Organizational Crisis in KFC

This presentation discusses the organizational crisis faced by KFC due to an unplanned and unorganized shift in its supply chain. It explores the consequences of this failure, the recommended leadership style for crisis management, and provides recommendations for managing administrative issues and the supply chain. Find more study material and assignments on Desklib.

Title: Organizational Crisis in KFC
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INTRODUCTION
A sudden occurrence of unwanted and unexpected
events at a workplace which causes a humongous
disturbance, affecting all the functions and
activities of an organization is known as an
organizational crisis. The effect of the
organizational crisis does not only affect the
organization, but all the employees working for it.

Supply Chain at KFC

So, how the world-renowned organization KFC, suffered such
a humongous failure?
The Shift
from Bidvest
to DHL. The Shift was
Unplanned &
Unorganized.
Employees lack
information
about the
functioning of
the New
System.
Why did the Crisis Occur?

For an organization, that has more than 21,000 outlets in the
entire world, to face a situation like this is extremely
embarrassing. Also, it will have a great impact on the
organization’s position in the market.
The KFC
Brand Image
got Damaged. Competitors
used it as a
Perfect
Opportunity to
Steal KFC
Customers.
The
Organization
was Bashed on
Social Media.
What are the Consequences of this Failure?

Leadership Style
The leadership style that will be most appropriate
for the organization KFC in the current
circumstances is Transformational Leadership. This
leadership style will be more appropriate as it
initiates changes in individual, groups, or the
complete organization. The KFC suffered the failure
due to problems in the administration of the
organization and also due to the unplanned
approach. The Transformational Leadership helps in
inspiring the staff with effective communication and
it also helps in developing an environment of
intellectual stimulation.

Advantages of Transformational Leadership
Transformationa
l Leadership
helps in
adjusting to
Change. New Visions can
be easily
included in the
Organization.
Transformationa
l Leadership
helps in
improving
communication.

Advantages of Transformational Leadership
for KFC
To tackle the change from
Bidvest to DHL.
The change in the Vision of
KFC can be incorporated
easily.
The working of the
administration can be
improved with
transformational leadership.

Disadvantages of Transformational
Leadership
Transformational
Leadership forces the
people to always agree
with their leaders.
Transformational Leaders
focus less on details.
Transformational
Leadership has the habit
of ignoring protocols.

Disadvantages of Transformational Leadership
for KFC
The organization will suffer
from more unwanted events
due to less focus on details.
KFC can have a bigger crisis,
due to less focus given to
protocols in transformational
leadership.
KFC can also lose some of
their experienced employees.

Crisis Management

KFC Switch

Recommendations
Managing
the
administr
ative
issues
Managing
the Supply
Chain.
Always
have a
recovery
plan.

Conclusion
After analysing the entire situation and the leadership style for the
organization, this can be formulated that the main initiative of the
organization was to improve their supply chain management. But the
unplanned and the unorganized shift of the organization from Bidvest
to DHL was conducted in an ad-hoc manner. The organization did not
formulate a better supply agreement with the DHL supply chain. Also,
the main cause of the failure was the uninformed and unskilled
employees who were not provided with the information or proper
training to adapt to the new change in the organization.

References
Hatcliffe, M. (2018). Three Recent Crisis Management Case Studies
That We Can Learn From. [online] Rockdovesolutions.com. Available at:
https://www.rockdovesolutions.com/blog/three-recent-crisis-
management-case-studies-that-we-can-learn-from [Accessed 10 Feb.
2019].
O'Marah, K. (2018). 3 Supply Chain Lessons From the KFC Fowl-Up.
[online] Forbes.com. Available at:
https://www.forbes.com/sites/kevinomarah/2018/03/01/three-supply-
chain-lessons-from-the-kfc-fowl-up/#97fd48d1cb1f [Accessed 10 Feb.
2019].