(KMS1023) Assignment 1 by Group 2
(KMS1023) Assignment 1 by Group 2
(KMS1023) Assignment 1 by Group 2
KFC is one cooperation company that we moreover know as Kentucky Fried Chicken
and it is one of the exceptionally popular chains of fast food restaurant. In Malaysia, Singapore
and Brunei, it surpasses 540 outlets. The founder of Kentucky Fried Chicken was by Colonel
Harland Sanders and as of now KFC is one of the biggest businesses of food service in the
world. KFC is a part of Yum! Brands, Inc., the world’s biggest restaurant company in terms of
system restaurants, with more than 36,000 locations around the world. The company is
positioned #239 on the Fortune 500 List, with incomes in overabundance of $11 billion in
2008. Malaysia could be a major Fast Service Restaurant (QSR) operator in Malaysia and has
been built up for just over 20 years now. The commerce of KFC primary most is the
nourishment made by chicken just like the chicken nuggets, fried chicken, chicken burger and
so on. These days, individuals all surge for their life and work, so quick food restaurant is their
choice to fulfil their request to full the stomach. They are giving the quality goods, serve client
quickly but productive and compelling. The packaging of the nourishment also appealing and
the encompassing of environment also clean and consolation for client to having meal. Other
than that, KFC also give a line of dishes and pastries such as ice-cream, salad and potato
wedges and so on. Recently, more and more Malaysians have been selecting for a more
beneficial eating count calories as a huge number of them have ended up more health
conscious. This has opened the entryway for KFC’s primary competitors, such as McDonald’s,
to come out with a modern range of more advantageous items, permitting them to mount a
more noteworthy challenge on KFC Malaysia’s current position as Malaysia’s leading fast-
food operator.
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PLANNING
Organization/Company Background
1. Vision and mission statement
KFC or known as Kentucky Fried Chicken vision is to be the leading integrated food
services group in the ASEAN region delivering consistent quality products and excellent
customer-focused service while the mission is to maximizing profitability, improve
shareholder value and deliver sustainable growth year after year.
2. Objectives
The most important objectives of KFC’s case are to sell food in a fast, friendly
environment that appeals to pride conscious, health minded consumers. KFC has strategic
planning to extend its market worth value of the market and its market share. They work on a
well-defined key planning for this. They are working productively on operational plans for
example, they only open the branch where they can effectively win up to more than desired.
This is often part of their operational plans once they will think they have made the spot at
that point they would open up its new department. Operational plans include launching of a
new product to change or innovate its product line for the customers.
Economic condition
Kentucky Fried Chicken (KFC) was one of the first fast-food chains to go international in the
1950’s and has remained a strong competitor in the industry. By 2000, KFC had become the third
largest chain in the world with 11,000 locations in 85 countries. The strategies utilized by KFC
and its management appear to be quite effective. In 1999, KFC was ranked number six in the top
50 fast food restaurants in the United States with sales exceeding 4.3 million dollars. They were
number one in the chicken chain category with a substantial market share of 55.2%. Their sales
grew at a steady rate of 4%.
Competitors
The competitors of KFC divided into two which are direct competitors and indirect competitors.
The direct competitors are McDonald’s, Subway, Pizza Hut and other fast food restaurants while
the indirect competitors are other restaurants which are not included in fast food restaurants list.
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Customers
The main customers of KFC are family so we can see the menu of KFC usually sale in the set
form. KFC products usually bought by individual which included male, female, single and
families. Therefore, the product range offer should appeal as many people within these
consumer markets is possible to ensure that the maximum amount of product can be sold.
I. Unique features
KFC has some features that other restaurants don’t have. First is the KFC Reusable Side
Container. Their objectives of creating this container are to make packaging more eco-friendly
and create something that can be used again and again. This concept had won the 2010 Greener
Package Awards. Besides, KFC also have fast food movie maker which named KFC Movie
Matic. This fast food movie maker lets user become real-life fast food stars.
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ORGANIZING
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Assistant a) Partner with the General Manager on victory measurements and lead
Manager eatery group to reach goals.
b) Responsible in planning the draft item projections and financial
which have to be be surveyed by the Common Manager.
c) Grow and coach group through preparing and contracting.
Shift Supervisor a) Provides top-notch visitor encounter that incorporates inviting intuitive, a
clean eatery and hot and new meals.
b) Manage day by day operations by observing the working of
the representatives either independently or in a bunch. The standard is set by
the move bosses with respect to the execution of the group individuals.
Team Member: a) Make and prepare guest orders with accuracy and efficiency.
Customer b) Answering the telephones cells and handle order via online and drive thru
Services from customers.
Team Member: a) Make KFC world-famous chicken at the most noteworthy quality standards.
Cook b) Partner with group part to oversee the item required to fulfill visitor orders
c) Practice tall quality nourishment and cleanliness guidelines.
Team Member: a) Responsible for taking orders and demands from clients. She is
Cashier additionally capable for supplanting orders if asked by customers.
b) Responsible for gathering customers arrange in a tray, this incorporates the
most supper, side dishes, drinks, condiments and utensils.
Responsible for treating the clients with the leading client benefit hones such
as engaging a customer’s comments or complaints with respect
to the nourishment and administrations.
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LEADING
Besides, you have to be flexible in dealing employee’s concerns. Use your good common
sense that always give you the flexibility you need to resolve individual performance. You also
have to give simple, but specific job directions at any time you assign a new task to a worker.
Make things not so difficult in the eyes of your subordinates even if it is in actuality a challenging
task. This will make them feel good and confident doing the jobs assigned to them.
Managers have to defend their subordinates against unfair criticisms and be with them. Make
them think and feel that you are a reasonable or supportive manager. You have to be loyal to your
subordinates as well as to the organization. Includes subordinates in the decision-making process
whenever feasible. You can also show your leadership qualities by working to obtain promotions,
pay raises, and awards for deserving employees.
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B) What makes a manager a good leader?
To be a good leader as a manager, you must listen to the team. Sometimes, a leader may
get too busy giving directives and managing the team, so that they forget to listen to other leaders
and even their followers. A good leader should understand that they do not know everything and
that they can learn new thing from the most junior employee. The leader should learn to interact
and listen to all employees because most organizations hire staff based on their expertise and
experience in specific fields.
You have to deliver on promised results. Good leaders must deliver actual results rather
than just giving promises every time. They must work toward getting tangible results and focus
less on the past achievements that they have not been able to equal afterward. Leaders can
accomplish this by learning the art of delegation, where they can break down large tasks into
smaller manageable tasks that can be assigned to one or more employees.
Other than that, you have to resolve conflict quickly. Conflicts often arise in organizations
between employees, leaders versus leaders or leaders versus employees. How quickly the
conflicts are resolved determines how competent a leader is. A good leader should arbitrate when
conflict arises to prevent the disagreements from stalling projects within the company. The
employees should see that their leader has the heart and mind to embrace challenges so as not to
break the organization.
A good leader also has to value people. Appreciating the contribution of other people in an
organization helps strengthen the relationship between the leaders and the followers. The leader
should exhibit good communication and listening skills such that no employees will feel inferior
to other persons within the organization. Also, the leader should be honest, fair and open to
discussions that touch on the welfare of the employee. Valuing the contribution of employees in
the organization enhances the leader’s ability to interact with people in a meaningful way.
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C) In what situations are certain leadership styles most appropriate and effective?
One of the most effective leadership styles is the transformational leadership style. This
style inspires their staff through effective communication and collaboration and thus initiating the
path to success. The second leadership style is democratic leadership. This style usually reports
higher levels of job satisfaction and the company can benefit from individualistic creativity. The
third leadership style is laissez-faire leadership. In this leadership style, the leader allows the
employees to make decisions. The fourth leadership style is transactional leadership. This
leadership style is basically focused on group organization, establishing a clear chain of command
and implementing a carrot-and-stick approach to management activities.
The fifth leadership style is autocratic leadership. Autocratic leaders take control of the
staff and rarely accept or consider employees’ views or suggestions. The sixth leadership style is
strategic leadership. This leadership style involves a leader who is essentially the highest
authority of the organization. The seventh leadership style is bureaucratic leadership. In this
leadership style, the leaders set a strict set of rules, regulations and policies which they follow
precisely, and they expect their teams to follow the line. The eighth leadership style is charismatic
leadership. This leadership style relies heavily on the positive charm and personality of the leader.
This type of leadership is seldom considered to be effective because the success of projects and
initiatives are closely linked to the presence of the leader.
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CONTROLLING
A) Establish performance standards
i. Monetary terms
To open a KFC restaurant, it requires a lot of money at the beginning. KFC attains
advantages by delivering low cost products to the customers. KFC supply chain risk reduction
tactics are effective for multiple suppliers which reduces the dependency, monopoly and risk.
According to (The Borneo Post, 2011) it encourages sales, but the group noted that “its
profitability was affected by high costs of local poultry products and imported raw materials.
Management is actively taking steps to source for cheaper alternatives and review its marketing
programs to improve sales throughput at its restaurants”. Overall, KFC Malaysia’s restaurants
segment registered a 9.5 per cent revenue growth to RM1.888 billion while its integrated poultry
segment recorded a 10.2 per cent revenue growth to RM533.4 million against the previous
RM484.1 million.
Table 1.2: Number of Kentucky Fried Chicken restaurants worldwide from 2010 to 2019
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iii. Number of defective products
According to (Shah Mujahid Uddin,2020) product quality and fast service delivery is
prerequisite for business strategies. KFC is famous for quality and service in chain restaurant. If
any customer becomes ill due to food safety issues, authority temporarily close the out late.
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ii. Sales report
The standard of KFC’s sales was as good as possible while still maintaining the levels of
quality that can approve customers’ satisfaction. According to the sales growth rates of KFC
Holdings (M) from year 2005 until 2009, it was shown that KFC Berhad remains by far one of the
cheapest mid-large cap consumer companies in Malaysia. It can be seen on the table of the
overleaf for regional comparison. The sales growth rate was increased from 2005 to 2009 for
example the Dividend Yield on year 2005 is 2.5 percent then each year been increased which year
2009, the yield is increased to 7.8 percent. It was reported that KFC Holdings generated revenue
of RM1, 206, 9 million which accounted for a 10.9 percent increase over 2009. Since the sales
increase over the country and show good performances, the number of Malaysian KFC outlets has
increased to 399 in 2007 and now was increased to 500 outlets all around Malaysia At end of
March 2007, the research house imputing that 2 percent of selling price was implemented by
Malaysian KFC outlets, and 3 to 4 percent selling price increase implemented at Singapore KFC
outlets in November 2006. Since the selling price increased, KFC branches were growing fastest
around nationwide. Apart from that, KFC Holdings (M) also increased the number of Ayamas
Restaurant outlets to 19 from 14 outlets for 2007 and then from 14 to 21 outlets for 2008. The
growth accelerated earnings by this company in 2QFY09 (+4.2%yoy to RM31.7m) as compared
with +1.4%yoy in 1QFY09. The higher growth was due to higher contribution and better margin
from KFC restaurant division.
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iv. Customer satisfaction
Hypothesis Results
H1. The relationship between food quality and customer satisfaction Positive
H2. The relationship between service quality and customer satisfaction Positive
H3. The relationship between ambiance facilities and customer satisfaction Positive
Table 1: Hypothesis result of A Study on Customer Satisfaction Towards Ambiance, Service and Food Quality
in Kentucky Fried Chicken (KFC), Petaling Jaya
Based on the study that have been conducted, all the proposed hypothesis was
acknowledged since concurring to the survey, customers who were satisfied with the given
variables were ultimately satisfied with the overall experience of dining in KFC Petaling Jaya. A
restaurant is not just composed of the food or menu it is offering, it is a combination of many
factors which lead the way to satisfaction of the customers who visit the restaurant. It shows that
KFC Petaling Jaya is doing a great job by always priorities the customer and it was reach to the
standard that have been setting.
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CONCLUSION
The success of KFC derives from several factors. The internal review of the company
shows that the firm has built a range of strengths. For example, KFC has incorporated a principle
of customer focus that has strengthened its dedication to ensure that consumers reach a high
degree of satisfaction. KFC often introduces new products and new innovative meals to meet
local tastes, thereby increasing market share. In addition, KFC focus was placed on how their
meals can meet the ever-changing taste and preferences of the market they serve. This is also why
many customers like their products. Besides, franchising has allowed KFC to extend its
operations both on the domestic and international markets. Implementation of corporate-level
policies, including product growth and business development, has strengthened the company's
potential to increase its market share. KFC also spend 2% of its income on advertising and use
print media and most recently, online advertising to market their products. For examples,
advertising media include televisions, newspapers, billboards, pamphlets and the internet. KFC
also distributes utilities to the customer, such as parking, waiting, etc. KFC positions its outlets in
strategic areas such as universities, schools, city offices or some other sector, most of which are
occupied by young people and some adults. In conclusion, with the existence of fast food services
produced by KFC, they are confident that it can increase the level of other services in the market.
KFC is a sustainable business as their service will always be well received. The business will
continue to grow stronger and bigger in the world.
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