Business Functions Analysis of KFC: A Case Study Report

This report provides a comprehensive analysis of KFC's business functions, including operations, accounting, sales, human resources, and risk management. It begins with an introduction to the key concepts of each function and then delves into a case study of KFC, examining its organizational structure, practices, and values. The analysis covers KFC's operational efficiency, marketing strategies, financial management, and human resource practices. The report highlights gaps in best practices, such as issues related to food quality and hygiene, and suggests potential solutions to address these shortcomings. For example, it suggests enhanced quality assurance measures and improved training for operational staff. The report also addresses ethical concerns related to animal welfare, providing a critical examination of KFC's practices and recommendations for improvement. Overall, the report aims to provide a thorough understanding of KFC's business functions and offer insights for enhancing its operational effectiveness and addressing challenges.

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Business Functions Analysis of KFC
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1BUSINESS FUNCTIONS ANALYSIS OF KFC
Table of Contents
Introduction................................................................................................................................2
Key Concepts.............................................................................................................................2
1. Operation.........................................................................................................................2
2. Accounting......................................................................................................................3
3. Sales................................................................................................................................3
4. Human Resource.............................................................................................................3
5. Risk Management............................................................................................................3
The case study business.............................................................................................................4
1. Introduction to the case study organization....................................................................4
2. Analysis of the case study organization..........................................................................4
3. Gaps in best practice.......................................................................................................6
4. Possible solutions............................................................................................................7
5. Justification.....................................................................................................................7
Conclusions................................................................................................................................8
1. Conclusions.....................................................................................................................8
2. Recommendations...........................................................................................................8
References..................................................................................................................................9

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Introduction
In today’s world, competition is on its highest peak. Each of the existing companies is
trying to attract stakeholders and customers with its innovative ideas and products. The
current marketing world has now become a place for practice of thousands of innovative
ideas (Kjellberg, Azimont & Reid, 2015). Hence, the competition is very high and this in turn
is forcing the organization to develop a strong strategic marketing in order to survive in this
market. This report will study the different business functions in an organization and their
roles and responsibilities. With the same, the report will also analyze a case study on the
organization in which the purpose, values and practices of each of the business functions are
described as well as evaluated. It will further elaborate on the gaps in between their practices
and possible solutions for the same. However, the main aim of this study is to critically
analyze and apply the principles and practices of the key business functions in KFC to
support its operational efficiency and effectiveness.
Key Concepts
1. Operation
The operation department oversees the physical plant of the manufacturing facility in a
business and the materials that it needs (Piercy & Rich, 2015). This department also looks
after the production processes and work schedule. However, the work of the operation
department varies from business to business and company to company. For example, in case
of a restaurant, the operation function might be the restaurant’s kitchen that is managed by
executive chef. While in the small companies, the role of the operation team is played by the
administrative executives.

3BUSINESS FUNCTIONS ANALYSIS OF KFC
2. Accounting
The accounting or the finance team provides close support to the business manger on the
department of financial implication of the business strategies. They look after all the final
accounts of the business transactions and analyze the business results as well as prepare the
quarterly and monthly review of the business operations. An insightful and meaningful
analysis of their performance is the key to ensure a continued business success.
3. Sales
The sales and the marketing department are usually combined, though they both are
entirely different functions. The sales department sells the products or services of the
company and the marketing department determines the kind of products and services that the
company will offer and sets its pricing strategy (Matzler, Veider & Kathan, 2015). The sales
team in companies supports the customers after the product sale and the marketing team
handles the research and development process.
4. Human Resource
The primary role of the Human Resource (HR) team is to hire or recruit effective
operational staff (Armstrong & Taylor, 2014). Providing training for the management and the
operational team by the head office also falls under the responsibilities of the HR team.
5. Risk Management
Constructive board engagement, effective risk positioning, integrity, strong risk culture,
and proper incentives are some of the vital areas that are of a major concern of the
department of risk management (Miles, 2017). It also reviews the integrity, quality and the
effectiveness of the system of risk management and ensures that strategies and policies of risk
are managed effectively.

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The case study business
1. Introduction to the case study organization
KFC corporation is one of the most famous fast-food restaurant chains in the world. It is
also known by the name of Kentucky Fried Chicken (KFC) (Ritzer, 2017). Headquarter of
KFC is located in Louisville, Kentucky, USA. It is the second largest restaurant chain in the
world after McDonalds. It is a subordinate of the Yum! Brands, which owns other famous
companies like the Pizza Hut as well (Hussain, 2014). The founder of KFC was Sir Harland
Sanders. The goal of the company is to build an organization-dedicated excellence, to
maintain a dedication towards innovation for a continuous improvement and growth and to
deliver high quality products and services to their customers consistently. The organization
has 18,875 outlets in 118 different countries. The report below will elaborate on the business
functions of KFC. It will focus on the different business functions of KFC and their
contribution to the overall operational efficiency and effectiveness.
2. Analysis of the case study organization
The operation team is the hub that is running the stores of KFC and delivering a fantastic
quality of food and an outstanding service levels. Their main functions include the
management, leadership and evaluation of all the stores The raw materials that are used by
the KFC are mixed together in order to prepare the finished product that expands its value.
The newly launched combination meals and spicy chicken are the best examples. This helps
KFC to link with the innovation and differentiation in order to provide the company with a
competitive advantage. The operations team works side by side of all the KFC functions in
order to ensure that their restaurants look good, the staffs are motivated and each of the
products that are served are fresh and hot, giving the customers reason to return repeatedly
(Azman et al., 2014). One of the major driving forces behind the marketing team of KFC is a
strong passion of its staff to deliver a continual pipeline of tempting tasty meals and food

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products. KFC uses various methods in order to record their customer preferences. It has an
internal process through which the company analyzes its figures of sales for each of its
products over a specific period of time so that it could establish a trend. In addition to this,
they have an external process as well. In the external process, the market research is carried
out every year. This in turn helps KFC to target particular innovative products for a particular
customer segment through television marketing. The marketing teams of the KFC works
cross functionally with the operations and product excellence in order to develop and
traversing new ways for delivering consumer led alteration and innovation (Light & Kiddon,
2015). They are also the heart of communication of KFC with the business as well as the
consumers. The marketing budget of the organization is divided in between advertising
production and media buying in order to fortify a whole year calendar for new news for
driving the consumers back to their restaurants repeatedly. Whether it be billing the
franchisees, paying the suppliers, managing cash or paying the people, each of the member of
the KFC’s accounting team is much dedicated towards ensuring that all the business
transactions are effectively and accurately recorded. Thus, this in turn provides a strong
platform for its Commercial and Business Control team for analyzing the results and the
partners with the primary stakeholders for setting and driving the strategic directions of the
business.
KFC is aimed towards maintaining an excellent organization that is achieved by creating
commitment, building people quality and by motivating the effectiveness of the organization
(Cheng-Hua, 2015). The HR team of KFC looks after the overall recruitment processes. The
recruitment procedure of KFC is very easy. They have their online system of recruitment,
where all the available posts or vacancies, location or areas are showcased. There are more
than 7000 employees across the KFC business and the HR department thrives to give the
employees opportunities to grow and develop. Their main responsibility is to ensure that the

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aim of the organization to build a world-class organization is achieved by managing people,
creating engagement and building people capability. The risk management team assesses the
KFC’s risk profile and the key areas of the risk in particular. It recommends the company
board and adoption of the risk assessment and the procedures of rating. The risk management
team defines the risk appetite of the KFC and review the risk profile in order to ensure that
the risk is never higher than that of the risk appetite, which is determined by the board.
3. Gaps in best practice
It has been found that the quality assurance department of the KFC is not performing well
at its level and many a times it has come under the media coverage (Firoz & Abinakad,
2016). The quality assurance department looks after the food quality and the services that are
provided to the consumers. It is also responsible to look after the hygiene issues. According
to the CHAMPS philosophy of KFC, it wants to prepare a consummate reflection in front of
the consumers by following this philosophy but the hygiene factor is still an issue at some
outlets of the organization. One of the examples is of the case of 2008 when in the KFC of
New York; a rat was infested from the food product that was served. This shows that there is
a knowledge gap in between the operational team and the Quality assurance department. With
the same, two outlets of KFC in Sydney were fined due to failing in keeping the hygiene
levels. Layers of dirt and grease were found by the inspectors, along with evidences of
vermin.
Apart from this, KFC was once blamed for ethical treatment of animals (Singh & Dave,
2015). It was said that the chicken suppliers of KFC cram the birds into a big waste that is
filled with factories and they breed and drug them in order to make them grow large when
they cannot even walk. As a result, the birds suffer from severe health issues such as
breakage of wings and legs. Many times, the throats of the chicken were slit during
slaughtering them and they were then dropped into a bucket or container that is filled with hot

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water even when they were still conscious. KFC’s animal welfare advisor has lastly asked its
concerned department to eliminate such practices and abuses but KFC never agreed to it. In
fact, there are also cases where it is seen that most of the advisors from the QA department of
KFC have resigned in frustration.
4. Possible solutions
 The knowledge gap in between the operation department and the quality assurance
department must be decreased.
 The Quality Assurance department of the KFC should make sure that they develop a
strict rule for the operation department of the organization at the various different
outlets so that they could follow which would guide to look out in case of hygiene
issues.
 The Quality Assurance department must direct the operation department to follow a
standard of cleanliness, for example, the tables must be cleaned after every 15
minutes, the floor must be mobbed frequently by making use of disinfectants, the
storage facilities must be checked every day concerning the issues of cleanliness.
 The Quality Assurance department can appoint a QA officer in order to monitor and
regularly visit the outlets to take notes on the hygiene levels that are being followed
by the operational departments. With the same, the officer shall also instruct the KFC
employees to take certain measures in maintaining cleanliness in the business.
5. Justification
The above mentioned solutions could result in positive outcomes as it is seen that KFC is
facing issues and challenges because of the low quality food service and knowledge gap. The
staff member of the KFC is well aware of the mission and vision of the company hence, they
must know that if they do not take necessary measures, the company would lose its
reputation. They staffs must also keep in mind that they should never hurt the human

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sentiments since, hurting their sentiments will do no good to the organization in any way,
instead it will led people to protest against the company and boycott.
Conclusions
1. Conclusions
From the above discussion, it is clear the each of the business functions are operating well
in their respective fields. Right from the operations, accounting, sales to the risk management
department, each department has its own duties and responsibilities towards the success of
the company. However, there are several cases which have highlighted the gaps in between
these departments and they are proved to serve as the major barriers towards a successful
business. Few recommendations are been made for the part of the operational and the quality
assurance departments. Implementation of the same could definitely give positive results.
Overall, KFC is serving its best to meet each of its customer segments by launching new and
innovative products every now and then.
2. Recommendations
 Providing Knowledge Management trainings
 Encouraging and motivating skilled employees to the business to keep their
knowledge and proficiency updated
 KFC must change its evaluation criteria in order to assess and reflect
knowledge sharing proficiencies and achievements by the staffs.
 Eliminating the people who are the collectors of knowledge

9BUSINESS FUNCTIONS ANALYSIS OF KFC
References
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Indonesian and Malaysian Consumers: Are they different in preference? A
comparative study of KFC Malaysia & KFC Indonesia‘s marketing strategy.
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Cheng-Hua, T. (2015).
Organizational Strategy toward Core Competency Workforce in Hospitality
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Market innovation processes: Balancing stability and change. Industrial marketing
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New Brand Leadership: Managing at the Intersection of Globalization, Localization
and Personalization. FT Press.
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Matzler, K., Veider, V., & Kathan, W. (2015).
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