final kfc mgmt 281550 nov 2010

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KFC PAKITSAN

Practical Study of the Organizational Design

Prepared for

Mr Ahmed Zakriya

(Department of Management Science)

National University of Modern Languages Lahore

Preparied by MBA 1 st Morning A

Hamid Rafique - Group Leader , Roll NO 8

Sheraz Haider , “ 4

Haroon Abdullah Khan , “ 26

29 November 2010

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Acknowledgment

All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and beneficent who

gave us courage to undertake and complete this task. We are very much obliged to our guiding

parents and respectable teachers whose prayers and guidance have enabled us to reach this

stage.

We are highly indebted to our course instructor Mr. Tauseef Iftkhar for providing us an

opportunity to learn The Practical Study of information system and its practical application in

public or govt. sector which is vital ingredient of MBA program. We are very great full to our

teacher Mr . Tauseef Iftkhar and Miss Mugheera for providing us all the guideline and

motivation for the completion of this report.

We feel great pride and pleasure on the accomplishment of this report.

WE would like to acknowledge and extend our heartfelt gratitude to the following persons who

have made the completion of this report possible:

Mr. Sejad Ahmad, IT instructor at GCC HR for the constant support and much needed guigence.

Mr. Shabbir Ahmed, Assistant Marketing Manager PTCL, for his point sharing and assistance.

Mr. Furqan Humayon Sheikh, PTCL for his point sharing and assistance

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MBA Morning A Section

NUML, Lahore

Mr . Tauseef Iftkhar

IT Instructor

NUML, Lahore

Dear Mr .Tauseef Iftkhar

Enclosed is the report you asked about “Practical Study of information system and its practical

application in public or govt. sector “for which our group selected PTCL Pakistan. This is a great

honour for us to present it to you for your valuable guidance and correctness.

The report is about the Type of Information System, Role of IT in Information System , Function in

business areas and practical application in PTCL

The information in this report is taken through the open source as well as meetings conducted with the

managerial staff and other employees.

The report provided us an opportunity to practically study of an organization keeping contents we studied

in mind, for which the complete group is thankful to you.

Sincerely, Sincerely, Sincerely,

(Hamid Rafique) (SherazHaider) (Haroon Abdullah)

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,

Executive Summary

This is a Project report regarding the Organizational Structure Study of “Kentucky Fried chicken”.

It starts with an introduction about COUPLA(The Parent Organization) followed by the KFC and

history of KFC.

The report shows an internal architecture of the working of the KFC Fast food business. It gives a

detail about the supporting department that has helped the business in their daily working. 1200

direct and 6000 indirect employees working in these departments and 62 outlets are doing

business under the brand name of KFC in Pakistan. It’s also comments on organizational

structure.

The report describes different brands of the “CUPOLA”

SWOT analysis has also been included in this report to know about the current position of

organization in Pakistani culture.

In the end, there are also some suggestions/recommendations for the business.

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Table Of Contents

Title Page No

Acknowledgement 2

Letter of Transmittal 3

Executive Summary 4

Table of contents 5

Overview of the Organization” CUPOLA” 6

History KFC 7

Organizational Structure 10

Introduction of Departments 11

Analysis 16

Recommendations 18

Sequence of Paper/ Presentation

Introduction to Organization Hamid

KFC History and Organizational Structure Haroon

Introduction to Departments Sheraz

Analysis and Recommendations Hamid

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Practical Study of the Organizational Design of a Firm

Overview of organization

Brand Portfolio

1. Cupola is a Dubai based multinational Development Capital and Operations

Group with a specific regional focus, recognized for its dynamism in capital activities,

consumer markets, and industrial projects and in the information sector with the

capacity of more than 2,300 employees.

2. The Cupola group has professional people from diverse backgrounds,

nationalities and differing interests. It deals in 5 sectors.

Retail My Super Store and Loccitane

Food KFC, Indulge, CASA and Lal Qila

Information Cupola Teleservices (UAE)

Constructions Cupola Constructions (UAE)

Engineering (Oil, gas & water industry)

3. Cupola Pakistan

Cupola Pakistan is one of the operating entities of the Cupola Investment Group. In

Pakistan the operations focus primarily on the consumer and retail sector. The group’s

success has been in creating a portfolio of franchises in the region, in sectors like food,

entertainment, consumer and business services. KFC is one of the highly successful

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franchises of Cupola Pakistan. Other ventures related to food retail being Indulge and

Casa and Lal Qila which is in the making. Apart from food concepts retail

supermarkets/convenience stores are also under this umbrella, by the name of My

Super Store and L’occitane. Diversity is what Cupola strives for!

4 Brief History KFC

a. KFC (Kentucky Fried Chicken) is the project of Gray Mackenzie

Restaurants International Ltd. The founder of KFC is Col. Harland

Sanders. He started his business on a gas station in 1930’s; mainly “fried

chicken”. After passing some time he owned in Corbin, Kentucky, and

later at a restaurant and motel he bought across the street. The world’s

first “Kentucky Fried Chicken” outlet was opened in 1952 in South Salt

Lake, Utah; Sanders sold the entire KFC franchising operation in 1964 for

$2 million, and it has since been sold three more times, most recently to

PepsiCo, which made it part of its Tricon Global Restaurants division,

now known as Yum! Brands, Inc. In 1997, Tricon was spun off from

PepsiCo.

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b. Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has

come a long way, with over 10,000 outlets in the world; KFC has

maintained its title, for the last 60 years, of being “The Chicken Experts.”

5 KFC Pakistan

a. KFC is operated by “Cupola” company in Pakistan. Cupola is a Dubai

based MNC involved in a number of businesses. Presently KFC is

branched out in seventeen cities of Pakistan (Karachi, Lahore,

Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Murree,

Abbottabad, Bhera, Sial, Sukheki, Chakri, Gujranwala, Jhelum, and

Islamabad) with 62 outlets nation-wide. Opening the first KFC outlet in

Gulshan-e-Iqbal, Karachi in 1997, KFC wore the title of being the market

leader in its industry. Serving delicious and hygienic food, in a relaxing

environment made KFC everyone’s favorite. Since then, KFC has been

constantly introducing new products and opening new restaurants for its

customers.

b. In Pakistan KFC has been divided into two regions, North and South. In

the South region, KFC is serving Karachi and Hyderabad with 32

restaurants. Whereas, in the North, they have a chain of 30 restaurants;

that are located in 15 cities. i.e. Lahore, Islamabad, Rawalpindi,

Peshawar, Multan, Sialkot, Jhelum, Gujranwala, Bhera, Chakri, Sukheki,

Sial, Murree, Abbottabad and Faisalabad.

6. Nature of Organization

KFC is fast food serving company which is very famous in chicken products. They

provide verity of food which is made with chicken like Zinger burger, Chicken pieces, hot

shots, nuggets and rice, KFC known as chicken specialist. They provide hygienic food

and delivery of food services to their customer with care.

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a. Number of employees

They have reached the number of 62 restaurants in 17 different cities and

1200 plus employees. Cupola Group, which is the owner of KFC, Indulge

restaurant, and My Super Store along with many other businesses, is

exhibiting the same strategy of growth for all the other businesses too

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Organizational Structure

b. Organizational Hierarchy Chart

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Introduction of all Departments

7. Internal Audit Department – North

a. Mission.

To Ensure corporate operations are conducted according to the

highest standards.

To help corporate accomplish its objectives.

Evaluating the effectiveness of Risk Management, control &

governance process.

b. Areas of Working.

Departmental Audits

Financial Audits

Operational Audits

Contracts Audits

Fraud & Financial Irregularity Audits

c. Departmental Hierarchy

Usman Ahmed Malik (Manager Internal Audit)

Nadeem Shehzad (Assistant Manager Internal Audit

8. Quality Enhancement Deptt –North

a. Mission. Provide safe, healthy, wholesome & hygienic

food with a healthy environment keeping in view worldwide fast food

quality standards as per YUM’s guide.


Restaurants

Warehouse

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Bakery

RSC

Supplies


Liaqat Mahmood Manager QE (North)

Imran Khan CER Specialist (North)

Muhammad Shoaib Tahir Asst.. Manager QE

Uzman Gulzar QE Executive

9. Call Center - North

a. Mission. Meet and Exceed consumer Needs across four key points.


Build & Deploy great teams.

Layout, organization & capacity.

Speed of Service & Trade Area Mapping.

Systems & Procedures.


Home Service Manager

Asst. Home Service Manager Mian Khurram

Customer Care Executive (Field Resource) Adnan Zeeshan

Customer Care Executive Awais Sadiq

Customer Care Executive

10. Human Resource Department – North

a. Mission. To meet the organizational goals & objectives regarding

Human Resources & to ensure that all the H.R. functions are implemented

& working appropriately.


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HR Planning

Recruitment & Selection

Compensation & Benefits

Policies

Training & Development

HR Branding

HR Audit


Furqan Humayun Sheikh HOD HR Dept - North

Fareed Ud Din Assistant Manager HR - North

Syed Mudassar Hussain HR-Executive

11. Marketing Department - North

a. Areas of Working.

Brand Management

Advertising & Promotion

E-Marketing

Corporate Sales & Strategic Alliances

Research & Analysis

Customer Relation Management

Kids Marketing

Vendor Management

b. Departmental Hierarchy

Asstt manager corporate sales & analysis

Asstt manaer marketing services

Manager brand activation

12. Administration Deptt. - North


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Transport & Traveling Issues

Security

Liaison with Govt. Authorities

Office Administration

Other Issues (TMA, TEPA, LDA, Police, etc)


Manager Admin & Security

Senior Admin Executive

Security Supervisor

13. Finance Department – North


Cash Flow Management

Sales Reporting & Analysis

Food Cost & Analysis

Financial Reporting & Analysis


Manager Accounts

Sr. Accounts Officer MSS Accounting

Sr. Accounts Executive Food Cost North GMRIL

14. I.T. Department – North


RSC LAN ,WAN ,Radio Link ,VSAT link Support

RSC System Support

Email Server, Data Server ,ISA Server, Firewalls, End point

Security

Point of Sale Machine Hardware and Software Support

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POS LAN, WiMax, DSL VPN Support


Assistant IT manager

3 * IT support Executives

3 * IT Executives

15. Supply Chain Department - North a.


Market visits for material arrangements

Restaurants visits for buffer level

Purchases from market for KFC, Indulges & Casa

Monthly visit at Nascorp and warehouse

Material management in North region

Rate Renegotiation

Suppliers Develop for GMRIL & CPL


Sr. Executive Supply Chain( North)

Executive Supply Chain( North)

16. Operations Department - North


Org / oversee functioning of each branch under preview

Branch Manager Act Independently to operate branch dealing all

issue relating that branch

Basic functions of North region Headquarter are performed by each

branch manager


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Mr. Saqib Zaidi Operations Head

Mr. Adeel Ahmad Territory Manager

SamiUllah Shahmeer Territory Manager

Mr. Mehmood Ali Territory Manager

Muhammad Faheem Territory Manager

17. Analysis

a. Defining Organizational Structure

Structure is based on functional departmentalization and

geographical departmentalization

b. Organizational Design

Work specialization

o Job rotation done

o Multi tasking carried out

Departmentalization

o Functional and geographic based

Chain of command

o Authority for major decisions rest with higher ups

o structure is defined

o Responsibility taking attitude

o command rests at functional level

Span of control

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o Managers are well trained and groomed and so do other

staff

o Work distributed for easy management

o Depends on income of the branch

o Key appointments are specified however it varies as per

requirement

Centralization and decentralization

o Decentralization with certain restrictions or within limits

Formalization

o Low formalization

Employ empowerment

o Evaluation done by managers

c. Organic Type Of Organization

Structure is based on functional departmentalization and

geographical departmentalization

Cross functional teams performance

Cross hierarchical teams tasking done

Passage of information is free

Wide span of control at Operational level but narrow at

departmental levels

Decentralization at Managerial levels

Low formalization to limited capacity at departmental level

18 Recommendations

a. Though training is imparted, however, Employees should be trained

according to the changing standards of the General Public.

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b. They should introduce creativity into the work, so that the employees can

do their work active mindedly.

c. Marketing department has a lot of activities and operations to perform but it seem to be behind schedule. Increase in the number of employee in the department can cover the all marketing activities

d. Enhanced use of IT tools be done.

e. KFC carries out advertisement through billboards and printing media which is not that effective. Use of every mean be managed to disseminate info and it be made as per latest marketing trend.

f. Shortage at branch staff adversely affects the out come.

final kfc mgmt 281550 nov 2010

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