Kentucky Fried ChickenMission To sell food in a fast, friendly environment that appeals to pride conscious,health minded consumers (www.KFC.com).Stated Objectives 1.Product developmentIncrease variety on menuIntroduce desert menuIntroduce buffet to restaurants2. Introduction on the Neighborhood Program with following:Menu items target African Americans in major cities with the followingitems:GreensMacaroni and cheesePeach cobblerRed beans & riceMenu items targeting Hispanics in major cities with the following items:Fried plantainsFlanTres Leches1.Implementation on non-traditional units including the following:Shopping mall food courtsUniversitiesHospitals AirportsStadiums Amusement ParksOffice BuildingsMobile Units1. 1. Increase profitability of KFC through the following:Reduced overhead costsIncreased efficienciesImproved customer serviceCleaner restaurants Faster and friendlier service Continued high quality products1. Resolve franchise problems in the United States.Implied Objectives 1.Expansion of international operations to provide the following: Increased percentage of overall sales growth Increased percentage of profit growth1. Increased expansion of franchises into Mexico2. Expansion of franchise operation beyond Central America3. Continued promotion of healthier image through removal of the word"fried" from the name4. Improve menu selection of rotisserieOrganizational Structure HistorySince its inception, KFC has evolved through several different organizationalchanges. These changes were brought about due to the changes of ownership that followed since Colonel Sanders first sold KFC in 1964. In 1964,KFC was sold to a small group of investors that eventually took it public.Heublein, Inc, purchased KFC in 1971 and was highly involved in the day today operations. R.J. Reynolds then acquired Heublein in 1982. R.J. took amore laid back approach and allowed business as usual at KFC. Finally, in1986, KFC was acquired by PepsiCo, which was trying to grow its quick serverestaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut, and KFCThe PepsiCo management style and corporate culture was significantlydifferent from that of KFC.PepsiCo has a consumer product orientation. PepsiCo found that themarketing of fast food was very similar to the marketing of its soft drinks andsnack foods. PepsiCo reorganized itself in 1985. It divested non-compatibleunits and organized along three lines: soft drinks, snack foods andrestaurants. PepsiCo Worldwide Restaurants was created to create synergismbetween its restaurant companies.By the end of 1994, KFC was operating 4,258 restaurants in 68 foreigncountries. KFC is the largest chicken restaurant and the third largest quickservice chain in the world. Due to market saturation in the United States,international expansion will be critical to increased profitability and growth.Present SituationThe organization is currently structured with two divisions under PepsiCo.David Novak is president of KFC. John Hill is Chief Financial Officer and ColinMoore is the head of Marketing. Peter Waller is head of franchising whileOlden Lee is head of Human Resources. KFC is part of the two PepsiCodivisions, which are PepsiCo Worldwide Restaurants and PepsiCo RestaurantsInternational. Both of these divisions of PepsiCo are based in Dallas.StructuringAnother strategy of KFC is currently working with is to improve operatingefficiencies. This in turn can directly impact the operating profit of the firm. In1989, KFC centered on elimination of overhead costs and increased efficiency.This reorganization was in the U.S. operations and included a revision of KFCscrew training programs and operating standards. They emphasized customerservice, cleaner restaurants, faster and friendlier service, and continued high-quality products.In 1992, KFC continued with another reorganization in its middle managementranks. They eliminated 250 of the 1500 management positions at corporateand gave the responsibilities to restaurant franchises and marketingmanagers.