Evaluation of KFC's Operations Management Decisions, BMM3003 Report

This report analyzes KFC's business operations and management strategies, covering key aspects such as production, supply chain, logistics, location strategies, quality control, and human resources. The introduction defines business operations and outlines the main functions, including finance, marketing, accounting, management, production, and sales. The report then provides a brief overview of KFC, detailing its history and global presence. A significant portion of the report evaluates KFC's operational management decisions, examining the production process of its fried chicken, supply chain and logistics, and other critical areas. The analysis delves into specific processes, such as chicken preparation and the impact of supply chain disruptions. The report concludes with a comprehensive evaluation of KFC's operational effectiveness and strategic choices.

BMM3003 – Introduction to Business Operations and Management

Contents
An introduction including an explanation of what business operations means..........................3
An explanation of the main functions of business operations.......................................................5
A brief description of your chosen company...................................................................................8
An evaluation of company’s operation management decisions: Production, Supply chain,
logistics, location strategies, quality control and HR....................................................................10
Reference:.........................................................................................................................................17

An introduction including an explanation of what business operations means
Company operations relate to practises that businesses participate in on a regular
basis in order to increase the business revenue and gain a benefit.
The operations should be designed to produce enough sales to offset the costs and
to make a profit for the company owners. Employees aid by conducting other tasks
such as marketing, accounting, manufacturing, etc.
Business processes are changing as the company expands, and management will
prepare to handle improvements to avoid device failures.
When a small company expands, for example, it has to be able to address problems
that occur, such as regulatory, marketing, and power issues. When the company will
not adapt with market developments, mistakes such as errors and omissions may
arise.
The performance or loss of an organisation depends heavily on the organisational
efficiency.
Yet then whom are such processes? How would stakeholders anticipate from the

correct strategy and the necessary steps? For one, they should hope to increase the
profitability of their company. It is achieved by income creation.
The rise in profit is determined by how much a company does financially, i.e. by
dividends, tax and other income that contributes to it. When the return is greater than
the cost, then income is reported. When a corporation continues to turn its income
over a sustained time into a constant, it is worth grows steadily. A business needs to
evaluate the demand correctly to make a profit. The company with the better good or
service would always be the one that outshines its rivals. Consideration must always
be extended to the company's expenditure in its product or service. If the market is
strong, if the expenditure can be made available, if the output is equivalent to the
price, then a company will be profitable.

An explanation of the main functions of business operations
If you first imagine corporate activities, you may think about the basic things or duties
that the company's workers perform on a day-to-day basis.
Although these things are basic company processes, there is a wider view and
awareness of the core roles essential to the company 'efficiency and
competitiveness.
There are Six Key Functions of Business Operations:
-Finance
-Marketing
-Accounting
-Management
-Production and Operations
-Sales
 Finance:
Finance Sometimes conflicting with accounting, a company's finance role helps
provide capital and budget preparation to support the corporation run and grow.
Tasks include: Budgeting Raising Enforcement with Financial Resources Tax
Safeguarding Property
 Marketing:
The marketing task is twofold: to help the company find possibly viable goods and
also to sell such items. Tasks will include designing a strategic strategy for
Advertising Customer Service Public Relations — Promotion is the operation,
collection of organisations and cognitive processes for developing, coordinating,
providing, and sharing value-added offers
for customers, clients, mate, and society at large.

 Accounting:
Accounting is the mechanism for reporting financial transactions linked to a
business.
The accounting phase involves the review, examination, and submission of these
activities to supervisory authorities, regulators and tax collecting bodies.
The annual statements included in the audit process are a succinct description of
financial activities over an entire period, summing up the finances of a business,
financial position, and cash flows.
 Management:
The concept of path is a human or community of humans who threaten and control
an oppressed individual or collective group of people to accomplish desirable
objectives and objective focus.
Additionally, the management concept requires the ability to schedule, coordinate,
track, and guide individuals.
Using personnel and other human capital, the management task helps to meet
operational objectives through preparing, coordinating, directing, and managing.
Management guarantees that the workers have the necessary support to perform
their delegated duties.
 Production and operation:
Production and operation role of a firm has one overarching objective: to utilise the
company's capital to generate products and services effectively that its consumers
want.
- If the management theory is extended to the organisation's ware ion method, this is
regarded as supply management.
This is a method of arranging, preparing, supervising, and managing in an effective
manner the bodily mechanism engaged in the creation of goodness and services,
that is, the conversion of specific creativity into the value-added commodity.

Operations Management is about maximising the usage of the services of the
organisation, i.e. the services have to be exploited as best as practicable by reducing
the cost, excess and underuse.
 Sales:
Although the selling role may sound straightforward, there is more to it than just
shipping a commodity and receiving the quality. The sales role requires: consumer
recognition and prospective buyers Brand marketing the real follow-up to selling
-- The word 5 senses of selling apply to all operational profits gained by a
corporation by its corporate operations, such as the selling of merchandise, facilities,
mathematical devices etc.

A brief description of your chosen company
KFC (short for Kentucky Fried Chicken) is an American fast-food restaurant chain
located in Louisville, Kentucky, which specialises in chicken fried rice.
As of December 2018, it is the second-largest burger chain in the world (as
determined by sales) behind McDonald's, boasting 22,621 stores in 136 countries
worldwide.
The chain is a subsidiary of Yum! Brands, a restaurant company that also owns the
Pizza Hut, Taco Bell, and Wing Street chains.
KFC was established during the Great Depression by Colonel Harland Sanders, an
entrepreneur who started selling fried chicken at his roadside restaurant in Corbin,
Kentucky. Sanders recognised the promise of the franchising model in restaurants,
and in 1952 the first "Kentucky Fried Chicken" franchise launched in Utah.
KFC has popularised chicken in the fast-food field, diversifying the competition by
questioning the hamburger's proven supremacy.
Harland became a popular figure in American cultural culture by naming itself as
"Colonel Sanders" and the logo is commonly used in KFC advertisements to this
day.
The rapid growth of the firm nevertheless exhausted the aged Sanders, and in 1964
he sold it to a consortium of investors headed by John Y. Brown Jr. and Jack C.
Massey.
KFC became one of the first fast food franchises in America to grow worldwide,
establishing stores in Canada, the UK, Mexico, and Jamaica by the mid-1960s.
It endured uneven fortunes nationally in the 1970s and 1980s, when it witnessed a
number of shifts in corporate management and little to no restaurant industry
knowledge.
KFC was sold to liquor manufacturer Heublein in the early 1970s and was taken over
by the R.J.
Reynolds group food and tobacco; the corporation sold the chain to PepsiCo.
However, the company proceeded to grow internationally, and was the first Western
restaurant chain to operate in China in 1987.

Since then it has grown steadily in China, which is now the biggest single market for
the business. PepsiCo split off as Tricon Global Restaurants from its restaurants
business, which subsequently modified its name to Yum! products.
The initial KFC food is press-fried bits of meat, flavoured with 11 herbs and spices
from Sanders 'recipe.
The recite members reflect a prominent trade secret. Larger parts of fried chicken
are delivered in a "bucket" box, which has been a well-known characteristic of the
company since the franchisee Pete Harman first launched it in 1957.
KFC has extended the range since the early 1990s to sell other chicken items such
as chicken fillet sandwiches and wraps, as well as salads and side dishes such as
French fries and coleslaw, snacks, and soft drinks; the latter also supplied by
PepsiCo.
KFC is known for its slogans "It's Finger Lickin' Good!", "Nobody does chicken like
KFC", and "So good".

An evaluation of company’s operation management decisions: Production, Supply
chain, logistics, location strategies, quality control and HR
Production:
1. Inspect chicken breasts, thighs, legs, and wings
KFC uses real chickens but those chickens come in a bag because they've already
been processed into the desirable cuts. The first step in making KFC fried chicken is
to check the chicken. Basically, it is a quality control thing, the people in the back of
the restaurant are seeing if the chicken is bruised, if there is excess fat or leftover
feathers or accidental organs left in. They are usually fine.
2. Dunk chicken into the brine
It is to get the breading to stick.
3. Dry off the chicken by tossing the chicken around 7 times
You will soon see that KFC is obsessed with doing things 7 times. The drying toss is
done to ensure the chicken is not too wet when it hits the breading.
4. Lay out the chicken onto the secret Original Recipe breading
Now the fun begins.
5. Cover the chicken in the breading with a pseudo breaststroke motion
The breading is so fine that when you put your hands in the mixing tub, it basically
feels like swimming in fairy dust.
6. For 7 times
Yup, 7 strokes.
7. Collect the chicken in a basket and do this (quite fun) see saw motion... 7 times
Again, with the 7 times. This is done to make sure the chicken is not over-breaded
(and to re-use the breading).
8. Place the breaded chicken on the frying rack

There is a whole chart that KFC uses to teach its employees how to place the
breaded chicken cuts on a rack with different illustrations depending on the size of
the cuts.
9. Rack 'em and pressure fry them
KFC pressure fries its fried chicken which sounds scary and awesome and requires
special machines to do so.
10. Wait over 10 minutes for the machines to do their thing and... that is how you
make KFC fried chicken.
Pro tip: KFC fried chicken tastes especially delicious when you are the one making it.
Supply Chain and Logistics:
KFC has gone back to its original recipe for chicken deliveries by rehiring Bidvest
Logistics in the wake of last month’s supply fiasco.
The American fast food company was forced to briefly shutter hundreds of outlets
after the
failed handover of its distribution deal to DHL and QSL after it sold out of meat.
"To put it plainly," KFC tweeted at the moment, "we have the food, we have the
stores, but we also had trouble bringing them together."
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When the deal was placed out to auction in 2017, Bidvest losing out to its
competitors, but on Thursday it revealed that it had taken back some of the market
after agreeing a long-term arrangement to supply about a third of KFC's 900
restaurants.
"We are happy to welcome KFC back to Bidvest Logistics," said the head of the
company
sector, Paul Whyte, who was unable to avoid a jab at the shortcomings of his
competitors.
"As the leading food service logistics expert in the UK, we appreciate the challenges

of shipping fresh poultry ... We'll send them a smooth return to our network."
A significant number of KFC stores stay closed although some have a minimal
selection to sell.
The group confirmed it had agreed to re-engage Bidvest when it tried to get back to
business as normal.
"Our attention remains on making sure our consumers will appreciate our chicken
without any interruption," a spokesperson for the KFC said.
"With this in mind, the decision to move the delivery deal for up to 350 of our
restaurants
in the north of the UK back to Bidvest Logistics was made in collaboration with QSL
and DHL.
"The announcement would relieve the strain on DHL's rugby warehouse, helping to
bring our restaurants back to business as quickly as possible. As it is, over 97
percent of our 900 restaurants are already open for service, but certain restricted
menus will be required until we move to business as usual.