Crisis and Risk Management for Kentucky Fried Chicken (KFC)

Running head: CRISIS AND RISK MANAGEMENT
Crisis and Risk Management
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1CRISIS AND RISK MANAGEMENT
Executive Summary
The report discusses the concept of risk management in the particular context of the business
risks faced by the company Kentucky Fried Chicken (KFC). The report begins by introducing
the company KFC and its business operations. The report next discusses about the
stakeholders, namely, the internal and the external stakeholders, who are associated with the
business activities of the company under discussion here. An environmental analysis of the
company which highlights the strengths, weaknesses, opportunities and also the threats faced
by the company currently has also been undertaken. The report then categories the various
risks faced by the company into two sections, namely, internal risks and the external risk. The
internal risks had been discussed in the context of the human, technological and the physical
risks faced by the company. The external risks, on the other hand, had been discussed in the
context of the economic, natural and political factors. Finally the report concludes with a
summary table of the different kinds of risks faced by the company.

2CRISIS AND RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Kentucky Fried Chicken (KFC).................................................................................................3
Stakeholders of KFC..................................................................................................................4
SWOT Analysis.........................................................................................................................6
Risks faced by KFC...................................................................................................................7
Internal Risks.........................................................................................................................7
External Risks........................................................................................................................8
Risk Summary Table..............................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3CRISIS AND RISK MANAGEMENT
Introduction
Risk is defined as the situation or the scenario in which an individual or an
organization stands to gain or lose something substantial or of value (Franks et al., 2014). In
the particular context of the business world this loss or gain is generally in terms of
profitability, market share, revenue, projects, image or brand name and others (Grace et al.,
2015). The business enterprises during the course of their business operations often find
themselves in these situations of risks and the prospects of a business enterprise depends to a
great extent on the effectiveness as well as efficiency with which it being able to mitigate the
risk (Farrell & Gallagher, 2015). In this regard, the process of identification of risk or
business environment scanning becomes very important since they provide an overview to
the organization regarding the kinds of risks that it is facing currently (Bromiley et al., 2015).
An effective knowledge regarding the risks and the stakeholders who are affected by
these risks is important since it helps the organizations to formulation the strategies or the
measures that can help it to mitigate the adverse effects of these risks. Wu, Chen and Olson
(2014) have opined that the various risks are actually future opportunities which if utilized in
an effective manner can contribute in a substantial manner towards the growth of the
concerned organization. This report will discuss about the concept of risk management and its
affect on the stakeholders (internal and the external) in the particular context of the
organization Kentucky Fried Chicken (KFC).
Kentucky Fried Chicken (KFC)
Kentucky Fried Chicken (KFC), founded by Harland Sanders in 1952, is an
“American fast food restaurant chain” and has its headquarters at Kentucky (KFC.com,
2018). The food chain specializes in the genre of fried chickens and as a matter of fact the