Welcome to KFC

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Welcome to KFC
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Angeles Flores Rene Guillarme Yvette
Minjares Jarvis Mullahan Armando Robles Denise
Simon
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KFC Facts

• KFC is based in Louisville, Kentucky, and is the
  worlds 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

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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 qsrs 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

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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
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Yum! Brands, Inc. International Presence
Competition
The International Portfolio of 5 leading U.S.
Brands give Yum! a distinctive advantage over the
single-brand competitors.
In Thousands
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KFC Domestic International
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Internal Analysis Functional Areas

• Finance/Accounting
• Since 2001, Yum Brands Inc. has outperformed the
  market
• Computer Information Systems
• Newly established Computer information system
•  
• Marketing
• Positioning among competitors is favorable
• unconventional methods of distribution
• multibranding
• Management
• Objectives and goals are measurable and
  achievable
• Team empowerment
•  
• Productions/Operations
• Constant improvement on quality of chicken
• Producer and operators are strategically located

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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

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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

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Space Matrix

• Competitive Advantage
• Industry Strength
• Environmental Stability
• Financial Strength

• Aggressive position

FS
CA
IS
ES
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BCG Matrix
?
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Additional Matrices

• IE Matrix
• Grand Strategy Matrix
• Quadrant I

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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)

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Alternatives Not ChosenOur recommendations to KFC

• KFC Groceries
• Product Development
• Market Penetration
• Concentric Diversification
• Similar to Taco Bell groceries
• Advantage of Name Recognition
• Frozen Meals
• Chicken Breading Mix

• KFC Cafeteria
• Market Development
• Concentric Diversification
• Similar to Furrs or Lubys
• Fast food with traditional restaurant environment
• Reaching out to a new market

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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 KFCs name recognition and reputation
• Secret Recipe
• Expands employee loyalty

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Strategic Management

• Market Development
• KFC will introduce their present and new
  products and services into new geographic/demograp
  hic areas.
• Product Development
• Bring back rotisserie chicken
• Concentric Diversification
• Add more to KFC product service variety to the
  patients

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Implementations

• Market Research
• Determine areas demand to determine boundaries
• Expand menu
• Healthier choices
• Meals will be sold at cost
• Determine effects on budget

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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
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The End
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