QUESTIONS
In a group with a maximum of 5 members, analyze any multinational company and perform the following tasks.
1. Analyze the Company’s History and Growth.
2. Company’s corporate culture – values, corporate social responsibility
3. Discuss the Strengths and Weaknesses of the Company.
4. Analyze the Information on the External Environment (Opportunities and Threats).
5. Company’s organizational structure
6. How employees are motivated
7. Make your own Recommendations.
8. References
Management accounting
(A case study on KFC)
Table of Contents
1. Company’s History and Growth (KFC) 3
2. KFC’s corporate culture. 3
3. Strengths and Weaknesses of KFC.. 4
4. External Environment (Opportunities and Threats) of KFC.. 5
5. Company’s organizational structure. 5
6. How employees are motivated in KFC.. 6
7. Recommendations for KFC.. 6
8. References. 8
1. Company’s History and Growth (KFC)
Colonel Harland Sanders is one of the most intelligent entrepreneurs who understood the essence of fast food in the 1950s. This is one of the major reasons for, which he came up with the idea of a company like KFC and opened the first store in the year 1952. This was the first franchise store. Soon after this, Sanders sold his created company to a group of investors, which was led, by Jack C. Massey and John Y. Brown Jr. in the year 1964, as he could not mange the expansion of the company. Sanders tried to make few of the best recipes with the help of his herbs and methods of cooking. He tried to analyze the need of the market in order to, successfully channel his company in the fast food sector.
2. KFC’s corporate culture
One of the most important strategies that are followed by the company in case of corporate culture includes using democratic management style. The goals and the objectives of the company include channeling the resources properly to reach the expectation of the customer (Brown and Osborne, 2012). Apart from this KFC also takes care of the employees by offering them the necessary safety. All the sides of corporate social responsibility that is economic, social, legal and philanthropic ideas are duly maintained by KFC.
The strategies of the company include trying to analyze the persisting market and to tailor the strategies according to the need of the market. The legal aspects of the company are followed as per the rules and regulations of the counties and the framework of the organization (Austin, 2013). KFC follows the idea of hierarchy in the employee management. The ethical culture of the company includes maintaining the inclusion criteria where the company does not discriminate on caste, creed, sex or race (Jeston and Nelis, 2014). The culture of the company includes an appropriate environment along with quick service and quality product. The company maintains the economic and the social responsibility perfectly (Dent and Whitehead, 2013). This is the mission of the company along with the recognition of the employees as integral part of the organization.
3. Strengths and Weaknesses of KFC
The major strengths of the company include the following:-
- Quality product
- Taste of the food
- Brand equity
- Brand image
- Maintaining global taste
- Focus on the needs and the expectations of the customers
- Managing the service as per the expectation of the customers
- Worldwide integrated chain
- Managing the competitive advantage with appropriate efficacy
The major weaknessess of the company includes the following:-
- Less variety of products
- Focus on high-level customers
- Image of fried recipes only
- The conflict in between the management style of Yum brands and PepsiCo
- Healthier quality of food is expected
4. External Environment (Opportunities and Threats) of KFC
Opportunities of KFC
The opportunity of the company is to include more options in the menu list and to include more localized taste like sauce or fillings (Haeckel, 2013). Apart from this, the company can try to enter into newer places and make new outlets. Using more advanced technology, that maintains the hygiene level of the food production. opportunities of the company also lie in creating new channels for the supply chain management and the distribution channels of the company. The brand image of the company is another key opportunity that attracts customers (Forsgren and Johanson, 2014).
Threats of KFC
One of the major threats of the company includes the perception of the customers regarding bird diseases. This is one of the major issues, which include serious health problems, there are strong competitors in the market and the continuous change in the customer demands (Hislop, 2013). The changing minds of the competitors are one of the major aspects that the company needs to deal with the company. Apart from this, animal activists or organizations like PETA could be a threat for KFC (Slack, 2015). Competitive pricing strategy of other fast food company is another aspect that is a thereat for the company. Problem with the supply chain management is another aspect that might pose a serious threat to the organization. Retention of the quality and hygiene is the lookout of the company (Huxham and Vangen, 2013).
5. Company’s organizational structure
The organizational culture of the company includes the fact that there is hierarchical corporate structure that is followed in the company. In the basic level of the company, the employees include the service providers and the customer service workers. The upper level includes the unit manager, the assistant unit manager and the shift manger. They are the employees who mostly take care of the stores and the employees of the outlets. Above the category of these managers, there is assistant general manager and finally the general manager.
This structure is best for the surveillance of the company and for looking after the expectations of the customers. The different levels of the employees of the organization ensure the fact that the company covers the expectations of the customers effectively (Moran, Abramson and Moran, 2014).
6. How employees are motivated in KFC
The motivation of the employees of the company includes incentives programs. This gives the zeal to the employees to work hard and receiving conventions. Apart from this the promotions of the employees is based on the performance (Wright, 2014). They get their appraisal through incentives and promotions. The reward system of KFC finally includes the system called “My growth Body” pints. This includes the idea of earning point and on earning 5 points the respective employee gets financial bonuses from the company. There are scopes that are given to the company by the store managers based on the performance. The continuous motoring and help from the managers serve as one of the key fact for motivation (Epstein and Buhovac, 2014).
7. Recommendations for KFC
Increasing variety of products–
This is one of the key issues, which most of the customers around the world face in KFC. Apart from this, the company needs to include more local tastes and items in the menu. This would help the company in competitive advantage for local markets as well.
Using best quality chickens for maintaining the quality of food–
There have been claims that the company does not use best quality chicken in their recipes. This is one of the key elements, which lost many of the loyal customers of the organization. KFC must make their products from best quality food suppliers and use healthy methods of cooking.
8. References
Austin, R. D. (2013). Measuring and managing performance in organizations. Addison-Wesley.
Brown, K., and Osborne, S. P. (2012). Managing change and innovation in public service organizations. Routledge.
Dent, M., and Whitehead, S. (Eds.). (2013). Managing Professional Identities: Knowledge, Performativities and the’New’Professional (Vol. 19). Routledge.
Epstein, M. J., and Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Forsgren, M., and Johanson, J. (2014). Managing networks in international business. Routledge.
Haeckel, S. H. (2013). Adaptive enterprise: Creating and leading sense-and-respond organizations. Harvard business press.
Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford University Press.
Huxham, C., and Vangen, S. (2013). Managing to collaborate: The theory and practice of collaborative advantage. Routledge.
Jeston, J., and Nelis, J. (2014). Business process management. Routledge.
Moran, R. T., Abramson, N. R., and Moran, S. V. (2014). Managing cultural differences. Routledge.
Slack, N. (2015). Operations strategy. John Wiley and Sons, Ltd.
Wright, L. (2014). Principles of service marketing and management.
