FINAL PROJECT TOF KFC PIZZA1111111111111.docx

7/27/2019 FINAL PROJECT TOF KFC PIZZA1111111111111.docx

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CHAPTER 1:- INTRODUCTION OF COMPANIES

INTRODUCTION OF KFC

KFC Corporation, based in Louisville, Kentucky, is the

worlds most popular chicken restaurant chain, specializing

in Original Recipe , Extra Crispy TM, and Colonels Crispy Strips

chicken with home style sides and five new freshly made sandwiches. Every day, nearly

eight million customers are served around the world. KFCs menu everywhere includes

Original Recipe chickenmade with the same great taste Colonel Harland Sanders

created more than a half-century ago. Customers around the globe also enjoy more than

300 other productsfrom a Chunky Chicken Pot Pie in the United States to a salmon

sandwich in Japan.

KFC continues reaching out to customers with home delivery in more than 300

restaurants in the United States and several other countries. And in quite a few U.S.

cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly

fifty years ago; Colonel Sanders invented what is now called home meal replacement

selling complete meals to harried, time-strapped families. He called it, Sunday Dinner,

Seven Days a Week.

Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logo

features Colonel Harland Sanders, one of the best-recognized icons in the world.

Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken

business at the age of 65. Now, the Kentucky fried chicken business he started has grown

to be one of the largest retail food service systems in the world. And colonel sanders, a

quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More

than two billion of the colonels finger lickin good chicken dinners are served

annually. And not just in America. The colonels cooking is available in more then 82

countries around the world.


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KFC (Kentucky Fried Chicken) is a fast food restaurant chain which specializes in

fried chicken and is headquartered in Louisville, Kentucky. It is the world's second

largest restaurant chain overall (as measured by sales) after McDonald's, with over

18,000 outlets in 120 countries and territories as of December 2012. The company is a

subsidiary ofYum! Brands, a restaurant company that also owns thePizza HutandTaco

Bellrestaurant chains.

KFC was founded byHarland Sanders, a colorful figure who began selling fried chicken

from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders

identified the potential of the restaurant franchising concept, and the first "Kentucky

Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast

food industry, diversifying the market by challenging the established dominance of thehamburger. By branding himself as "Colonel Sanders", Harland became a prominent

figure of American cultural history, and his image remains widely used in KFC

advertising. However, the company's rapid expansion saw it overwhelm the ageing

Sanders, and in 1964 he sold the company to a group of investors led byJohn Y. Brown,

Jr.andJack C. Massey.

KFC was one of the first fast food chains to expand internationally, opening outlets in

England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC

experienced mixed fortunes domestically, as it went through a series of changes in

corporate ownership with little or no experience in the restaurant business. In the early

1970s, KFC was sold to thespiritsdistributorHeublein, who were taken over by theR.J.

Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain

continued to expand overseas however, and in 1987 KFC became the first Western

restaurant chain to open in China. The chain has since expanded rapidly in China, and the

country is now the company's most profitable market. PepsiCo spun off its restaurants

division asTricon Global Restaurants, which later changed its name to Yum! Brands.

KFC's original product ispressure friedchicken pieces, seasoned with Sanders' recipe of

11 herbs and spices. The constituents of the recipe represent a notabletrade secret. Larger

portions of fried chicken are served in a cardboard "bucket", which has become an icon
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of the chain since it was first introduced by franchiseePete Harman in 1957. Since the

early 1990s, KFC has expanded its menu to offer other chicken products such as chicken

fillet burgers and wraps, as well as salads and side dishes such as French fries and

coleslaw, desserts andsoft drinks, the latter often supplied byPepsiCo. KFC is known for

theslogan"finger lickin' good", which has since been replaced by "Nobody does chicken

like KFC" and "So good".

INTRODUCTIN TO DOMINOS PIZZA

Jubilant Foodworks was founded in 1995 and the company opened its first Domino's

pizza store in January 1996.The Domino's brand was founded in the United States of

America in 1960 by Thomas and James Monaghan. Since then, that business has grown

into a global network of over 8,500 pizza stores in more than 60 countries, involving over

2,000 franchises.Jubilant Bhartia Group holds the master franchisee rights for the

Domino's Pizza brand and operations for the whole of India, Nepal, Sri Lanka and

Bangladesh. The company will continue to use the brand name of 'Domino's Pizza' for

marketing and other related purposes.

We have constantly focused on consumer-centric areas such as product innovation, taste,

pricing and customer service. Our several products innovations such as Double Cheese

Crunch Pizza, Kebab Pizzas, Cheese Burst Pizza, Dominos Calzone, Chicken Wings

amongst others, and most recently Pasta, have gone down well with the consumers. As

the result, we have been able to get quick product acceptance from them and often that is

the first and most important bridge that a foreign food category has to cross. On the other

hand, offers like, Pizza Mania at Rs 35/- per Pizza and Fun Meal for 4 has helped us drive

value-formoney proposition allowing access to the brand. We have realised that value for

money is an extremely important need for Indian consumers, especially in the context of
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the food services market. Then our 30 minutes or free service guarantee gives a

differentiated edge to our brand amongst the Indian consumers.

popular with the countrys burgeoning middle class, but also the brand omnipresent. In an

interview with Amit Sharma, Dominos Pizza India VP, marketing, Dev Amritesh, shares

the brands India journey and the companys plans for India.

Domino's Pizza is recognised as the world's leading pizza delivery company. Our

expertise and passion for delivering hot and fresh pizzas has earned us numerous awards

and the loyalty of millions of pizza lovers around the world.

Domino's Pizza UK and Ireland Limited is a wholly owned subsidiary of Domino's

Pizza Group plc ("DPG") which is quoted on the main market of the London Stock

Exchange. DPG is the UK and Ireland's leading pizza delivery company and holds the

master franchise to own, operate and franchise Domino's Pizza stores in these markets.

Our first UK store opened in 1985 and the first Irish store opened in 1991. In April 2011,

the company gained exclusive rights to own, operate and franchise Domino's Pizza stores

in Germany and in September 2012 the company acquired the master franchise for

Switzerland, Luxembourg and Liechtenstein and has an option to open stores in Austria

prior to the end of 2014.

Over 21,000 team members work in our UK and Irish stores and in a range of support

functions ranging from marketing, IT and training to fresh dough production at our three

commissaries in Milton Keynes, Penrith and Naas, Ireland. Our stores are owned by

franchisees who are responsible for delivering our brand's high standards to customers

CHAPTER 2:- PROBLEM & CAUSES


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ENVIRONMENTAL PROBLEM FACED BY KFC

POLITICAL :

The operations of KFC are affected by the government policies on the regulations of fast

food operation. Currently government are controlling the marketing of fast food

restaurant because of health concern such as cardiovascular and cholesterol issue and

obesity among the young and children in the country. Governments also control the

license given for open the fast food restaurant and other business regulation need to

follow such as for a franchise business. Good relationship with government in giving

mutual benefits such as employment and tax is a must for the company to succeed in any

foreign market.

ECONOMIC:

Though for last 1 year their was economic slowdown all across the globe but the sales of

KFC and other fast food chains did not slow down to that extent that of other sectors in.

The GDP (Purchasing Power Parity) is estimated at 2.965 trillion U.S. dollars in the year

2010. The GDP- per Capita (PPP) was 2700 U.S. dollars as estimated in 2008. The GDP-

real growth rate in 2007 was 8.7%. India has the third highest GDP in terms of

purchasing power parity just ahead Japan and behind U.S. and China.

SOCIO CULTURAL:

India is the second most populous nation in the world with an approximate population of

over 1.1billion people. This population is divided in the following age structure: 0-14

years31.8%, 15-64 years63.1% and 65 years and above5.1%.

There has also been a continuous increase in the consumption of fast food in India. The

social trend toward fast good consumption is changing and India has seen an increase of

90% fast food consumption from the year 2002- 2007.

TECHNOLOGICAL:


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The Indian fast food Industry is heating up with a lot of foreign players entering the

Indian market. The technological knowhow and expertise will also enter the Indian

market with an increase in competition. With the lower rates and increase technology the

fast food counters are attracting youth by giving them attractive deals. For e.g. KFC and

Dominos pizza. For a fast food restaurant, technology does not give a very high impact

on the company and it is not a significant macro environment variables.

ENVIRONMENTAL:

As one of world largest consumer of beef, potatoes and chicken, KFC always had been

critics for world environmentalist. This is because high consumption of beef causing the

green house effect by methane gasses coming from the cows ranch. Large-scale

plantation has effect the environment and lost of green forest opening for plantation

activities. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals

and slaughtering. In America, once KFC want to introduce whale burger causing uproar

because whales are endangered species.

LEGAL FACTORS:

As a certified fast food operator, there are many regulations and procedures that KFC

should follow. For example is the Halal certification that becomes a concern to Muslim

consumers. KFC should protect its integrity and consumer confidence by ensuring all

materials and process are as claimed or must followed.

KFC has not yet invested much onR&D, and innovating new products for Indian

Markets. This may lead to failure of their products asthey are not in line with the Indian

mind set, peoples Taste and preferences and their likes anddislikes. This may prove fatal

for the company.FEWER OPTIONS AVAILABLE FOR VEGETARIANS AND NON

CHICKEN LOVERS: The menu isprimarily focused on a few types of chicken and thus has

fewer choices available for other segments of fast food lovers and thus may fail to attract

a wide range of customers. CULTURE INCOMPATIBILITY: KFC still finds it difficult

to enter many markets mainly because of the culture incompatibility with the local

market. It is still restricted to the urban markets of India.RECENT DROP IN SALES:


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The brand suffered recent drop in sales in the current year after therecessionary phase and

small competitors taking away shares of their market

Lets look at KFCs major competitive, McDonald, though globally McDonald seems to

be taking the leadership, in China McDonald falls in a defending position. KFC with

nearly 3,500 restaurants in more than 700 cities (yum.com 2011) compared to only about

1,100 of McDonald. Some believe that this is due to the fact that KFC China tended to

introduce new products more frequently than their competitors in China. Also the fact

that KFC has chicken as its core product offering is a very natural advantage that fits this

context very well, since most Chinese prefer pork, followed by chicken; whereas beef

and mutton lag far behind. So in that light, KFC enjoys a natural product advantage over

McDonalds (insead.edu 2010). But obviously McDonald would not surrender in such afast growing fast food market in one of the fastest growing economies in the world.

According to the news, McDonalds Corp. plans to nearly double its presence in the

worlds fastest developing economy over the next few years, senior officials from the

company said after they launched the first McDonalds Hamburger University in China.

McDonalds is capitalizing on Chinese investment fever by launching a new Hamburger

University in Shanghai and aiming to nearly double the number of branches.

McDonalds, which has about 1,100 outlets in China expects to boost that number to a

total of 2,000 by the end of 2013, said Tim Fenton, the companys president of Asia

Pacific, Middle East and Africa, in an interview (Sky.com 2010). In addition, the raising

Chinese style fast food restaurants which have advantages since their food are local also

post great competition to the western style fast food like what KFC provides. But

according to Michael E. Porter (1998, p. 209), competition does not necessarily be bad,

and the real competition is dynamic and rests on innovation and search for strategic

difference. Therefore the challenges faced by KFC due to the high level of competition

needs to be coped with by KFC in a more proactive way by using ways such as product

differentiation.


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The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC)

business operations in India. KFC entered India in 1995 and has been in midst of

controversies since then. The regulatory authorities found that KFC's chickens did not

adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three

times more monosodium glutamate (popularly known as MSG, a flavor enhancing

ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by

People for Ethical Treatment of Animals (PETA), an animal rights protection

organization. PETA accused KFC of cruelty towards chickens and released a video tape

showing the ill-treatment of birds in KFC's poultry farms.

The chicken was brought by PETA (People for Ethical Treatment of Animals) activists,

who carried placards reading, "Quit India" and "Stop Playing Fowl" (a pun on "Foul").

The chicken was placed at the centre and a peaceful protest was held against the alleged

ill treatment of birds in KFC's poultry farms. Media persons were called to give the

demonstration a wide coverage (Refer Exhibit I for a visual on the protest by PETA

activists).

Explaining the rationale behind the protest, Bijal Vachcharajani, special projects

coordinator of PETA, said, "Ours is the land of Gandhi. Just as 61 years back our leaders

gave a call for colonizers to quit India, we too are saying we will not tolerate cruel

multinationals.

BACKGROUND-NOTE

KFC was founded by Harland Sanders (Sanders) in the early 1930s, when he started

cooking and serving food for hungry travellers who stopped by his service station in

Corbin,Kentucky,US.

He did not own a restaurant then, but served people on his own dining table in the living


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quarters of his service station. His chicken delicacies became popular and people started

coming-just-for-food.

Kentucky Fried Chicken was born. Soon, Sanders moved across the street to a motel-

cum-restaurant, later named 'Sanders Court & Cafe,' that seated around 142 people.

Over the next nine years, he perfected his secret blend of 11 herbs and spices and the

basic cooking technique of chicken. Sanders' fame grew and he was given the title

Kentucky Colonel by the state Governor in 1935 for his contribution to the state's cuisine.

Sanders' restaurant business witnessed an unexpected halt in the early 1950s, when a new

interstate highway was planned bypassing the town of Corbin. His restaurant flourished

mainly due to the patronage of highway travellers.

The new development meant the end of this. Sanders sold his restaurant operations. After

settling all his bills, he was reduced to living on a meagre $105 social security cheque.

But Sanders did not lose hope. Banking on the popularity of his product and confident of

his unique recipe for fried chicken, Sanders started franchising his chicken business in

1952. He called it Kentucky Fried Chicken. He travelled the length and breadth of the

country by car, visiting as many restaurants as possible and cooking batches of chicken.

If the restaurant owners liked his chicken, he entered into a handshake agreement that

stipulated payment of a nickel9 for each plate of chicken sold by the restaurant.

Foreign fast food companies were allowed to enter India during the early 1990s due to

the economic liberalization policy of the Indian Government.

On receiving permission to open 30 new outlets across the country, KFC opened its first

fast-food outlet in Bangalore in June 1995. Bangalore was chosen as the launch pad

because it had a substantial upper middle class population, with a trend of families eating

out. It was considered India's fastest growing metropolis in the 1990s. Apart from

Bangalore, PepsiCo planned to open 60 KFC and Pizza Hut outlets in the country in the

next seven years. However, KFC got embroiled in various controversies even before it

started full- fledged business in India. When the issue of granting permission to

multinational food giants to set up business in the country came up for discussion in the


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Indian parliament, some members from the opposition parties were vocal in their

displeasure...

Problems for KFCFrom the very first day of opening its restaurant, KFC faced problems

in the form of protests by angry farmers led by the Karnataka Rajya Ryota Sangha

(KRRS).

The farmers leader, Nanjundaswamy, who led these protests, vehemently condemned

KFC's entry into India, saying that it was unethical to promote highly processed 'junk

food' in a poor country like India with severe malnutrition problems. Nanjundaswamy

expressed concern that the growing number of foreign fast food chains would deplete

India's livestock, which would adversely affect its agriculture and the environment. He

argued that non-vegetarian fast-food restaurants like KFC would encourage Indian

farmers to shift from production of basic crops to more lucrative varieties like animal

feed and meat, leaving poorer sections of society with no affordable food. KRRS held a

convention on November 01, 1995 to protest the entry of fast food multinationals and the

Westernization of local agriculture.

The marketing strategy that Dominos adopted in the Japanese market forms the focus of

this caselet. The difficulties that Dominos faced in marketing its products in Japan, and

the elaborate efforts that the company made to attract the Japanese consumers are also

covered. The caselet points out how the company's failure to pay heed to the cultural

differences between the Americans and the Japanese, hampered its operations in Japan.

ISSUES:

Challenges faced by fast food companies in foreign nations

The role of market research in formulating strategies in foreign markets

Dominos' struggle to penetrate the Japanese market

Over the last two years, our sales revenue has grown by more than 100%. Also, the

average same store growth in the last three fiscals has been around 16%. Our initiatives in

the area of brand building, product innovation and penetration coupled with the changing

demographics in the country have helped. Some of the factors that have driven growths


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and perception of Pizzas as a meal option have been changing lifestyles, rising incomes,

especially amongst youth, growing middle class and nuclear families and increase in

working women population. So, while there are challenges in every market, the manner

in which brands overcome them is what matters.

ENVIRONMENTAL PROBLEM FACED BY DOMINOS PIZZA

POLITICAL :

ECONOMIC:

SOCIO CULTURAL:

TECHNOLOGICAL:ENVIRONMENTAL:

LEGAL FACTORS:


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CHAPTER 3:- ACTUAL POLICIES OF THE COMPANIES

KFC PLICIES

Labour is challenging KFC's restructuring programme which unions claim targets

workers with disabilities.

Labour wants the Human Rights Commission to investigate concerns that workers with

disabilities are being pushed out of work by a policy dubbed "all star level" staffing that

says workers must be capable of completing all duties.

Social Development spokesperson Jacinda Ardern calls the policy "unfair and unjust".

Her comments come after the Unite Union told the New Zealand Herald disabled workers

have been let go in the past year because of the KFC policy.

"These workers were never hired to complete 'all duties'. Many have worked part-time for

a number of years on very specific tasks and been wholly competent," Ms Ardern said in

a statement.

"I have first hand experience working with young people with disabilities. In fact, I


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trained two people at KFC in these very roles. Each of them had enormous dedication to

their job and the team. The idea that a policy like this would now put them out of the job

is devastating."

Ms Ardern said Labour isn't going to sit back and see valued workers lose out because of

an arbitrary decision, likely made offshore.

Labour is challenging KFC's restructuring programme which unions claim targets

workers with disabilities.

Labour wants the Human Rights Commission to investigate concerns that workers with

disabilities are being pushed out of work by a policy dubbed "all star level" staffing that

says workers must be capable of completing all duties.

Social Development spokesperson Jacinda Ardern calls the policy "unfair and unjust".

Her comments come after the Unite Union told the New Zealand Herald disabled workers

have been let go in the past year because of the KFC policy.

"These workers were never hired to complete 'all duties'. Many have worked part-time for

a number of years on very specific tasks and been wholly competent," Ms Ardern said in

a-statement.

"I have first hand experience working with young people with disabilities. In fact, I

trained two people at KFC in these very roles. Each of them had enormous dedication to

their job and the team. The idea that a policy like this would now put them out of the job

is devastating."

Ms Ardern said Labour isn't going to sit back and see valued workers lose out because of

an arbitrary decision, likely made offshore.


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Focus all our resources to our restaurants operation because that is where weserve our customers.

Reward and respect the contributions of each individual at KFC.

Expand and update training with time and be the best we can be and more.

Be open, honest and direct in our dealings with one and other.

Commit ourselves to the highest standard to the personal and

professional integrity at all times.

Encourage new and innovative ideas because these are the key to our competitive

growth.

Reward result and not simple efforts.

Dedicate ourselves to continuous growth in sales, profit and size of organization.

Work as a team.

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in our products and

services.


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Maintain a commitment to innovation for continuous improvement

and grow, striving always to be the leader in the market place changes.

Generate consistently superior financial returns and benefits our

owner and employees.

To establish in Pakistan our position as leading WQSR (Western Quick Service

Restaurant) chain, serving good value. Innovative chicken-based products.

Consistently, providing a pleasant dining experience, with fast friendly, in a clean

and convenient location. At all times we must be dedicated to

providing excellent and delighting customers.

POLICIES OF PIZZA

Recruitment is the step towards Selection. Generally recruitments are either taken care by

the HR Department Head or the manager (whoever is responsible for hiring). There is a

process for hiring a candidate that is usually to be followed in large organizations. When

there is a requirement, the HR department is communicated about the same.

The HR department then goes through the database of candidates it has or it would send

the requirements through Classifieds, Job portals, etc. By sending these requirements, the

organization is likely to get feedback from eligible candidates in the form of CVs. The

requirement advertisement should mention the Job Analysis (Job Description and Job

Specification) so as to avoid attracting unnecessary applications.

This also makes it easier for the HR department to shortlist from the applications and this

will help reduce any bias from the HR resulting due to over examining the applications,

boredom, etc. Recruitment and Selection are two different terms even though they are

always mentioned together. After the recruitment process is accomplished it gives way to

the selection process.


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Selection process takes place after the HR department has shortlisted from among the

received applications. The selection is not a lengthy procedure but depends from

organization to organization. The recruitment process is important in order to avoid any

mistakes that

would lead to future problems for the company from the candidates end. Its a saying we

have heard in our childhood, one dirty fish pollutes the entire pond. Similar is the case

with employees. One wrong employee in the organization may hamper the growth of the

entire organization. The training material is being provided to help store team members

understand their functions and responsibilities. These materials are intended to

complement existing Dominos Pizza standards. They are not in tended to override or

replace existing or future company standards.

We all have heard that, Employees are assets of a company. Every company claims to

follow and understand this mantra. The function of HR is all about people- managing

them, hiring them, etc. To carry out any function in a business, be it marketing,

production, operations, you need people.

HR brings the people to the organization and its business. It is said marketing is

promoting your product in the market place. Similarly, HR is promoting and selling your

company in the market. If you can promote your company efficiently you are sure to

attract people to work for you.

When not taking steps to "Avoid the Noid," the leadership and organizational

development team at Domino's Pizza incorporates technology into its overall leadership

development efforts to facilitate a blended learning approach.

With more than 8,000 locations in more than 54 countries, Domino's needs a cost-

effective way to reach out to a broad audience to support leadership development.

Offering a variety of programs through its homegrown learning portal, DPZ University

(which houses e-learning content from a variety of vendors), accomplishes this strategic

objective.

"The nice thing about this is, from home, at night, I can access it; I don't have to be at

work," said Patti Wilmot, executive vice president of PeopleFirst, Domino's Pizza's

training program. "With the business that we run, a lot of our team members work odd


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hours, particularly our leaders that run our stores. This gives them the opportunity to do it

in the morning or whenever they want to do it."

"This allows us to put tools in the hands of each and every one of our leaders in an

instant, and now we've got a very broad reach out into the marketplace, across this

building, into our distribution centers and out into the stores," Kissinger said. "Otherwise,

we were challenged in having large infrastructures and training departments."

Wilmot said the bottom is where it's most useful.

"It's primarily for an early-career leader. Maybe it's their first time managing people, and

he or she is having an issue with someone around attendance or has lack of results-

oriented performance management skills," she said. "They can go in and get some quick

tips on how to sit down with this team member and have a good one-on-one discussion to

address those skill deficiencies."

CHAPTER 4:- IMPROVEMENT OF COMPANY

IMPROVEMENT OF KFC

KFC Corporation has its headquarters in Louisville, Kentucky. It is the world's most

popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy,

Twister and Colonel's Crispy Strips chicken with homestyle side offerings. Every

day, nearly eight million customers are served around the world. KFC's menu includes

Original Recipe chicken -- made with the same great taste Colonel Harland Sanders

created more than a half-century ago. Customers around the globe also enjoy more than

300 other products -- from a Chunky Chicken Pot Pie in the United States to a salmon

sandwich in Japan to a fish fillet sandwich in Pakistan. KFC is one the worlds best

known and loved brands today, but this would not have been possible without its


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employees. KFCs HRM practices are the topic of discussion for this paper, and emphasis

will be placed on the performance appraisal and improvement practices at the company.

At KFC, a recognition culture is very much in practice. According to a restaurant

manager, recognition is everybodys responsibility. KFC has implemented large-scale

recognition efforts in all its restaurants and Debbie Riggs is in charge of this program

which spreads over both formal and informal ground. There are service awards,

performance programs and according to Riggs, We all work together! Recognition is not

a program ... it is really owned by everyone in the company. (Tanner Recognition

Company)

A company is after all only as good as its employees and KFC strongly believes that

employees should be rewarded amply for putting in a large portion of their lives into the

company. Regular performance appraisals are held and employees who have made

significant contributions to the company are rewarded for their input. As an example, the

Chicago-area Assistant Restaurant Manager Alvin Moore received a recognition award

a watch with a symbolic gold emblem featuring the KFC logo.

The lead authority for Kentucky Fried Chicken has said it is aware of its hygiene and

safety problems. Last week EHN reported that the fast food chain had been prosecuted

five times in the last year and fined more than 100,000 in total.

Woking Council said KFC recognised it had a number of challenges but was working

hard to improve its health and safety and hygiene performance. In light of the recent

prosecutions, KFC recognises that they have a number of challenges ahead and Woking

Borough Council is working hard to improve the relationship between KFC and local

authorities across the country, said Alan Rimington, senior environmental health officer

for food and safety.

The council added that KFC had put additional resources in place including better

communications between head office and individual branches. A number of new


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initiatives have been started this yearlike the introduction of safety shoes to all stores

and once fully rolled out should help to raise standards, Mr Rimington said.

KFC told EHN that it had a disappointing hygiene and health and safet y record but it

was in the process of overhauling some of its cleaning procedures.

Although wed only been working with KFC for six months, they trusted us to

manufacture and install all the signage for their two new flagship sites at Cannock and

Nuneaton. The brief was challenging - a completely fresh look and feel with a

contemporary appeal that would fully modernise their offer. We relished the challenge,

and took care of everything from the moulded letters on the building, external fascias and

directional signage around the car parks and the drive through to the interior graphics and

display menus.

But the story really started half a year earlier. KFCs incumbent supplier had struggled

for eighteen months to overcome a technical issue with the moulding of letters caused by

the thin serif that was specified. We resolved the problem in principle in two months and

had it fully cracked in three, using a combination of vacuum forming and press moulding

technology. We were also able to improve the quality, reduce the cost, and deliver an

80% energy saving through the use of LED illumination technology.

We now mould all of KFCs letters for other sign companies who support them in the

UK, as well as managing a wider programme of signage and other components including

ceiling and lighting features.

KEY SUCCESS FACTORS

KFC is a Market leader:

Worlds largest chicken restaurant chain and third largest fast-food chain.

KFC had refocused international strategies to grow its company and franchiserestaurant base all over the world.


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Find, motivate, and retain hard-working and entrepreneurial managers andfranchiseesaround the globe.

Inventory system, supply chain management system to manage its supply, easy payment

andordering systems for its customers and wireless internet technology. Implementation

of technology can make the management more effective and cost saving in the long term.

This will also makecustomer happy if cost savings results in price reduction or

promotional campaign discount which will benefits them from time to time.

Goodwill and reputation: The Company certainly has earned a good name and

reputation by itsprevious products and services in the market. It is even more recognised

in other markets outsideIndia, where the company is among the leading fast food giants.

The brand is recognised and trustedin India for its quality products, price, and customer

service. It therefore has a good head start andenjoys a good chance of becoming a leader

in Indian fast food industry.

Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The

turnover rate inthe company is amongst the lowest in the industry.

Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC customer

base remainedloyal to the KFC brand because of its unique taste. KFC has continued to

dominate the dinner andtake out segment of the Industry.

Ranks highest among all chicken restaurant chains for its convenience and menu

variety. Itgenerates $1B revenue each year.

KFC was losing market share as otherChicken chain increased sales at a faster rate.

KFC share of Chicken Segment sales fell from 71 percent 1999, to less than 56 percent

in 2009, a10 -years drop of 15 percent.

Huge competition in this segment.

India is still mostly a vegetarian dominated cultured society. South India is especially

very muchso. This may reduce the market share of the company.

KFC has not yet invested much on R&D, and innovating new products for Indian

Markets. Thismay lead to failure of their products as they are not in line with the Indian

mind set, peoples taste andpreferences and their likes and dislikes. This may prove fatal

for the company.


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Competition: Competitor companies like McDonalds are fast catching up with the

market.McDonalds with sales of more than 19 billion in 1999, accounted for 15 percent

of the sales of thenations top 100 restaurant chains.

Organisations like PETA People for Ethnic Treatment for Animals have given a bad

name to thecompany which may prove disastrous to the image of the firm. Currently,

KFC is under massiveattacks from animal organisations, questioning the way KFCs

suppliers are threatening the chicken, before they got slaughtered. Anti-KFC campaigns,

such as the one from PETA are affecting KFCs brand image in a negative way and result

in direct dollar losses, as less people are consuming KFCchickenSaturated US Market:

Now KFC cannot rely on just its home market to generate sales. As the USmarkets are

already saturated and leave no or little scope for growth, company necessarily needs

tolook at offshore foreign markets to generate sales and keep up the profits.

Quality Management aims to go beyond simply meeting customer requirements or

responding to thecustomer feedback on the products and services offered by the

organization. If faults were found, thesupplies were held back, reworked or rejected, and

additional funds were usually required to producethe needed quantity and quality. The

aim of Quality Management is to 'get it right the first time every time' while avoiding the

cost associated with other quality management techniques such as simpletesting.Quality

Management seeks to identify the sources of possible defects and to prevent them

fromaffecting the final product. Quality Management achieves this by identifying the root

causes of themost prevalent and costly defects and to prevent such defects in the future

by removing these rootcauses.KFC's Quality Management ProgramManaging quality in a

manufacturing company revolves around understanding customerexpectations, defining

product specifications based on these expectations, and subsequently ensuringthat the

products being manufactured (that is, the outcome of the manufacturing process) conform

tothe design specifications. In this context, the detailed specifications of a manufacturing

process, although of great relevance to the success of the internal operations of the

company, are of no direct interest to the customer. In contrast, managing quality in

service businesses, although similar inspirit, is somewhat different and is more

challenging because of certain characteristics inherent to service operations. These

include the intangibility of service outcome in some cases and the presence and


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stores in India located in 20 states and union territories, including in 55 cities across the

country, and, through a sub-franchisee, five stores in Sri Lanka.

On an average, 1.81 million pizzas, including add-ons such as garlic bread and cheese dip

but excluding beverages ("Add-ons"), were sold each month throughout the pizza stores

in India in fiscal 2009 and for the three months ended June 30, 2009, 2.36 million pizzas

(including Add-ons) were sold each month. The company operate as of August 31, 2009,

four regional supply chain centers, or commissaries, located in Noida (Delhi NCR),

Mumbai, Bangalore and Kolkata.

They have recently renewed their contract with master franchise controller Dominos

International. The new contract is for 15 years, it gives them exclusive rights for

operations in India, Nepal, Sri Lanka and Bangladesh.

CHAPTER 5:- CONCLUSION & SUGGESTION

KFC

In KFC there are rules and they are created to be followed because KFC commits to

provide delicious food with hygiene, without standard operating procedures it will be

difficult for KFC to keep up to its commitment. Responsibility both at product and

business level is distributed from inventory level till end product. Focus is more on the

end product so that customers get more value out of KFC. Priorities list is reviewed

weekly and priorities are aligned towards the long term goals. Moreover communication

is channeled as mostly departments communicate in formal meetings. The survey

concludes that KFC is standing at improvisational edge.


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Hence, cross business collaboration does not exist, but KFC collaborates with various

stakeholders and its numerous branches. The decision making powers lie with the upper

management. Team play is there, but appreciation awards usually go out to individuals.

However department and regional wards also take place.

KFC is one of those companies. Most of KFCs product lines utilize past concepts and

strategies. The colonels recipe of eleven herbs and spices is widely used internationally.

However, it is modified slightly according to the local taste or demand. Hence, the

company uses past concepts approximately 80 percent of the times it has to launch a new

product or take advantage of an opportunity. This practice has been so tedious that the

customers now according to a survey carried out by the company seek the zinger or the

chicken taste in all the products attached to the brand KFC.

KFC builds on past concepts. One of the most important and oldest resources The secret

recipe of 11 herbs is still used in meals, with modifications according to the taste of

local market. Most of the new meals offered are based on the old product concept of

providing quality chicken. KFC has the culture of team. Teams are blend of old and new

employees but KFC more on old employees. The firm believes in learning of old

employees rather than recruiting new employees. Moreover new products highly refresh

the old ones as recipe is modified according to the culture.

DOMINOS PIZZA

The company is available at a P/E multiple of 35.46x & 38.08x FY10E (H1 FY10E

annualized) at the lower and upper price band respectively on post issue capital, which

looks expensive as compared to some of its peers. The growth in the first half results of

the current years was exceptional when compared to last few years, which is a positive

sign for the company but sustainability of such growth remains to be seen in the coming

quarters. The company looks all set to grow in the next few years with a huge number of

new stores expected to open in next 2-3 years. However the current valuations look steep,

though we believe a good growth in the next few quarter may justify the valuations going

forward.


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The Dominos pizza is having good concept in present market and new product inChattisgarh region.

The preferences of the people for Pizza are only for outing and just for fun .

Males are more attracted towards Dominos pizza due to good ambiances and

freshness rather than womens.

The female respondents are more attracted towards pizza and males are not

responding like as female

The quality of Dominos Pizza is not very good .

The study also shows that the durg bhilai customers are not price sensitive when

they get good product, quality and services. Mostly people are attracted towards

new products in market.

The operations management depicts the performance of each and individual unit thatis

participating in over all acceleration of the engine of business. The business mayhave some

times low speed and high speeds. It highly depends on the strategies thatthe top management set for

the business and the way the strategies are followed by thekey components that run the

actual business. The operations at Pizza hut havemultifaceted situations. The each

component working in the process cycle of business plays equally important role to win

the customer. However, if any one of the unitsdeviating from the set standards will cause a

variance in the performances as overall.Thus it is concluded that the success of the business is

possible through collections of inputs from all the units participating in the conversion

process.

CHAPTER 6 :- RESULT OF STUDY


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SUGGESTION AND RECOMMENDATION DOMINOS PIZZA

As the world is survival of the fittest, so the Dominos have to be competitive in

market for their own establishment.

The Dominos should increase its quality .

The Dominos should provide good customer services and facility.

The Dominos should reduce its charges .

The Dominos should give more discount coupons .

The Dominos have to expand its delivery area .

Dominos should improve the quality of the Pizzas and Increase the visibility in

the market, & Should try to regain the trust of the Customer regarding its Door

steps services.

The Dominos pizza is having good concept in present market and new product in

Chattisgarh region .

The preferences of the people for Pizza are only for outing and just for fun .

Males are more attracted towards Dominos pizza due to good ambiances and

freshnessrather than womens.

The female respondents are more attracted towards pizza and males are not

respondinglike as female.

The quality of Dominos Pizza is not very good .


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The study also shows that the customers are not price sensitive when theyget good

product, quality and services. Mostly people are attracted towards new products in

market

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