Prepared by Faraz Ali

Presented By:

Faraz Ali (R1F14BBAM0008)

Shehryar Khan (R1F14BBAM0002)

Wasif Ejaz (R1F14BBAM0034)

Abdul Moeed (R1F14BBAM0009)

HISTORY Starts in 1930 by Harland Sanders the founder of KFC

Named as the dining area "Sanders Court & Cafe."

In 1939 "Sanders Court & Café” was rebuilt named as KFC.

In 1960, 190 KFC franchisees and 400 franchise units in the U.S. and

Canada.

Cupola Cupola holds the master franchise rights to operate KFC in Pakistan

since1999.

KFC In Pakistan

Kentucky fried chicken (KFC) - one of the most known fast food chains in the

world started in the early 1930'S by kernel sanders. At KFC we proudly say:

KFC has more than 11,000 restaurants in more than 80 countries and

territories around the world.

In Pakistan KFC provide its delicious fast food, with having more than 63

Outlets throughout the Country. Presently KFC is branched out in thirteen

cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar,

Sialkot, Hyderabad, Islamabad, Gujranwala, Jhelum, Sukkur and Murree).

KFC has been constantly introducing new products and opening new

restaurants for its customers. In Pakistan totally chicken buy from Pakistani

poultry forms, and also this chicken is 100% Halal.

KFC Products

Mighty Zinger•Zinger burger•Fish zinger burger•Salsa twister•Macho’s burger•Chicken burger•Cheese•twister•Nuggets•Hot wings•Fries

Arabian spice•Chicken Roll•Dinner rolls•Crispy chicken chunks•Hot and crispy soup•Soft Drink•Scope of wall•Fruit salad•Mineral /water•Cappuccino

Hierarchy of KFC (Chandni Chowk Branch, RWP)

CEO

Head of Departments

Finance Marketing Human Resource SupplyChain Operation Audit

Target Market of KFC

After evaluation of various segments, KFC has decided to target the market of Urban

and Sub-urban Areas of Pakistan.

People are educated and they want variety in their diet.

Normally people of rural areas don’t take fast food. On the other hand people of

urban areas take fast food.

Income of the people of urban areas is normally high and they can afford to

purchase such products, which are slightly higher in

price as compared to prevailing prices of local food in the market.

People of Urban Areas are more quality conscious than the people of Rural Areas.

It would be focused on customers in the age group of between 4 to 45 years old.

The pricing and promotion strategies would also be looked into as KFC.

Capital & Major Expenses

Samples of some products that KFC offers, how they set the price of a product

 PRICING STRATEGY FOR TWISTERManufacturing cost  RS. 225/-5% marketing cost (PER UNIT)  RS. 5/- Total cost  RS.230/-15% G.S.T +15% RETAIL MARGIN  RS.69/- Total retail Price RS.300/-

PRICING STRATEGY FOR Zinger BurgerManufacturing cost  RS. 117/-5% marketing cost (PER UNIT)  RS. 5/- Total cost  RS.122/-15% G.S.T +15% RETAIL MARGIN  RS.53/- Total retail Price RS.175/-

Assets Rs. Liabilities Rs. Machinery

 Cash in Hand

 Furniture & Fixture

 Equipment

 Security Deposit

 

12,00,000 

400000 

10,00,000 

10,00,000  

20,00,000

 Loan from Bank 10,00,0000 + interest 120,000

 Capital

     

  112,00,000  

 88,00,000

  20,00,0000   20,00,0000

Budget analysis Sales Forecast

“To sell food in a fast, friendly environment that appeals

to pride conscious, health minded consumers”

KFC Mission Statement

Vision

To be the leading integrated food services group in the Asia Pacific region based on consistent quality products

and exceptional customer-focused service.

Management Functions

Planning:

Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization. The planning function determines how effective and efficient the organization is and determines the strategy of the organization. In KFC objectives are set, launch of new products, introduction of new schemes, market survey etc. is done

Organizing:

In organizing managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.

Leading:

In leading, managers determine direction; state a clear vision for employees to follow and help employees understand the role they play in attaining goals. The outcome of leading function is a high level of motivation and commitment from employees to the organization.

Controlling:

In controlling, the manager evaluates how well the organization is achieving its goals and takes corrective action to improve performance. The outcome of controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.

Departments in KFC

Marketing Department Finance Department Operation Department HRM Department Quality Control Department

Marketing DepartmentAll Planning tools for marketing.

Under Marketing Manager

Use of 4 P’s (Product, Price, Place, Promotion)

Basic purpose of the marketing department is to advertise its products in

the market and keep eye on the competitors that what they are doing.

Finance Department

Provides close support to the business manager

on the financial implication of business strategies.

All final accounts of business transactions.

Finance Department analysis the business results and prepares the monthly and

quarterly review of business operations.

Operation Department

Under Operation Manager. Following operations and functions.

Cooking Cleanliness Administration of restaurant. Complaint Handling of the customers Daily order to procurement Department Day to day demand forecasting Daily lectures to crew people Trained the employees

HRM Department

Under HR ManagerTo provide highly qualified and competent employees to organization.Interviewing applicantsInducting new employeesAppraising employees performanceMake a decision about the employees training Provide a career advice to subordinates

Quality Control Department

Under Quality ManagerMonitoring the quality weight, consistency, taste, reliability, finish.Differentiate the organization from the competitorsNo compromise on quality standards

Teams to handle critical situations :

There are only two teams in KFC ( Chandni Chowk Branch)

One team is Concentrating on resolving internal Conflicts between employees and employers through different procedures and committees: If employee is unsatisfied with its team or management then he/she can easily resolve his/her issue

Second team deals with the customer care satisfaction and try to improve technology and working conditions: On different occasions customers offers and discounts available

Human Resource Management ( Training, Hiring etc )

The responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. Human Resource Management outlines the importance of HRM and its different functions in an organization. It examines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization. Talent Search Hiring Assessments Rewarding

Training

Training “We won’t make you wing it” is KFC’s motto when it comes to training

employees. Training includes:

1) Workbooks

2) Quizzes

3) On-the-job competency based training

Employees are encouraged to work together as a team- KFC is

committed to making sure their people grow to their highest potential- KFC does

their best to make the job interesting and exciting for workers.

Human Resource Planning

Staffing

Training & Development

Performance Appraisal

Compensation

Recruitment

Selection

Selection

Selection based on :

Test

Physical Test

Behavioral Test

Team Skill Judge

Working Capacity

Communication Skill

Confidence

Body Language

Motivation Level

Communication Process

Upward

From employees to management. Many firms define formal channels for upward

communications. These channels encourage communication from employees to

supervisors and upward to top management levels.

Some examples of upward communication channels are employee surveys,

suggestion boxes, and systems that allow employees to propose ideas for new

products or voice complaints. Upward communication is also necessary for

managers to evaluate the effectiveness of downward communication

Downward

From management to employees. Downward communication, carries messages

from someone who holds a senior position in the organization to subordinates.

Managers may communicate downward by sending employees e-mail messages,

presiding at department meetings, giving employees policy manuals, posting

notices on bulletin boards, and reporting news in company newsletters.

Measurement of Performance

360 Degree Feedback Performance

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employees manager, peers, and direct reports.

360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective when done properly. 360 Feedback as a Performance Appraisal Tool to measure employee performance these things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process

Methods of Control

HR manager control all activities into following ways:

• Feed forward control• Feedback control• Concurrent control• External control• Employee discipline system• Financial control• Purchasing control• Inventory control• Statistical control

Code of Conduct

Two of our major strengths as a company are our employees and our

culture. We believe in

treating each other with respect and fostering an atmosphere of caring,

open communications

and candor. Our “How We Win Together” principles define our culture

and how we manage our

business. Celebrate every Event and festival. Respect all employees and

customer basic rights.

Conclusion

KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants

all over the world. KFC is providing employment to 1200 Pakistanis an around 6000

Pakistanis dependent on KFC. They are paying Rs.10 million to government of

Pakistan as direct taxes. 95% of its food and packaging material used in KFC

produced in Pakistan locally which sums up to the purchase of 35 million per month.

Each new outlet developed by KFC in Pakistan spends 40 million rupees, that’s a

massive amount for this industry.

From all of the above detailed discussion about KFC in Pakistan, it is really clear that

KFC and Pakistan are growing together. KFC is doing well in Pakistan and keeps

following its marketing strategies as a market leader and segmenting the market into

different variables and increasing their market share. KFC is leading in Fried Chicken.

It gives quality, variety and fresh meals as of its competitors.