Kfc-Stratefy for Developing

Kentucky heat up Chicken Strategic Plan-Part One Jeanette Cortez, free fall Crowther, James Hopper Fernando Manaloto, Joe Newkirk, and Rita Salem International Strategic Planning and implementation STR/GM 581 March 31, 2011 Dr. Tim Becker, MBA Introduction Kentucky Fried Chicken has been accomplished as a franchise in Latin America and the focus of this program will be the El Salvador franchise. The strategic forethought process is critical and a well laid by plan is necessary. Consequently, by evaluating the soil of KFC, the outcome should lead to a clear commission and vision assertion outlining the purpose and closes of the ships fellowship.Also, the mission and vision will keep all sh areholders intercommunicate of the objectives that should be met by KFC. Defining the company mission is one of the around often slighted tasks in strategic management (Pearce II & Robinson Jr. , 2009, p. 42). A mission lays out the organizations goals and basically specifies the purp ose of the organization. Decisions and strategies merelyt end be established after environmental scanning is done a tenacious with a Situational Analysis (SWOT). The strategic process overly involves frequently assessing the manufacture structure and choosing strategic plan options that help expand global operations.The deuce chosen strategic options that will be discussed will be overlap differentiation and cost leaders. This plan should give clarity on how the options and recommendations volley with both the competitive situation and the organizational situation. Background Based in Louisville, Kentucky, Kentucky Fried Chicken (KFC) corporation is touted as the worlds almost popular chicken franchise (KFC, 2011). KFC serves over 12 million customers in 109 territories and countries throughout the world (KFC, 2011).Famous for its Original Recipe Fried Chicken, there are more than 5,200 restaurants in the United States and more than 15,000 units around the world (KFC, 2011). This company whose inception was in a gas station back in 1930 by Colonel Harland Sanders is now owned and operated by Yum Brands, Incorporated. As of 2008, Yum had revenues in pleonastic of $11 billion and was ranked 239 on the Fortune 500 controversy (KFC, 2011). KFC cathexis Statement, Vision and Strategy KFCs Mission Statement is The necktie of KFC Franchisees, Inc. s united to protect, promote and advance the mutual interests of all phallus franchisees and the Kentucky Fried Chicken system. ( companionship of Kentucky Fried Chicken Franchisees, Inc. 2006). KFCs parent company is Yum Brands (Yum ). Yum s vision and strategy is committed to continuing the success established during our first ten years. Our success has only just begun as we musical note forward to the future, one which promises a long runway for growth, especially on an international level (Yum , 2011). KFC El Salvador also falls under Caribbean and Latin America Franchisee Association (CARIBLA).CARIBLAs mission statement and objectives are the mission of the CARIBLA Franchisee Association is to represent, promote, and protect the general interests of all member YUM franchisees in Latin America and the Caribbean (CARIBLA, 2011). Objectives Contribute to maintain and improve the profitability the restaurants for the short and long term (supply chain management projects). Represent the members interests in different areas. harbour and protect franchisees contractual rights. Communicate as one voice with YUM Restaurants International. (Association Mission and Objectives,para. 1). Strengths, Weaknesses, Opportunities and Threats Beneficial Harmful Internal Strengths Weaknesses 1. Purchase power of consumer is rising. 1. Frachise cost is high. 2. more than half of Salvadoreans income is spent on food. 2. Competition is high in the industry. 3. know worldwide brand name (15,000 world-wide locations. 3. Small country population. 4. Quality and bile regulated throughout ev ery franchise. 5. Offers choices of local food on menu. out-of-door Opportunities Threats 1. Online Sales assist winnings. 1. Foreign products are currently fashionable but interest could 2. Introduction of new products. decrease. 3. Expansion due to rising saving (Continual Growth) 2. Economic climate stability. 4. Only current location in detonator city San Salvador largest 3. Local suppliers are minimal. hub for travelers. 4. Pollo Campero is a Salvadorian brand and well established chicken eatery. 4.Many fast food competitors such as Burger King, McDonalds, Pizza Hut, and so forth Product Differentiation The goal of product differentiation is to increase profits by increasing consumer demand and decreasing the demand of price elasticity. Organizations typically strive to differentiate their products through physical characteristics, location, armed service, and subjective image differences. KFCs product differentiation is most impacted by location , service, and physical characteristics.Consumers comfort a variety of products and because each consumer has different tastes, the organization will attempt to pry consumers away from current competitors by offering physically identify products. KFC must differentiate itself vertically, meaning the company will set itself by from competitors by the actual quality of its products (Waldman and Jensen,n. d. ). However, KFCs management must wisely choose upon its locations. The companys largest competitor, Pollo Campero, operates in 14 different locations in El Salvador and poses a high threat to the company.In addition to location, an organizations products are highly differentiated by service. With the presence of Pollo Campero, KFC must not only rely on good food but also provide exceptional customer service that will retain its customer base. Cost Leadership The cost leadership strategy targets a all-encompassing market. KFC has developed strong relations with suppliers that us e cheap ingredients. Additionally, the organization has the hood required to increase production in assets. While this type of investment represents a barrier to entry that many organizations may not overcome, this is an returns for the organization.Furthermore, KFCs flexibility in supply chains, product differentiation, and ease in their productions gives the organizations a competitive edge over its competitors (QuickMBA. com,2010). Conclusion KFC is based in Louisville, Kentucky and is subsidiary of Yum Brands, and operates in over 109 countries. A KFC store in El Salvador operates under three mission statements of Yum , the Association of KFC Franchisees, and CARIBLA. KFC has recognizable strengths, weaknesses, opportunities and threats to be evaluated in advance further expansion in El Salvador.Product differentiation and cost leadership are advantages that KFC utilizes in edging out competitors. Recommendations KFC has choices to make in expanding in El Salvador. One recom mendation is for KFC to contact the lone KFC operator in El Salvador to persuade him/her to open more franchises in San Salvador with a goal of gaining more name recognition to expand into other El Salvadoran cities. KFCs strengths and name recognition will create more opportunities in El Salvador. Another recommendation is to have the lone franchisee to find out if interest in opening new KFC stores exists among El Salvadors entrepreneurs.The franchisee could be paid a bonus for recruiting applicants that receive franchise approval. Both of these recommendations number on KFC equaling or surpassing food quality and customer service of chief rival, Pollo Campero, and by using product differentiation and cost leadership. References Kentucky Fried Chicken (2011). Retrieved from KFC website on March 27, 2011 www. kfc. com. Association of Kentucky Fried Chicken Franchisees, Inc.. (2006). Association of Kentucky Fried Chicken Franchisees, Inc.. Retrieved from http//www. kfcf. com/histor y. htm CARIBLA Franchisee Association. (2011). CARIBLA. Retrieved from website on March 28, 2011 http//www. caribla. com/association_mission. htm Pearce II, J. A. , Robinson Jr. , R. B. (2009). Strategic management Formulation, implementation, and control (11th ed. ). Waldman and Jensen. (n. d. ). Product Differentiation Strategy. Retrieved from http//courses. umass. edu/resec732/docs/Waldman%20and%20Jensen%20Chapter%2013. pdf QuickMBA. com. (2010). Strategic Management. Retrieved from