Business Strategy

 

1) Team Case Study Paper on KFC

This is a team assignment and students are expected to work together and synthesize their individual parts to produce one (1) paper.  Only one (1) student on each team needs to submit the paper for grading.  Each team member will receive the team’s grade. 

Refer to the file on “Conducting a Case Study” and the Case Study Rubric.  It is imperative to follow the criteria listed in the Case Study Rubric, “Conducting a Case Study” Guidelines, and the 6th edition of the APA Manual.  This assignment should be 15-20 pages excluding the title and reference pages.  The paper should contain at least one graph, figure, chart, or table.

Be sure to follow the Case Study Rubric and follow APA guidelines.

2)  Team PowerPoint Presentation

The team is to prepare and submit a PowerPoint presentation of the Greenhill College Case Study.  The presentation should contain a minimum of 10 slides.  Each student on the team will receive a team grade.

points)
A Format

CASE STUDY PAPER RUBRIC
Campbellsville Unlversity School of Buliness and Economics

l. Compleæd in word
application, typed, double
spaced, on standard süc
paper with margins of one
iuch on all sides. Comolies
fi:lly with the assigrureut.
(10 poinrs)

2. Ruuing hoad and page
number ia upper right-haod
comer with five spaces
botween runaing head ard
page number. Complies
firlly with the assignmenr
(I0 poins)

3. On separate page, the
word “Abstract,’ cente¡ed oD
paper followed by 75-100
word overvieu Comolies
fully with rhe assignnent.
( 10 points)

4. Major headiags oentered
on page. Every word
capiblized excspt articles,
short prepositions, and
coordinating conjuactions.
Complies fully with rhe
assiFment. (5 points)

Levels of Achievement

L Completed ia word
application, typed double
spaccd, on standard sizo
papor with margix of one
inch on all sides. Complios
mosdy with the assignmenl
(8-9 points)

2. Runniug hoad and page
nunber in upper right-hand
oomer wità five spaces
botween ruaning head and
page number. Complies
mosdy with the assigarnent.
(8-9 points)

3. On separate page, the
word “Abstracf’ centered o¡
paper followed by 75- I 00
word overview. Complies
mostly \¡¡ith tàe assignment.
(8-9 points)

4. Major headings centered
on page. Every word
capiølizod oxcept artioles,
short prepositions, and
coordinating conjunctions.
Complies mostly with the
assigunent. (4 points)

l. Completed in word
application, typed, double

.spaced, on standard size
paper wit! margirc of one
iaoh on all sidos. Complies
adoqustely witl the
assigamenl (7 points)

2. Running head ald page
nunber in upper right-haad
corner with fivc spaoes
betweeu ruDljng head a¡d
page number. Complies
adequately with the
assigDment (7 points)

3. Oa separate page, the
word “Abstraof’ centered oD
paper followed by 75-100
word overview. Complies
adequatcly wirh tbe
assigDmenL (7 poiats)

4. Major headings centered
on page. Every word
capitalized exccpt articles,
short prepositions, and
coordinating oorjunctions.
Complies adequately with
the assiguent. (3 points)

Unacceptable
l. Completed in word
applicatioo, t¡’ped, double
spaced, on sta:rdard size
paper with margias of one
inch on all sides. Does not
comply adequaæly with tbe
assignment (<7 points)

2. Runaing head and page
aumber in upper right-haad
comer with five spaces
between runaing head and
page number. Does rtot
comply adequaæly with the
assig xenL (<7 points)

3. On separate page, the
wo¡d “Abstract” centered
on paper followed by 75-
100 word overview. Does
not comply âdequately u¡it¡
the assig¡meût (<7 poinæ)

4. Major headings centered
on page. Every word
capitalizod excclrt articles,
short prepositions, and
coordinating conjunctions.
Does not comply with the
assignûrent (<3 points)

5. Visuals labeled with a¡
A¡abic nume¡al a¡d include
title on separate lines above
the visual flush left. Sou¡co
provided below the øble
flush left. Complies firlly
with the assiFrtrent.
(5 poiats)

6. References on sqlarate
(last) page, title conteröd
one inch from top, double
spaced, and alphabetized by
last name ofautho¡s. If
author is unkrow¡,
alphabotize by first word of
tbe tide (excluding A, An,
The). References properly
used in the text and on
roference page. Complies
firlly with the assignment
(10 points)

CASE STUDY PAPF’R RUBRIC
Campbellsville University School of Business and Economics

5. Visu¿ls labeled with an
A¡abic numeral and i¡clude
title on scparate lines above
tho visual flush left. Sou¡ce
provided below the table
flush leñ, Complios mostly
with the assignnent.
(4 poilts)

6. Reforences on se,parate
(last) page, title certered
oae inch ûom top, double
spaced aad alphabotÞed by
last nan¡e of autho¡s, If
autho¡ is u¡loo\¡.¡,
alphabetiza by first word of
the tide (excluding A, An”
The). References properly
used in the text and on
reforence page. Complies
mostly with the assignment,
(8-9 points)

Content (50
points)

). V$uals labeled \¡¡ith, a¡
A¡abic ¡r¡mer¿l and i¡clude
tite on separaæ lines above
the visual flush left. Sou¡ce
provided below the table
flush left. Complies
adequately with the
assigDrnenl (3 poi*s)

6. Referenoes on scparate
(last) page, title coatered
one inch from top, double
spaced, and alpbabetized by
last name ofauthors. If
author is unknow4
alphabotize by first word of
the title (excluding ,\ A.n,
The). Roferences properþ
usod in the æxt a¡d o¡
reference pagc. Complies
adoquately with the
assignment (7 points)

1. Provides oompelling
supporting a¡guments,
ovideace, ald exanplos
presented in the case study.
(10 points)

2. Is free oferro¡s in
gramrnar, punctuation, word
choioe, spellhg and format.
(15 points)

5. Visuals labeled with an
Ar¿bic numeral and include
tidé on separate lines above
the visual flush left. Sou¡ce
provided below the table
flush left. Does not comply
with the assignnenr
(<3 poins)

6, R€feretrces on separ¿te
(last) page, title c€nt€red
one inch from top, double
spaccd and alpbabetÈed by
last ¡ame ofautho¡s. If
author is unhowa,
alphabetize by first word of
the title (exclu¡ing 4 4q
The). References properþ
used in the text and o¡
reference pago, Docs not
comply with the
assignment (<7 points)

l. Providcs adequate
zupporting arguments,
evideuce, and examples
presented in t¡.o case study.
(8-9 poi¡ts)

2. Contai¡S mi¡imal crrorS
in gnmmar, punctuation,
word choice, spelling and
formar (12-14 poinb)

¡. ,Prol’ldes med.iosre
supporting a¡gumcDts,
evidenoe, aad examples
preseatcd ir the case study.
(7 pôiots)

2. Co¡tai¡s numorous srro¡s
in grammar, puactuation,
word choice, çelling aud
format which are distracting
to tåc readc¡. (9-1 1 points)

i. Providas inadequate
supportingargumcnts,
evideacc, aad cxanples
presented iD the case study.
(<7 points)

2. Cont¿ins numerous errors
il g¡amroar, punctuation”
word choice, spelling and
format which confi¡se the
rcader. (<7 poiDts)

rtent Cont’d
chart, table, or map to
illusûate something in the
pape¡. (10 poi¡rs)

4. Recognize an ethical
issue from the case study or
Êom ¡ese¿¡ch ofthe
company. Evalu¿te this
issue &om a Christiar point
of view. Coraplies fi.rlly
with tåe assignmenl
(5 poi¡ts)

5. The introduotio¡, body
and conclusion ofthe paper
a¡e sound.
( l0 poiats)

CASE STIIDY PAPER RUBRTC
Campbellsville University Schoot of Busi¡ress and Economics

cha:t, lable, or map to
illusn-ato soo.ethi.ng in the
paper. (8-9 points)

4. Reoognize an ethical
issue Êom the case study or
from resea¡ch of the
oompany. Evaluate tlis
issue from a Christian point
of view. Complies mostly
with the assignment,
(4 points)

5. The intoductioq body
and conclusion ofthe paper
aro adequate.
(8-9 points)

not adequately illustate the
htent intended pu+ose.
(7 points)

4. Recognize an ethical
iszue Êom the case study or
Êom resea¡ch ofthe
company. Evaluate this
issue ûom a Christian point
of view. Complies
adequaæly with the
assigûnoDL (3 poiats)

5. Has partial or inadequaæ
iatoduction, bod¡ or
conclusion.
7 points)

t¿ble, or map to illustrate
something in the paper.
(<7 poinæ)

4. Recognize an ethical
issue Êom the case study or
from resea¡ch ofthe
Company. Evaluate this
issue from a Christian point
ofview. Does not conply
wilh the assiguent. (<3 points)

5. The introduction, body
and conclusion of the paper
a¡€ iDadequate. (

Ðoes Dot include a

KENTUCKYFRIED CHICKEN

CASE STUDY OF KFC:

ESTABLISHMENT OF A SUCCESSFUL GLOBAL BUSINESS MODEL

By the mid 1950s, fast food franchising was still in its infancy when Harland Sanders

began his cross-country travels to market “Colonel Sanders’ Recipe Kentucky Fried Chicken.”

He had developed a secret chicken recipe with eleven herbs and spices. By 1963, the number

of KFC franchises has crossed 300. Colonel Sanders, at 74 years of age, was tired of running the

daily operations and sold the business in 1964 to two Louisville businessmen—Jack Massey and

John Young Brown, Jr.—for $2 million. Brown, who later became the governor of Kentucky,

was named president, and Massey was named chairman. Colonel Sanders stayed in a public

relations capacity.

In 1966, Massey and Brown made KFC public, and the company was enlisted on the New

York Stock Exchange. During the late 1960s, Massey and Brown turned their attention to

international markets and signed a joint venture with Mitsuoishi Shoji Kaisha Ltd. In Japan.

Subsidiaries were also established in Great Britain, Hong Kong, South Africa, Australia, New

Zealand, and Mexico in the late 1970s. Brown’s desire to seek a political career led him to seek

a buyer for KFC. Soon after, KFC merged with Heublein, Inc., a producer of alcoholic beverages

with little restaurant experience and conflicts quickly arose between the Heublein management

and Colonel Sanders, who was quite concerned about the quality control issues in restaurant

cleanliness. In 1977, Heublein sent in a new management team to redirect KFC’s strategy. New

unit construction was discontinued until existing restaurants could be upgraded and operating

problems eliminated. The overhaul emphasized cleanliness, service, profitability, and product

consistency. By 1982, KFC was again aggressively building new restaurant units.

In October 1986, KFC was sold to PepsiCo. PepsiCo had acquired Frito-Lay in 1965, Pizza

Hut in 1977 with its 300 units, and Taco Bell in 1978. PepsiCo created one of the largest

consumer companies in the United States. Marketing fast food complemented PepsiCo’s

consumer product orientation and followed much the same pattern as marketing soft drinks

and snack foods. Pepsi soft drinks and fast food products could be marketed together in the

same restaurants and through coordinated national advertising.

The Kentucky Fried Chicken acquisition gave PepsiCo the leading market share in three

of the four largest and fastest growing segments in the U.S., quick-service industry. By the end

of 1995, Pizza Hut held 28% of the $18.5 billion, U.S. pizza segment. Taco Bell held 75% of &5.7

billion Mexican food segment, and KFC held 49% of the $7.7 billion U.S. chicken fast food

segment.

Japan, Australia, and the United Kingdom accounted for the greatest share of the KFC’s

international expansion during the 1970s and 1980s. During the 1990s, other markets became

attractive. China with a population of over 1 billion, Europe and Latin America offered

expansion opportunities. By 1996, KFC had established 158 company-owned restaurants and

franchises in Mexico. In addition to Mexico, KFC was operating 220 restaurants in the

Caribbean, and in Central and South America.

Many cultures have strong culinary traditions and have not been easy to penetrate. KFC

previously failed in German markets because Germans were not accustomed to take-out food

or to ordering food over the counter. KFC has been more successful in the Asian markets,

where chicken is a staple dish. Apart from the cultural factors, international business carries

risks not present in the U.S. market. Long distances between headquarters and foreign

franchises often make it difficult to control the quality of individual franchises.

In some countries of the world, such as, Malaysia, Indonesia, and some others, it is

illegal to import poultry, a situation that has led to product shortages. Another challenge facing

KFC is to adapt to foreign cultures. The company has been most successful in foreign markets

when local people operate restaurants. The purpose is to think like a local, not like an

American company.

As KFC entered 1996, it grappled with a number of important issues. During the 1980s,

consumers began demanding healthier foods, and KFC’s limited menu consisting mainly of fried

foods was a difficult liability. In order to soften its fried chicken chain image, the company in

1991, changed its name and logo from Kentucky Fried Chicken to KFC. In addition, it responded

to consumer demands for greater variety by introducing several new products, such as Oriental

Wings, Popcorn Chicken, and Honey BBQ Chicken as alternatives to its Original Recipe fried

chicken. It also introduced a dessert menu that included a variety of pies and cookies.

Soon after KFC entered India, it was greeted with protests of farmers, customers,

doctors, and environmentalists. KFC had initially planned to set up 30 restaurants by 1998, but

was not able to do so because its revenues did not pick up. In early 1998, KFC began to

investigate the whole issue more closely. The findings revealed that KFC was perceived as a

restaurant serving only chicken. Indian families wanted more variety, and the impression that

KFC served only one item failed to enhance its appeal. Moreover, KFC was also believed to be

expensive. KFC’s failure was also attributed to certain drawbacks in the message it sent out to

consumers about it positioning. It wanted to position itself as a family restaurant and not as a

teenage hangout. According to analysts, the ‘family restaurant’ positioning did not come out

clearly in its communications. Almost all consumers saw it as a fast food joint specializing in a

chicken recipe.

KFC tried to revamp its menu in India. Cole slaw was replaced with green fresh salads.

A fierier burger called Zinger Burger was also introduced. During the Navaratri festival, KFC

offered a new range of nine vegetarian products, which included Paneer burgers. Earlier, KFC

offered only individual meals, but now the offerings include six individual meals, two meal

combos for two people, and one family meal in the non-vegetarian category. For vegetarians,

there are three meal combos for individuals, along with meals for couples, and for families.

KFC also changed its positioning. Now its messages seek to attract families who look not

only for food, but also some recreation. Kids Fun Corner is a recreational area within the

restaurant to serve the purpose. Games like ball pool and Chicky Express have been introduced

for kids. The company also introduced meals for kids, which was served with a free gift.

Over the years, KFC had learned that opening an American fast food in many foreign

markets is not easy. Cultural differences between countries result in different eating habits.

For instance, people eat their main meal of the day at different times throughout the world.

Different menus must also be developed for specific cultures, while still maintaining the core

product—fried chicken. One can always find original recipe chicken, cole slaw, and fries at KFC

outlets, but restaurants in China feature all Chinese tea, and French restaurants offer more

desserts. Overall, KFC emphasizes consistency and whether it is Shanghai, Paris, or India, the

product basically tastes the same.

Questions to consider:

1. Analyze the case and determine the factors that have made KFC a successful global

business.

2. Why are cultural factors so important to KFC’s sales success in India and China?

3. Spot the cultural factors in India that go against KFC’s original recipe.

4. Why did Kentucky Fried Chicken change its name to KFC?

5. What PESTEL factors contributed to KFC’s positioning?

6. How does the SWOT analysis of KFC affect the future of KFC?

KFC Case Study link

https://www.mbaknol.com/management-case-studies/case-study-of-kfc-establishment-of-a-successful-

global-business-model/