RCM301 Assessment: In-depth Risk and Crisis Management Report on KFC

This report provides a comprehensive risk and crisis management analysis of KFC, a leading fast-food chain. It begins with an introduction outlining the paper's objectives, which include identifying risk management concepts and theories within the tourism and hospitality industry, specifically applied to KFC. The report includes a company overview, detailing KFC's vision, mission, and key stakeholders such as customers, employees, and suppliers. A detailed SWOT analysis evaluates KFC's strengths (brand value, unique recipes), weaknesses (contaminated food incidents, unhealthy offerings), opportunities (healthier food options, home delivery), and threats (competition, government regulations). The report then delves into internal risks like employee turnover and contaminated raw materials, and external risks such as supply chain issues, negative publicity, and market competition. A risk assessment table categorizes risks, assesses their likelihood and consequence, and suggests control methods. The report concludes by summarizing the key findings, emphasizing the importance of effective risk management in maintaining KFC's market position, and referencing various academic sources to support its analysis.

Running Head: RISK AND CRISIS MANAGEMENT
Risk and Crisis Management
Name of the Student
Name of the University
Author Note

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Introduction
The aim of the paper is to identify the concepts as well as the theories related to the
managing of the risk from the perspective of the tourism and hospitality industry. The aim
o9f the paper would also include the evaluation of the principles and the strategies associated
with the same. In the respect of the analysis the organization in the concern of the discussion
is KFC.
The paper is concerned with the environmental scanning of KFC in order to analyze
the factors that are potential in affecting the business scenario of the organization on a regular
basis. The multiplicity of the factors that can contribute to the risk are the ones of the internal
resource, personal, structure of the organization, personal and the availability of the resources
to the organization. As such, the information collected by the process of scanning is crucial in
guiding the analysis of the organization in furnishing a plan for the risk management. The
report would provide an overview of the organization and then move into the analysis of the
strengths, weakness, opportunities and threats those are impending on the way of the
organization.
Company Overview
KFC, the abbreviation of the Kentucky Fried Chicken had emerged as the largest
franchise. The organization has been able to establish itself as a leading producer of the food
products in different areas located in the various parts of the country. The organization has
established itself as a brand of international reputation. The organization has grown to be a
multi-domestic country. The organization has been backed by the vision that suggests that the
organization aspires to be the leading integrator of the food services groups in regions those
are concerned with the consistency they seek to maintain in the quality of the products. The

3RISK AND CRISIS MANAGEMENT
vision of the organization is to enhance the excellence in their product and the service that is
focused towards being customer oriented (KFC, 2013).
The mission of the organization is to enhance the profitability of the organization as
well as enhance the value of the shareholders with delivering growth of the sustainable nature
in the years to come (Wikipedia, 2013).
Stakeholders
The organization functions with a huge number of stakeholders. Among the important
stakeholders of the organization, the customers, employees, the delivery services, the vending
companies, suppliers and the contracted cleaning have aided the organization in achieving its
desired outcome. The employees of the organization are the most important stakeholders of
the company as they form the main point where they ensure that effective service is mitigated
to the customers. As such, it is important that the employees are trained properly in order to
maintain the effectiveness of the services. The interest of the employees to get indulged in the
training would be to ensure that the job is secured for the organization (9WSYR, 2013).
In terms of the customers of the organization, the satisfaction of thee customers are
related to the enhancement of the profit that the organization is gathering from the sale. The
interest of the customers are invested in the fact that they enjoy the fast food product that they
receive from the organization. The effectiveness of the services run by the organization is
crucial for the organization in maintaining their increasing profit (Interbrand, 2013).
SWOT analysis
Strength
In terms of the values KFC has adopted the
position of the 2nd global brand in terms of
the value of the organization which accounts
for the $6 billion (Jorion, 2000).
Weakness
The fall in the sales of the company has
been resulting from the usage of the
contaminated poultry or the usage of the
mistreated chicken. This has resulted in the

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The usage of the original herbs of 11
varieties and the recipes primarily based on
the spices where the recipe of the KFC
chicken accounts for the uniqueness of the
organization. The implication of the
uniqueness can be noted in the advantages
that the organization achieves in a
competitive way (Chapman & Ward, 1996)
The organization has attained a strong
position in China. 50% of the revenue of the
country is achieved from China. In china the
organization operates under 4000 outlets.
With the growing market of the fast food in
china. The KFC has attained a strong
position in China.
The advantage of KFC has been attained
from the brands that has developed a
partnership with other Yum! Brands (Zhu,
Anagondahalli & Zhang, 2017).
KFC has acted a leader in the market where
the companies have featured in chicken
product
fall in the reputation as well as in the sales
KFC has attained a negative publicity from
the PETA. The bad publicity of the
organization had been from the
contaminated chicken in wings and kidney
(Klijn et al., 2015).
KFC has contributed to the high calorie of
the organization, fat and the drinks. As such
the consumers started opting from the
healthier choices
Increased turnover for the employee. The
low paid status of the employee and the lack
in the skill of the job has resulted in the
decline in the turnover of the employee
(Baryannis et al., 2019)
Opportunities
The opportunities for the organization is
noted in the urge of the organization to
produce healthier food (van Buuren, 2014).
Delivery of the home meal has resulted in
the company reaching more and more
customers
The company can bring in new ranges of
product in order to attract more potential
customers
Threats
The market concerned with the production
of the fast food has been overcrowded with
a large number of companies participating
in the run. As such the threat for the
company emerges from a large number of
competitors entering the fast food market
With the increased regulation of the
government and other organization, those
have aimed towards fighting the factors of
obesity and health related concern. The
consciousness of the people are increasing
with adopting healthier food (Kytle &
Ruggie, 2005).
The localized nature of the fast food chain
have resulted in the company developing a
localized approach towards the demand for
the fast food of that region. As such the
organization is adopting a change in their
menu to the taste of the local community

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(Schröder & McEachern, 2005)
The fluctuation in the currency as the
organization receives a considerable part of
the income from their operation in the
foreign land, With the income of the
orgazition being converted to dollars the
affect might have been felt at the profit
attained at the business level
The organization has been sued a number of
times and as such the organization had to
loss a considerable part of their income in
the lawsuit. The lawsuit had acted an
expensive as the organization had incurred
in a lot of money as well as time.
Internal Risk
The internal risk of the KFC has resulted from the decrease in the in the turnover of
the employees. The low paid status of the employee along with the degrading skills of the
employees in their job have resulted the organization in facing a decline in their employee-
retaining rate (Zhang & Zhou, 2012).
The usage of the contaminated raw materials as well as unhealthy chicken has
accounted the organization for a considerable amount of bad publicity in their market.
However, the public relation of the organization has allowed the organization to retain a
considerable portion of the customers that the organization boast off. The organization had
been subjected to the regulations of PETA where the organization had been subjected to the
bad publicity resulting in a decline of the customer loyalty (Rahman, 2018).
The high calorie content of the organization has accounted for a loss of a large
number of customers. The need of the organization is to bring about changes in the nature of
the food so that they can cater to the demand of the customers with health conscious. As

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such, it would allow the organization to bring about changes in order to cater to the need of
the customers to enhance the effectiveness of the customers (Omer, 2018).
External Risk
The shortage in the supply of the chicken for the organization has resulted in the
decline of the organization and its profitability. The organization was forced to shut down its
outlets in Uk. The damage of the organization, which could have incurred a high amount of
lost in the revenues and the damage. However, the well-executed public relation of the
organization in terms of their relation has allowed the organization to repair the damage with
an increased speed (Pal et al., 2017).
The knowledge of the customers with the happenings of the organization and when
the service was going to be recovered was known to the organization.
The organization had faced a bad publicity on the social media where the danger of
the organization was from the scenario where the employees were seen to be scattering the
pieces of chicken on the ground with hosing them down (Rui et al., 2017).
The external risk of the organization has been is from the advent of other
organizations that has entered the market of the fast food supply chain has added on to the
competition that the organization has faced in the market. The threats for the organization is
from the increased regulations from the government regarding the production and the
retailing of the food (ZHANG et al., 2017).
The fluctuation in the value of dollar has resulted in the added benefits of the
organization in terms of the profit that they have earned in the market. Another risk of the
organization is from the cost that had been incurred in the lawsuit (Schröder & McEachern,
2005).

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Risk
Category
Risk
Type
Stakeholder
s affected
Likelihoo
d rating
Consequenc
e rating
Risk control
method
Risk
contro
l
metho
d
Contaminate
d food
Physical Customers A 2 Elimination
Employee
turnover
Human Employee C 3 Process
Increased
competitors
Market Internal
stakeholder
s
B 1 Process
PETA Legal Internal
stakeholder
s
E 4 Administratio
n
Government
regulations
Legal Internal
stakeholder
s
D 7 Administratio
n
Dollar value Financia
l
Internal
stakeholder
s
F 5 Administratio
n
Lawsuits Financia
l and
legal
Internal
stakeholder
s
G 6 Administratio
n
Analyzing the case of KFC it can be noted that the organization had faced subsequent
challenges in the hand of the legal measure as imposed by the PETA and the government in
terms of ensuring the quality of the food that has been marketed by the organization. Along
with that increase in the competitors has allowed the organization to participate in the process
of the retailing of the fast food market retail market changes.
Conclusion
Thus the risk analysis of organization suggested that despite of being a second largest
organization concerned with the fast food products specialized in the chicken based product

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has allowed the organization to maintain a strong place in their concerned market. The
internal risk of the organization is from the lack of the company in bringing about a assurance
in terms of the turnover of the employees. Along with that, the effectiveness in the turnover
of the employees can be suggestive of the fact that the organization has been able to ensure
effectiveness in creating a safe working condition for the employees. The organization had
been subjected to the negative popularity in terms of the contaminated poultry along with the
diseased chicken as their base product. Along with these the risk of the organization is also
from the fluctuation in the price of the dollar. The implication of this can be noted on a
multifarious affect as the organizations could have been noted to create a difference in terms
of the benefits that they have caused to the scenario. The lawsuits that the organization had to
indulge in accounted the organization for a considerable economic loss, which resulted in the
organization incurring certain amount of economic loss.

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References
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http://www.9wsyr.com/business/story/Yum-Brands-KFC-sales-will-fall-in-China-
after/bcy0s-8mAUeqWoh6fnmpCw.cspx
Baryannis, G., Validi, S., Dani, S., & Antoniou, G. (2019). Supply chain risk management
and artificial intelligence: state of the art and future research directions. International
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Chapman, C., & Ward, S. (1996). Project risk management: processes, techniques and
insights. John Wiley.
Interbrand (2013). Best Global Brands 2012. Available at:
http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-
2012.aspx
Jorion, P. (2000). Value at risk.
KFC (2013). About us. Available at: http://www.kfc.com/about/
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Pal, A., Chua, A. Y., & Goh, D. H. L. (2017). Does KFC sell rat? Analysis of tweets in the
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