肯德基商务宣讲模板kfc

CaseStudy:

KentuckyFriedChickenandtheGlobalFast-FoodIndustryRelevantCaseFacts-HistoryEarlyLifeofColonelSandersSander’sFirstFranchisein1952NewManagement/cultureforKentuckyFriedChickenafterKFCsalefor$2MAcquisitionofKFCbyPepsico/TriconGlobalHeubleinMakesChangesin19701980’sProfitandExpansionFrom$105to7.2Billionin50years1952,Col.SandersstartedfranchisinghisrecipedoortodoorfinancedbyhisSSCheck1964,ColSandershadmorethan600franchisedoutletsintheUSandCanada.1964,Soldhisinterestinhiscompanyfor$2milliontoagroupofinvestors.1966,KFCwentpublic1969,ListedontheNYSE1971,KFCwasacquiredbyHeubleinInc.for$285million.1982,Heublein&KFCInc.wasacquiredbyRJReynolds1986,RJReynolds&KFC,wasacquiredbyPepsiCo,Inc.$840million.1997,PepsiCo,Inc.spined-offofitsqsr’sintoindependentTriconGlobalRestaurants.2002,Triconchangedit'scorporationnametoYum!Brands,Inc..NOW:YumBrands,Inc.istheworld'slargestrestaurantcompanyintermsofsystemunitswithnearly32,500inmorethan100countriesandterritories.Yum!Brands,Inc.,isaFortune300companyYum!Brands,Inc.globalsystemsalestotaledmorethan$22billionintheyear2001.CurrentMarketCapvalueontheNYSEis7.2BillionProblem/IssueHowwouldKFCmaintainamarketleadershipintheglobalfast-foodindustryIssue: AcompetitivemarketingstrategyintheinternationalmarketfocusedontheLatinAmericancountriesInternalAnalysisFunctionalAreasFinance/Accounting

Since2001,YumBrandsInc.hasoutperformedthemarket

ComputerInformationSystems NewlyestablishedComputerinformationsystem

MarketingPositioningamongcompetitorsisfavorableunconventionalmethodsofdistributionmultibrandingManagementObjectivesandgoalsaremeasurableandachievableTeamempowerment

Productions/OperationsConstantimprovementonqualityofchickenProducerandoperatorsarestrategicallylocatedSWOTANALYSIS:Strengths TheManagementstyleofCol.Sanderswastorelyonthebasicgoodnessofthepeoplearoundhimandtrustthefranchiseestoplayfair.KFCisaMarketleader:World’slargestchickenrestaurantchainandthirdlargestfast-foodchainin2000KeySuccessFactor(KFC):LocationEffectivestoremanagement/cleanlinessKeytocontinuedgrowthwastofind,motivate,andretainhard-workingandentrepreneurialmanagersandfranchiseesaroundtheglobeInadditiontoshorttermprofits,storemanagerswerealsoresponsibleforbuildinglocalpublicrelations,maintainingemployeemorale,developingcustomergood-will,keepingtabonthecompetingchainsandcreatingalegacyofspecialchickencookingrecipe.Overallmarketimagealsobecameincreasinglyclear.StrengthKFChadarefocusedinternationalstrategiestogrowitscompanyandfranchiserestaurantbaseallovertheworld.Competitivemarketingstrategy:Developedthreetypesofchicken:Originalrecipe(pressurecooked)Extracrispy(fried)Tenderroast(roasted)Distributionstrategy-First,focusedonbuildingsmallerrestaurantsinnon-traditionaloutletslikeairportsShoppingmalls,universities,andhospitals.Second,KFCcontinuedtoexperimentwithhomedelivery,whichwasalreadyfirmlyestablishedinLouisville,LasVegasandLAmarketsThird,KFCestablished“2in1”unitsthatsoldbothKFCandTacoBellorKFCandPizzaHut

Cont.StrengthKFCcontinuedtodominatethechickensegment($4.4B)pastitsnearestcompetitorPopeyesatadistantsecond($1.0B)SWOTANALYSIS:WeaknessesYear1986ManagementShift-KFCwasacquiredbyPepsicofromRJRIndustries.Sweepingchangesintotheculturewasinitiatedbythenewmanagement-thisbringsaboutdemoralizationtooldKFCemployeesandevenfranchisees.SeveralrestructuringsledtolayoffsthroughoutKFC,replacementofKFCmanagerswithPepsiComanagersConflictsbetweenKFCandPepsiCocultures-thisismanifestedwithPepsiCo’sstrongeremphasisonperformanceratherthanloyaltyexpressedbyCol.SanderstoKFCemployeesovertheyears.Cont.WeaknessesMarketSegment(1990’s)KFC’sleadershipintheUSmarketwassoextensivethatithadfeweropportunitiestoexpanditsUSrestaurantbase,whichwasgrowingatabout1%peryear.KFCchickensegmentsalesfellfrom71%in1989tolessthan56%in1999.SWOTANALYSIS:WeaknessesKFCfindsdifficultyinenteringtheGermanmarket(cultureincompatibility)KFCsalesstagnated.Therewaswidespreaddiscontentamongthefranchisees,someofwhomfeltthenewownersdidnotunderstandthechickenbusinessandwerenotprovidingleadershipexpectedfromafranchisor.Companystoresflounderedandbecomeunderperformingthefranchisedoperations,furtherconvincingfranchiseesthatthecompanydidnotknowitsownbusiness.(KFCHQacquiredthemtocompany-owned)SWOTANALYSIS:OpportunitiesOverseasexpansionwiththerapideconomicgrowthandtrendtowardtwo-incomefamiliesthathadfuelledthegrowthoffast-foodindustryinthe1950sand1960swereappearinginthelate1960sintheothercountry.USmarketmaturity-manyrestaurantsexpandtointernationalmarketsasstrategyforgrowingsales.KFCisanAmericancompanyand35largestrestaurantchainsintheworld(2000)wereAmericanfirmsExpansionprogramfortheMexicanmarket/LatinAmericanmarketsNAFTAadvantageDemographictrends(demandforfoodeatenoutsideofthehome)SWOTANALYSIS:Threats

ConsumerhealthfoodtrendSaturatedfastfoodindustryintheU.S.market

StrategicManagementMarketDevelopment KFCwillintroducetheirpresentandnewproductsandservicesintonewgeographic/demographicareas.ProductDevelopment BringbackrotisseriechickenConcentricDiversification AddmoretoKFCproduct&servicevarietytothepublicconsumersImplementationsMarketResearchDeterminearea’sdemandtodetermineboundariesExpandmenuHealthierchoicesMealswillbesoldatcostDetermineeffectsonbudgetCompanyStrategy

Primaryobjectiveistotakeadvantageofthepotentialgrowthinothercountries,toestablishastrongpositionandtodeveloptheirimage.KeySuccessFactorsareevercontinuingcostsavingsthroughR&D,innovationsanduseofnewtechnologytoworkefficiently.Thesesuccesstechniqueswilllowercostsandincreaseprofitsintheindustry. KFCusesanintegratedlowcost/differentiationleadership,sinceitcancountonitsbrandnameandoriginaltasteandrecipestobeuniquewhileatthesametimecompeteonpriceusingthebenefitsofcostsavingsfromeconomiesofscale.Recommendations

Short-term:Basedontheanalysis,wecanconcludethattheyshouldstartbysolvingtheirinternalissuessuchasmanagementandrestaurantmenubeforethinkingaboutexpanding.Theyshouldworkonthemanagementissuestocreateagoodatmospherewhereemployeesarehappytoworkin.Icertainlydonotbelievethatbytreatingemployeespoorly,acompanycanbesuccessful.Theyalsoneedtomakesurethattheirrestaurantsofferadiversifiedmenu,providetheircustomerswithqualityfood,excellentserviceandrestaurantcleanliness.KFCshouldalwayslistentotheircustomersandtrytofollowthenewtrendsonthemarketinordertofullysatisfytheircustomers.Otherwise,competitorswillsatisfythemandwilleventuallyoutperformyouasBostondidwithitsgrilledchicken.Cont.

Eventhough,KFCseemstohaveanemotionalattachmenttotheiroriginalrecipethatmadetheirsuccess,theydefinitelyneedtomoveonanddevelopnewproductsthatcustomerswantinordertoincreasetheirfinancialperformanceandvalue.WehaveseenthatBostonandPopeye’sarestealingcustomersawayfromKFCbecausetheyunderstoodwhatcustomerswantedandstartedofferinghealthieritems.KFCshouldcertainlydothesameandenhancetheirmenu.

Concerningtheirexpansionstrategy,KFCshouldstartbyclosingafewnon-profitablestoresintheUSthatarecurrentlydrowningmoneyfromKFC.ThiswillallowKFCtogetthecashnecessarytoinvestinnewmarkets,whichoffermoregrowthpotential.WehaveseenthattheUSmarketisnotasattractiveasitusedtobe,ithasbecomesaturatedandcertainlydoesnotappeartohaveabrightfutureahead.ThereisalsothecompetitionintheUSthatmakesitreallyhardtocompetein,whereasinotherforeignmarketsthatarequasiuntouchedasIwilldiscussmoreindetaillater.KFChastoselectcountriesbasedontheirattractivenessandmakesurethattheycanprovideabove-averagereturns,whichwillbediscussedmoreindetailintheintermediateterm.

Butfirst,theyneedtohaveaclearvision,solvetheinternalissuesandgetsomecashinordertomakesurethattheyarestrongasacompanyandreadytocompeteinternationallybeforegoingaheadwiththeirexpansionproject.

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Createagreatworkingatmosphere ü

Developahealthiermenu ü

Getsomecashfromsellingunprofitablerestaurants ü

Evaluatecountriesbasedonattractiveness

InternationalInvestments Concerninginvestinginternationally,extremelyattractivecountriesthatcanprovideabove-averagereturnsareregionsthathavechickenastraditionaldishsuchasAsiaandLatinAmerica.Thoseregionsshouldcertainlybeprioritizedwhiledevelopinganinternationalexpansion.Whiletheystartattackingthosenewmarkets,theyshouldkeepinmindtofocuslocallyeventhoughtheygointernationalinordertoovercomecertainbarrierssuchaslanguage,lawandagoodunderstandingofneeds.Targetingnewcountriesusuallyworkbetterifyouadapttothelocalmarket.LongTerm

Theyneedtostayclosetotheirmission(providecustomerswithqualityfood,excellentserviceandrestaurantcleanliness)andmakesuretoknowhowtoachievetheirlong-termobjectives.Theyalsohavetokeepinnovatingandcomingupwithnewitemsregularly.Rememberthateventhough,theycomeupwithsimilarproducts,customersaremostlikelygoingtotrythem.Theyalsohavetofollowthetrendandgohandinhandwithcustomerstosatisfytheirchangingneeds,aswehavepreviouslydiscussedwiththecurrenthealthierfoodtrend.Theyalsowanttokeepanexcellentimagebytreatingemployeesfairlyandkeepingagoodcontroloverfranchisestomakesuretheyfollowthecompany’sprocedures.Cont.

Concern