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Leadership Strategy Of KFC

KFC was first unveiled by Colonel Sanders. His first franchise is at yr 1952. Under new management, the first deal was for $2 Million. In 1980, there have been more income and extension of KFC was carried out. Within 50 years, the earnings gone up to $ 7 Billion. In 1952, Col. Sanders began franchising his formula door to door financed by his $105. 00. Col Sanders had more than 600 franchised outlets in the US and Canada by 12 months 1964. He sold his curiosity about his company for $2 million to several buyers. In 1966, KFC travelled open public. KFC was posted on the NYSE in 1969. Current Market Cap value on the NYSE is 7. 2 Billion. A competitive marketing strategy in the international market centered on the Latin American countries is why KFC can maintain a market authority in the global fast-food industry.

Key to extended expansion was to find, motivate, and keep hard-working and entrepreneurial managers and franchisees around the world. Furthermore to short-term profits, store managers were also in charge of building local pr, maintaining employee morale, expanding customer good-will, keeping tabs on the competing chains and setting up a legacy of special chicken breast cooking formula. KFC possessed a refocused international technique to expand its company and franchise restaurant bottom part all over the world.

Their Competitive marketing strategy: was to developed three types of chicken breast, original menu (pressure prepared), extra crispy (fried)and also sensitive roast (roasted). Sweeping changes into the culture was initiated by the new management- this results in demoralization to old KFC employees and even franchisees. Several restructurings led to layoffs throughout KFC, alternative of KFC managers with PepsiCo managers. Issues between KFC and PepsiCo civilizations- this is manifested with PepsiCo's better focus on performance alternatively than loyalty portrayed by Col. Sanders to KFC employees over the years.

According to SWOT ANALYSIS, the weaknesses of KFC are as follows. KFC discovers difficulty in stepping into the German market (culture incompatibility). KFC sales stagnated. There is widespread discontent among the list of franchisees, some of whom sensed the new owners didn't understand the rooster business and were not providing authority expected from a franchisor. Company stores floundered and be underperforming the franchised businesses, further convincing franchisees that the company didn't know its own business. (KFC HQ attained them to company-owned). Overseas enlargement with the rapid economic growth and trend toward two-income young families that acquired fuelled the growth of fast-food industry in the 1950s and 1960s were showing up in the late 1960s in the other country.

Primary objective is to have advantage of the potential growth far away, to establish a solid position and also to develop their image. Key Success Factors are ever continuing cost benefits through R&D, improvements and use of new technology to work efficiently. These success techniques will lower costs and increase income in the industry. KFC uses an integrated low cost/differentiation control, since it can count on its brand name and original flavor and formulas to be unique while at the same time contend on price using the benefits associated with cost benefits from economies of scale.

Based on the research, we can conclude that they must start by dealing with their inner issues such as management and restaurant menu before considering expanding. They have to focus on the management issues to make a good atmosphere where employees are happy to work in. I certainly do not think that by treating employees poorly, a firm can achieve success. In addition they need to make certain that their restaurants give you a varied menu, provide their customers with quality food, excellent service and restaurant cleanliness. KFC should listen to their customers and make an effort to follow the new fads on the market in order to fully fulfill their customers. Otherwise, competitors will meet them and can eventually outperform you as Boston do with its grilled chicken.

Even though, KFC seems to have an emotional connection with their original formula that made their success, they definitely need to go on and develop new products that customers want in order to increase their financial performance and value. We've seen that Boston and Popeye's are stealing customers away from KFC because they comprehended what customers desired and started out offering better items. KFC will do the same and improve their menu.

On the other palm, it is time to speak about another local business success history and how can we speak about successful organizations without talking about Al-Baik.

It is hard that you will be living in Jeddah or ever before visited it without being to Al-Baik. The local fast food chain 's been around since 1974. After 35 years by now, the restaurant is principally functioning in Jeddah with minimum amount amount of branches in Makkah, Madinah, Yanbu and Taif. Arguably, Al-Baik possesses the highest market talk about and customer commitment amongst its competition especially in Jeddah; noting that whenever I say competitors, I mean international multibillion brands like McDonald's, KFC, Pizza Hut etc.

For those familiar with the debate adjoining Porter's Generic strategies, Al-Baik is a living proof you could follow a technique that combines both differentiation and cost authority. Although there are a lot of restaurants serving fried chicken, the quality and tastes of Al-Baik are certainly unique and its own prices are way below the average.

Al-Baik has very strong brand equity whether we are measuring it by analyzing the restaurants' products or by studying its brand effect on customers. Al-Baik brand communicates strong messages of quality, fast service, trust, affordability, convenience, and cultural responsibility. Its management has been very smart emphasizing these prices into the brand using different ways of advertisements, public relations, or even by distributing reviews about the brand. The entrepreneurial history of its founder and how he struggled to improve his community understanding about eating outside the home that was strange back then and exactly how he has been working together in the restaurant planning the food, portion it, and then cleaning the tiny shop are meant to build some kind of reference to its customers. Also, some suspense and mystery would not injured either; the secret chicken formula that is merely known by few individuals is one of the most preferred stories between such food and beverages organizations.

Whether we are talking about fast service, servicescape design, or cleanness of the restaurants environment; Al-Baik is providing exemplary services in every of that. A lot more, Al-Baik is one of the few restaurants that introduced items to the menu established exclusively on customers' recommendations.

Al-Baik marketers are experts in choosing locations because of their restaurants. You have never seen a branch of Al-Baik without it being filled with customers. The huge expansions they completed in Jeddah have been built on people distribution analysis. That is why wherever you stay in Jeddah now; there has to be Al-Baik branch within your easy reach.

Al-Baik has always been known for its socially related promotions. They have a regular occurrence in Hajj months providing free meals to pilgrims and they are regularly campaigning for environmentally related triggers like banning smoking in their restaurants or preserving the location clean image. Furthermore, their energetic involvement in the aftermath of Jeddah floods by giving free meals to people devastated by the catastrophe is one gleaming exemplory case of how organizations could be interacting with its society.

Nevertheless, staying on the top is not a simple job. Al-Baik management has to deal numerous issues to assist in its growth. One of these important issues is on the mind of every enthusiast who eventually live outside Jeddah; how much should they expand? As long as they consider starting new branches in other cities at the Kingdom? What about being multinational or even global?

Moreover, how Al-Baik should respond to the growing concerns lifted by healthy and organic and natural foods advocates. And most essentially, how its professionals will maintain its competitive advantages and exactly how are they going to nurture its sustainability strategy.

As finish, the best selling food in my own view is KFC. People nowadays has less time to consume being that they are busy working. Therefore, they might choose fast food restaurants as their choice. Thus, the managers of the restaurants need o ensure on cost leadership and make sure they can get the ultimate way to keep carefully the price reduced. That is a marketing strategy in a way to entice customers. More customers make the business enterprise better and develop fast.

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