KFC Innovation: Addressing Operational Issues and Customer Needs

This report addresses the challenges faced by KFC, including poor customer satisfaction, employee disengagement, and operational difficulties. Through primary research, the manager identifies key issues such as food quality, communication problems, and insufficient staffing. The proposed innovative solutions include taking regular customer feedback, improving employee motivation through rewards and recognition, and optimizing task allocation during staff shortages. The report outlines strategic steps for implementing these solutions, including communication strategies and cost analysis. A SWOT analysis highlights the strengths, weaknesses, opportunities, and threats associated with the proposed changes. The ultimate goal is to enhance customer satisfaction, improve productivity, and foster a positive working environment. Desklib provides access to similar reports and study resources for students.

Running Head: Innovation 0
Innovation
Student name
Date

Innovation solution for KFC 1
Table of Contents
Q1..........................................................................................................................................................2
Q2..........................................................................................................................................................2
Q3..........................................................................................................................................................2
Q4..........................................................................................................................................................3
Q5..........................................................................................................................................................3
Q6..........................................................................................................................................................4
Q7..........................................................................................................................................................5
Q8..........................................................................................................................................................5
Q9..........................................................................................................................................................6
References.............................................................................................................................................7

Innovation solution for KFC 2
Q1.
Company Profile
Kentucky fried chicken (KFC) is founded by Colonel Harland Sanders in 1930 and CEO
of KFC is Roger Eaton. It’s headquartered in Louisville, Kentucky. It is an American fast food
restaurant chain which is specialised in original recipe, extra crispy chicken, buttermilk
biscuits and home- style sides etc. It is the world’s second largest restaurant chain after
McDonald’s. In more than 130 countries, there are 21000 KFC restaurants (What made us
great is still what makes us great , 2019) and the company revenue is US$23 billion. KFC
have more than 24000 employees. It is a subsidiary company of Yum. Sanders started his
first roadside restaurant in Corbin, Kentucky in 1952 when he is in depression. KFC become
fastest growing retail brands both in developed as well as in emerging markets. The
company operate in three segments- restaurants, ancillary and integrated poultry (Sodaro,
2019).
Problems would be addressed by manager
1. KFC fast service is becoming worse day by day because of operational difficulties.
2. Poor customer satisfaction due to lack of operating system.
3. Disengagement among employees for their jobs.
4. Complains of customers have increased related to quality of products and services.
Q2.
Research Methodologies
For identification of company’s problems or issues, primary research methodology
was used by the manager. Primary research refers as new or first time such as when we
collect data through questionnaire, survey and interviews of individuals (Daniel & Sam,
2011). In this case manager identified the problems at KFC by survey from taking reviews of
customers and employees. So, primary research was used.
Q3.
Findings from primary research
1. Only 20% of total staffs are available. So, it shows there is disengagement and conflicts
among employees.
2. As per customer view, out of total customers 20% agree that poor quality of foods, 20%
agree that there is language issue while communicative with staff, 30% agree that there is
lack of services and 30% believes that there is lack of operating system. So, it shows the
poor customer satisfaction.

Innovation solution for KFC 3
3. As per staff views, out of total staff, 55% agree that company does not have sufficient staff,
9% believe that wrong orders delivered to the customers, 9% agree that there is stock
problem and 27% believes that customers are angry from quality of product and services. So
because of these reasons company fast service is becoming worse day by day, poor qualities
of products and services and lack of customer satisfaction.
Q4.
Innovative proposal
Staffs should listening the customer and apology from customers for reducing
conflicts and it will also help in realizing their value to organization and take regular
feedback from customers regarding system, quality and delivery system etc. so, it will help
in increasing level of customer satisfaction. When there is non-availability of stock then
staffs must try to arrange food from other KFC stores. Supervisor should divide the task
according to the individuals and manage effectively in case of lack of staff. For reducing
problem of wrong order, staffs can cross check their order twice and after getting
confirmation of order then they will proceed further and there should be proper training for
new staff.
SMART goals
1. Specific: Increasing level of customer’s satisfaction and improving productivity
2. Measurable: Measure goals by reviews or rate
3. Agreed Upon: Agreement with all stakeholders about the goals
4. Realistic: We will achieve goals within the availability of resources and knowledge
5. Time- Based: After forming the goals then implement them immediately
Q5.
Target of the innovative proposal
Target of the innovative proposal is customers. Customer is essential key for every
organization. If they are satisfied then only organization can achieve their goals. It also helps
in increasing sales & profits, improve productivity and healthy working culture.
Type of innovation
There is various type of innovation such as incremental, disruptive, architectural and
radical innovation. Our innovative proposal is incremental innovation. Incremental
innovation utilizes in case of existing technology as well as existing market. It includes any
type of small change in products or any system or rules. So, it will use for increase value of
the customer towards organization and increasing level of customer satisfaction (Hulsmann
& Pfeffermann, 2011).

Innovation solution for KFC 4
Q6.
Innovative solution for the problems
1. Problem: Poor customer satisfaction
Solution: Take regular feedback from the customers, always listening to them, always
support to them, never argue with them, maintain good relations with the customers and
try to handle all their problems, so it will help in improving quality of products & services,
realising the customers how value they are to the organization and improving customer
satisfaction. After getting reviews of customers then take actions on them. Sometimes
customers are unsatisfied because of lack of stock then in this case staff must try to arrange
the stock from other KFC stores and try to handle the situation.
2. Problem: Disengagement among employees
Solution: Motivate the employees by giving rewards & recognition, proper management
system, there should not any partiality among employees, give chance to participate in
decision making process, flexible working hours, try to solve conflict between employees
and give jobs according to them. So, it will help in re-energize a disengage employee and
lack of conflicts among employees for their jobs. Communication strategy also helps in build
engagement and trust with employees (Mishra, Boynton, & Mishra, 2014)
3. Problem: Shortage of staffs
Solution: Try to reducing the labour turnover ratio by satisfying to employees, motivating
the employees by rewards, bonus and incentives, focus on training programs and
educational initiatives. Supervisor can allocate tasks smartly to the employees for covering
shortage of staff and manage the team effectively.
4. Problem: Wrong order delivered to the customers
Solution: Staff can cross check twice the order of customers and after getting confirmation
then delivered product to the customers. There should be proper delivery system or they
can also maintain documents for the orders. In case of delivery of wrong order, then send
letter of apology to customers with correct order.

Innovation solution for KFC 5
Q7.
Strategic Steps
Strategies Steps
Goal:
Communicating for innovation to eliminate the problems
Analysis:
Selecting the appropriate method to communicate
Strategy Formulation: (Hadighi & Mahdavi, 2011)
Communicating the innovative solutions
 Organize meetings
 Face to face communication sessions
with employees
Cost
$500
$200
 Creating groups at social media
platforms
 Providing training o new employees
$100
$500
 Distributing hand-outs or giving
dictations
 Showing presentation by audio-video
modes
Projectors
Speakers
$500
$500
$500
Strategy Implementation:
1. Scheduling the timing for communication (Salih & Doll, 2013)
Strategy Monitoring:
2. Comparing the results then correct the differences (Rainey, 2010)
Q8.
Proposed solution – Increasing customer satisfaction by taking regular feedback from the customers
and always listen and support to them. In case of lack of staff, supervisor must try to manage their
team by giving task smartly to them.

Innovation solution for KFC 6
SWOT analysis (Meyers, 2019)
Strength:
a) Improve customer satisfaction
b) Reduce operational difficulties
c) Improving performance and productivity
d) Improving quality of good and services
e) Effective management system
Weakness:
a) Conflicts between manager and employees
b) Increment in working hours of employees
c) Higher employee turnover
d) Inconsistency
Opportunity:
a) Improving sales and performance by giving
training
b) Fulfilling customer’s needs and preferences
c) Maintain reputation
d) Build trust and engagement with employees
Threat:
a) Losing good employees
b) Increase competition
c) Negative working culture
Q9.
Risk & Mitigation
These above problems which would be identified by the manager of KFC will result
lack of employee’s performance, poor operation system and low level of customer
satisfaction. So, these issues must be solved by the management for improving productivity
and achieving their organization’s objectives. Supervisor must developed communication
strategies and some other policies also made for solving these problems. Manager must be
maintaining strong culture of communication, so it will also help in improving productivity
and maintaining positive relation between employees and management (Haider, Sadiq, &
Tesfamariam, 2016).

Innovation solution for KFC 7
References
What made us great is still what makes us great . (2019). Retrieved February 23, 2019, from KFC:
http://www.kfc.com/about
Daniel, P., & Sam, A. (2011). Research Methodology. Delhi: Kalpaz Publications.
Hadighi, A., & Mahdavi, I. (2011). A New Model for Strategy Formulation Using Mahalanobis-Taguchi
System and Clustering Algorithm. Intelligent Information management, 3(5), 198-203.
Haider, H., Sadiq, R., & Tesfamariam, S. (2016). Risk-Based Framework for Improving Customer
Satisfaction through System Reliability in Small-Sized to Medium-Sized Water Utilities.
Journal of Management in Engineering, 32(5), 33.
Hulsmann, M., & Pfeffermann, N. (2011). Strategies and Communications for Innovation: An
Integrative Management View for Companies and Network. London: Springer Heidelberg
Dordrecht.
Meyers, J. (2019). Customer Care Strenghts & Weaknesses. Retrieved February 23, 2019, from Chron:
https://smallbusiness.chron.com/customer-care-strengths-weaknesses-43083.html
Mishra, K., Boynton, L., & Mishra, A. (2014). Driving Employee Engegement: The Expanded Role of
Internal Communications. International Journal of Business Communication, 51(2), 183-202.
Rainey, D. L. (2010). Enterprise- Wide Strategic Management. USA: Cambridge University Press.
Salih, A., & Doll, Y. (2013). A Middle Management Perspective on Strategy Implementation.
International Journal of Business and Management, 8(22), 32.
Sodaro, R. J. (2019). KFC: Comapny Profile. Retrieved February 23, 2019, from
http://www.americanantiquities.com/sodaro.html