This document outlines an agenda and background information for a presentation on KFC. It includes sections on company profile, mission statement, ownership structure, alliances, products/technology, market trends, strategic analysis, financial overview, probable outcomes, and critical success factors for KFC's continued success. Speakers will cover topics such as KFC's market share, opportunities for growth, financial ratios compared to competitors, and ensuring ethical operations as the company expands globally.
This document outlines an agenda and background information for a presentation on KFC. It includes sections on company profile, mission statement, ownership structure, alliances, products/technology, market trends, strategic analysis, financial overview, probable outcomes, and critical success factors for KFC's continued success. Speakers will cover topics such as KFC's market share, opportunities for growth, financial ratios compared to competitors, and ensuring ethical operations as the company expands globally.
This document outlines an agenda and background information for a presentation on KFC. It includes sections on company profile, mission statement, ownership structure, alliances, products/technology, market trends, strategic analysis, financial overview, probable outcomes, and critical success factors for KFC's continued success. Speakers will cover topics such as KFC's market share, opportunities for growth, financial ratios compared to competitors, and ensuring ethical operations as the company expands globally.
This document outlines an agenda and background information for a presentation on KFC. It includes sections on company profile, mission statement, ownership structure, alliances, products/technology, market trends, strategic analysis, financial overview, probable outcomes, and critical success factors for KFC's continued success. Speakers will cover topics such as KFC's market share, opportunities for growth, financial ratios compared to competitors, and ensuring ethical operations as the company expands globally.
Andrew: SWOT Analysis Talib: Financial Overview Past and Present Financial Ratio Analysis Probable Outcomes and Predictable Crises Critical Success Factors Background & Overview Company Profile Founded in 1952 Operates in more than 108 countries globally Parent company YUM Brands Serves approximately 12 million customers in more than 5,200 restaurants globally Background & Overview Mission Statement YUM BRANDS: Build their brands in China Aggressive international expansion Improve U.S. brand position Drive long term Shareholder and franchisee value Background & Overview Ownership & Organization David Novak, CEO of YUM Brands Roger Eaton CEO of KFC KFC Franchise breakdown: Restaurant General Manager Assistant Managers Average of 20-35 employees per store Background & Overview Ownership and Organization Company Franchisee Total
Beginning of 956 4,210 5,166
Year New Builds 6 74 80
Acquisitions None
Refranchises 60 60 None
Closures 47 107 154
Other None (12) (12)
End of Year 855 4,225 5,080
Total % of Total 17 83 100 Background & Overview Alliances
Pizza Hut & Taco Bell
Yum Brands: World’s largest proprietor of multi-branded fast-food locations KFC holds 69% of Yum Brands market share Background & Overview Charitable Alliances
Animal Welfare World Hunger Background & Overview Products & Technology KFC’S Point of Difference: Secret Recipe for Fried Chicken Fast-Food Competitive Technology: Automation Heating Food Production Shelf-Life Ingredients Market Overview Market Trends & Growth Global Recession = Increase in consumption of cheaper foods 73% of Americans eat fast food out of convenience 33% of Americans and 30% of the Asia Pacific Market eat fast-food at least once a week Market Overview Market Trends & Growth KFC’s usually clustered in urban centres Soaring food prices notably wheat, health and diet concerns have slowed growth of fast food chains since 2006 in U.S. Emerging Markets: Prefer international brands Market Overview Key Players International: McDonald's Domestic: Wendy’s Burger King Sonic Jack in the Box Strategic Analysis Strengths: Market Share KFC has roughly 42% of the global chicken on the bone market share Nearly 3 times as much as their nearest competitor China 2009, 16% increase in market share Aided KFC in declining U.S. Market growth Strategic Analysis Strengths Differentiation: Trademarked items and Recipes International Presence: Global Diversification and ability to expand rapidly (i.e. China) Strategic Analysis Strengths USA 5,166
Mainland China 2,497
Japan 1,150
Great Britain 689
Canada 780
Australia 572
Indonesia 336
Malaysia 431 Strategic Analysis Weaknesses Systemic: Integrity of Supplier & Distributors Decentralization of Ownership- Franchisee model (i.e. quality,service,cleaniness, etc.) Branding: Mom and Family values: Health and weight issues Strategic Analysis Opportunities Stability In Commodity Pricing: Analysts indicate that chicken prices should stay stable in short term Beneficial in further maintaining costs to provide better margins Strategic Analysis U.S Chicken Price per lbs. (cents) Month Value
Feb 2009 86.70
Mar 2009 85.73
Apr 2009 85.38
May 2009 86.96
Jun 2009 88.17
Jul 2009 88.56
Aug 2009 86.77
Sep 2009 84.88
Oct 2009 82.85
Nov 2009 82.13
Dec 2009 82.15
Jan 2010 83.00
Strategic Analysis Opportunities Emerging Markets: Estimated 5% growth rate in emerging economies Perceive brands as superior to local Asia Pacific region rates high globally in fast food frequency visits Low Labour Costs Strategic Analysis Opportunities Diversification in Mature Markets: Develop Incremental sales layers (i.e. Breakfast, new beverages, expanded protein options, etc.) Expansion of Multibranding: Single store location pairings with Pizza Hut and Taco Bell Strategic Analysis Threats Mature Market Diet and Health concerns (75% of Americans eat less fried chicken due to health concerns) Foreign Currency Fluctuations Animal Welfare Activists (i.e. PETA) Emerging Competition in Mature Markets (i.e. Chicken Fil A) Avian Flue Financial Overview Past/Present Past: Steady share price increase over past ten years KFC U.S. Sales per unit have grown by 2% over last 4 years Present: Yum Brands achieved 6.9% growth in 2009 compared to 2008 Annual Sales per restaurant in U.S. are around 1.3 million, on par with industry Financial Overview Past/Present KFC U.S. Sales per Unit: Year End 2008 2007 2006 2005 2004 % growth thousands
emerging markets 2. Diversification of Menus in North America 3. Improve control processes on ethical operations 4. Improve operational and supply chain efficiency Critical Success Factors
1) Develop brand equity in new
markets and sustain a differentiated brand in existing markets 2) Develop and sustain healthy relationships with franchisees and other stake holders Critical Success Factors
3) Provide an infrastructure that is
flexible enough to adapt to local markets under the umbrella brand 4) Ensure the integrity of supply and distribution networks in the face of international variances, environmental crises and intensifying ethical concerns.
