KFC Marketing and Business Strategies

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This assignment delves into a comprehensive analysis of Kentucky Fried Chicken (KFC), examining its marketing strategies, operational practices, and public image. It requires an evaluation of KFC's global expansion efforts, including its successes and controversies. Additionally, students will analyze the company's financial performance, drawing insights from annual reports and industry data.

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Analysis of KFC Financial
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Executive summary:
U.S. fast food chain established in 1952 KFC has over 600 franchises spread across US and
Canada popularly known as “Kentucky Fried Chicken” is a fast food Company established by
Colonel Harland Sanders. Kentucky was established by Colonel Harland D. Sanders in
Corbin in the year 1964. Currently they operate throughout the world post starting of their
operation they spread across 74 countries and territories. Following their long term goals,
with dependence on competitors’ strategy due to competitiveness in the market, they
developed their own strategy for long term sustenance. Mc Donald remains the strong
competitor for KFC. Fast food was however was linked to obesity along with environmental
impact and the concern was raised Eric Schlosser’s in his book, Fast Food Nation (2002) and
Morgan Spurlock’s film Super Size Me (2004), where KFC was heavily criticized for its
animal welfare record. Organization's administration it's stockholders is managed by manager
and CEO who have specialist role to play, which created a dependably issue to each
association. In order to get more advantage and compensation, the administrator is wanted to
expand shareholder's riches. Even after organization not being ready to bring the share price
up in market it did which resulted in share cost sharp fall in 2012 to 2014, with a slight
upward trend on organization's share price post 2015.
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Table of Contents
Executive summary:..............................................................................................................................2
1.0 Introduction:....................................................................................................................................4
2.0 Cultural and critical approaches for the analysis of Australian Company:.......................................5
2.1 Analysis with the cultural approaches.........................................................................................5
2.2 Analysis with critical approaches:................................................................................................6
3.0 Remuneration:.................................................................................................................................6
4.0 Recommendation:...........................................................................................................................9
5.0 Conclusion:......................................................................................................................................9
Reference List......................................................................................................................................10
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1.0 Introduction:
KFC was founded by Colonel Harland Sanders, its abbreviation was adopted in 1991. In the
year 1952 Kentucky Fried Chicken had the new corporate brand programs along with
restaurants. In 2007 KFC initiated its original title for signage, packaging and advertising in
United States (Jealous Farhat,2016). Born and raised in Henryville Sander was passed
through several professions in his lifetime, where he also served in the middle of the Great
Depression at gas station where he was owner. It happen in 1930 that the first fried chicken
started to cook, later on upgrading to pressure fryer resulted compatible to deep frying
Sander’s Chicken. Earlier chicken used to get cook in iron skillet with 30 minutes too cook in
his own restaurant in North Corbin.
All KFC franchise operations sold $2 million USD across US and Canada, with more than
600 numbers franchise. Now renamed to Yum! Brands Colonel’s nephew, Lee Cummings
took the Kentucky fried Chicken franchises along with chicken recipe, converting to own
“spin off” Lee’s famous Recipe Chicken Tricon Global Restaurants division as a part of
PepsiCo which started off in 1997. Its products had samples of each 11herbs and spices
Kentucky’s origin handwritten recipe, which is locked away at KFC corporate headquarters
in Louisville.
Multiple suppliers are provided with the final ingredients, two executives are allowed for
maintaining. John Y after few year in 1971, from Hublien Inc. of Hartford Connecticut
acquired the company. Colonel died in 1980 post travelling 250,000 miles annually and
visiting different restaurants around the world (Leo Paul Dana, 2016).
Collins Foods which had169 operational stores of YUM! had 160 outlet in Australia and
largest of 53 independent franchises in Australia. Major food suppliers in Australia consisited
of Steggles, Inghams and Turi. Australian chicken production were hitting 38 percent
creating a major impact in 1968 in Guilford, the first Australian KFC on a suburb of Sydney
was opened by Canadian entrepreneur called Bob Laponite. Later between 1970 and 1971, 75
outlets were added with good market place. KFC thus emerged to be the most popular fast
food company in the whole world.
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2.0 Cultural and critical approaches for the analysis of
Australian Company:
Primary reason for the creation of culture is Socialization. Specific culture definition as both
dominant and minority cultures are in permanent evolution, as Unger and Schwartz (2012)
cited believes that there has been stress for the definition the fact that there is no “precise
definition of culture” (Kagwa Singer, 2012 cited on Alfredo Moorabia, Michael C. Costanza).
Culture is not unitary specially within organization, characterized by multitude of subcultures
and often ambiguous hence culture encompasses title for being complicated to define
emergent (Collins Foods, 2017).
2.1 Analysis with the cultural approaches
Values integral part of culture followed influences in making their decisions with basic
values by a society. Culture within a company encompasses ways in which a company
operates, regarding how its owners and employees feel, think and act, resulting in direct
company’s vision application. Elements of culture are languages, attitude, values, aesthetics,
customs, manner, education, social institutions language and religion (Jealous Farhat ). KFC
Company’s staff are different across different countries. As in US, India, China, Nepal, UK
and so on come from different cultures, norms and values not only follows organizational
cultural norms and values at work. Australia is the country with diversity, where lots of
people come from different countries. When KFC started in the country, KFC’s slogan and
recognized word with “So Good” catchy phrase to proclaim massage that the taste of Colonel
Sanders. A customer at the store complained to manager Ken Harbough that Harman was
licking his fingers, to which Mr Harbough replied him “well it’s finger lickin’ good”.
2.2 Analysis with critical approaches:
KFC depended on competitors’ strategy as market was highly competitive. Companies
develop their own strategy for long term following their long term goals, as for example Mc
Donald investment in risky market X and took advantage but failed. KFC took advantage of
Mc Donald competitive strategy which is a strong competitor for KFC, which allowed the
company to plat safe.
Products of KFC was linked to obesity with its environmental impact and concerned for this
matter was showed by Eric Schlosser’s book Fast Food Nation (2002) and Morgan
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Spurlock’s film Super Size Me (2004). In 21st century, KFC was criticized for its animal
welfare record for the choice of poultry suppliers worldwide by People for Ethical Treatment
of Animals (PETA). In 2003, KFC’s was protested, mischaracterized as a poultry producer
instead of purchases of chicken, President of KFC’s US division Gregg Dedrick had to call
PETA. For influencing the way animals supplied to the Company, they were treated in the
year 2008 Yum! was held with the opportunity and responsibility, for racism over television.
In 2010, KFC faced another criticism to serve a drumming, dancing and singing group of
black west indies supporters. The criticism was on television where the Australian arm of
KFC was accused showing, the white cricket fan, who was handed out pieces of fried
chicken. The black people in the once segregated south, which was criticised in US, where in
the video it shown that the fries chicken closely related with the age-old racist stereotypes.
3.0 Remuneration:
A large portion of the association faces Remuneration is one of the significant challenges. In
bookkeeping it is depicted as an official issue. between organization's administration and the
organization's stockholders The CEO and manager are assuming part of a specialist, such as
to gain more advantages along with better compensation The administrator by ways and
means wants to expand shareholder's riches. This is dependably an issue to each association
providing services that KFC restaurants have a good history. It has additionally it has been
confronted with numerous issues. In the timeframe most recent couple of years there is
variance after some time Taking after its share price of KFC.
Figure 1: Share Price in AUD
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Even after a substantial period of time, the organization did not appear to be ready to bring
the share price up in market. The organization share cost sharply fell between 2012 to 2014.
However, organization's share price post 2015 was slightly high (Collins Foods, 2017).
The Company remunerated its CEO $22 million in 2013 according to YUM! report
(Proprietor of KFC, Taco Bell and Pizza Hut). In absolute remuneration Chipotle's CEO
brought home $13.8 million and McDonald's CEO remuneration totalled to $7.7 million. Pay
incorporates compensation, reward and the estimation of practiced alternatives of fast-food
CEOs has quadrupled since 2000 was at par with normal remuneration. Standard and Poor's
Executive database and organization intermediary statements.
Named Executive Officers ("NEOs") for 2016 financial year with accompanying tables and
given data on the remuneration. Amongst other most very remunerated official officers for
our 2016 monetary year decided as per SEC standards and two previous official officers who
were at no time in the future filling in as official officers as of the finish of the year. The
Company's NEOs are Chief Executive Officer, Chief Financial Officer(s).
Figure 2: Remuneration Report 2016
In order to concede receipt of compensation into the Executive Income Deferral, the above
sums indicated did not diminished to mirror. The NEOs' races, assuming any sign-on reward
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included $500,000 and, for Mr. Russell, a maintenance instalment $180,000. Apart from
sums appeared in this section speak for Mr. Kesselman 2015 and 2014. Amounts that came in
this part speak, give date reasonable qualities for execution share units (PSUs) allowed in
2016. The "Gifts of Plan-Based Awards" and Additional data with respect to the 2016 honors
is incorporated into.
Later in the intermediary proclamation "Extraordinary Equity Awards at Year-End" tables. In
this segment is the objective payout in light of the likely result of the execution condition,
Decision was made to allow date, a reasonable estimation of the PSUs reflected. PSUs is
200% of focus on, the most extreme estimation of the November 2016 honours is 100% of
target. The greatest potential estimations of the February 2016, at give date reasonable esteem
would be $7,000,116 as per Annual Report, 2016. For 2016, Mr. Statement of faith's PSU
received most extreme incentive.
In future the eateries there have ventured extend arrangements to expand the inner
effectiveness and competency of the eateries in understanding to the request of the market.
Whether the activities are really for the improvement of the organization or a simple way for
the officials to snatch the motivation benefits notwithstanding, shareholders of the
organization are worry. As per the Annual Report of 2016, such speculation arranges and are
uncertain.
4.0 Recommendation:
KFC needs to focus on equality and proper power as well for both male and female. Most of
the front desk of KFC have higher number of female in their customer service in every
branches of the Australian KFC company, they are not focused on racism at their work. They
changed their food standards to better for less oily food and food with less cholesterol. They
can work on healthy food as in today’s date everyone conscious about their diet and food as
KFC food are still oily. They can also increase their trading hours as they don’t serve for 24
hours. They are a worldwide popular company and too many loyal customers. It’s no use if
they take too long to serve in that as well and they can even use e-commerce like online-
ordering. Apart from the drive through, sometimes customers have to wait for long time as
they are on drive through waiting for quick service.
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5.0 Conclusion:
KFC share cost has sharp fall in 2012 to 2014, even after that the organization was not appear
ready to bring the share price up in market. It is competitive market everywhere so fast food
company has to take their strategy in comparison to their competitors. The market being full
of competitors, every company in the industry should think and do beyond their competitors.
Multiple customer’s complaints regarding service process as well with the packing orders and
waiting in lines.
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Reference List
Paul Dana, L. 1999, "Kentucky Fried Chicken", British Food Journal, vol. 101, no. 5/6, pp.
493-496.Link
"Kentucky Fried Chicken", 2013, Nation's Restaurant News, vol. 47, no. 12, pp. 24.Link
Stone, N. 2003, "Kentucky Fried Chicken and communism. (Life)", Student BMJ, vol. 11, pp.
198.Link
Apte, U.M. & Reynolds, C.C. 1995, "Quality Management at Kentucky Fried
Chicken", Interfaces, vol. 25, no. 3, pp. 6-21.Link
Marketing: Kentucky Fried Chicken 2006, , Centaur Communications Limited.Link
Warshaw, H.S. 2002, Kentucky: fried chicken. (fast food & restaurant fare), American
Diabetes Association, Alexandria.Link
Farhat, J. 2016, “A Brief History of KFC”, Scribd, viewed 19 april,2016,
https://www.scribd.com/doc/39507717/A-Brief-History-of-Kfc
Dixon, J. 1999, "Reflexive Accumulation and Global Restructuring: Retailers and Cultural
Processes in the Australian Poultry Industry", Rural Sociology, vol. 64, no. 2, pp. 320-
333.Link
Schröder, M.J.A. & McEachern, M.G. 2005, "Fast foods and ethical consumer value: a focus
on McDonald's and KFC", British Food Journal, vol. 107, no. 4, pp. 212-224.Link
Morabia, A. & Costanza, M.C. 2012, "Culture(s)", Preventive Medicine, vol. 55, no. 5, pp.
351-352
https://en.wikipedia.org/wiki/KFC#Controversies_and_criticism
Collins foods, 2017. Retrieved From:
https://www.intelligentinvestor.com.au/company/Collins-Foods-Group-CKF-6531883
Yum Annual Report, 2016. Retrieved From: http://www.yum.com/annualreport/pdf/2016-
Yum-AR.pdf
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