Kentucky Fried Chicken

SUBMITTED TO:

SUBMITTED BY:

Acknowledgement

First of all, our gratitude to All-Mighty ALLAH who gave us the energy, the

motivation and the wisdom to accomplish this research task.

Writing a successful text requires a team effort and we have enjoyed working

with excellent teammates. Throughout the process of writing the report, many
people stepped forward with tremendous efforts that allowed us to accomplish

our stated goals. We would like to recognize the sincere and devoted efforts of

many people who added their input to the processes of developing this Project

Report. As stated in the developing story section, we received invaluable advices

and suggestions during the development and revision process.

Purpose Of The Project

The purpose of this project is to find out the History, Functions, Operations and
Services of KFC . Then do give suggestions and recommendations and in the end
to conclude the effect of the implementations.
 Executive Summary

This project gives a brief detail of Fast Food Industry in Pakistan

The Final Project gives the brief snap shot of Situational Analysis on Fast Food
Industry. The SWOT analysis indicates the Strength, Weakness, Opportunities and
Threats of the KFC.

To get reasonable market share in Fast Food Industry required a reasonable amount of
capital to open up outlets in different locations, plants with high definition equipments for
food processing and for designing a distribution channel form plant to outlet. Also huge
amount required for the marketing to sell their product at different locations and to
establish the positing in the mind of potential customers.
The market leader in Fast Food Industry is KFC and its major competitors are
McDonald, Pizza Hut. KFC is sticked with their original recipe but McDonald have huge
assortment of its products. KFC have strong bard name and famous for its quality
products and services. KFC major target segment and consumption is associated with
the geographic as well as economic conditions of a place. As the target segment of the
KFC is upper and middle class so the main outlet are in the urban area specially in the
big cities like Lahore, Karachi, Faisalabad, Islamabad and Peshawar.

TABLE OF CONTENT

CH#1:
OPERATION MANAGEMENT …………………………………………………..1
PROJECT MANAGEMENT …………………………………………………..…. 2
FORECASTING …………………………………………………………………...2
GOODS AND SERVICES SELECTION ………………………………………....3
QUALITY MANAGEMENT ……………………………………………………...4
STRATEGIES ……………………………………………………………………..4-5
SUPPLY CHAIN MANAGEMENT ……………………………………………….6
 CH#2

KFC PROFILE…………………………………………………………………….7
PRODUCTS………………………………………………………………………..8
MENUE ITEMS……………………………………………………………………8-9
OTHER PRODUCTS………………………………………………………………10
DISCOUNTED PRODUCTS……………………………………………………...10
NUTRITIONAL PRODUCTS…………………………………………………….11
FACTS ABOUT KFC……………………………………………………………..11
KFC AND PAKISTAN……………………………………………………………12
PRODUCT MARKET……………………………………………………..............13-14
MARKET SHARE…………………………………………………………………15-16
CUSTOMER MARKET…………………………………………………………...17-19
MARKET PROGRAMMES……………………………………………………….20-21
PRICING PRACTICES…………………………………………………………...22
SWOT ANALYSIS………………………………………………………………..22-23
PROMOTION………………………………………………………………………24
OPERATIONS……………………………………………………………………..25
FORECAST………………………………………………………………………..25-27
QUALITY MANAGEMENT………………………………………………………27
MARKETING STRATEGIES……………………………………………………..28
LOCATION STRATEGY………………………………………………………….29
HUMAN RESOURCE MANAGEMENT ………………………………………...30-32
SUPPLY CHAIN MANAGEMENT……………………………..………………....32

CH#4

SUGGESTIONS…………………………………………………………………….33

CH#5

RECOMMENDATIONS …………………………………………………………...35

REFERENCES ………………………………………………………………………36
 CHAPTER #1
OPERATIONS MANAGEMENT:

Operations Management deals with the design and management of products, processes, services

and supply chains. It considers the acquisition, development, and utilization of resources that

firms need to deliver the goods and services their clients want.

The purvey of OM ranges from strategic to tactical and operational levels. Representative

strategic issues include determining the size and location of manufacturing plants, deciding the

structure of service or telecommunications networks, and designing technology supply chains.

Tactical issues include plant layout and structure, project management methods, and equipment

selection and replacement. Operational issues include production scheduling and control,

inventory management, quality control and inspection, traffic and materials handling, and

equipment maintenance policies.

PROJECT MANAGEMENT:

Project management is a carefully planned and organized effort to accomplish a specific (and
usually) one-time objective, for example, construct a building or implement a major new
computer system. Project management includes developing a project plan, which includes
defining and confirming the project goals and objectives, identifying tasks and how goals will be
achieved, quantifying the resources needed, and determining budgets and timelines for
completion. It also includes managing the implementation of the project plan, along with
operating regular 'controls' to ensure that there is accurate and objective information on
'performance' relative to the plan, and the mechanisms to implement recovery actions where
necessary. Projects usually follow major phases or stages (with various titles for these), including
 feasibility, definition, project planning, implementation, evaluation and support/maintenance.
(Program planning is usually of a broader scope than project planning, but not always

FORECASTING :

Forecasting is the process of estimation in unknown situations. Prediction is a similar, but more

general term. Both can refer to estimation of time series, cross-sectional or longitudinal data.

Usage can differ between areas of application: for example in hydrology, the terms "forecast"

and "forecasting" are sometimes reserved for estimates of values at certain specific future times,

while the term "prediction" is used for more general estimates, such as the number of times

floods will occur over a long period. Risk and uncertainty are central to forecasting and

prediction. Forecasting is used in the practice of Customer Demand Planning in every day

business forecasting for manufacturing companies. The discipline of demand planning, also

sometimes referred to as supply chain forecasting, embraces both statistical forecasting and a

consensus process.

Forecasting is commonly used in discussion of time-series data.

GOODS AND SERVICES SELECTION:

In economics, economic output is divided into physical goods and intangible services.

Consumption of goods and services is assumed to produce utility. It is often used when referring

to a Goods and Services Tax.

We satisfy our needs and wants by buying goods and services. Goods are items you can see and

touch, such as a book, a pen, salt, shoes, hats, a folder etc. Services are provided for you by other

people, such as; doctor ,a lawn mower worker, a dentist, haircut and eating in restaurants.
 QUALITY MANAGEMENT:

Quality management can be considered to have three main components: quality control, quality
assurance and quality improvement. Quality management is focused not only on product quality,
but also the means to achieve it. Quality management therefore uses quality assurance and
control of processes as well as products to achieve more consistent quality.

STRATEGY:

Strategy is a process that can allow an organization to concentrate its limited resources on the

greatest opportunities to increase sales and achieve a sustainable competitive advantage. A

marketing strategy should be centered around the key concept that customer satisfaction is the

main goal.

LOCATION STRATEGIES:

Location Strategies, provides retailers, shopping center developers and advisors with decision-

making location research. Location Strategies meets clients’ needs by delivering

straightforward, candid and customized reports, enabling clients to make sound financial

decisions. Location Strategies provides all the advantages of an in-house research department

,offering depth of experience without the fixed overhead.

HUMAN RESOURCE STRATEGIES AND JOB DESIGN

Leading organizations are places where people know the strategy and goals, feel respected and

valued, understand their role, and know how to succeed. You can create these conditions; thus

increasing organizational success and productivity while reducing risk. Effective human capital

strategy and practices are directly related to higher levels of financial and market success.

Work arrangement (or rearrangement) aimed at reducing or overcoming job

dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through

job design, organizations try to raise productivity levels by offering non-monetary rewards such

as greater satisfaction from a sense of personal achievement in meeting the increased challenge
and responsibility of one's work. Job enlargement, job enrichment, job rotation, and

job simplification are the various techniques used in a job design exercise.

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the management of a network of interconnected

businesses involved in the ultimate provision of product and service packages required by

end customers (Harland, 1996). Supply Chain Management spans all movement and storage of

raw materials, work-in-process inventory, and finished goods from point of origin to point of

consumption (supply chain).

Another definition is provided by the APICS Dictionary when it defines SCM as the "design,

planning, execution, control, and monitoring of supply chain activities with the objective of

creating net value, building a competitive infrastructure, leveraging worldwide logistics,

synchronizing supply with demand, and measuring performance globally."

CHAPTER # 2

KFC Profile
Food, fun & Festivity, this is what KFC is all leading the

market since its inception, KFC provides the ultimate chicken

meals for a chicken loving nation. Be it colonel sanders secret

original recipe chicken or the hot & spicy version, every bite

brings a yum on our face. At KFC we proudly say, “We do chicken right”.

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. Opening the first KFC outlet in Gulshan-e- Iqbal 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.

Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala,

Sukkur & Muree) with more than 45 outlets nation-wide.

Products

Packaging:

The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to

signify the company was originally created by Wendy's restaurants founder Dave Thomas.

Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several

outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it

helped keep the chicken crispy by wicking away excess moisture. Thomas was also responsible

for the creation of the famous rotating bucket sign that came to be used at most KFC locations in

the US.

Menu Items
Chicken:

KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried

pieces of chicken made with original recipe. The other chicken offering, extra crispy, is made

using a garlic marinade and double dipping the chicken in flour before deep frying in a standard

industrial kitchen type machine.

Kentucky Grilled Chicken - This marinated grilled chicken is targeted towards health-conscious

customers. It features marinated breasts, thighs, drumsticks, and wings that are coated with the

Original Recipe seasonings before being grilled. It has less fat, calories, and sodium than the

Original Recipe fried chicken. Introduced in April 2009.

KFC has two lines of sandwiches: its "regular" chicken sandwiches and its Snackers line. The

regular sandwiches are served on either a sesame seed or corn dusted roll and are made from

either whole breast fillets (fried or roasted), chopped chicken in a sauce or fried chicken strips.

The Snackers line are value priced items that consist of chicken strips and various toppings. In

the UK, Australia and New Zealand, sandwiches are referred to as "burgers"; there is the chicken

fillet burger (a chicken breast fillet coated in an original-recipe coating with salad garnish and

mayonnaise) and a Zinger Burger (as with the former but with a spicier coating and salsa). Both

of these are available as "tower" variants, which include a slice of cheese and a hash brown.

A variety of smaller finger food products are available at KFC including chicken strips, wings,

nuggets and popcorn chicken. These products can be ordered plain or with various sauces,

including several types of barbecue sauces and buffalo sauce. They also offer potato wedges.

Several pies have been made available from KFC. The Pot Pie is a savory pie made with

chicken, gravy and vegetables. In the second quarter of 2006, KFC introduced its variation on

Shepherd's pie called the Famous Bowl. Served in a plastic bowl, it is layered with mashed
potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served with a biscuit. The bowl

had been available at KFC's special test market store in Louisville since the third quarter of 2005.

The KFC Twister is a wrap that consists of either chicken strips or roasted chicken, tomato,

lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the Twister is sold in two

varieties: 1) the Grilled Twister (chicked strips), and 2) the Grilled Mexican twister/Spicy

Toasted Twister (UK) (chicken breast supplemented by tortilla chips and salsa, UK: adds only

salsa to pepper mayonnaise),

KFC Fillers are a 9" (22 cm) sub, available in four varieties over the summer period.

Shish kebab - in several markets KFC sells kebabs.

OTHER PRODUCTS:

Other product included

• Coleslaw
• The Boneless Banquet
• Chili Cheese Fries
• Parfait desserts
• Sara Lee Desserts

Discontinued Products:

The Colonel's Rotisserie Gold – This product was introduced in the 1990s as a response to the

Boston Market chain's roasted chicken products, and a healthier mindset of the general public

avoiding fried food. Purportedly made from a "lost" Col. Sanders recipe, it was sold as a whole
roaster or a half bird.

Tender Roast Chicken – This product was an off-shoot of 'The Colonel's Rotisserie Gold'.

Instead of whole and half birds, customers were given quarter roasted chicken pieces. For a time,

customers could request chicken "original", "Extra Tasty Crispy" or "Tender Roast".

Chicken Little sandwich – a value oriented sandwich that sold for $0.39(USD) in the U.S. during

the late 1980s and early 1990s. It was a small chicken patty with mayonnaise on a small roll,

similar to White Castle's mini chicken sandwich.

Extra Tasty Crispy (ETC) – Chicken much like the Extra Crispy served today, except ETC was

prepared using chicken that had been soaking for 15 minutes in a special marinade machine.

There is some speculation that the marinade may have been made with trans-fats, and KFC

boasts to no longer use trans-fats in their chicken, the known ingredients were garlic and chicken

stock. In the summer of 2007, KFC started marketing the chicken just as "Extra Crispy" without

the marinade.

Kentucky Nuggets were a chicken nugget product available at KFC until 1996. No reason has

been given for their discontinuation.

Smokey Chipotle – Introduced in April 2008. The chicken was dipped in chipotle sauce then

doubled breaded and fried. It has been discontinued since August 2008.

Nutritional Value:

KFC formerly used partially hydrogenated oil in its fried foods.

This oil contains relatively highlevels of trans fat, which increases the risk of heart disease. The

Center for Science in the Public Interest (CSPI) filed a court case against KFC, with the aim of

making it use other types of oils or make sure customers know about trans fat content
immediately before they buy food.

Facts:

Serving delicious, fresh and hygienic food and at the same time providing to customer with the

ultimate entertainment; KFC also plays in the economics development of our country.

• Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals

directly dependent in KFC Pakistan.

• The Government of Pakistan receives over Rs.10 million per month from KFC Pakistan

as direct taxes.

• 95% of all food and packing material used in KFC Pakistan is procured locally, which

sums up to a purchase of over Rs.35 million per month.

• Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is

a huge amount for our construction industry.

KFC and Pakistan…Growing Together.

KFC’s Customers

KFC’s customers generally choose the restaurant they will eat at based on quality, rapidity, and
variety of items. KFC’s customers are also really price sensitive and will go elsewhere if they
find that the value is not worth the price. They can also be characterized by being people that
want to be served fast and be out of the restaurant in no time.
Product Markets

Product Types, Varieties, and Trends

Promotional Deals
1-Chicken Deal= Rs.150 (2-Pcs Chicken + 1Rg Drink)
2-Value Deal
Growth Market:
As the world is now becoming a global village and now the eating habits is also being global so
Pakistan is one of the suitable country for fast food industry. From last decade many national and
internal companies opened their fast food outlets in Pakistan and also it is still very attractive
market for the newcomers who are willing to invest in the Fast Food Industry.
Government Policy
Especially there are no as such limitations imposed by the Government for those who want to
invest in Fast Food Industry.
Capital requirement
To get reasonable market share in Fast Food Industry required a reasonable amount of capital to
open up outlets in different locations, plants with high definition equipments for food processing
and for designing a distribution channel form plant to outlet. Also huge amount required for the
marketing to sell their product at different locations and to establish the positing in the mind of
potential customers.

Learning and Experience

In the Fast Food Industry learning and knowledge is very important for new entrant but also for
the employees which is helpful to establish new born business successfully.

Market Share

Comparison of KFC & its competitor outlets in Pakistan:

 Number of Outlets
KFC 60
McDonald 20
Pizza Hut 34

KFC
MC Donald
Pizza Hut

Sales Volumes and Trends:

Average Daily Sales by one Daily Sales by the all

Sales Per Month
outlet outlets
Rs. Rs. Rs.
KFC 215000 4,250,000 127,500,000
McDonald 145000 2,900,000 87,000,000
Pizza Hut 115000 1,680,000 60,400,000
 140000000

120000000 AverageDaily
Sales by one
100000000 outlet
80000000 Daily Sales by the
all outlets
60000000

40000000 Sales Per Month

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Competitor Analysis Work Sheet

In the chicken Burger chain and Pizza segment, the main competitors of KFC are McDonald and
Pizza Hut. In Pakistan KFC is the market leader because it is the first international chain that
opened its out let in country and also having huge number of outlet as compared to rest of the
competition.

Customer Markets

Segments of KFC

In this portion of project we will discuss that how many segments KFC is serving for its
products and what strategy they are using for these segments.

Market segmentation
 The commonly used basis for segmenting the consumer market may be grouped in following
categories, which are selected by the KFC for its products and services.

1) Geographic Segmentation

KFC major target segment and consumption is associated with the geographic as well as
economic conditions of a place. As the target segment of the KFC is upper and middle class so
the main outlet are in the urban area specially in the big cities like Lahore, Karachi, Faisalabad,
Islamabad and Peshawar and Motor ways.

2) Demographic Segmentation

Age: People from all age groups (Focus Kids 6-12 years)

Sex: Both Male & Female

Occupation: People from all walks of life

Income: Rs. 15,000/- and above

Religion: Deal in Hilal Foods Only, Especially targeted to

Muslims in Pakistan,

Life style Pattern

• Fun, Entertainment, enjoyment is the basic idea of the Target market of KFC Customers

• For families, Kids, individuals and couples

AIO-Act ivies, Interest and Opinions

• Target Market like fun, Entertainment

• Target customers like to test new products

• Target customers like to play different games

• Target customers Participate in different positive activities

Usage Patterns and Behavior

There is a little seasonal effect on the product demand, in winter season the demand of the

product will be on high scale and in summer season the demand will be little decrease because it

is a hot and spicy product so customer likes to take it in cool atmosphere. Product.

KFC products are available only at lunch, Dinner and also mostly outlet remain open till 2am,

Our Target Market mostly uses products in Lunch and Dinner.

Specific End Benefit

o Products are Hygiene,

o Products have unique taste,

o Product will be available in all outlets so it is easy access able product for end consumer.

o Products are also available at doorstep through Home Delivery Services,

o KFC is a fast food Restaurant so it provide the quick service delivery to its customers,

Psychographics Segmentation

The social class, which is included in the target group of KFC, is consumer from upper class and
middle class. They enjoy getting the services of KFC due to the status and time constraint. The
consumer has wide range of personalities from dynamic to interesting. From self confident to
extra vested, from adventuresome to social able. The personality of a person makes a lot of
difference in buying power.
The lifestyle of consumer varies from flashy, liberal modern to dull conservative and backward.
It is a very important factor which very much influences the buying pattern of the consumer.
People will be mostly influenced by high quality, healthful richness and branding of product.

. Target Market

A target market is defined as a group of customers (people or organization) at whom seller

specifically intends to aim its marketing efforts. For this purpose company must analyze three
components:

• Consumer
• Buying Power
• Social and psychological factors influencing buying patterns

With the increase in literacy rate and high disposable income people awareness about health and
expectation about services increased. This means Fast Food Industry has market in each age
group of society. Due to increased industrialization the income and the life standards are
improving. But the new generation is becoming modern and their life style is totally changed and
they like Fast food rather than traditional food items.

Marketing Programs

Advertising and Promotional Programs:

KFC Management is using both types of Mediums to promote its brands,

• ATL-Above the Line-Electronic Media
• BTL-Below the Line- Print Media
Promotional Activities:
Following are the KFC Promotional Marketing Programs:

Branded Prepaid Coupons

KFC brings to prepaid coupons of different meal combo options, which act as great distributor

trade or customer incentives. These exciting incentives are guaranteed to give a boost to your

sales and can make your incentives stand out from the order run of the mill incentives.

In order to act as true partners , KFC will print branded coupons (minimum quantity 500

coupons) of your own company or product, which can be redeemed at any of the KFC restaurant

nation wide or restaurants of your choice.

Corporate meeting, seminars & workshops at KFC

Meeting with trade people or customers can also be arranged at KFC.

KFC can arrange all related facilities for the meeting. (Minimum group size – 15 persons). This

facility is available at selected outlets.

Lunch/Dinner for Employees/Dealers/Customers and their Families at KFC

Companies can arrange lunch/dinner for their employees/dealers/customers at selected KFC

restaurants.

Outdoor Catering

KFC can bring complete hassle-free meals and serve at your specified premises.

(Minimum order size – 100 persons). All catering facilities will be provided according to you
needs.
 Some more Details are as follow

• Promotional Discounted Coupons for Corporate Customers

• Discounted Promotional Meals on Seasonal Products
• Discounted Promotional Meals for Increasing the Sales Figures
• AYC (All you can Eat) specially offer for Ramazan ul Mubarak
• Free Meal Vouchers for Corporate Clients
• 20% VIP Discount Card for Corporate Clients on all Regular Meals except the Promotional
Deals
• Free Chicky Premium on Chicky Meals
• LSM (Local Store Marketing) special Discounted Deals or Gift for Specific out let
• Free Meal area and Serving in case of any party and Birthday
• Free Gift for Birthday Child and Different Games for Kids

Pricing Practices

KFC pricing Strategy base on the raw material and other costs labor, overhead etc, Prices settled
to see the buying power of customers, Average check for a single customer and also to see the
target market economic condition, KFC Manu prices are revised 4 time since January 08, it
creates a difficult situation for Customers, overall KFC Sales figures are down as compare to last
year sales and Internal Budgets as well, this all happen due to the lot of revision in Manu Prices
that’s why KFC Management is decided to launch some MAJOR Promotional programs to boom
the sales, it will launch in near future,
Over all the prices figures change to see the buying power of Customer and also to see the sales
analysis.
Access to distribution
There is lot of suppliers of raw material (confectionary and meat items) available in the market
and there is no such problem of work force. Newcomers have easy access to distribution
channels for production.

SWOT Analysis

STRENGTHS & WEAKNESSES ANALYSIS OF KFC

It is used to evaluate how KFC measures up to a competitor’s organization. The strength &
weakness evaluation is intended to determine where KFC is weak or where it is strong as
compared with the competition.
Strengths: (Internal)
 Good reputation in market
 Strong brand name
 Having Maximum outlets in the market
 Strong financial position
 Joint venture with the international firms like Pepsi cola and Yem international
 Using modern technology to interlink their resources
 Having strong distribution channel

Weaknesses: (Internal)
 Company did not come up with new products as compared to McDonald.
 Limited menu and sticked with their original recipe.
 Having less sales as compared to McDonald.
Uncontrollable Environment

Opportunities: (External)
 An unfulfilled customer needs.
 Growing Market
 Arrival of new technology (to maintain the quality and crispiness of the fried chicken
product.)
 Potential to capture additional market share
 Very few brands in Fast Food Industry (Brand building).

Threats: (External)
 Shift in consumer tastes, away from the firm product.
 High inflation rate.
 Emergence of substitute product.
 New government regulations
 Political & social instability.

Promotion:
Print Media:
  Advertisement in newspaper and Magazine specially in leading news paper
Dawn, The News, Jang and Nawaiwaqt.
 Spicy stand flex sign on the entrance gate
 Front lit flex sign on the billboard on different lactations.
 Broachers and pamphlets to introduce their new product to their customers.

Electronic media:

TV Channels: Before launching the product “Spicy Value Meal” will be displayed TVC teasers
on different Television channels. Some of the famous television channels are
 GEO
 TEN SPORT
 ESPN
 GEO SUPER
 Star Plus
 AAG
 ARY
 HUM

Radio: there is huge trend of youngsters to dine out in fast food restaurants and a huge number
of youngsters listen music on radio especially FM channels are too popular in the youngsters so
FM and AM radio channels can be a effective medium to permute our new product

OPERATIONS OF KFC
KFC was introduced in Pakistan market by the Artal group of Belgium and although a late
entrant, it managed to establish several outlets in Karachi , Lahore , and several more areas.After
a through survey and analysis KFC opened its first branch in Garden town Lahore five years
back. Since then there was no looking back for KFC as it started to earn profit and grow to other
different cities. KFC in Pakistan has been shoeing a steady growth and profitability . Some
profits were used for team making, uplift of the restaurants etc. KFC believes in providing “value
for money” to its customers. They have high quality standard and they are in concurrence to
those prevailing in other countries . They have an international brand name to protect so there is
strict implementation of quality standards.

KFC’s FORECASTING

HOT SPOT PREDICTIONS

Recently, we introduced the KFC model, a machine learning approach for predicting binding hot
spots within protein–protein interactions. Since this model is the basis of predictions generated by
the KFC Server, the following section summarizes its construction and performance. Further
details are available in the original manuscript

KFC’s FORECASTING MODEL

The KFC model is comprised of two decision tree-based classifiers: K-FADE [based on shape

specificity features calculated by the Fast Atomic Density Evaluator, or FADE and K-CON

(based on biochemical contact features). Each decision tree, which provides a set of hierarchical

rules for hot spot classification, was trained by a supervised learning process to recognize the

local structural environments that are indicative of hot spots. In practice, every path through the

tree terminates with a prediction/classification as to whether a residue is a hot spot. The training
set used for learning consisted of 249 experimentally characterized almandine mutations within

the interface of 16 no redundant protein complexes. Structures for each complex were obtained

from the Protein Data Bank (PDB) . For this work, residues were classified as hot spots if their

mutation to almandine resulted in a change of binding energy greater than 2 kcal/mol.

The data mining tool C5.0 (Rule quest, St. Ives, Australia) was used to create predictive models

from many different combinations of structurally-derived chemical and physical features that

describe the interface residues, and those that best described the hot spot environment were

selected as features for the K-FADE and K-CON models. K-FADE predicts hot spots using the

size of the residue and the radial distribution of shape specificity and interface points. K-CON

predicts hot spots in terms of a residue's; intermolecular atomic contacts, hydrogen bonds,

interface points and chemical type.

To validate this approach, KFC's; ability to predict known hot spots was compared to the

Robetta Interface Alanine Scanning (Robetta-Ala) service, a leading hot spot prediction utility

that predicts the G of a residue's; mutation to alanine. The predictive performance of each

method was described in terms of F1 score, a statistical measure of accuracy balancing precision

(the fraction of positive hot spot predictions that are correct) and recall (the fraction of known

hot spots that are predicted)., we have used the F1 score as a standard measure of predictive

accuracy.

A cross-validation analysis of the training data showed that KFC exceeded the predictive
accuracy of Robetta-Ala, and a model combining KFC and Robetta-Ala performed significantly
better than Robetta-Ala alone (P = 0.02). The combined model predicts a residue is a hot spot if
either KFC or Robetta-Ala makes a positive prediction. In addition, this result was verified by
using an independent test set of 112 mutations and the final KFC models trained on the full
training set. Again, KFC slightly outperformed Robetta-Ala, and the combination of KFC and
Robetta-Ala achieved a large statistical improvement in predictive accuracy over either individual
model (P = 0.0071). In addition to its high accuracy, KFC is computationally fast. Using
common computer hardware, a typical KFC analysis is complete in less than 2 min. Given its
speed and accuracy, the KFC model can support hot spot predictions for multiple users in a
server environment.

KFC FORCAST:

Yum! Brands, the owner of the KFC and Pizza Hut brands, has reaffirmed its full year 2009 EPS
growth forecast of 12% and expects further growth of beyond 10% in 2010.
“2009 has been a year of solid performance led by our China and Yum! Restaurants International
businesses, and we remain on track to deliver 12% EPS growth,” David Novak, Chairman and
CEO, said. “This performance has been driven by our industry leading international new unit
development, favourable commodity costs, productivity gains across our businesses and a lower
effective tax rate.”

“Our biggest challenge continues to be driving same-store-sales growth in the difficult consumer
environment. All indications are that 2010 will be another challenging year, and we have built
our plans accordingly.”

Next year’s growth is likely to stem from favourable currency movements, international
expansion (1,400 new stores are planned) and “modest” same-store sales growth

Quality Management

Kentucky Fried Chicken (KFC) Corporation, a member of the quick-service restaurant industry,
uses a sophisticated program to manage the quality of service it offers to its customers. In the last
quarter of 1989, the south central division of KFC launched a test program in four Oklahoma
City restaurants to improve the speed of service at its drive-through-window operation. It proved
extremely successful. The restaurants cut service time by more than half while improving labor
productivity. They also dramatically outperformed other restaurants in the division in profits,
sales growth, and growth in customer transactions. The improved processes in the test restaurants
have served as benchmarks for other KFC restaurants aiming for continuous process
improvement, while the reduced service time now serves as the revised specification in KFC’s
quality measurement and management program.
 Marketing strategy of KFC: KFC as a Brand

KFC is one of the best-known brands worldwide Doing Integrated assignment we study how
KFC continually aims to build its brand by listening to its customer's also identifies the various
stages in the marketing process.
Branding develops a personality for an organization, product or service. Brand Image represents
how consumers view the organization.

Branding only works when behaves and presents itself in a consistent way, Marketing
communication methods, such as advertising and promotion, are used to created colors, design
and image which gives a recognizable face .At KFC this is represented by its familiar logo-
Colonel Harland Sanders is shedding his white suit jacket for a red cook.

Marketing involves identifying customer's needs and requirements and meeting these needs in
better way then its competitors. In this way a company creates loyal customers.

Location Strategies of KFC

Kentucky Fried Chicken have recently found that site selection strategy needs to consider more
than just selecting the most profitable individual site locations. Not only are site locations of
nearby stores in the same chain as well as competitor chains important, but the total number of
stores a chain decides to locate within a single urban market is also of paramount importance.
Variation in total company transportation costs among different locations can

determine a company's lowest cost operating location; but, what if a significant portion of the

transportation costs of finished goods or services are left for the customer to pay? In these cases,

proximity to the point where a customer picks up the cost of transportation may have a major

impact upon a company's total dollar sales volume. While such customer transportation costs

often mean getting a product or service from the company outlet to a customer's home or
business, it may also mean getting the customer from their home or business to the company

outlet (e.g., fast food). In either case, more sites closer to customers, or possibly more generous

customer delivery policies, may have to be considered.

HUMAN RESOURCE

STRATEGY

HUMAN RESOURCE POLICY IN KFC

Hiring and retaining the right employees is critical to the success of your restaurant's operation.
Here you'll find news and research on getting the most from your human resources processes.

Area Manager:

Area Managers are accountable for providing coaching, leadership and operational support to 8-
10 KFC Restaurants within a defined Area.

Restaurant General Managers:

The Restaurant General Manager is accountable for creating and running an energetic and
valuable work environment, which is committed to serving the best chicken at the fastest speed
and with a smile.
The Restaurant General Manager reports directly to an Area Manager and is accountable for
successfully implementing and maintaining all Company policies and procedures in relation to
operations, customer service, cash handling, marketing, purchasing, human resources, health &
safety, administration, training and development.

Assistant Managers:

The Assistant Manager is responsible for assisting the Restaurant General Manager (RGM) in
creating an energetic and valuable work environment, which is committed to serving the best
chicken at the fastest speed and with a smile.
Assistant Managers are also responsible for ensuring all Company policies and procedures are
followed in relation to operations, customer service, cash handling, marketing, purchasing,
human resources, health & safety, administration, training and development.

Trainee Managers:

Responsible for assisting the Restaurant General Manager and Assistant Managers in creating an
energetic and valuable work environment, which is committed to serving the best chicken at the
fastest speed and with a smile.
Trainee Managers help with day-to-day running of the restaurant, and need to ensure that all
operations, customer service, cash handling, marketing, purchasing, human resources,
administration and training & development policies are followed.

Customer Service Team Members:

Responsible for working the service areas and ensuring quality product, service and cleanliness
is delivered to all customers at top speed and with a smile!

Food Service Team Members:

Responsible for putting the crunch in the coating and the zing in the Zinger…the cook’s main
task is to prepare and cook the irresistible KFC products! The cook must also maintain the
cleanliness of the cooking area as well as the quality of product and speed of preparation.

Recruitment and Selection at KFC

Part of KFC’s recruitment strategy is to offer employees high-quality options such as potential
for advancement, company reputation, benefits package and salary scale. When KFC was
looking for senior executives who could run a business, for two years it scoured the management
teams across various industries and offered senior executives of companies like Coca Cola
attractive benefits and a better salary scale to get them on the team. These executives were
promised quick advancement on their jobs, and apparently given such incentives to join that
most of the people offered jobs joined KFC even though they were told before hand that at
immediate present, no senior position was vacant. Hence, KFC’s attractive salary and benefits
package is an effective lure for potential employees (Rigdon, 1991).

For example, among the benefits package that KFC offers, is a medical coverage and
prescription benefits, dental coverage, vision/hearing coverage, life and disability insurance, a
410k plan (which helps employees save for their future), stock options, a management incentive
plan (under which everyone from assistant manager to senior executive is rewarded for
remarkable performance), adoption assistance, tuition reimbursement plan, college-planning
assistance, employee discount, paid vacation and a group legal plan. KFC also believes in
promoting from within, as it encourages employees to perform well on their jobs, telling them
that they in fact can go from being just a team member to the restaurant manager and later area
or region coach (KFC Official site).

As far as selection is concerned, KFC management strongly believes that hiring young people
and later training them is the way to a successful organization. Hence, the age factor is definitely
an issue of concern for recruiters at KFC. The company also strongly believes in diversification.
According to Kyle Craig, president of Kentucky Fried Chicken's U.S. operations, “We want to
bring in the best people but if there are two equally qualified people, we'd clearly like to have
diversity.” From this, we can safely assert that KFC believes in eliminating the glass ceiling, and
hiring and keeping female and minority-group executives. This seems to be working for the
company and is an effective policy: where in 1989, not even one of the company's 17 senior U.S.
managers were minority or female, the situation has improved today, with there being numerous
managers either female or part of a minority group. KFC admits that it actively tries to recruit
and promote women and minority members in middle and top management ranks

KFC’S SUPPLY CHAIN MANAGEMENT:

Improved reporting of business processes leads inevitably to a more streamlined production

process. With better information on the production process comes the ability to improve the
management of the supply chain, including everything from the sourcing of materials to the
manufacturing and distribution of the finished product.

Quick Reflexes

As a corollary to improved supply chain management comes an improved ability to react to

changes in the market. Better MIS systems enable an enterprise to react more quickly to their
environment, enabling them to push out ahead of the competition and produce a better service
and a larger piece of the pie.
These factors help KFC to work smoothly and efficiently as we already known that they are the
only fast food chain which is selling fried chicken in which they are specialized.
MIS systems let the KFC management:
• To capture information and store it, whenever they are making bills it helps them to count sales
per day, per week and per month because a copy of the bill is stored in the computer.
• Access stored information easily and manipulate it for the needs of their clients’ while billing
or taking order they just enter the code of the product requested at that time and the

KFC ‘s Core Competencies

Every market leading enterprise will have at least one core competency – that is, a function they
perform better than their competition. By building an exceptional management information
system into the enterprise it is possible to push out ahead of the competition. MIS systems
provide the tools necessary to gain a better understanding of the market as well as a better
understanding of the enterprise itself. quantity demanded.

SUGESSTIONS:
Improved Factory Layout:
The improved factory lay out will help KFC to produce and provide good and services
effectively and efficiently.

Improved Customer Services:

The improved customer services will provide better customer satisfaction and customer care.
Hence, there will be increased customer value and they will automatically be persuaded to return
back to KFC again.

Advertisements:
The improved advertisements and Promotions will create more awareness about the product.
Hence, the potential customer will know what is there in the market to be consumed.

Improved Quality:
The improved quality will satisfy the present customer at a higher level. Hence, they will
influence the other with whom they are in interaction with to at least go once and enjoy meals of
KFC. And they the testers may become the permanent customers or KFC loyal customers.

Improved Productivity:
The improved factory lay out and new technology (new ovens and etc) will increase the
productivity time/unit. This will increase the sales and demand scale as well and the products
will be delivered on demand at record time. Hence, increases customer satisfaction.

Employee Satisfaction And Improvement In Operations:

If the management concentrates on the employee satisfaction and train, guide and motivate them
time by time the employees will work much more effectively and efficiently. And I they are
empowered they will do their level best to improve the functions and operational procedures
which they are responsible for.

Improved Billing And Inventory System:

Through my suggestions the KFC employees responsible for billing and making cash memos
will find it very easy and fool proof for the billing purpose. Also, this will help the store keepers
to inform the upper management about the increase and decrease in the inventory.

Internet Ordering:
Customers can place online orders ( carryout, delivery) to specific locations. The restaurants
receive the orders placed online in real time.

Custom Built Menus:

Extended support for menus and promotions with unlimited number of menu items and
modifiers.

Efficient Delivery Management:

Complete driver dispatch functionality provides support for assigning and tracking meals (or any
other) delivery orders, assigning delivery zones, generating driving directions, and supporting
driver settlement.

RECOMMENDATION
WEBSITE
They should upgrade their website every day.If the website is not upgraded it will provide less
information to the customer which will not leave good impression on them.

CARDS
Gifts cards should be introduced to highlight the value aided features.

MISDISTRIBUTION OF WORK
Fair distribution of work in all departments should be followed

PARTICIPATIVE MANAGEMENT
Ideas of employees should be valued in product and services .This will increase the efficiency
and morals of employees .

GOOD ATMOSPHERE
Working of spilt unit in summer and heating system should be checked daily to reduce the risk
of inconvenience to customers.

TRAINING PROGRAMMES
Training should be provided according to the new trends because of globalization.
 REFRENCES

http://www.scribd.com/doc/9430763/design-of-goods-and-services

http://www.enotes.com/management-encyclopedia/location-strategy

http://www.businesslink.gov.uk/bdotg/action/detail?
type=RESOURCES&itemId=1079395812

http://www.shrinsight.com/