Challenges of Operational Management and Customer Retention in Hospitality - A Study on KFC

This research project aims to evaluate the challenges faced by KFC due to operational management and its effect on customer retention in the hospitality sector. The study will focus on the importance of customer retention, the significance of operational management, and the challenges faced by KFC in terms of chicken shortage. Recommendations for suitable strategies to retain customer interest will also be provided.

RESEARCH PROJECT PROPOSE

Title: To evaluate challenges faced by company due to operational management and its effect on
customer retention in context of hospitality sectors – A study on KFC.
INTRODUCTION
Research background:
In such aspects, the matter related to customer retention it's necessary for companies to
retain the customer by offering such products and services which fulfil the needs in better way. It
is possible in respect of building the strong base with customer by offering the quality products
with charging reasonable prices (Carroll and Kaltenthaler, 2018). In context of enhancing
business, it is undertaken to build the strong connectivity with the customer and supplier by those
perspective, they can expand the business into global market. Present research is relating to KFC
company which is founded in 1930 by Harland Sanders. In relation to carrying the famous brand
name in market, they are considered to be second largest chain after Mc Donald's. They are
famous for the species and chicken which they baked in their best way. They are presently
located around 22,621 places and also undertaking its business by giving franchise to their
supplier chain to spread the business around the world.
Aim
To identify the situation faced by company pertaining to suppliers and its impact on
customer retention – A study on KFC.
Objectives
 To determines importances of the customer retention in business.
 To examines the significance of the operational management and its usefulness to
company.
 To assess the challenges faced by company in respect of shortage of chicken which
pertains the impact on customer retention.
 To recommended the suitable strategies adapted by KFC to retain customer interest by
supplying chicken.
Research Question
1. What is the importances of the customer retention in business organization?
2. How the significance of the operational management results in bringing usefulness to
company?

3. What are the situation faced by company in respect of shortage of chicken which pertains
the impact on customer retention?
Rational
In this aspects, the issue which is undertaken is relating to retaining the customer towards
the products which the company is offering. Thus, during conducting the research, the issue is
faced in respect of gathering the information which is relevant to the selected topic. The reason
of conducting this research is that KFC carries the renowned brand name in market and thus by
gathering information relating to shortage of chicken resulting in bringing various aspects which
is interesting to know the company working strategies. The main aspects of conducting this
research now is that the taste of the customer are changing due to changes in environment. As
they are now preferring more hygienic products and thus it resulting in interesting to conduct the
research on this topic. As the another understanding of choosing this topic is that lot of authors
had already conduct research on KFC, this it is easier procedure to use the information and
conduct research.
LITERATURE REVIEW
Bolton and Hannon (2016) stated that customer retention necessary in business so that
company can increase the profits through promoting the products to the customer. This can be
increased through adapting the changes in taste of the customer (5 Unique Ways to Increase
Customer Retention (and Increase Profits!), 2015). As by this aspects, it helps companies to
conduct the customer loyalty program which helps them in selecting the best aspects and also
provide feedback if they find any issue after availing such products.
Silverman (2016) argued that it resulting in facing issue as by adapting the changes
among taste, it cause wastages in products and services. Through this aspects it results in
affecting the goodwill of the company and also affects the budgets which they set to attaining the
goal at particular time period.
According to Flax, Bick and Abratt (2016) the significance of the operational
management I.e. suppliers is relating to undertaking various norms which carries the duty to
supplies the raw materials to the company within the stipulated time period. As they carry
various right in respect of entering into the contract or also increase the prices in respect of
changes in market condition.

Amin and Smith (2017) criticised that supplier sometimes charge unreasonable amount
which they not fixed before the delivery of the order but can demand such raised prices any time.
It reflect the interest of suppliers towards the company but due to carrying the unique quality of
raw materials every suppliers are fixed for respective companies. For e.g. In respect of KFC, the
supplier are fixed from which they purchased chicken and thus issue is raised in respect of not
delivering the chicken within particular time period.
Fernie and Sparks (2018) examined that the challenges which is faced by company in
respect of lack of involvement of supplier and thus it results in causing less customer retention.
The challenges which occurs in respect of cash flow management. As the company had already
committed customer regarding delivering the best quality products and if they not deliver the
products on time, it results in building lack of customer retention towards the brand image.
Loader (2015) on the other hand the another challenges which is faced through suppliers
is that there is lack of communication gap between the company and suppliers. As in respect of
lack of raw materials, the supplier duty is to clarify the matters and than undertake the order for
further projects. Thus, in such aspects it also results in lack of managing customer interest
towards the products.
Moradlou and Backhouse (2016) suggested that the issue which is also raised is relating
to government polices and norms which is to be followed by the country in respect of importing
and exporting raw material or any finished goods. Thus, in such case the issue which is raised by
the company through supplies is also resulting in not getting timely delivery of the orders.
METHODOLOGY
Research types: In this types, it carries various methods such as qualitative & quantitative. In this
research, researcher will choose the qualitative method to gather information from various
methods. In this methods, questionnaire is conducted so that proper information is collected from
such sources.
Research Approach: It carries the correct planning and aspects to collects data which is relevant
to the topic. It undertakes two methods such as inductive approach and deductive approach
(Silverman, 2016). Here researcher will use the inductive methods to collect data from internal
aspects. This method is used in context of qualitative methods.
Research Philosophies: It includes brief, ideas and thoughts to collect the data to get best results.
It carries two aspects such as interpretivism and positivism. In this research, researcher will

undertake interpretivism method so that data is to be interpreted to provide effective results
which helps in taking the right decision.
Data Collection: It refers to the procedure of collecting, gathering the data and measuring the
information which is collected from various aspects. It carries two methods primary and
secondary. To conduct the research work, researcher will carry both the method. By choosing the
primary methods results in collecting the original information (O'Brien and Pipkin, 2017).
Secondary method is put-upon to gather information from different sources or authors which
already collect information. Thus, in such aspects both the methods are used to collect the
accurate information.
Sampling: In this aspects, the sampling is undertaken in respect of having larger number of
population. It carries two aspect such as probabilistic & non probabilistic methods. Here
researcher will choose non probabilistic method under which random sampling is used to collect
information. In this random sampling methods is used to collect information by selecting the
random people (Walliman, 2017). In context of this research, 20 manager of the KFC are
undertaken to gather information regarding the challenges which they faced in respect of lack of
supplies dedication towards delivering the chicken within stipulated time period.
Data Analysis: This method is interpreted once the data is collected from such sources. It carries
two methods such as thematic & non thematic methods. Here researcher will apply thematic
method to carry on the research and in this they present the data on the bases of theme (Gabb,
2016). In this research, the information which is collected is presented on them so that it helps
other research to interpret the results and use it in their own research. By using this aspects it
make the research unique and presentable.
Ethical consideration: In this ethics is to be carried at the time of conducting the research. It is
undertaken in respect of carrying the consent form which is signed by the person to whom the
question is arises. This form carries that without their permission, the decision is not disclosed in
their research (Carroll and Kaltenthaler, 2018). Ethics is also to be maintained in respect of not
harming any person either physically or mentally which affect the right of the person.
Reliability and validity: In respect of reliability, it is undertaken to determine the results for 5
times but still getting the same results. As validity refer to occurring the valid results which is
gathered by using various sources.
TIME PLAN

REFERENCES
Books and Journals:
Amin, A. and Smith, I., 2017. Vertical integration or disintegration? The case of the UK car
parts industry. In Restructuring the global automobile industry. (pp. 169-199). Routledge.
Bolton, R. and Hannon, M., 2016. Governing sustainability transitions through business model
innovation: Towards a systems understanding. Research Policy. 45(9). pp.1731-1742.
Carroll, C. and Kaltenthaler, E., 2018. Nature and reporting characteristics of UK health
technology assessment systematic reviews. BMC medical research methodology. 18(1).
p.35.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Flax, J., Bick, G. and Abratt, R., 2016. The perceptions of supplier-buyer relations and its affect
on the corporate brand. Journal of Brand Management. 23(1). pp.22-37.
Gabb, J., 2016. Qualitative Research: Methods and Methodology.
Loader, K., 2015. SME suppliers and the challenge of public procurement: Evidence revealed by
a UK government online feedback facility. Journal of Purchasing and Supply
Management. 21(2). pp.103-112.
Moradlou, H. and Backhouse, C. J., 2016. A review of manufacturing re-shoring in the context
of customer-focused postponement strategies. Proceedings of the Institution of Mechanical
Engineers, Part B: Journal of Engineering Manufacture. 230(9). pp.1561-1571.
O'Brien, P. S. and Pipkin, F. B. eds., 2017. Introduction to Research Methodology for Specialists
and Trainees. Cambridge University Press.
Silverman, D. ed., 2016. Qualitative research. Sage.
Walliman, N., 2017. Research methods: The basics. Routledge.
Online:
5 Unique Ways to Increase Customer Retention (and Increase Profits!). 2015. Online. Available
through: <https://www.superoffice.com/blog/customer-retention-tips-with-crm-software/>

APPENDIX
Research Ethics approval form