K&N Case Study

K&N Case
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Table of Contents
1.0 Situation Analysis......................................................................................................................3
2.0 Problem Statement.....................................................................................................................3
3.0 Alternatives and Evaluation of Alternatives..............................................................................4
4.0 Recommendation and Justification............................................................................................8
5.0 Implementation..........................................................................................................................9
6.0 Appendixes..............................................................................................................................10

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1.0 Situation Analysis
The organization is a family owned business and was started as a sole proprietor in 1964.
It has grown tremendously to a renowned company in Pakistan and globally. The company
specialized in processed chicken products and broiler-chick producers. The company is leading
in Pakistan for processed food. The projection of the sales was 2011 chickens at $250million.
K&N have registered international standing that culminated to visitors visiting the facility to
learn and they were surprised on the status of the farm and have never thought that such a facility
could exist in Pakistan. The state of the farm as well as the performance gave satisfaction to
Khalil and Adil since they have succeeded in an industry full of challenges such diseases, poor
standards, unclear regulations and tax system, and wet market. The company created quality
regulations for quality food as well as safety hence gaining strong reputation. This put the
organization at the top and attracted lots of customers including companies such as KFC which
promoted K&N in its advertisement.
2.0 Problem Statement
The company had the desire to increase broiler-chicks so that they can get own broiler
chicks for their own processing plant. Even though chicken was selling in Pakistan, the project
was expensive to run and the only way out is to increase the volume so that the company get to
spread the overhead costs to maintain the prices low and competitive to completive with wet-
market. The other reason that is calling for expansion is urbanization, middle class growth,
employment, and business raises the demand for chicken. The other strategy is advertising,
expand and challenge the safety of the wet market. Additionally, expanding into other regions is
probable. Even though there was a ban, this was lifted and exportation is now open. UAE is an
opportunity for K&N. The market for Halal for is wide and this is another opportunity for K&N

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to enter since this Muslim territory and no one has ever come up with Halal products that meet
the standards of this market. The challenge is how to create a Halal brand that met expectations.
3.0 Alternatives and Evaluation of Alternatives
1. Leadership Style and Organization structure
Current leadership model: The organization model of leadership has been vertical integration.
The K&N has stacked the only principle of remaining relevant and continuing to produce
quantities of healthy chicks that meet the need of the market. With the potential of being able to
feed a nation of 187 million people in a cheap way, the barriers on the way of doing it is a
problem. The wet-market is the issue. The wet-market is a barrier because a customer buys a big
bird instead of small bird that is cheap and with options of getting smaller storable cut, reducing
overall sales and transfer the burden of preparation to the family. Despite this, the free market
system reigns where there is freedom. When compared, processed chicken allow market
planning and profits sharing as well as the level of quality and there is enforcement of industry
standard, health and hygiene.
Future Growth Opportunities: The leadership strategy employed by the organization over years
has been vertical integration strategy. This has seen the company progresses since 2001 to 2011.
In examining the past, it is clear that the organization has a gap of about 6.2 million broilers.
This shows that demand is high. The options are to consider growing local sales, exporting to
neighboring nations, and/or invest in tapping the growing Halal market. The company created
quality regulations for quality food as well as safety hence gaining strong reputation. This put the
organization at the top and attracted lots of customers including companies such as KFC which
promoted K&N in its advertisement.