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Welcome to KFC
Angeles Flores
Rene Guillarme
Yvette Minjares
Jarvis Mullahan
Armando Robles
Denise Simon
KFC Facts
• KFC is based in Louisville, Kentucky, and is the world’s most
popular chicken restaurant chain.
• Founded by Colonel Harland Sanders in 1952.
• More than 11,000 outlets
• 85 countries and territories around the world.
• 8 million customers each day.
• Yum! Brands is run by David Novak,
Chairman & CEO
• KFC Division is run by Cheryl Bachelder,
President and Chief Concept Officer
From $105 to 7.2 Billion in 50 years
• 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check
• 1964, Col Sanders had more than 600 franchised outlets in the US and Canada.
• 1964, Sold his interest in his company for $2 million to a group of investors.
• 1966, KFC went public
• 1969, Listed on the NYSE
• 1971, KFC was acquired by Heublein Inc. for $285 million.
• 1982, Heublein & KFC Inc. was acquired by RJ Reynolds
• 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.
• 1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.
• 2002, Tricon changed it's corporation name to Yum! Brands, Inc. .
• NOW:
– Yum Brands, Inc. is the world's largest restaurant company in terms of system units with
nearly 32,500 in more than 100 countries and territories.
– Yum! Brands, Inc., is a Fortune 300 company
– Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.
– Current Market Cap value on the NYSE is 7.2 Billion
Yum! Financial Data & Trends
In Past 5 Years:Debt Ratio has dropped 25%Net Income after Taxes has increased 31%Profit Margin has increased 41%
Yum! Brands, Inc. International Presence & Competition
*In Thousands
The International Portfolio of 5 leading U.S. Brands give Yum! a distinctive advantage over the single-brand competitors.
KFC Domestic & International
Internal Analysis Functional Areas
Finance/AccountingSince 2001, Yum Brands Inc. has outperformed the market
Computer Information SystemsNewly established Computer information system
Marketing
Positioning among competitors is favorableunconventional methods of distribution multibrandingManagementObjectives and goals are measurable and achievableTeam empowerment
Productions/Operations
Constant improvement on quality of chickenProducer and operators are strategically located
Internal Factors SW
• Strengths– Multibranding Strategy
– Name recognition and Reputation
– Employee Loyalty
– Global Expansion
– Targeting Non-Traditional Outlets
• Weaknesses– Conflicting Corporate
Cultures
– No defined target market
– Time it takes to market new products
External Factors OT
• Opportunities– International Appeal to
American products
– Economies of Scale and Scope
– The downturn of the US economy
• Threats– PETA
– Consumer health food trend
– Saturated fast food industry
Space Matrix
• Competitive Advantage
• Industry Strength
• Environmental Stability
• Financial Strength
Aggressive position
FS
IS
ES
CA
BCG Matrix
Asia Europe
USA
Americas
?
Additional Matrices
4.0THE EFETOTALWIEGHTED 3.0SCORES
2.0
1.0
1.03.0 2.0
THE IFE TOTAL WIEGHTD SCORESWeak
1.0 to 1.99Average
2.0 to 2.99Strong
3.0 to 4.0
Asia 20% US 67%
Americas 7%
Europe 6%
• IE Matrix
• Grand Strategy Matrix– Quadrant I
Alternatives
• KFC Hospice Dinners – Delivering a caring outreach to the terminally ill (SO)
• KFC Cafeterias – Offering dishes competitors do not (SO)
• KFC Grocery Products – The Cornel is always home (SO)
Alternatives Not ChosenOur recommendations to KFC
KFC CafeteriaMarket Development
Concentric Diversification
• Similar to Furrs or Lubys• Fast food with traditional
restaurant environment• Reaching out to a new
market
KFC GroceriesProduct Development
Market Penetration
Concentric Diversification
• Similar to Taco Bell groceries
• Advantage of Name Recognition
• Frozen Meals• Chicken Breading Mix
KFC Hospice dinners Delivering outreach to terminally ill
– Hospice delivers meals to the terminally ill nationwide.
– These meals are delivered directly to the patient in their own home.
– Why?• Political & Social Image• Advances KFC’s name recognition and reputation• “Secret Recipe”• Expands employee loyalty
Strategic Management
Market Development
KFC will introduce their present and new products and
services into new geographic/demographic areas.
Product Development
Bring back rotisserie chicken
Concentric Diversification
Add more to KFC product & service variety to the
patients
Implementations
• Market Research• Determine area’s demand to determine boundaries
• Expand menu• Healthier choices
• Meals will be sold at cost• Determine effects on budget
Long-term company objective
• KFC is a publicly traded company with responsibilities to all shareholders
• By becoming a more “socially responsible” corporation we hope to attract a new type of investor while retaining our current stockholders.
• Ben & Jerries & Starbucks have benefited financially by promoting their “socially responsible corporation”
• KFC hopes to achieve this by becoming synonymous with hospice.
Thank you for your attention
The End
Yum! Brands, Inc.http://www.yum.comKFChttp://www.kfc.comThailandhttp://www.kfc.co.th/Japanhttp://www.kfc.co.jp/Crueltyhttp://www.kfccruelty.com/The Wall Street Journalhttp://www.wsj.com