Kfc-Stratefy for Developing

Kentucky fried yellowed Strategic Plan-Part One Jeanette Cortez, Autumn Crowther, James Hopper Fernando Manaloto, Joe Newkirk, and Rita Salem International Strategic Planning and death penalty STR/GM 581 March 31, 2011 Dr. Tim Becker, MBA Introduction Kentucky Fried volaille has been established as a franchise in Latin America and the focus of this innovation go out be the El Salvador franchise. The strategic management attend is vital and a well laid out plan is necessary. Consequently, by evaluating the background of KFC, the outcome should channelize to a clear committee and vision statement outlining the purpose and goals of the company.Also, the mission and vision will come up all sh areholders informed of the objectives that should be met by KFC. Defining the company mission is one of the most lots slighted tasks in strategic management (Pearce II & Robinson Jr. , 2009, p. 42). A mission lays out the cheeks goals and basically specifies the purpose of the organizati on. Decisions and strategies can be established after environmental scanning is done along with a Situational Analysis (SWOT). The strategic process to a fault involves frequently assessing the industry structure and choosing strategic plan options that help rarify global operations.The two chosen strategic options that will be discussed will be product antitheticaliation and cost leadership. This plan should give clarity on how the options and recommendations fit with both the hawkish situation and the organizational situation. Background Based in Louisville, Kentucky, Kentucky Fried Chicken (KFC) corporation is touted as the humans most 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 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 excess of $11 billion and was stratified 239 on the Fortune 500 list (KFC, 2011). KFC Mission tale, Vision and Strategy KFCs Mission Statement is The Association of KFC Franchisees, Inc. s united to protect, promote and advance the mutual interests of all member franchisees and the Kentucky Fried Chicken system. (Association 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 realized during our first ten years. Our success has only just begun as we look onwards 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 exert and improve the profitability the restaurants for the short and long term (supply chain management projects). Represent the members interests in different areas. Defend 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 denigrative Internal Strengths Weaknesses 1. Purchase power of consumer is rising. 1. Frachise cost is mettlesome. 2. More than half of Salvadorans income is spent on food. 2. Competition is high in the industry. 3. Recognized worldwide brand name (15,000 world-wide locations. 3. Small country population. 4. Quality and freshness regulate throughout every franchise. 5. Offers choices of local food o n menu. External Opportunities Threats 1. Online Sales assist profits. 1. Foreign products are currently fashionable but interest could 2. Introduction of new products. decrease. 3. Expansion due to rising economic system (Continual Growth) 2. Economic climate stability. 4. Only current location in capital 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 pie Hut, etc. Product Differentiation The goal of product differentiation is to increase profits by increase consumer demand and decreasing the demand of price elasticity. Organizations typically attempt to differentiate their products through physical characteristics, location, service, and indispensable image differences. KFCs product differentiation is most impacted by location, service, and physical characteristics.Consumers value a v ariety of products and because each consumer has different tastes, the organization will attempt to pry consumers away from current competitors by offering physically differentiated products. KFC must differentiate itself vertically, meaning the company will set itself unconnected 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 affirm on good food but also provide exceptional customer service that will retain its customer base. Cost Leadership The cost leadership strategy targets a broad market. KFC has veritable strong relations with suppliers that use cheap ingredients. Additionally, the organization has the capital 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 usefulness for the organization.Furthermore, KFCs flexibility in supply chains, product differentiation, and ease in their productions gives the organizations a competitive surround 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 before further blowup in El Salvador.Product differentiation and cost leadership are advantages that KFC utilizes in edging out competitors. Recommendations KFC has choices to machinate in expanding in El Salvador. One recommendation is for KFC to contact the lone KFC ope rator 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 initiative new KFC stores exists among El Salvadors entrepreneurs.The franchisee could be paid a bonus for recruiting applicants that receive franchise approval. twain of these recommendations depend 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/history. htm CARIBLA Franchisee Association. (201 1). 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 instruction (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