OPERATIONS MANAGEMNT

GROUP MEMBERS

M.Aziz Subhani M08MBA015Jamshaid Anayat M08MBA020Mirza M.Babir Yousaf M08MBA053Hafiz Arfan Butt M08MBA064

COMPANY NAME

INTRODUCTION

• KFC is the world’s largest and most famous restaurant, with chain in more than 16 thousand and 200 locations in world wide 100 countries.

• KFC and its franchise employees are more than 200 thousand all over the world.

• In 1997 KFC franchised with Gray Mecanza International and started work in Pakistan.

• After 10 years KFC has 45 outlets in Pakistan.

History Of KFC

• At the age of 40 as an operator as a service station in Corbin, Kentucky, Colonel return to his love of cooking and began to cook and serve food to hungry travelers from his own living quarters.

• The Colonel devised his recipe for fried chicken using a secret blend of 11 herbs and spices the same blend of recipe is still used in KFC all over the world and is called the “Original Recipe”.

• Since 1950’s has grown at remarkable pace from one roadside restaurant into an internationally renowned restaurant chain and one of the largest chain in the world.

• The Colonel remain KFC’s good will Ambassador.

• The Colonel Died in 1980, at the age of 90

• Although the Colonel is no longer with us but his philosophies of hardworking and excellent services to be the no.1 priority of KFC, will always be the part of KFC tradition.

SLOGAN of KFC

• KFC specialized in Chicken and they say,

• “ No body is cooking like KFC today and we are the chicken experts ”.

• “There is no competitor for spicy chicken which is made by KFC”.

Mission Statement

• To be the leader in western style quick service restaurant through friendly service, good quality food and clean atmosphere.

Philosophy of KFC

• Cleanliness• Hospitality• Accuracy• Maintenance of

facilities• Product quality• Speed of Service

Philosophy of KFC stands on the “Champs Program”

ORGANIZATIONAL STRUCTURE

CUPOLACHIEF

EXECUTIVE(Rafique

Rangoonwala, Karachi)Main Head Office

OPERATIONAL GENERAL MANAGER

(Asim Hussain)

RESTAURANT GENERAL MANAGER

Regional OfficeRESTAURANT

MANAGERASSISTANT RESTAURANT

MANAGER(Two in every branch)

SHIFT SUPERVISOR

TEAM MEMBERS

JAMSHAID ANAYAT

Current Market Situation:

• Market Share:

• The most recognize able brand in chicken with over 50% of market share

• Current Product review:• Mighty Zinger Nuggets • Zinger Burger Corn on the Cob• Fish Zinger Burger Arabian Spice • Salsa Twister Chicken Mania• Chicken Burger Crispy Chicken Chunks• Sub60 Hot & Crispy Soup• Twister Cappuccino

Current Products Review

Current Products Review

Current Products Review

Pricing Strategy of Products

Price• Sample of products that KFC offers,

how they set the prices of a product.

PRICING STRATEGY FOR TWISTER

Manufacturing cost Rs.225/- 5% market cost (Per Unit) Rs.5/- Total Cost Rs.230/- 15% G.S.T+15% Retail Margin Rs.69/- Total Retail Price Rs.300/-

Services

• KFC offered free home delivery service at specific branches at specific cities

• They take 30 minutes for delivery and minimum order delivery should Rs.250/-

Competitive AnalysisKFC McDonald’s

Spicy Products Burger and French Fries

Arabian Rice and Zinger Burger

Big Mac

Free Delivery Free Delivery

Chicken is eaten by every community

Beef is banned is some community

Local Staff, highly qualified because local staff can deal

better with customer

Its staff consists of simple graduates and give them

trainingKFC uses Top to Bottom and

Bottom to Top approach to Management

McDonlad’s uses Top to Bottom approach

KFC is co branding with walls

No such cases

Hafiz arfan butt

KFC SWOT ANALYSIS

SStrengths

WWeaknesses

OOpportunities

T Threats

Strengths

• Brand Equity.• KFC secret recipe of 11 herbs

species.• Strong Market Share (over 50%)• Strong Franchise and License

Fee revenues for cash flow. • 2nd Only to McDonald’s in

Foreign Sales $550M

Weaknesses

– Lack of knowledge about their customers.

• Lack of relationship buildings with employees

• Lack of focus on R&D • Question of over franchising

leads to loss of control and quality

Opportunities

• They have the opportunities to expand their sweet products.

• They can open more outlets to get maximum market share.

• Home Meal Replacement Market will exceed an estimated $577 billion by 2020

• New Leadership, Domestic markets and Customer focus

Threats

• Rated 83 out of 100 in term of competitiveness.

• Increasing inflation rates directly affects menu rates.

• Supermarkets and new competitors.

• Increasing wage rates directly affect menu prices

•  85% annual employee turnover for fast –food market

Mirza M. Babir Yousaf

Objectives of KFC

• Build an organization dedicated to excellence• Consistently deliver superior quality and value in our

products.• Maintain a commitment to innovation for continuous

improvement and grow, striving always to be the leader in market place changes.

• Generate consistently to superior financials retums and benefits our owners and employees.

• To establish a position in Pakistan as a leading WQSR (Western Quick Service Restaurant) chain, serving good value added services and innovative chicken based products.

Values of KFC

• Reward and respect the contribution of each individual at KFC.

• Expand and update training with time and be the best

• Be open, honest and direct in our dealing with one another.

• Commit ourselves to the highest standard to the personal and professional integrity at all times.

• Encourage new and innovative ideas.• Reward results not simple efforts.• Work as a team.

Issues of KFC• EVERY CHICKEN TESTED• K & N’s state-of-the-art Quality Assurance

Lab monitors the entire integration process from live stock to feed and on the preparation of ready-to-cook and cooked products.

• EVERY CHICKEN CERTIFIED• K & N’s ensure food safety by implementing

the International HACCP(Hazzard Analysis and Critical Control Points a Food Safety System) and enjoy the unique privilege of being the first and only HACCP certified company in Pakistan producing chicken and chicken products.

SUPPLY CHAIN MANAGEMENT

KFC works on supply chain management for the need of

TO Increase Operations.

Increasing Levels Of Outsourcing.

Increasing Transportation Cost.

Competitive Pressure.

Increasing Globalization.

Supply ChainSUPPLIER.

MANUFACTURING STORAGE.

DISTRIBUTERS.

RETAILERS.

CUSTOMER

QUALITY MANAGEMENT SYSTEM

Managing quality in a company revolves around customer expectations, defining product specification based on these expectations and subsequently ensuring that the product being manufactured conform to the design specification.

Quality System

• KFC recognize this fundamental by using 2 complementary programs for measuring quality.

• The Quality, Service and Cleanliness (QSC)

• For measuring quality of service outcomes.

• The Operation Facility Review (OFC)• For measuring a restaurant’s

process implementation performance against KFC’s process specifications.

QUALITY ASSURANCE

• Mr. Rafiq Rangoonwala, CEO Cupola Pakistan, was recently the recipient of the Big Leap Forward Award.KFC Pakistan was honored to receive the award among 110 countries and 800 participants. The award was presented to Mr. Rangoonwala by Mr. Graham Allan, President, YUM Restaurants International at a recent conference in Prague, Czech Republic.

•THAT’S ALL!

•THANK YOU.