional Activities:
Following are the KFC Promotional Marketing Programs: Branded Prepaid Coupons
KFC brings to prepaid coupons of different meal combo options, which act as great distributor trade or customer incentives. These exciting incentives are guaranteed to give a boost to your sales and can make your incentives stand out from the order run of the mill incentives. In order to act as true partners , KFC will print branded coupons (minimum quantity 500 coupons) of your own company or product, which can be redeemed at any of the KFC restaurant nation wide or restaurants of your choice. Corporate meeting, seminars & workshops at KFC
Meeting with trade people or customers can also be arranged at KFC. KFC can arrange all related facilities for the meeting. (Minimum group size – 15 persons). This facility is available at selected outlets. Lunch/Dinner for Employees/Dealers/Customers and their Families at KFC
Companies can arrange lunch/dinner for their employees/dealers/customers at selected KFC restaurants.
Outdoor Catering
KFC can bring complete hassle-free meals and serve at your specified premises.
(Minimum order size – 100 persons). All catering facilities will be provided according to you needs.
Some more Details are as follow •
Promotional Discounted Coupons for Corporate Customers
•
Discounted Promotional Meals on Seasonal Products
•
Discounted Promotional Meals for Increasing the Sales Figures
•
AYC (All you can Eat) specially offer for Ramazan ul Mubarak
•
Free Meal Vouchers for Corporate Clients
•
20% VIP Discount Card for Corporate Clients on all Regular Meals except the Promotional Deals
•
Free Chicky Premium on Chicky Meals
•
LSM (Local Store Marketing) special Discounted Deals or Gift for Specific out let
•
Free Meal area and Serving in case of any party and Birthday
•
Free Gift for Birthday Child and Different Games for Kids
Pricing Practices
KFC pricing Strategy base on the raw material and other costs labor, overhead etc, Prices settled to see the buying power of customers, Average check for a single customer and also to see the target market economic condition, KFC Manu prices are revised 4 time since January 08, it
creates a difficult situation for Customers, overall KFC Sales figures are down as compare to last year sales and Internal Budgets as well, this all happen due to the lot of revision in Manu Prices that’s why KFC Management is decided to launch some MAJOR Promotional programs to boom the sales, it will launch in near future, Over all the prices figures change to see the buying power of Customer and also to see the sales analysis. Access to distribution
There is lot of suppliers of raw material (confectionary and meat items) available in the market and there is no such problem of work force. Newcomers have easy access to distribution channels for production.
SWOT Analysis STRENGTHS & WEAKNESSES ANALYSIS OF KFC
It is used to evaluate how KFC measures up to a competitor’s organization. The strength & weakness evaluation is intended to determine where KFC is weak or where it is strong as compared with the competition. Strengths: (Internal)
Good reputation in market
Strong brand name
Having Maximum outlets in the market
Strong financial position
Joint venture with the international firms like Pepsi cola and Yem international
Using modern technology to interlink their resources
Having strong distribution channel
Weaknesses: (Internal)
Company did not come up with new products as compared to McDonald.
Limited menu and sticked with their original recipe.
Having less sales as compared to McDonald.
Uncontrollable Environment
Opportunities: (External)
An unfulfilled customer needs.
Growing Market
Arrival of new technology (to maintain the quality and crispiness of the fried chicken product.)
Potential to capture additional market share
Very few brands in Fast Food Industry (Brand building).
Threats: (External)
Shift in consumer tastes, away from the firm product.
High inflation rate.
Emergence of substitute product.
New government regulations
Political & social instability.
Promotion: Print Media:
Advertisement in newspaper and Magazine specially in leading news paper
Dawn, The News, Jang and Nawaiwaqt.
Spicy stand flex sign on the entrance gate
Front lit flex sign on the billboard on different lactations.
Broachers and pamphlets to introduce their new product to their customers.
Electronic media: TV Channels: Before launching the product “Spicy Value Meal” will be displayed TVC teasers
on different Television channels. Some of the famous television channels are
GEO
TEN SPORT
ESPN
GEO SUPER
Star Plus
AAG
ARY
HUM
Radio: there is huge trend of youngsters to dine out in fast food restaurants and a huge number
of youngsters listen music on radio especially FM channels are too popular in the youngsters so FM and AM radio channels can be a effective medium to permute our new product
OPERATIONS OF KFC
KFC was introduced in Pakistan market by the Artal group of Belgium and although a late entrant, it managed to establish several outlets in Karachi , Lahore , and several more areas.After a through survey and analysis KFC opened its first branch in Garden town Lahore five years back. Since then there was no looking back for KFC as it started to earn profit and grow to other different cities. KFC in Pakistan has been shoeing a steady growth and profitability . Some profits were used for team making, uplift of the restaurants etc. KFC believes in providing “value for money” to its customers. They have high quality standard and they are in concurrence to those prevailing in other countries . They have an international brand name to protect so there is strict implementation of quality standards.
KFC’s FORECASTING
HOT SPOT PREDICTIONS
Recently, we introduced the KFC model, a machine learning approach for predicting binding hot spots within protein–protein interactions. Since this model is the basis of predictions generated by the KFC Server, the following section summarizes its construction and performance. Further details are available in the original manuscript
KFC’s FORECASTING MODEL
The KFC model is comprised of two decision tree-based classifiers:K-FADE [based on shape specificity features calculated by the Fast Atomic Density Evaluator, or FADE and K-CON (based on biochemical contact features). Each decision tree, which provides a set of hierarchical rules for hot spot classification, was trained by a supervised learning process to recognize the local structural environments that are indicative of hot spots. In practice, every path through the tree terminates with a prediction/classificationas to whether a residue is a hot spot. The training
set used for learning consisted of 249 experimentally characterized almandine mutations within the interface of 16 no redundant protein complexes.Structures for each complex were obtained from the Protein Data Bank (PDB) . For this work, residues were classified ashot spots if their mutation to almandine resulted in a changeof binding energy greater than 2 kcal/mol. The data mining tool C5.0 (Rule quest, St. Ives, Australia) was used to create predictive models from many different combinations of structurally-derivedchemical and physical features that describe the interface residues, and those that best described the hot spot environment were selected as features for the K-FADE and K-CON models. K-FADE predicts hot spots using the size of the residue and the radialdistribution of shape specificity and interface points. K-CON predicts hot spots in terms of a residue's; intermolecular atomic contacts, hydrogen bonds, interface points and chemical type. To validate this approach, KFC's; ability to predict known hot spots was compared to the Robetta Interface Alanine Scanning(Robetta-Ala) service, a leading hot spot prediction utility
that predicts the
G of a residue's; mutation to alanine.The predictive performance of each
method was described in terms of F1 score, a statistical measure of accuracy balancing precision (the fraction of positive hot spot predictions that are correct) and recall (the fraction of known hot spots that are predicted)., we have used the F1 score as a standardmeasure of predictive accuracy.
A cross-validation analysis of the training data showed that KFC exceeded the predictive accuracy of Robetta-Ala, and a modelcombining KFC and Robetta-Ala performed significantly
better than Robetta-Ala alone ( P = 0.02). The combined model predictsa residue is a hot spot if either KFC or Robetta-Ala makes a positive prediction. In addition, this result was verified by using an independent test set of 112 mutations and the finalKFC models trained on the full training set. Again, KFC slightly outperformed Robetta-Ala, and the combination of KFC and Robetta-Ala achieved a large statistical improvement in predictive ac curacyover either individual model ( P = 0.0071). In addition to its high accuracy, KFC is computationally fast. Using common computer hardware, a typical KFC analysis is complete in less than 2 min. Given its speed and accuracy, the KFC model can supporthot spot predictions for multiple users in a server environment.
KFC FORCAST: Yum! Brands, the owner of the KFC and Pizza Hut brands, has reaffirmed its full year 2009 EPS growth forecast of 12% and expects further growth of beyond 10% in 2010. “2009 has been a year of solid performance led by our China and Yum! Restaurants International businesses, and we remain on track to deliver 12% EPS growth,” David Novak, Chairman and CEO, said. “This performance has been driven by our industry leading international new unit development, favourable commodity costs, productivity gains across our businesses and a lower effective tax rate.” “Our biggest challenge continues to be driving same-store-sales growth in the difficult consumer environment. All indications are that 2010 will be another challenging year, and we have built our plans accordingly.” Next year’s growth is likely to stem from favourable currency movements, international expansion (1,400 new stores are planned) and “modest” same-store sales growth
Quality Management
Kentucky Fried Chicken (KFC) Corporation, a member of the quick-service restaurant industry, uses a sophisticated program to manage the quality of service it offers to its customers. In the last quarter of 1989, the south central division of KFC launched a test program in four Oklahoma City restaurants to improve the speed of service at its drive-through-window operation. It proved extremely successful. The restaurants cut service time by more than half while improving labor productivity. They also dramatically outperformed other restaurants in the division in profits, sales growth, and growth in customer transactions. The improved processes in the test restaurants have served as benchmarks for other KFC restaurants aiming for continuous process improvement, while the reduced service time now serves as the revised specification in KFC’s quality measurement and management program.
Marketing strategy of KFC: KFC as a Brand KFC is one of the best-known brands worldwide Doing Integrated assignment we study how KFC continually aims to build its brand by listening to its customer's also identifies the various stages
in
the
marketing
process.
Branding develops a personality for an organization, product or service. Brand Image represents how
consumers
view
the
organization.
Branding only works when behaves and presents itself in a consistent way, Marketing communication methods, such as advertising and promotion, are used to created colors, design and image which gives a recognizable face .At KFC this is represented by its familiar logoColonel
Harland
Sanders
is
shedding
his
white
suit
jacket
for
a
red
cook.
Marketing involves identifying customer's needs and requirements and meeting these needs in better way then its competitors. In this way a company creates loyal customers.
Location Strategies of KFC
Kentucky Fried Chicken have recently found that site selection strategy needs to consider more than just selecting the most profitable individual site locations. Not only are site locations of nearby stores in the same chain as well as competitor chains important, but the total number of stores a chain decides to locate within a single urban market is also of paramount importance. Variation in total company transportation costs among different locations can determine a company's lowest cost operating location; but, what if a significant portion of the transportation costs of finished goods or services are left for the customer to pay? In these cases, proximity to the point where a customer picks up the cost of transportation may have a major impact upon a company's total dollar sales volume. While such customer transportation costs often mean getting a product or service from the company outlet to a customer's home or
business, it may also mean getting the customer from their ho me or business to the company outlet (e.g., fast food). In either case, more sites closer to customers, or possibly more generous customer delivery policies, may have to be considered.
HUMAN RESOURCE STRATEGY HUMAN RESOURCE POLICY IN KFC
Hiring and retaining the right employees is critical to the success of your restaurant's operation. Here you'll find news and research on getting the most from your human resources processes. Area Manager :
Area Managers are accountable for providing coaching, leadership and operational support to 810 KFC Restaurants within a defined Area. Restaurant General Managers: The Restaurant General Manager is accountable for creating and running an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. The Restaurant General Manager reports directly to an Area Manager and is accountable for successfully implementing and maintaining all Company policies and procedures in relation to operations, customer service, cash handling, marketing, purchasing, human resources, health & safety, administration, training and development. Assistant Managers :
The Assistant Manager is responsible for assisting the Restaurant General Manager (RGM) in creating an energetic and valuable work environment, which is committed to serving the best chicken at the fastest speed and with a smile. Assistant Managers are also responsible for ensuring all Company policies and procedures are followed in relation to operations, customer service, cash handling, marketing, purchasing, human resources, health & safety, administration, training and development. 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.
Trainee Managers help with day-to-day running of the restaurant, and need to ensure that all operations, customer service, cash handling, marketing, pu rchasing, human resources, administration and training & development policies are followed.
Customer Service Team Members:
Responsible for working the service areas and ensuring quality product, service and cleanliness is delivered to all customers at top speed and with a smile! Food Service Team Members:
Responsible for putting the crunch in the coating and the zing in the Zinger…the cook’s main task is to prepare and cook the irresistible KFC products! The cook must also maintain the cleanliness of the cooking area as well as the quality of product and speed of preparation. Recruitment and Selection at KFC
Part of KFC’s recruitment strategy is to offer employees high-quality options such as potential for advancement, company reputation, benefits package and salary scale. When KFC was looking for senior executives who could run a business, for two years it scoured the management teams across various industries and offered senior executives of companies like Coca Cola attractive benefits and a better salary scale to get them on the team. These executives were promised quick advancement on their jobs, and apparently given such incentives to join that most of the people offered jobs joined KFC even though they were told before hand that at immediate present, no senior position was vacant. Hence, KFC’s attractive salary and benefits package is an effective lure for potential employees (Rigdon, 1991). For example, among the benefits package that KFC offers, is a medical coverage and prescription benefits, dental coverage, vision/hearing coverage, life and disability insurance, a 410k plan (which helps employees save for their future), stock options, a management incentive plan (under which everyone from assistant manager to senior executive is rewarded for remarkable performance), adoption assistance, tuition reimbursement plan, college-planning assistance, employee discount, paid vacation and a group legal plan. KFC also believes in promoting from within, as it encourages employees to perform well on their jobs, telling them that they in fact can go from being just a team member to the restaurant manager and later area or region coach (KFC Official site).
As far as selection is concerned, KFC management strongly believes that hiring young people and later training them is the way to a successful organization. Hence, the age factor is definitely an issue of concern for recruiters at KFC. The company also strongly believes in diversification. According to Kyle Craig, president of Kentucky Fried Chicken's U.S. operations, “We want to bring in the best people but if there are two equally qualified people, we'd clearly like to have diversity.” From this, we can safely assert that KFC believes in eliminating the glass ceiling, and hiring and keeping female and minority-group executives. This seems to be working for the
company and is an effective policy: where in 1989, not even one of the company's 17 senior U.S. managers were minority or female, the situation has improved today, with there being numerous managers either female or part of a minority group. KFC admits that it actively tries to recruit and promote women and minority members in middle and top management ranks
KFC’S SUPPLY CHAIN MANAGEMENT:
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Quick Reflexes As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. These factors help KFC to work smoothly and efficiently as we already known that they are the only fast food chain which is selling fried chicken in which they are specialized. MIS systems let the KFC management: • To capture information and store it, whenever they are making bills it helps them to count sales per day, per week and per month because a copy of the bill is stored in the computer. • Access stored information easily and manipulate it for the nee ds of their clients’ while billing or taking order they just enter the code of the product requested at that time and the KFC ‘s Core Competencies
Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself. quantity demanded.
SUGESSTIONS:
Improved Factory Layout: The improved factory lay out will help KFC to produce and provide good and services effectively and efficiently.
Improved Customer Services: The improved customer services will provide better customer satisfaction and customer care. Hence, there will be increased customer value and they will automatically be persuaded to return back to KFC again.
Advertisements: The improved advertisements and Promotions will create more awareness about the product. Hence, the potential customer will know what is there in the market to be consumed.
Improved Quality: The improved quality will satisfy the present customer at a higher level. Hence, they will influence the other with whom they are in interaction with to at least go once and enjoy meals of KFC. And they the testers may become the permanent customers or KFC loyal customers.
Improved Productivity: The improved factory lay out and new technology (new ovens and etc) will increase the productivity time/unit. This will increase the sales and demand scale as well and the products will be delivered on demand at record time. Hence, increases customer satisfaction.
Employee Satisfaction And Improvement In Operations: If the management concentrates on the employee satisfaction and train, guide and motivate them time by time the employees will work much more effectively and efficiently. And I they are empowered they will do their level best to improve the functions and operational procedures which they are responsible for.
Improved Billing And Inventory System:
Through my suggestions the KFC employees responsible for billing and making cash memos will find it very easy and fool proof for the billing purpose. Also, this will help the store keepers to inform the upper management about the increase and decrease in the inventory.
Internet Ordering: Customers can place online orders ( carryout, delivery) to specific locations. The restaurants receive the orders placed online in real time.
Custom Built Menus: Extended support for menus and promotions with unlimited number of menu items and modifiers.
Efficient Delivery Management: Complete driver dispatch functionality provides support for assigning and tracking meals (or any other) delivery orders, assigning delivery zones, generating driving directions, and supporting driver settlement.
RECOMMENDATION
WEBSITE They should upgrade their website every day.If the website is not upgraded it will provide less information to the customer which will not leave good impression on them.
CARDS Gifts cards should be introduced to highlight the value aided features.
MISDISTRIBUTION OF WORK Fair distribution of work in all departments should be followed
PARTICIPATIVE MANAGEMENT Ideas of employees should be valued in product and services .This will increase the efficiency and morals of employees .
GOOD ATMOSPHERE Working of spilt unit in summer and heating system should be checked daily to reduce the risk of inconvenience to customers.
TRAINING PROGRAMMES Training should be provided according to the new trends because of globalization.
