KFC - "Finger Lickin' Good": Sec B, 09XQCMA006, MBA 2nd Year Individual Internal Assessment Assignment

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KFC – “Finger lickin’ Good”

Sec B, 09XQCMA006, MBA 2nd Year


Individual Internal Assessment
Assignment
EXECUTIVE SUMMARY

Kentucky Fried Chicken (KFC) Corporation, based in Louisville, Kentucky, is the world's most
widespread chicken restaurant chain offering services to more than 12 million customers in 109
countries all around the world. KFC operates more than 5,200 restaurants in the United States
and more than 15,000 units around the world.

Every year more than 1 billion chickens are killed from the chicken farms, meant for KFC. The
improper breeding of birds combined with improper working conditions of workers and lack of
ethically efficient operation processes led to improper practices in KFC’s supplier’s poultry
farms. As a result KFC was accused of animal abuse by PETA, on the supplier’s farm.

INTRODUCTION

KFC was founded by Harland Sanders (Sanders) in the early1930s. He started cooking and
serving food for hungry travelers who stopped by his service station in Corbin, Kentucky, US.
He did not own a restaurant then, but served people on his own dining table in the living quarters
of his service station. His business expanded and by 1964, Sanders franchised more than 600
chicken outlets in the US and Canada. Now customers around the globe enjoy more than 300
other products from Kentucky Grilled Chicken in the United States to a salmon sandwich in
Japan.

KFC has been a brand and operating segment, of Yum Brands since 1997 when that company
was acquired from PepsiCo as Tricon Global Restaurants Inc.
DISCUSSION

KFC was the first fast-food chains to conquer international market they developed one of the
world’s most recognizable brands. When PepsiCo acquired KFC from RJR-Nabisco in 1986 for
$841 million, KFC gave the leading market share in the three of the four largest and fastest
growing segments within the U.S quick-service industry, and it held 49 percent of the $7.7
billion U.S chicken segment.
But in the recent years KFC is losing its Market share because a number of criticisms faced
worldwide:
- Poor Service by the employees
- Unethical treatment of Chicken in the farms
- Conflicting Corporate Strategy
- Wages and working conditions
- Lack of Localization Strategy
- Hygiene

CONCLUSION

Thus, companies like KFC, which serves a major population through their fast food services
should make sure that all its stakeholders behave in a socially responsible way in all its business
aspects. KFC failed to keep track of its major supplier’s standards on animal welfare and
environmental related issues, in spite of its claim of having proper welfare guidelines. KFC
should take strict measures against the unethical practices towards the chicken in its supply chain
along with mass destruction of Amazon rainforest and should adopt measures to avoid such
practices in order to give a painless life to the chickens that turn into “Kentucky Fried Chicken”.
Thus the business model is definitely a success, but would remain sustainable only if the
conflicting Strategies adopted are revised for its betterment.
BIBLIOGRAPHY

http://www.kfc.com/about/

http://kentuckyfriedcruelty.com/pdfs/pp_novakkfcletter.pdf

http://www.kentuckyfriedcruelty.com/pdf/pp_eyewitness.pdf

http://en.wikipedia.org/wiki/KFC

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