The Manner in Which KFC Could Use the Strategic Factors through the Strategic Analysis - Report Example

Executive Summary KFC is one of the fastest growing food chain industry and due to continuous innovation and additions of new products which are aimed at all section of the people have been able to build a brand name. KFC has established a name for itself by ensuring an outlet over different regions of the world and ensuring that they direct their efforts and adopt the local culture so that they are able to attract more customers and make them feel a part of the international brand. This report thereby highlights the manner in which KFC has been able to use the strategic factors through the strategic analysis which highlights important steps taken by the organization to ensure competitiveness. This is reflected in their mission and vision statement and the position strengthens when the SWOT analysis is being looked into. KFC has identified their strengths and weakness and used those to prepare their short and long term objectives which will help them to grow and ensure a larger market share. This in addition to the steps taken by KFC to manage the business risk has helped KFC in improving their brand image and with similar strategies the food giant will be able to capture a wider market and improve their market share in the future. Table of Contents 1. Introduction 3 2. Purpose of the report 3 3. Strategic Analysis 3 3.1. Vision & Mission Statement 4 3.2. Positioning 5 3.3. SWOT Analysis 6 4. Strategic Objective 8 4.1. Short Term Objectives 8 4.2. Long Term Objectives 8 5. Risk Management Strategy 9 5.1. Product Analysis 9 5.2. Marketing Strategies 10 5.3. Contingencies 10 6. Conclusion 11 7. References 12 1. Introduction KFC has been performing since over a decade and has grown as an international fast food restaurant because of quality and development of new products which have developed their menu. The ability of the company to develop products which are easily accepted by the people has helped them to grow and ensure that they are able to match the taste buds of people. KFC has looked towards increasing their presence by spreading their wings over different regions and being able to mould to the local culture and requirements has helped KFC to earn a brand name and has ensured proper growth opportunity for the organization 2. Purpose of the report To analyze the strategic analysis which will involve identifying the vision, mission and SWOT of KFC so that the opportunities for growth can be identified To find out both the short and long term objectives and the manner in which KFC looks towards accomplishing those objectives To find out a risk management analysis which will dwell on product, marketing and contingencies so that the organization is able to develop a strategy for growth 3. Strategic Analysis KFC is one of the fastest growing fast food chain has over 10,000 outlets in different countries. The company has followed a strategy of diversifying the business by growing and addition of new products and presenting chicken in a new way has helped them to grow and establish their network over different regions (KFC, 2012) KFC has over 25 million visitors and is mainly due to consistency in quality and service which has fetched them a high return. The company as a result has been able to grow financially and has ensured strong returns for the stakeholders. KFC has developed their motto of serving customers quickly and ensuring consistency in quality, taste and cleanliness so that customers visiting the outlets have a pleasing experience. This has been matched by the presence of efficient workforce which ensures prompt order and delivery both for customers looking to have the food in the outlets or carrying home. This has thereby enabled customers’ value for money and has ensured that more and more customers pour in the stores. KFC thereby has ensured growth and has spread their network over different regions. This has helped the economy to ensure proper employment opportunities and KFC presently employs more than 30,000 people thereby providing employment opportunities to many. This shows that KFC has been able to sustain competition and grow. This has been matched by the growth in training facilities and growth opportunities which have made more people look towards joining the stores (KFC, 2012) KFC thereby has been able to ensure the use of opportunities and develop products and services which is of high quality. The ability of the compnay to add new products and ensure consistency in taste has helped them to grow and will thereby help KFC to establish itself as a bigger brand in the near future and ensure better market share. 3.1. Vision & Mission Statement KFC has identified a vision statement and looks towards directing its efforts in that direction so that they are able to achieve it KFC has identified a vision statement where they look forward towards being the leading food group which helps to ensure maximum customer satisfaction through innovation and consistency both in services and products so that customer pleasure gets enhanced (KFC Holding, 2012). Achieving the vision statement will help KFC to ensure better opportunities of growth and being able to make customers happy and ensure a smile on their face after having their food. KFC has thereby looked towards designing their mission statement based on the vision statement so that they are able to achieve it and ensure that breaking the long term statement into short objectives will help to ensure effectiveness in services. This has made KFC identify a mission statement and direct their efforts towards it. The mission statement identified by KFC is to ensure maximum profitability which will get translated into maximization of shareholders wealth and ensure steady growth year after year (KFC Holding, 2012). This is on the backdrop of consistency in service and quality so that customers become loyal and KFC is able to garner maximum leverage and growth due to it. 3.2. Positioning KFC has looked towards positioning their product for all section of the society and looks towards eyeing people in the age 5 to 60 and those who are fond of chicken as it’s their specialty. To ensure that all section of the society is aimed at KFC has positioned the price of their product low. This has helped the company to ensure that they target every section of the population and have ensured maximum customers visiting their outlet (Cateora & Graham, 2002). The company has further emphasized on the internal environment and ensured to keep the surrounding clean and tidy so that they are able to attract family as well. This has been aided with the variety of food served which helps to attract all household. This has helped KFC to position themselves high on the priority table and ensure that customers have something in return and get proper value for money. 3.3 SWOT Analysis Strengths KFC has a good brand image due to consistency in quality and taste over the years which has made certain section of the customer loyal towards the brand (Ferrell, 2010) KFC has looked towards innovation and variety in their product portfolio which has enabled every section of the customer to get something (Ferrell, 2010) KFC has outlets at most places which has ensured better penetration and reach to the mass audience (Ferrell, 2010) Improved taste and quality has helped to capture a large chunk of the growing population Adapting to the changing culture and environment in different countries has ensured easy acceptability Continuous innovation and development of new products has made customers look towards the company Weakness Limited shield life of the products makes it important that the products are sold timely else might result in stock loss (Ferrell, 2010) Increasing turnover rate for employees as different employment opportunities provided by similar chains performing in the market Increasing competition from other players like McDonalds has made it difficult to sustain the market (Ferrell, 2010) Opportunities Continuous innovation and developing new products which makes customer makes guesses at the new products to be launched and keep them interested in the changes that will be encountered (Ferrell, 2010) Improving the supply and distribution network which will help to minimize the loss as the food product has limited shield life (Ferrell, 2010) Expand and open more outlets at areas where they have little or no presence Look towards developing their network and reach by enstring into tie ups and different agreement with others in the market Threats Increased concern about obesity and health issues which the food industry faces Increasing competition from both international and local players making it difficult to capture a wide market (Ferrell, 2010) Increasing entrant of players into the industry due to changing external environment making the market more competitive (Ferrell, 2010) 4. Strategic Objectives This will help KFC to understand their requirements in the short and long term and build strategy to achieve those. Their strategies are as 4.1. Short Term Objectives To ensure better taste and preference by highlighting the manner in which the company has ensured the concern of obesity and ensured minimum oil and fat in their products To make more customers aware about the product so that maximum market penetration can take place which will help to attract maximum customers KPI: This objective will help KFC to strengthen their brand image and highlight the manner in which KFC is looking to deal with rising health problems which arises due to fast food 4.2. Long Term Objectives Improve the brand image and position itself better in the minds of the consumer over a period of 5 years Increased penetration so that KFC has its presence over different regions which will help them to increase the sale. This will thereby translate into increased sale for KFC KPI: KFC to ensure that their objectives are achieved is looking towards increased promotional campaign and continuous innovation in their products so that they are able to add new products after every 6 months. This will help KFC to work towards their goals. Their objectives matches well with the vision and the mission statement as it will translate into better productivity and profits which will help to consolidate the position and ensure continuous growth for the business. This will thereby ensure better services and growth for the business 5. Risk Management Strategies This will help to understand the manner in which KFC will be able to manage the risk in the future and ensure growth for the business. 5.1. Product Analysis KFC faces certain risk with its products as the food served by them has a high calorie content which is not preferred by all section of the customer thereby raising issues related to health. The matter further gets intensifed due to shorter shield life the product has makes it unfit for consumption very fast. KFC needs to find out a strategy to deal with the issue so that they are able to grow and ensure better opportunities in the future 5.2. Marketing Strategies Marketing constitutes an important aspect for KFC especially due to rising risk and concern towards fast food and obesity. This increases the importance of promotional campaign and KFC needs to devise strategies to deal with it. On this front KFC should look towards increased campaign both print and video. This will help to create an image in the mind of the customers. KFC has to look towards television commercials, hoardings, print media and other form of advertising to ensure maximum growth and return. While designing the different campaign KFC need to highlight the core issues and present before the people the innovation that has taken place (Doole & Lowe, 2001). The campaign should be designed in such a manner that it helps to attract maximum people and creates a positive image. This will have a strong presence and will make more customers accept the product and ensure that they are able to associate with the products and will transform into increased sale 5.3. Contingencies KFC need to realize the increased competition and concern towards obesity seriously and have a contingency plan in place which can be used to deal with the situation in a better way so that the company grows. To ensure a contingency plan KFC needs to highlight the steps taken by them and the manner in which there will be effectiveness is dealing with people so that the health concerns are dealt properly and good quality food provided to the consumers at the correct price 6. Conclusion KFC has thereby identified the external environment and innovated continuously which has helped them to improve their brand image. The company has also ensure sound policies which has helped them to work on their objectives and further on their vision and mission. Following a similar strategy and continuously innovating will help KFC to further improve their brand image and will help them to become a better and preferred brand in the future. 7. References Cateora, P. R., and Graham, J. L. 2002. International Marketing. 11th Edition, New York, McGraw-Hill Doole, I., and Lowe, R. 2001. International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson Ferrell, G. 2010. SWOT Analysis for KFC, Orland, Dryden Press KFC. 2012. KFC. Retrieved on February 5, 2012 from http://www.kfc.co.in/ KFC Holding, 2012. KFC Holding BHD. Retrieved on February 5, 2012 from http://www.kfcholdings.com.my/English/Flashsite/AboutCompany/OurGoals.asp Read More