Essay regarding SWOT Research of KFC


Advantages can be found inside in a organization and can be accustomed to the company's benefit. The advantages identified will be as follows: 1 ) KFC's key recipe.

The secret recipe has long been a source of advertising and marketing, and allowed KFC to put itself apart. Also, APPLEBEES was the first chain to the pret a manger industry, just before McDonald's, which usually opened its first store a year later, and the " key recipe" was the initial residence replacement strategy. 2 . Identity recognition and reputation.

KFC's early on entrance in to the fast-food sector in 1954 allowed APPLEBEES to develop solid brand name identification and a strong foothold in the industry. The Colonel is KFC's original owner and an extremely recognizable determine, both in the U. T. and internationally, in their new logo. In fact , in the last annual LogoValue Survey, made by The Schecter Group, the KFC company logo was the merely one which substantially enhance the brand's image (Logos add…1). several. PepsiCo's accomplishment with the management of fast food chains. PepsiCo acquired French fries Hut in 1977, and Taco Bell in 1978. PepsiCo used many of the same marketing strategies which it has used to sell soft drinks and snack food. By the time PepsiCo bought KFC in 1986, the company currently dominated a pair of the four largest and fastest-growing sectors of the fast food industry (Wright, p. 424-426). 4. Classic employee dedication.

" KFC's tradition was developed largely in Colonel Sanders' laid back approach to management" (Wright, p. 433). Before the acquisition of KFC simply by PepsiCo, employees at KFC enjoyed great benefits, a pension, and can receive aid in other non-income needs. This kind of " personal" human resources management makes for a loyal workforce (Wright, p. 434). 5. Bettering operating efficiencies by reducing overhead and other operating costs can directly affect operating revenue. Due to the solid competition in the usa, the fast-food chains will be reluctant to improve prices to improve profit. A lot of the chains happen to be turning to operating efficiencies to boost profit. For a lot of companies, functioning efficiencies are achieved through improvements in customer service, clean restaurants, quicker and more friendly service, and continued top quality products.


Weaknesses are usually found in house like strong points. Weaknesses, yet , can limit a company's potential. The weaknesses pertaining to KFC are identified as employs: 1 . The countless sales of KFC result in a complicated corporate course. Between the year of 1971 and 1986, KFC was sold 3 times. The initial two revenue, to Heublein, Inc and R. M. Reynolds, still left the company generally autonomous. This wasn't until the sale to PepsiCo in 1986 that changes in top administration started to occur. These adjustments happened practically immediately after the sale (Wright, l. 421-426). 2 . KFC provides a long time to sell with new items.

Because of the nature with the chicken segment of the fast food industry, creativity was hardly ever a primary strategy for KFC. However , during the overdue 1980's, different fast food restaurants, such as McDonald's, began to present chicken like a menu alternative. During this time, McDonald's had currently introduced the McChicken while KFC was still being testing its own chicken hoagie. This hold off significantly increased the cost of producing consumer recognition for the KFC hoagie. 3. Conflicting cultures of KFC and Pepsi Company.

When KFC's culture was generally based on the Colonel's relaxed approach to supervision, while PepsiCo's culture is far more of a " fast track" attitude. Staff do not have the same level of job security that they enjoyed prior to PepsiCo buy (Wright, p. 433-434). 4. Turnover in top supervision.

PepsiCo bought KFC in 1986. By summer of 1990 PepsiCo's own management had substituted all of the top rated KFC managers. However , by simply 1995 almost all of this new PepsiCo management had either still left the company or been relocated to a different division. In addition , Kyle Craig, who had been named leader of KFC's US procedures in 1990, left in 1994 to sign up Boston Industry...