Kentucky Fried Chicken Case Study

Table of Contents

1.0. Internal Environment 1

1.1. Introduction to Company 1

1.2. Nature & Description of The Company 2

1.3. Vision, Mission & Objectives of The Company..............................................4

1.4. Organization & Structure of the Company.................................................5

1.5. Internal Environment Factors..................................................................5

2.0. External Environment 6

2.1. Macro Environment 6

2.2. Micro Environment 8

3.0. Reference.............................................................................................10

1.0. Internal Environment

1.1. Introduction of Company

We have chosen Kentucky Fried Chicken (KFC) to gather the information on its internal environment and its external environment. Firstly, KFC deals with fast food. They have a chain of restaurants worldwide. Colonel Harland Sanders found KFC in 1952 with the blend of 11 herbs and spices of fried chicken, which penetrated the whole America. Colonel Sanders started selling his KFC franchise with the starting price of $2Million USD. . KFC is present in 109 countries and there are more than 15,000 units in the world. ( Reference :http://www.kfc.com/about/). KFC stood up for their rights for Kentucky Fried Chicken until 1991, but due to some internal circumstances, which was not revealed, it has maintained with its abbreviation 'KFC'. Currently, KFC is under the YUM! Brands Incorporated, which is indeed the world's largest restaurant company.

1.2. Nature & Description of Company

As for the logo, KFC has modified their logo along the years according to their customer's preferences. Colonel Harland Sanders has always been part of the logo because he is the founder of KFC. The logos are as follows:

In the early 70's, this special recipe reached Malaysia by opening its first outlet at Jalan Tunku Abdul Rahman. Today, there are more than 500 KFC Restaurants in the nationwide. KFC Malaysia is run by KFC Holdings (Malaysia) Berhad, which is owned by Kulim Berhad. The current Chairman of KFC Holdings (Malaysia) Berhad is Kamaruzzaman bin Abu Kassim. The rest of the positions held are as follows:

Name Position

Ahamad bin Mohamad Deputy Chairman

Non Independent Non Executive Director

Jamaludin bin Md Ali Managing Director

Kua Hwee Sim Independent Non Executive Director

Tan Sri Dato' Dr Yahya bin Awang Independent Non Executive Director

Hassim bin Baba Independent Non Executive Director

YAM Tengku Sulaiman Shah Alhaj Ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Alhaj Independent Non Executive Director

Datuk Ismee bin Ismail Non Independent Non Executive Director

Datin Paduka Siti Sa'diah binti Sheikh Bakir Non Independent Non Executive Director

The 100th Restaurant of KFC was opened at SS2, Petaling Jaya, the 200th Restaurant was opened at Sunway Metro and the list goes on until the 500th restaurant was successfully opened at Subang 2 on 29 November 2010.

KFC Malaysia has propelled into charity event by coming up with Projek Penyayang found in 1995 to enable thousands of orphans and underprivileged children to enjoy KFC meals free. More than 6500 children have been treated with KFC meals. In addition to that, KFC has opened three special outlets in Malaysia located at Sentul Raya, Kuala Lumpur, Saujana, Sarawak and Tanjung Aru, Sabah, which are run by speech, and hearing-impaired staffs that were designed to serve physically challenged individuals. They are still conducting programs for special people and they intend to diverge more into charity programs.

1.3. Vision, Mission & Objectives of The Company

The organization of KFC Holdings (Malaysia) Berhad is based on lateral relationship, where the chairperson is the head of the organization. This is to ensure that their vision, mission and objectives are achieved by their coherent pattern of activities and relationships.

The vision of KFC:

'To be the leading integrated food services group in the Asia Pacific region based on consistent quality products and exceptional customer-focused service.'

(KFC Holdings (Malaysia) Bhd, 2007)

In short, KFC's vision is to be the market leader in food industry by providing high quality products and outstanding customer service.

The mission of KFC:

'To maximise profitability, improve shareholder value and deliver sustainable growth year after year.'

(KFC Holdings (Malaysia) Bhd), 2007)

It says, KFC's mission is to increase their profit, shareholder value year by year.

KFC's objectives includes, to improve on their existing food menu, introducing more variety of menus, expanding their franchise business, to portray healthy and hygienic image among the people and also to create more charity programs. Moreover, KFC have their own principles, which are:

1. 'OUR PASSION: To satisfy our customers every time they visit our restaurants and to do

it better than our competitors.

2. OUR FOMULA FOR SUCCESS: People capability comes first-satisfied