Presenters:

o M Ehtisham
o Osama Shahzad
o Abid Hussain
o Safdar Ali

STUDENTS @ SUKKUR IBA UNIVERSITY

Table Of Content
o About KFC
o Organizational Structure
o Constraints on Managers
About KFC
The organization was founded by Colonel Harland Sanders in 1952. KFC stands for Kentucky
Fried Chicken. It is the second largest food chain in the world. It runs more than 14000 outlets
across the globe. Most probably it has 62 outlets in Pakistan, KFC first jumped in the market of
Pakistan in the 1960s but it couldn’t keep up so it had to close down its outlets. Later it again
joined the market of Pakistan in 1997 and has been doing business since then.
Organizational Structure
It is the formal arrangement of jobs within an organization.
Organizational Structure comprises following Six basic elements:

o Work Specialization

o Departmentalization

o Chain Of Command

o Span Of Control

o Centralization And Decentralization

o Formalization
Mechanistic Or Organic?
MECHANISTIC ORGANIC

1. Low work specialization

2. Free flow of information
1. Rigid departmentalization
3. Wide span of control
2. High formalization 4. Decentralization

Organic
Structure choices
Strategy and structure
Size and structure
Process production to avoided uncertainty
Traditional Structure
Production:
◦ Specialty is to serve order within 5 to 13 minutes
◦ KFC keep high value for their customers
◦ They follow customized production
Technology:
◦ Purchase of best quality of machineries which are easy to use.
◦ Recently, they have purchase new machine for ice-cream as demand increased for ice-cream because of summer season.
Latest techniques for employees:
◦ Latest techniques such as telecommuting structure, flexi time, compressed work week, job sharing are not followed by the
KFC. However, the workers are both temporary and permanent.
Constraints On Managers
Organizations need not to put a lot of constraints on the managers. For the purpose of a smooth
functioning organizations build such environment in which freedom and limits are kept in line.
Managers on daily basis come across constraints that are necessary as well as obstacles in
working.
External Environment
Omnipotent of the view:
◦ It is less likely to happen
◦ Quality assurance department and quick response service
◦ If unfortunately, any thing happens managers take the responsibility
Macro Level External Factors
Demography:
◦ Customers between the age 18 to 40
◦ In weekends a good number of customers

Economic:
◦ If there is inflation they decrease the profit margin rather to increase prices
◦ Reason: to retain the customers and to keep their loyalty

Political/Legal
◦ Information was concealed by the manager

Environmental uncertainty:
◦ High level of environmental uncertainty
◦ New products has been introduced
Micro Level External Factors
Employees: Competitors:
◦ Good relationship with employees ◦ As manager communicated that we have no any
◦ In case of any issue a meeting held to solve that competitor but wherever they go they give
problem competition
◦ We are like a family Media:
Customers: ◦ They used to visit organization but due to purity
hygiene they doesn’t mislead people
◦ Customers are always right
◦ If any problem occurs managers tackle that issue
and excuse them
Culture
Strong culture: Sustainability of culture:
◦ Rules are clearly defined and followed ◦ Use of paper bags rather than plastic bags
◦ Stories are delivered to motivate the employees ◦ Smoking, snuffing or use of any drug is
prohibited inside the organization
Hiring of new employees:
◦ Through formal procedure Creative culture:
◦ Two to three days just to observe ◦ KFC does not follow creative culture
◦ Start working with senior employees
◦ Stories are told in order to learn culture and
work
Customer friendly culture:
◦ Customer is always rights
◦ Employees use to treat humbly whatever
customer is responding
Conclusion
KFC Sukkur is the leading food provider of the region. It has a loyal customer bank, it has a
trained staff with good environment surrounding its work space which lets the customers enjoy
their food while taking pleasure from the environment.
Thanks