Operation Kentucky Fried Chicken towards its company goal

The Kentucky fried chicken (KFC) has grown to be one of the largest retail food service systems in the world and the Coloner Sanders who the first person actively began franchising his chicken business has become a symbol of entrepreneurial spirit. In 1950 the Kentucky fried chicken (KFC) operated in 72 countries. The mission of this company is KFC is an internationally renowned fast food industry in the world and to increase and maintain the quality in fast food in world industry.

Their aim is to capture the fast food market. Basically they want to provide their products to anyone that is why they expending their branches in all over the world. They want to increase their profit through giving maximum satisfaction and other better facilities to people that they want. Now after catching such a marvelous position in the International Market, KFC is introducing a new item “Boneless Fried Chicken”, with even more attractive and charming taste. To establish their positions as the leading western quick service restaurant (WQSR) chain, serving good value and innovative chicken based products. Consistently providing a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all the times, they must be dedicated to providing excellent service and delighting customers such they says “Our passion, as a restaurant company, is to put a YUM on people’s faces around the world, satisfying customers every time they eat our food and doing it better than any other restaurant company”.

This company have 4 goal to achieve with is build an organization to excellence, consistently deliver superior quality and value in our products and service. Maintain a commitment to innovation for continuous improvement and growth, striving always to be the leader in the market place changes. And the last goals are generating consistently superior financial returns and benefit our owners and employees. In other method of this company is the value that has is to focus all their resources to their restaurant operations because that is where they serve their customers. They are also reward and also respect the contribution of each individual at Kentucky fried chicken. Another value was expand and update training with the time and be the best they can be and more. Next is to commit their selves to the highest standards of personal and professional integrity at all the times. Dedicate their selves to continuous growth in sales, profit and size of organization, reward results and not simple efforts and the most important value is work as a team.

Organization structure is defined as the way that an organization arranges its employees and management so that efficient work can be performed and it can meet its targeted goals. When an organization is small, a sole proprietorship or partnership where face-to-face communication is frequent, formal structure may not be necessary. The management functions of setting up the group, allocating resources, and assigning work to achieve goals. Supervisors organize the work within their own department and may help organize work among departments within the organization.An organization with a functional structure groups personnel and other resources according to the types of work they do.

An organization’s structure and reporting relationships are shown in organization charts, which illustrate the supervisor’s relationship to the other parts of the organization and the distribution of authority and responsibility. Manager who are granted jurisdiction and responsibility for specific actions that take place within a given location. The term is commonly used as part of a business structure, particularly with retail business and insurance corporations just like KFC. A manager of this type provides an important communication link between local operations and the organization headquarters. A retail regional manager usually is responsible for hiring and firing store managers, supporting each store manager in their efforts to make the stores successful, and ensuring that each store in the region is organized and functioning within the guidelines and directives put in place by the corporation. An Assistant Manager is an employee of an organization with manager’s authority. Assistant managers outrank the position of a supervisor and team leader, but typically report to a deputy or general manager. To supports the manager in the day-to-day running of a specific department, office or store. In larger organizations assistant managers may lead a team of staff. In smaller organizations, assistant managers may have greater responsibility, focusing their time on directing the work of subordinates.

Quality control is a process by which entities review the quality of all factors involved in production. This approach places an emphasis on three aspects. Control elements such as controls, job management, defined and well managed processes, performance and integrity criteria, and identification of records. Also control competence in knowledge, skills, experience, and qualifications. And inspect elements, such as personnel integrity, confidence, organizational culture, motivation, team spirit, and quality relationships. Finance an Account Department Involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business. The financial report will be report by assistant account report to the senior accountant. Project department function is to plan and execute effective development and investment in acquiring profitable returns for short term or long term gains. Human resources and admin is conduct on personnel management and implying that personnel managers should not merely handle recruitment, pay, and discharging, but should maximize the use of an organization’s human resources. Or in the other word is to describe formal systems devised for the management of people within an organization. Training department is connected to Human resource management department responsibilities can be broadly classified by individual, organizational, and career areas. Since the HRM department or manager is charged with managing the productivity and development of workers at all levels, human resource personnel should have access and the support to make decision makers. In addition, the Human Resources department should be situated in such a way that it is able to effectively communicate with all areas of the company. In a larger organization such as a corporation or limited liability company, a more defined structure must be utilized, as decisions have to be made about the delegation of various tasks. As a result, management procedures and structure are established to assign responsibilities for essential functions. These decisions and procedures determine the organizational structure within the organization.

There are several organizational structures that can be implemented by organizations. These organization structures are classified in two different categories: traditional and contemporary. The KFC adopted traditional structure concept for their outlets that other food chains are following. There is one General Manager for Pakistan. The outlet is leaded by the Manager, assisted by two assistant managers, and one shift in-charge for each shift, that supervises the performance of counter workers and kitchen workers. 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 to a small group of investors 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 its 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. PepsiCo has a consumer product orientation. PepsiCo found that the marketing of fast food was very similar to the marketing of its soft drinks and snack foods. PepsiCo reorganized itself in 1985. It divested non-compatible units and organized along three lines: soft drinks, snack foods and restaurants. PepsiCo Worldwide Restaurants was created to create synergism between its restaurant companies.

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 organization is currently structured with two divisions under PepsiCo. David Novak is president of KFC. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. Peter Waller is head of franchising while Olden Lee is head of Human Resources. KFC is part of the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants International. Both of these divisions of PepsiCo are based in Dallas. Another strategy of KFC is currently working with is to improve operating efficiencies. This in turn can directly impact the operating profit of the firm. In 1989, KFC centered on elimination of overhead costs and increased efficiency. This reorganization was in the U.S. operations and included a revision of KFC’s crew training programs and operating standards. They emphasized customer service, cleaner restaurants, faster and friendlier service, and continued high-quality products. In 1992, KFC continued with reorganization in its middle management ranks. They eliminated 250 of the 1500 management positions at corporate and gave the responsibilities to restaurant franchises and marketing managers.

What can I explain about the concept of authorities in organization is business development that become a backbone of the company, technical staff and also good management. KFC’s success derived from its effective crisis management. There are three main types of authority with is line Authority mean it is the power to give orders to subordinates. Line managers are responsible for attaining the organizational goals as efficiently as possible. Production and sales managers typically exercise line authority. Next is staffing Authority, power to give advice, support, and service to line departments. Staff managers do not command others. Examples of staff authority are found in personnel, purchasing, engineering, and finance. Lastly functional Authority, staff’s ability to initiate actions within a given area of expertise. Functional Authority allows decisions to be implemented directly by the staff. It provides to understand the organization behaviors in order to help the organization to achieve the organization objectives. The right of authority in organization such as:

The organization authorizes the supervisor to carry out certain tasks.

Authority has a right to perform a task or give orders to someone else.

The supervisor has the authority to act in behalf of the organization in matters of directing work and hiring and disciplining employees.

Authority of the supervisor is legitimized by the organization

That is, the organization stands behind the supervisor in his or her decisions.

Authority of the supervisor is legitimized by the organization

That is, the organization stands behind the supervisor in his or her decisions.

The responsible of authority in organization is to accepting responsibility commits people to completing an assignment to the best of their ability. The authority granted supervisors gives them a certain amount of power. Supervisors may have authority, but may have trouble getting others to act in the desired way. By accepting the position, supervisors are accepting the responsibility to achieve the goals of the organization.

In an organization functional authority can be found in accounting. The speed of the first principle of Kentucky started the crisis team to assess the crisis and develop appropriate plans tasks. Just showing signs of the crisis, they quickly took control of the situation, effectively preventing the escalation of the situation to expand. The principle of sincere communication, promptly informed of its findings, after a series of actions, has shown a sincere attitude. System Operation Principles, the crisis came quickly after the Organization of the crisis management team, special for this purpose. Secondly, the Chinese president, public statement Yum, apology, to ensure an authoritative, comprehensive, and to gain public trust. The final and fully cooperate with the media to deal with the crisis. The principle of responsibility is a series of decisions and actions, give the public the company’s responsible attitude, to obtain the approval and trust of the general public. The whole process from the incident point of view, at all stages of handling it appropriately, responsive. Prevention stage, Kentucky within the enterprise has a more mature sound crisis management plan, by the end of February 2005 set up a crisis team. Preparation stage requires its suppliers to provide raw materials without the written proof. Processing stage, exposes product contains Sudan I; president of a public statement of apology guaranteed to trace responsibility promised compensation to consumers and a series of actions to establish their honesty and responsible image. Rehabilitation phase, four ‘involving red’ products, promotional activities. Throughout the process, each phase was carried out orderly, while adhering to the principles of 5S, and accompanied by good faith, the public first, high-level participation strategy, and the ultimate good effect. 

Today, KFC is the world largest and most well known chicken restaurant chain, with more than 10,000 locations worldwide. In 78 countries KFC and its franchisees employ more than 200,000 people worldwide. The company achievement is to serves more than 7 million customers a day.