Gabrido, Joanna Pauline Y.

BSIE-IV

Strategic Management Engr. Sheily Mendoza

KFC Case Study

Statement of the Problem

How would KFC maintain a market leadership in the global fast-food industry?

Objective

To maintain a global market leadership fast-food industry

To establish a strong position and develop their image
To take advantage of the potential growth in other countries.

SWOT-Environmental Analysis

Strengths

KFC had a refocused international strategies to grow its company and franchise
restaurant base all over the world
Competitive marketing strategy: Developed Three types of chicken: Original
recipe(pressure cooked) Extra crispy (fried) Tender roast (roasted)
KFC continued to dominate the chicken segment ($4.4B) past its nearest competitor
Popeyes at a distant second ($1,0B)

Weakness

Several restructurings led to layoffs throughout KFC, replacement of KFC managers

with PepsiCo managers
KFC sales stagnated. There was widespread discontent among the franchisees, some
of whom felt new owners did not understand the chicken business and were not
providing leadership expected from a franchisor

Opportunities

US market maturity
KFC is an American company and 35 largest restaurant chains in the world (200)
were Americans firms.
Threats

Consumer health food trend

Saturated fast food industry in the US market

Environment

Good ambiance of stores

Alternative Courses of Action

ACA#1

KFC should introduce their present and new products and services into
geographic/demographic areas

ACA#2

Add more KFC product & service variety to the public consumers

ACA#3

KFC should make healthier choices for their menu

Recommendation and Detailed Plans of Actions

Based on the analysis, we can conclude that they should start by solving their internal issues
such as management and restaurant menu before thinking about expanding. They should
work on the management issues to create a good atmosphere where employees are happy to
work in. I certainly do not believe that by treating employees poorly, a company can be
successful. They also need to make sure that their restaurants offer a diversified menu,
provide their customers with quality food, excellent service and restaurant cleanliness. KFC
should always listen to their customers and try to follow the new trends on the market in
order to fully satisfy their customers. Otherwise, competitors will satisfy them and will
eventually outperform you as Boston did with its grilled chicken.

Conclusion

KFC is one of famous fast-food chain, but they should implement a farm level
guideline & audit program a program which is industry leading in areas of poultry care and
handling, mainly for their suppliers in the broiler industry.