Objective Of Kentucky Fried Chicken Engineering Essay

Objective Of Kentucky Fried Chicken Engineering Essay Objective of the Kentucky Fried Chicken (KFC) have two objectives are stated objective and implied objective. First objectives in the stated objective are product development. In this objective the KFC do the increase variety on menu, introduce desert menu and introduce buffet to restaurants. Second objectives from the stated objective is introduction on the Neighborhood Program with menu items target African Americans in major cities with the items of greens, macaroni and cheese, peach cobbler and red beans and rise. Besides that, menu items targeting Hispanics in major cities with the items of fried plantains, flan and tress leeches. Others objectives is implementation on non-traditional units including the shopping mall food courts, universities, hospitals, airports, stadiums, amusement parks, office building and mobile units. After that, in this objectives want to increase profitability of KFC through the reduced overhead costs, increased efficiencies, improved customer service, cleaner restaurants, faster and friendlier service and continued high quality products. Also have to resolve franchise problems in the United States. In implied objectives have four objectives. First objective is expansion of international operations to provide the increased percentage of overall sales growth and increased percentages of profit growth. Also want to increased expansion of franchises into Mexico. The next objective is expansion of franchise operation beyond Central America, continued promotion of healthier image through removal of the world fried from the name and to improve menu selection of rotisserie. Industry analysis is important to unusual for a firm in a troubled industry to perform well. The economic structure of an industry is not an accident. It is complexities are the result of long term social trends and economic forces. But its effects to the business manager are immediate because it determines the competitive rules and strategies to use. Five forces that are widely use to assess the structure of any industry. The five forces are the bargaining power of supplier, bargaining power of the buyers, threat of new entrants, threat of substitute and rivalry among competitors. The strength of the five forces determines the profit potential in an industry by influencing the price, costs and required investment of business it is the element of return on investment. Stronger forces are associated with a more challenging business environment. In the first forces is bargaining power of suppliers thats means any business requires inputs such as labor, parts, raw, materials and services. The cost of inputs can have a significant effect to companys profitability. Whether the strength of suppliers represent a weak or string force thing on the amount or bargaining can exert and ultimately on how can influence the terms and conditions of transaction in their favor. Besides thats, to reducing the bargaining power of suppliers are reduce inventory costs by providing just in time delivers, enhance the value of goods and services supplied use of information about customer needs and preferences and speed the adoption of new technologies. Second forces is bargaining power of buyers thats the power of buyers describe the effect that the customers have on the profitability of the business. The transaction between the seller and the buyer creates value for both parties. Buyers have more power when the industry has many small companies supplying the product and buyers are few and large. After that the customers have access to and are able to evaluate market information. To reducing the bargaining power of buyers are increasing their loyalty to the business through partnerships or loyalty programs, selling directly to customers, or increasing the inherent or perceived value of a product by adding features or banding. The next forces of the industry are threat of new entrants thats means the new entrants is the possibility that new firms will enter the industry. New entrants bring a desire to gain market share and often have significant resources. Analyzing the threat of new entrants involves examining the barriers to entry and the expected reactions of existing firms to new competitors. These barriers protect the companies already in business by being a hurdle to those trying to enter the market. Entry barriers are unique for each industry and situation, and a change over time. The threat of new entrants is greatest when the processes are not protected by regulations or patents and competitors may be scared away when the learning curve is steep, competitors will be attracted to an industry where the production process is easily learned. The threat of substitutes is forces of industry. Be aware that substitute products can come in many shape and size, and do not always come from traditional competitors. Products from one business can be replaced by products from another. Substitute products are those that can fulfill a similar need to the one product fills. Substitutes are a greater threat when the products does not offer any real benefit compared to other products. After that, it is easy for customers to switch. Means thats a grocer can easily switch from paper to plastic bags for its customers, but bottler may have to reconfigure its equipment and retains its workers if it switches from aluminum cans to plastic bottles. To reducing the threat of substitutes is using tactics such as staying closely in tune with customer preference and differentiating the product by branding. The last forces are rivalry among competitors. Competition is the foundation of the free enterprise system yet with small business even a little competition goes a long way. Because company in an industry is mutually dependent, actions by one company usually invite competitive retaliation. Rivalry among competitors is often the strongest of the five competitive forces, but can vary widely among industries. If the competitive force is weak, companies may be able to raise prices, provide fewer products for the price, and earn more profits. The most intense rivalries occur when one firm or a small number of firms have incentive to try and become the market leader or when the market is growing slowly or shrinking. To reducing the threat of rivals is employing a variety of tactics. To minimize price competition, distinguish the products from the competitors by innovating or improving features. WHAT IS KFC KFC Corporation founded and also known as Kentucky Fried Chicken is a chain of fast food restaurants based in Louisville, Kentucky. KFC has been a brand and operating segment, called a concept, of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, through the idea of KFCs fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, fir its signage, packaging and advertisement in the United State as part of a new corporate rebranding program, newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Since its inception, KFC has evolved through several different organizational changes. These changes were brought about due to the changes of ownership that followed since Colonel Sanders first sold KFC in 1964. In 1964, KFC was sold a small group of inventors that eventually took it public. Heublein, Inc, purchased KFC in 1971 and was highly involved in the day to day operations. R.J. Reynolds then acquired Heublein in 1982. R.J. took a more laid back approach and allowed business as usual at KFC. Finally, in 1986, KFC was acquired by PepsiCo, which was trying to grow is quick serve restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut and KFC. The PepsiCo management style and corporate culture was significantly different from that of KFC. By the end of 1994, KFC was operating 4 258 restaurants in 68 foreign countries. KFC is the largest chicken restaurant and the third largest quick service chain in the world. Due to market saturation in the United States, international expansion will be critical to increased profitability and growth. The companies of KFC have more than 36 000 locations around the world. The company is ranked number 239 on the Fortune 500 list, with revenues in excess on $11 billion in 2008. Every day, more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. The companies of KFC more than 15 000 units around the world. SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. A SWOT analysis must first with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research. After that, in SWOT analysis have the strengths, weaknesses, opportunities and threats. The strengths are attributes of the person or company that are helpful to achieving the objectives. The weaknesses are attributes of the person or company that are harmful to achieving the objectives. After that, the opportunities means external conditions that are helpful to achieving the objectives and the last is threats means that external conditions which could do damage to the objectives. In the strength have the lack of secondary trading such as sukuk flexibility of the Syariah, Syariah Supervision, advantages of religious preposition, less use of money for speculative purpose, divine sources, Islamic rating agencies, morale and commitment to serve, huge amount of saving, innovative aspect, location wise and geographically, transparency, justice and fairness, according standards, quality of service, legal and regulatory framework and information system. After that, the weaknesses have are lack of standardization, reverse engineering of conventional product, there are differences in theory and practice, lack of Islamic gedging mechanism, no fixed obligations, unresolved fiqh issue, small percentage of profit loss sharing product, lack of qualified personnel, time or season factors, disadvantages of proposition, divergence of Shariah opinion and lack of Shariah compliant investment avenue. The opportunities have the technological advances, Islamic is a complete solution, the growth of socially responsible investing, faith based customer, large potential ahead in retail, corporate and investment banking, potential relating to sukuk, better customer relations, serving for all potential specific sectors, potential in fund management and provide innovative product. The last is threats have the global financial crisis, economic uncertainty in global market, market demand, shortage of recourses, lack of sustainable financial backing, intense competition from the conventional institutions, paucity of 100% Syariah compliant solution, liquidity and monetary management, a lot legislation is required, lack of awareness and understanding of Islamic financial product and sophisticated conventional financial system. CALCULATION KFC NAB ALL ORDINARIES DATE ADJ CLOSE RETURN ks-k bars (ks-k bars)2 1 1/6/2003 3.5 2 1/13/2003 3.6 -0.012234456 -0.011218519 0.0001258552 3 1/20/2003 3.78 -0.021189299 -0.020173361 0.0004069645 4 1/27/2003 3.62 0.018783229 0.019799167 0.0003920070 5 2/5/2003 3.52 0.012165907 0.013181845 0.0001737610 6 2/10/2003 3.46 0.007466565 0.008482502 0.0000719528 7 2/17/2003 3.12 0.044921505 0.045937442 0.0021102486 8 2/24/2003 3.5 -0.04991345 -0.048897513 0.0023909667 9 3/3/2003 3.5 0 0.001015938 0.0000010321 10 3/10/2003 3.46 0.004991946 0.006007883 0.0000360947 11 3/17/2003 3.4 0.007597182 0.008613119 0.0000741858 12 3/24/2003 3.46 -0.007597182 -0.006581244 0.0000433128 13 3/31/2003 3.42 0.005049993 0.00606593 0.0000367955 14 4/7/2003 3.46 -0.005049993 -0.004034055 0.0000162736 15 4/14/2003 3.42 0.005049993 0.00606593 0.0000367955 16 4/21/2003 3.5 -0.010041938 -0.009026001 0.0000814687 17 4/28/2003 3.5 0 0.001015938 0.0000010321 18 5/5/2003 3.5 0 0.001015938 0.0000010321 19 5/12/2003 3.48 0.0024888 0.003504738 0.0000122832 20 5/19/2003 3.48 0 0.001015938 0.0000010321 21 5/26/2003 3.48 0 0.001015938 0.0000010321 22 6/2/2003 3.5 -0.0024888 -0.001472863 0.0000021693 23 6/9/2003 3.66 -0.019413041 -0.018397103 0.0003384534 24 6/16/2003 3.66 0 0.001015938 0.0000010321 25 6/23/2003 3.6 0.007178585 0.008194522 0.0000671502 26 6/30/2003 3.56 0.004852503 0.005868441 0.0000344386 27 7/7/2003 3.8 -0.028333599 -0.027317661 0.0007462546 28 7/14/2003 3.76 0.004595752 0.005611689 0.0000314911 29 7/21/2003 3.86 -0.01139946 -0.010383522 0.0001078175 30 7/28/2003 3.94 -0.008908917 -0.007892979 0.0000622991 31 8/4/2003 4 -0.00656377 -0.005547832 0.0000307784 32 8/11/2003 3.98 0.002176919 0.003192857 0.0000101943 33 8/18/2003 4.38 -0.041591038 -0.040575101 0.0016463388 34 8/25/2003 4.48 -0.009803903 -0.008787966 0.0000772283 35 9/1/2003 4.44 0.003895044 0.004910982 0.0000241177 36 9/8/2003 4.46 -0.001951889 -0.000935951 0.0000008760 37 9/15/2003 4.2 0.026085568 0.027101506 0.0007344916 38 9/22/2003 4.28 -0.008194479 -0.007178541 0.0000515314 39 9/29/2003 4.22 0.006131318 0.007147256 0.0000510833 40 10/6/2003 4.26 -0.004097148 -0.00308121 0.0000094939 41 10/13/2003 4.46 -0.01992526 -0.018909322 0.0003575625 42 10/20/2003 4.64 -0.017183122 -0.016167184 0.0002613778 43 10/27/2003 4.84 -0.018327381 -0.017311443 0.0002996861 44 11/3/2003 4.8 0.003604124 0.004620062 0.0000213450 45 11/10/2003 4.5 0.028028724 0.029044661 0.0008435924 46 11/17/2003 4.44 0.005829544 0.006845481 0.0000468606 47 11/24/2003 4.36 0.007896481 0.008912419 0.0000794312 48 12/1/2003 4.3 0.006018034 0.007033971 0.0000494768 49 12/8/2003 4.26 0.004058856 0.005074794 0.0000257535 50 12/15/2003 4.28 -0.00203417 -0.001018232 0.0000010368 51 12/22/2003 4.26 0.00203417 0.003050108 0.0000093032 52 12/29/2003 4.24 0.002043743 0.00305968 0.0000093616 53 1/5/2004 4.3 -0.006102599 -0.005086661 0.0000258741 54 1/12/2004 4.62 -0.03117352 -0.030157582 0.0009094798 55 1/19/2004 4.66 -0.003743941 -0.002728003 0.0000074420 56 1/26/2004 4.6 0.005628085 0.006644023 0.0000441430 57 2/4/2004 4.62 -0.001884144 -0.000868206 0.0000007538 58 2/9/2004 4.38 0.023167865 0.024183803 0.0005848563 59 2/16/2004 4.36 0.001987621 0.003003559 0.0000090214 60 2/24/2004 4.48 -0.011791525 -0.010775587 0.0001161133 61 3/1/2004 4.42 0.005855745 0.006871682 0.0000472200 62 3/8/2004 4.44 -0.001960701 -0.000944763 0.0000008926 63 3/15/2004 4.3 0.013914515 0.014930452 0.0002229184 64 3/22/2004 4.3 0 0.001015938 0.0000010321 65 3/29/2004 4.3 0 0.001015938 0.0000010321 66 4/5/2004 4.5 -0.019744058 -0.01872812 0.0003507425 67 4/12/2004 4.68 -0.017033339 -0.016017402 0.0002565572 68 4/19/2004 4.6 0.007488021 0.008503959 0.0000723173 69 4/26/2004 3.78 0.085266032 0.08628197 0.0074445783 70 5/3/2004 3.74 0.004620198 0.005636135 0.0000317660 71 5/10/2004 3.72 0.002328662 0.0033446 0.0000111863 72 5/17/2004 3.56 0.019092942 0.02010888 0.0004043670 73 5/24/2004 3.74 -0.021421604 -0.020405667 0.0004163912 74 5/31/2004 3.7 0.004669878 0.005685816 0.0000323285 75 6/7/2004 3.68 0.002353905 0.003369843 0.0000113558 76 6/14/2004 3.58 0.011964792 0.01298073 0.0001684993 77 6/21/2004 3.44 0.017324584 0.018340522 0.0003363747 78 6/28/2004 3.24 0.026013432 0.02702937 0.0007305868 79 7/5/2004 3.18 0.00811789 0.009133828 0.0000834268 80 7/12/2004 3.32 -0.018710964 -0.017695026 0.0003131139 81 7/19/2004 3.3 0.002624144 0.003640082 0.0000132502 82 7/26/2004 3.2 0.013363962 0.014379899 0.0002067815 83 8/2/2004 3.22 -0.002705893 -0.001689956 0.0000028560 84 8/9/2004 3.2 0.002705893 0.003721831 0.0000138520 85 8/16/2004 3.12 0.010995384 0.012011322 0.0001442719 86 8/23/2004 3 0.017033339 0.018049277 0.0003257764 87 8/30/2004 3.14 -0.019808393 -0.018792456 0.0003531564 88 9/6/2004 3.14 0 0.001015938 0.0000010321 89 9/13/2004 3.16 -0.002757435 -0.001741497 0.0000030328 90 9/20/2004 3.34 -0.024059384 -0.023043446 0.0005310004 91 9/27/2004 3.3 0.005232527 0.006248465 0.0000390433 92 10/4/2004 3.34 -0.005232527 -0.004216589 0.0000177796 93 10/11/2004 3.42 -0.010279639 -0.009263702 0.0000858162 94 10/18/2004 3.36 0.007686829 0.008702766 0.0000757381 95 10/25/2004 3.4 -0.00513964 -0.004123702 0.0000170049 96 11/1/2004 3.48 -0.010100327 -0.009084389 0.0000825261 97 11/8/2004 3.48 0 0.001015938 0.0000010321 98 11/15/2004 3.54 -0.007424018 -0.00640808 0.0000410635 99 11/22/2004 3.5 0.004935218 0.005951155 0.0000354163 100 12/6/2004 3.5 0 0.001015938 0.0000010321 101 12/13/2004 3.44 0.007509602 0.008525539 0.0000726848 102 12/20/2004 3.5 -0.007509602 -0.006493664 0.0000421677 103 12/27/2004 3.52 -0.002474619 -0.001458681 0.0000021278 104 1/3/2005 3.58 -0.007340363 -0.006324425 0.0000399984 105 1/10/2005 3.8 -0.02590057 -0.024884632 0.0006192449 106 1/17/2005 3.9 -0.01128101 -0.010265073 0.0001053717 107 1/24/2005 3.8 0.01128101 0.012296948 0.0001512149 108 1/31/2005 3.82 -0.002279766 -0.001263829 0.0000015973 109 2/7/2005 3.8 0.002279766 0.003295704 0.0000108617 110 2/14/2005 3.8 0 0.001015938 0.0000010321 111 2/21/2005 3.84 -0.004547628 -0.00353169 0.0000124728 112 2/28/2005 3.88 -0.004500501 -0.003484564 0.0000121422 113 3/7/2005 3.86 0.002244421 0.003260359 0.0000106299 114 3/14/2005 3.82 0.004523942 0.005539879 0.0000306903 115 3/21/2005 3.8 0.002279766 0.003295704 0.0000108617 116 3/28/2005 3.8 0 0.001015938 0.0000010321 117 4/4/2005 3.74 0.006911994 0.007927932 0.0000628521 118 4/11/2005 3.7 0.004669878 0.005685816 0.0000323285 119 4/18/2005 3.74 -0.004669878 -0.00365394 0.0000133513 120 4/25/2005 3.76 -0.002316243 -0.001300305 0.0000016908 121 5/3/2005 3.68 0.009340026 0.010355964 0.0001072460 122 5/9/2005 3.7 -0.002353905 -0.001337968 0.0000017902 123 5/16/2005 3.68 0.002353905 0.003369843 0.0000113558 124 5/24/2005 3.58 0.011964792 0.01298073 0.0001684993 125 5/30/2005 3.52 0.007340363 0.008356301 0.0000698278 126 6/6/2005 3.32 0.02540458 0.026420517 0.0006980437 127 6/13/2005 3.22 0.013282212 0.01429815 0.0002044371 128 6/20/2005 3.32 -0.013282212 -0.012266274 0.0001504615 129 6/27/2005 3.28 0.00526424 0.006280178 0.0000394406 130 7/4/2005 3.46 -0.023202255 -0.022186317 0.0004922327 131 7/11/2005 3.3 0.020562159 0.021578097 0.0004656143 132 7/18/2005 3.32 -0.002624144 -0.001608206 0.0000025863 133 7/25/2005 3.3 0.002624144 0.003640082 0.0000132502 134 8/1/2005 3.3 0 0.001015938 0.0000010321 135 8/8/2005 3.62 -0.040194631 -0.039178693 0.0015349700 136 8/15/2005 3.6 0.00240607 0.003422007 0.0000117101 137 8/22/2005 3.6 0 0.001015938 0.0000010321 138 8/29/2005 3.5 0.012234456 0.013250394 0.0001755729 139 9/5/2005 3.5 0 0.001015938 0.0000010321 140 9/12/2005 3.46 0.004991946 0.006007883 0.0000360947 141 9/19/2005 3.64 -0.022025285 -0.021009347 0.0004413927 142 9/26/2005 3.6 0.004798883 0.005814821 0.0000338121 143 10/3/2005 3.62 -0.00240607 -0.001390132 0.0000019325 144 10/10/2005 3.72 -0.011834369 -0.010818432 0.0001170385 145 10/17/2005 3.72 0 0.001015938 0.0000010321 146 10/24/2005 3.68 0.004695121 0.005711059 0.0000326162 147 10/31/2005 3.72 -0.004695121 -0.003679183 0.0000135364 148 11/7/2005 3.7 0.002341216 0.003357154 0.0000112705 149 11/14/2005 3.74 -0.004669878 -0.00365394 0.0000133513 150 11/21/2005 3.74 0 0.001015938 0.0000010321 151 11/28/2005 3.72 0.002328662 0.0033446 0.0000111863 152 12/5/2005 3.76 -0.004644905 -0.003628967 0.0000131694 153 12/12/2005 3.72 0.004644905 0.005660843 0.0000320451 154 12/19/2005 3.74 -0.002328662 -0.001312725 0.0000017232 155 12/26/2005 3.82 -0.009191761 -0.008175823 0.0000668441 156 1/3/2006 4.1 -0.030720494 -0.029704556 0.0008823607 157 1/9/2006 4.12 -0.002113359 -0.001097422 0.0000012043 158 1/16/2006 4.02 0.010671163 0.011687101 0.0001365883 159 1/23/2006 3.94 0.008729831 0.009745769 0.0000949800 160 2/6/2006 4.16 -0.023597109 -0.022581171 0.0005099093 161 2/13/2006 4.14 0.00209299 0.003108927 0.0000096654 162 2/20/2006 4.04 0.010618976 0.011634914 0.0001353712 163 2/27/2006 3.98 0.006498293 0.007514231 0.0000564637 164 3/6/2006 4.04 -0.006498293 -0.005482355 0.0000300562 165 3/13/2006 3.88 0.01754964 0.018565577 0.0003446807 166 3/20/2006 3.8 0.009048129 0.010064067 0.0001012854 167 3/27/2006 3.82 -0.002279766 -0.001263829 0.0000015973 168 4/3/2006 3.78 0.004571563 0.005587501 0.0000312202 169 4/10/2006 3.8 -0.002291797 -0.001275859 0.0000016278 170 4/17/2006 4.32 -0.05570015 -0.054684212 0.0029903631 171 4/24/2006 4.22 0.010171296 0.011187234 0.0001251542 172 5/2/2006 4.1 0.012528594 0.013544532<