Strategic Planning for Risk Management in KFC

This study is focused on the strategic planning of KFC that assists KFC’s risk management. The study aims to find out the Business level strategy, Functional level strategy and corporate level strategy, and the timeframes of each strategy. It also evaluates the stakeholder’s plan, resources, future actions, Risk activity eventuates despite prior planning and its business impact assessment.

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Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
This study is focused on the strategic planning of KFC that assists KFC’s risk
management. Environmental scanning affects the business climate of KFC, which influence the
company’s day-to-day business operation. The study aims to find out the Business level strategy,
Functional level strategy and corporate level strategy, and the timeframes of each strategy. This
study evaluates the stakeholder’s plan, resources, future actions, Risk activity eventuates despite
prior planning and its business impact assessment. KFC is one of the famous fast-food franchise
in present days which has almost 15000 branches in the worldwide. Its logo of their products is
“Crispy outside, the juice inside”. The company focused on delivering quality foods and
excellent customers. KFC maximise profitability, deliver sustainable growth and improve its
shareholder's value year after year. KFC concentrates on the competitor’s goods and surveys the
market for the knowledge of consumers.

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Table of Contents
1. Introduction:............................................................................................................................3
2. Discussion:...............................................................................................................................4
2.2 Strategies of controlling risk:.................................................................................................5
2.2.1 Business level strategy:...................................................................................................5
2.2.2 Functional level strategy:................................................................................................5
2.2.3 Corporate level strategy:.................................................................................................5
2.3 Timeframes for each strategy: (Anand & Yeung, 2018).......................................................6
2.4 Stakeholder’s plan:................................................................................................................6
2.5 Resources:..............................................................................................................................7
2.6 Future Action:........................................................................................................................8
2.7 Risk activity eventuates despite prior planning:....................................................................8
2.8 Business impact assessment:.................................................................................................9
3. Conclusion:..................................................................................................................................9
3. References:............................................................................................................................11

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1. Introduction:
KFC is an American fast-food restaurant, headquartered in Louisville, Kentucky, and it
specialises in crispy fried chicken. The other name of KFC is Kentucky Fried Chicken. It is
the second-largest restaurant chain internationally. In 1952 KFC was founded by Colonel
Harland Sanders in Corbin, Kentucky. In the fast-food industry, KFC is famous for its fried
chicken and expanding their business by challenging the well-known dominance of the
hamburger. KFC’s first product is pressure fried chicken which is an on-the-bone chicken
piece with Colonel Harland Sanders' "Original Recipe" of 11 spices and herbs. The item is
usually available in a family size cardboard bucket, which is generally holding 6 to 16
chicken pieces or three or four-piece individual servings. Strengths define the features which
the KFC Company is best and what separates them from their other competitors.
Weaknesses stop the company from functioning at its best level. The businesses are zones
where the industry must be developed to remain competitive. Opportunities define the
features which the company can utilize to its service to increase their sales, market share and
product recognition. Threats identify the factors which are potential to the company’s loss in
the upcoming days. KFC is one of the famous fast-food franchise chains in present days
which have almost 15000 branches in the worldwide. The logo of their products is “Crispy
outside, juice inside”. The company focused on delivering quality foods and excellent
customers. KFC maximise profitability, deliver sustainable growth and improve its
shareholder's value year after year.

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2. Discussion:
Risk Types and the level of risk: (Banu, Rahman & Khan, 2018).
(A= extreme high, B= high, c= medium, D= low, E= extreme low)
(1= extreme low, 2= low, 3= medium, 4= high, 5= extreme high)
Risk Category Risk Type
(Human,
physical,
environmental,
financial etc)
Stakeholders
affected
Likelihood
Rating
(A,B,C,D,E)
Consequence
rating
(1,2,3,4,5)
Method
(elimination,
substitution,
engineering,
administration,
process/
equipment)
Human factors Human,
physical
Yes B 2 Process/
equipment
Technological
factors
Financial Yes B 3 engineering
Physical
factors
Physical, human Yes C 2 administration
Economic
factors
Financial,
environmental
Yes A 5 elimination
Natural factors Environmental,
human
Yes B 4 substitution
Political
factors
Environmental,
human, physical
Yes D 1 elimination

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2.2 Strategies of controlling risk:
2.2.1 Business level strategy:
KFC provides its exclusive taste of chicken to the customer and re-establish and maintain
an emphasis on modernized and clean restaurants paying high attention to service the customers
while maintaining product consistency (Anand & Yeung, 2018). KFC is sharing its supply chain
with Pizza Hut that forms the supply chain collaboration effects and also reduces the budget
(Banu, Rahman & Khan, 2018). Based on Food, festivity and fun, KFC has differentiated their
products. KFC must be performed well to control its product cost (Banu, Rahman & Khan,
2018).
2.2.2 Functional level strategy:
KFC should be concentrate on the decision areas and the performance objectives which
are achieved the market competitiveness. KFC is not good like its competitors, but KFC tries its
best. The brand attempts to gain its level by understanding its position in the market clearly
(Anand & Yeung, 2018). KFC create better organizational policy and working environment for
the employee- it helps to develop their functional level (Banu, Rahman & Khan, 2018).
2.2.3 Corporate level strategy:
KFC shifted from franchise to organization owned in its greater markets and also
launched many menu items to bit its local market competitors. The company changed its name
and logo and also exploring its two concepts in the same unit (Shoyemi, 2014). Many
responsibilities are allotted to the marketing departments and franchises and also shifted to
extremely high performance-based management strategies. KFC focused on its restaurant
performance and its consumer services (Basu, Saha & Maity, 2018).

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2.3 Timeframes for each strategy: (Anand & Yeung, 2018).
Risk Category Strategy Duration
Human factors Corporate level strategy 1 month
Technological
factors
Functional level strategy 2-3 weeks
Physical factors Functional level strategy 2-3 weeks
Economic factors Business level strategy 2-3 hours
Natural factors Business level strategy 1 month
Political factors Business level strategy 1 month
2.4 Stakeholder’s plan:
Customers: Customers are always excited to go to the KFC restaurant to have a fast food meal
and enjoy with their close ones. Without clients going to KFC, it would not make revenue and
ultimately go bust (Zhu, Anagondahalli & Zhang, 2017).
Employees: In the business, employees are important stakeholders because they provide the
services to the consumers who eat at KFC. Without experienced workers, the company cannot
run smoothly (Gendron, 2019). The staffs are satisfied with their stage wage and secure job in
the organisation. If the workers feel that they are poorly treated, then they will less passionate
about their work (Zhu, Anagondahalli & Zhang, 2017). Employees of KFC also deliver the
services to the clients who travel through Translink (Nelson et al., 2014).

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Delivery services: Delivery services expand the items and services for the consumers. The
excellent reputation of KFC is its outstanding services on-time and excellent quality of foods
(Crane, Matten & Spence, 2013).
Contracted Cleaning Companies: The Company insure that KFC’s image is good, and its
products are hygienic (Harrington, Ottenbacher & Fauser, 2017).
Contracted Vending Companies: Their concern is to provide their foods to KFC so that their
products sell in the KFC restaurant (Harrington, Ottenbacher & Fauser, 2017).
2.5 Resources:
Human resources:
Human resource management is responsible for all the human resource oriented functions
and rules such as recruitment, performance evaluation, policy and IR, compensation and benefit
(Crane, Matten & Spence, 2013). The logo of KFC is “We won’t make you wing it” when it
comes to training their staffs, and the training includes quizzes, workshops and on job training
((Basu, Saha & Maity, 2018).
Capital resources:
The capital resources used by the organization (physical capital) and the skills gained by
the workers (human capital) of the company (Crane, Matten & Spence, 2013). The brand equity
is created when the value added by the organization to the product and its effects on the product
selling.

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2.6 Future Action:
KFC must be organized their management and also their every staff and customer. KFC
should focus on the competitor’s product and customer’s penetration (Diachenko, 2014). In
future KFC must be focused on their employee’s eligibility, staff’s facility such as perks and
bonuses(Harrington, Ottenbacher & Fauser, 2017). The next action KFC should take is
development; it is all the department and improvement of its market research. The competitors of
KFC like McDonald's, pizza hut are performed well. So, in future KFC should improve its hot
menu. They need to make their food items dynamic by adding new meals after some years
(Gendron, 2019). KFC must try the local taste for the local food lovers, and it also helps to grow
their market share. The prices of KFC are affordable as compared with their other competitors
(Zhu, Anagondahalli, & Zhang 2017). Still the price is the primary concern for the consumers, so
KFC should adopt some unique strategies to attract their buyers (Harrington, Ottenbacher, &
Fauser, 2017). In coming days, KFC should open their new branches at commercial areas. KFC
has huge potential customers, but being international market symbol, a brand must be striving for
having their more actual consumer (Hussain, 2014). The brand should organize an advertisement
campaign and brand promotion. It helps to increase their sales (Harrington, Ottenbacher &
Fauser, 2017).
2.7 Risk activity eventuates despite prior planning:
In October 2017, KFC’s deal with their new supply chain associates. The organization
need to test every single assumption for creating the new model and contingency plans such as
any degree of potential wobble (Idrobo Jiménez, 2017). It is essential for maintaining the
relationship with the associate partners and the existing partner, and the future partner’s
implications (Idrobo Jiménez, 2017).

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2.8 Business impact assessment:
Business impact assessment is a systematic procedure to control and assess the accident,
potential effects, and emergency (Majdoub, 2018). A business impact assessment is an essential
component of the company’s business continuance plan. It develops its policies and strategies for
reducing risk. No formal standards occur for business impact assessment, and the procedure can
vary by the company (Nelson et al., 2014). A Business impact assessment is a multi-phase
process which includes the following stages):
o Gathering information
o Evaluating the collected information
o Preparing a report to document the findings
o Presenting the results to senior management of the organization.
The goals of the Business impact assessment are a focus on the KFC’s business functions,
rules, systems and the operations of their business (Nguyen et al., 2016). The Business impact
assessment of KFC is computer-assisted or manual. There are some challenges which KFC faced
like determining the impact of income of their business and measuring the long-term effect of
losses in the economic market, their consumer and their brand image (Nilsson & Sala, 2018).
Business impact assessment involves the sales and revenue of KFC, regulatory fines, increased
labour payments, consumer dissatisfaction and contractual penalties (Sholihah et al., 2016).

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Conclusion:
KFC progress rapidly by searching their new outlets, growing their existing target market and
introducing new competitive menus at minimum price. KFC outlet’s internal and external layout
is charming and beautiful all over the world. Pleasant lighting branches, perfect colour,
comfortable sitting arrangement for the customers, free Wi-Fi, attractive interior decoration, an
exclusive club for kids, qualified and experienced staffs and their work dedication have attracted
the customers. There are many challenges that Kentucky Fried Chicken faces, but still, it is the
high brand equity, top current market position, and the opportunities or chances that pose a high
success in the upcoming days for the brand. After the research and so many findings of Kentucky
Fried Chicken Company, it concluded that KFC is the large and strong organization which has
been famous all over the world.
The brand has excellent management, global business strategy, and secret recipe that support
Kentucky Fried Chicken to adhere to the client’s mind. They collect many features to make the
brand perfect. KFC popularized for its fried chicken in the fast-food industry, expanding the
business by challenging the well-known dominance of the hamburger. Kentucky Fried Chicken
basic product is pressure fried which is an on-the-bone chicken piece with Colonel Harland
Sanders' "Original Recipe" of 11 spices and herbs. The item is usually available in a large size
cardboard bucket, normally holding 6 to 16 chicken pieces or three or four-piece individual
servings. All of the strategies guide the organization to be better position and expect that the
brand can make a perfect organization and can reach a brighter future.

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3. References:
Anand, D., & Yeung, D. (2018). Employee development and its effect on employee performance
at KFC Restaurant Brands.
http://sk.sagepub.com/cases/freddys-coffee-shop-expanding-the-coffee-business-in-bangladesh
Basu, S., Saha, T. R., & Maity, S. K. (2018). IMPLICATIONS OF CRYPTOCURRENCY: A
NEW BUSINESS PROPOSITION OF TODAY’S ENTREPRENEURIAL
HORIZON. International Journal on Recent Trends in Business and Tourism, 2(3), 64-
70.
Crane, A., Matten, D., & Spence, L. J. (2013). Corporate social responsibility in a global
context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social
Responsibility: Readings and Cases in a Global Context, 2, 3-26.
Diachenko, O. (2014). Project of Marketing Strategy for Penetrating Czech Market by Foreign
Company.
Gendron, M. (2019). Culturally Sensitive Data Visualizations. In Applying Business Intelligence
Initiatives in Healthcare and Organizational Settings (pp. 142-163). IGI Global.
https://www.emerald.com/insight/content/doi/10.1108/IJCHM-06-2015-0300/full/html
Hussain, S. H. A. R. A. F. A. T. (2014). The impact of sensory branding (five senses) on
consumer: A case study on KFC (Kentucky Fried Chicken). International Journal of
Research in Business Management, 2(5), 2347-4572.

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Majdoub, N. (2018). Employee training and development strategy for Akroma plaza
hotel (Doctoral dissertation, Ashesi University).
Nelson, V., Tallontire, A., Opondo, M., & Martin, A. (2014). Pathways of Transformation or
transgression? Power relations, ethical space and labour rights in Kenyan agri-food value
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M., Sage, C., Eds, 15-38.
Nguyen, N., Schüller, K., Dieckhoff, S. S., Zhang, S., & Ulmer, K. (2016). IMPLEMENTING
McCAFÉ IN SARATOV: MARKET AND STRATEGIC ANALYSES. Редакционная
коллегия, 26.
Nilsson, A., & Sala, M. (2018). Formation of market entry strategy with an interest in decision-
making: A case study in a B2B context.
Sholihah, P. I., Ali, M., Ahmed, K., & Prabandari, S. P. (2016). The Strategy of Starbucks and
it's Effectiveness on its Operations in China, a SWOT Analysis. Asian Journal of
Business and Management (ISSN: 2321–2802) Volume.
Zhu, L., Anagondahalli, D., & Zhang, A. (2017). Social media and culture in crisis
communication: McDonald’s and KFC crises management in China. Public Relations
Review, 43(3), 487-492.