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KFC case study. CASE STUDY: KFC in China Kentucky Fried Chicken (KFC)- one
of the most known fast food chains in the world started ...
... McDonald's Corporation: Case Study McDonald's Corporation is the largest fast-food ...
of McDonald's include: Wendy's, Burger King, Taco Bell, KFC, Hardees, and ...
Case Study Hospitality. I ... McConnell. On the KFC menu are “trans-fat-laden
foods” which have been proven to cause deadly heart disease. ...
... not be applicable in real world because organisations are so dynamic as described
below Case study: The greatest challenge when PepsiCo acquired KFC in 1986 ...
... This was the case when scientists came out with the study that stated that ... in the
snack and food industries (Frito-Lay, Pizza Hut, Taco Bell, and KFC). ...
Submitted by cookiehoney on September 14, 2006
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CASE STUDY: KFC in China
Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world started in the early 1930's by Kernel Sanders in the Southern USA as a small franchise operation. Colonel Sanders has become a well known personality throughout thousands of KFC restaurants World wide. Quality, service and cleanliness (QSC)represents the most critical success factors to KFC's global success.
Throughout its 35-year history, the company has gone through several stages and has answered to a legion of corporate parents from Heublein to R.J. Reynolds. The most significant stage was when the enterprise was sold to the American giant, Hubelin International in 1974. Rapid growth throughout the use of franchising together with increased competition from primarily MacDonald's reduced the consistency of the standard of both food and service on the individual franchise level leading to massive decreases in profitability. Together with low Research and Development funding from Hubelin, the division found it difficult to match the expansion plans of its main competitors. KFC responded to these problems by improving staff training, employ a new manager- Michael Miles capable of managing an effective turnaround strategy. The QSC motto was emphasized on a global level together with slogans such as "We do Chicken Right". In 1982, Hubelin International was acquired by R.J. Reynolds and Richard Mayer succeeded Miles.
INTERNATIONALIZATION OF KFC:
Opposite to Hubelin International, R.J. Reynolds was willing to fund KFC's overseas expansion plans. In order to reduce risk, KFC encouraged franchising in complicated markets. This reduced financial risk, but also increased problems of operational control, as local franchisees often were more interested in maximizing profits in the short term rather than to adhere to corporate standards and strategic plans. To find the balance between corporate control and cultural sensitivity has been the...
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