Accountin 1 project

BBA 1500: Accounting 1Teacher:Mr. Dozsa Done by:Rebekka Weidmann, Chivin Var

Rebekka WeidmannChivin VarAccounting 1

Executive summary

KFC is a local American fast food restaurant, which is found by

Harland Sanders and is base in Louisville, Kentucky, United

States. KFC is also known as “Kentucky Fried Chicken”, our

franchise is a unique name which starting off as a local

franchise name in United States and nowadays it is competing in

international market. In our restaurant, we are specialize in

our own original recipe such as, Kentucky grilled chicken,

honey BBQ Wings, and freshly made chicken sandwiches and many

others. In KFC, we are mostly concentrating our recipe with the

product of chicken.

In the food industry market of today, there are many

competitions that offer similar products and fair price. To be

able to become one of the leading fast food restaurant in the

market our restaurant has many things to offer to the

customers. First of all, our restaurant is offering our service

and product to all age customers, with our excellent service

and our delicious original chicken recipe with reasonable

price. Within our package of service in our restaurant, we also

include a mini playground for children as an entertainment. KFC

is considers being one the biggest chicken fast food industry

in international market. Each days, there are thousands and

thousands customers consuming our product from different

countries all over the world.

One of the factors that lead our firm to able to compete in an

international level is the location. The location of our firms

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are always place in a crowded public places, for example a

mall, Universities, Hospitals, Stadiums, and amusement park. By

placing our restaurant in public places, it is giving us a

benefit attracting more costumers and also increase the image

of the firm.

KFC is part of the YUM! Brands, which is the largest restaurant

company in the world, with the connection with many others

famous fast food restaurants. With our secret recipe, this

gives us the advantage to apart ourselves from many

competitions in the international market.

Objectives

To establish KFC into a fast food leading restaurant in

the fast food industry of international standard

To keep expanding our restaurant to many branches all over

the world

To increase the variety of menu

To create a dessert menu

Mission

Our main goal is to be the leading chicken fast food restaurant

franchise in the world, by starting the operation in United

States and take the image of the company to an international

market level. Furthermore, we will also want our restaurant

environment to be family friendly and a place where family can

eat and enjoy themselves.

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Keys to Success

Increase efficiencies

Reduce overhead cost

Improve customer service

Faster and friendlier service

Maintaining high quality product

Ownership

K.F.C is owned by a company called Yum Brands which also owns

Pizza Hut and Taco Bell. There are many locations which are

owned by franchisees as well, one of the largest franchisees in

the USA is the Harman Group.

Locations and Facilities

KFC is the third largest fast food chain with over 12 200

outlets in 99 countries. The theme to serve delicious chicken

food in a relaxing environment makes KFC so popular and

unmistakable from others. The restaurants were spread out in

eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala,

Sukkur & Muree). Before they opened each one of them they did a

proper research work of analyzing the facility locations. The

logo is very attractive with its red color. The inside of the

restaurants is a rather warm furniture which also fits exactly

to the families and children`s likes. The Service employees are

always friendly and the chefs cook the food approximately fast

in order to not lose one guest who is waiting for too long in a

queue.

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The facilities have to be carefully arranged and provided in

advance. Facilities, such as employees workplaces, different

utensils, special machines, restaurant guest areas, offices,

infrastructure in general, water, energy and so on. All these

things are essentials in a large fast food chain like KFC.

3. Products

The main products are all about

chicken. There is a great variety of

menus but all of them have one thing in

common; it is the same type of meat and

the same recipe. The overview of the

assortment at one glance:

-Grilled Chicken Burger

-Buckets

-Different Chicken Pieces

-Burger Crunchy

-Wraps

-All in the Box

-Salad

-Kids Menus

-Several

Side Dishes

-Desserts

Sales Literature

KFC will have a fresh new designed homepage with all its

offerings, branches, opening hours, special menus, parties and

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weekly special offers. It will be publicized in all local food

magazines and also leaflets in each city where a new branch

will be opened. It will be advertised in several shares and

stock journals for franchising.

Sourcing

It will have a special commitment with the farmers and

suppliers that they only can deliver their products if they are

fair trade. (Chickens have to be fairly grown and feed) Other

ingredients like herbs have to be fresh.

Sales Programs

In the first week every dessert to a full meal will be for free

in order to attract customer and make them attentive on our

large assortment.

Market segmentation

KFC has international outlets and sells products successfully

to customers. It focuses on the different consumer needs

geographically for example in one place people might prefer

chicken while the other outlet’s customers may prefer only

salads. Our KFC market is divided into a number of different

segments: age groups, gender (both male and female) and

families. KFC is also divided into lower to middle class.

Target Market Segment Strategy

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Lower and Middle classes are the targets. People with a busy

life which are individuals who need fast food due to their

hectical lifestyles. For the age segment there is no limit to

any age for KFC every individual is welcomed. In gender

segment, both male and female are welcome. In family size

segments whole families are focused and family packages are

offered at a cheaper price. The strategy used to make KFC run

is the “Push Strategy” that creates: awareness, difference and

attractiveness.

Market needs

The market needs for KFC is to expand the menu with healthier

foods for the consumers. Customers want a wider variety of

food, a fast service, provides a clean, healthy, friendly and

attractive environment.

Market trends

KFC has currently introduced a double down chicken sandwich in

the US; this is a big trend in the market.

Market growth

KFC has tried to grow the company by franchising in many parts

of the world. Advertising the tasty chicken helps the KFC

market to grow widely each day as individuals are immediately

attracted. Sponsorship is also used to gain recognition for

example KFC sponsors the Australian Cricket Team. KFC is now

planning to introduce a greater variety of food to consumers to

help expand the market.

Industry analysis

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The computer information system is newly established. KFC is

also positioning among competitors, empowering team work,

multibranding and unconventional methods of distribution.

Planning to improve on the quality of the chicken daily. The

name KFC is widely recognized, employees are loyal.

Industry participants

Has a team of experienced development and construction managers

which makes it professional.

Distribution patterns

KFC has tried to build small restaurants in various outlets for

example in airports, universities, hospitals and schools. KFC

has however failed to enter successfully in the German market

due to culture incompatibility.

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Competition and buying patterns

Chicken is the main selling point. KFC has introduced three

types of chicken: tender roasted chicken, extra crispy chicken,

pressure cooked chicken (the original)

Main competitors

The main competitors of KFC are McDonalds, Pizza Hut and

Dominoes.

STRATEGY AND IMPLEMENTATION

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Strategy pyramids

KFC dominates the chicken fast food industry and has stores in

more than one hundred countries. The strategy is to:

Introduce a secret recipe.

To be the leading food service in the world due to

consistent quality products.

To maximize profitability

To be a consistent brand

Improving the food quality

To increase the value and appeal

To optimize resources

Value proposition

KFC’s value proposition does all to make meals healthier and

tastier. It should also gain market share in the targeted

segments and draw attention to the new plans. This will be

successful with a well designed organizational marketing.

Competitive edge

It has remained the largest chicken restaurant chain and third

largest fast-food chain. The industry held over fifty percent

of U.S market in sales and ended 1995 with over nine thousand

restaurants worldwide. It is one of the fast food chains to

become international during the late 1960s and has developed

one of the world’s most recognizable brands. The food industry10


does not have much support from the government but there are

laws on its operation.

Marketing strategy

Establish a strong position and develop image in countries

where there is potential growth. It also plans to use new

technology for efficient work. These will lower costs and

increase profits. KFC’s market growth has been driven by its

international operations. The company remains the most

internationalized of all fast-food chains operating almost 47%

of its total units.

Positioning statements

KFC has access to its resources which is chicken.

Has been unique in marketing the products and combining

with PepsiCo which helps both side to generate profits

Pricing strategy

KFC uses the The Every Day Low Price pricing strategy. KFC uses

this strategy because it is promoting a new lunch treats for

everyday value. Profit is increased by using price bundling

(practice of offering two or more products or services for sale

at one price). Odd pricing is used as a technique for

stimulating their sales. This is using a price that ends with

an odd number.

Promotion strategy

KFC uses a variety of advertising to promote the industry.

These are television commercials, the internet etcetera.

Promotion is the main tool to bring all chicken lovers

attention towards its delicious one-of-a- kind. One of its

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promotion methods is sales promotion that includes

entertainment, coupons, exhibits and premiums. Premium strategy

gives gifts such as t-shirts toys etcetera to attract

customers. Huge exhibitions are held at times to inform people

all about KFC. For coupons, meal vouchers and exciting offers

are used to attract customers. In entertainment, advertisements

are used.

Marketing programs

KFC targets the young generation as it eats out mostly and is

more energetic. The upper class is the main target. KFC wants

to form joint ventures as it will solve problems such as access

to good quality chicken and other supplies and share risks.

Sales strategy

KFC uses skimming. The products are high priced and target the

middle to upper class. Products are priced keeping different

points of view

Sales programs

To increase profits by:

Reducing overhead costs

Increase efficiencies

Improve customer service

Make restaurants cleaner

Make service faster and friendlier

Strategic alliances

KFC entered into a strategic alliance with Pepsi-Cola

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Milestones

The goal is to expand the number of restaurants in the next

five years from 75 to 225 locations.

Web Plan Summary

In order to make us famous all over the world we made the

airlines advertising us. Also we would like to deliver them

with fresh and enjoyable food.

Website Marketing Strategy

We will put our website logo on the planes from each country

where our branches are situated. When you enter the letter “K”

in Google the first shown word will be KFC.

Development Requirements

We need an arrangement with the respective airlines and maybe a

deal that we can also deliver them with airplane meals. We have

to contact Google directly to set us on the top of the list.

Management Summary

The original founder of the restaurant is Mr. Harland Sanders,

with the chain connection under the parent company “YUM!

Brands, Inc”. Due to the branch out of the franchise,

managements of the company are divided into sectors from

different branch. The parent company has the responsibility to

position the managers for different branches of KFC.

Management Team

KFC is a big fast food firm, with many branches in a

international sector in many countries around the world. From

beginning of the operation there were many changes of

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ownership. In the present the management system of KFC are,

David Novak is a president of KFC, John Hill is chief Financial

Officer and Colin Moore is the head of Marketing. Lastly, we

got Peter Waller is head of franchising while Olden Lee is head

of human Resources.

Organization Structure

Our restaurant strategy in the future is to improve operating

efficiencies. This plan involves our firm to include a revision

of crew training and operating standards. This is to improve

customer service, cleaner restaurants, faster and friendlier

service and also high quality products.

Personnel Plan

Our employees will be insisting of three cashiers, three cook,

two shift supervisors, one manager, and three shift cleaners.

Our workers will be working for 35 to 40 hours per week. If our

store size will increase, then we will find more workers.

Personnel Plan Year 1 Year 2 Year 3

Site Manager 50,000 55,000 60,000Cook 38,000 40,000 45,000Cleaner 33,000 35,000 40,000 Projected profit and loss

The three graphs below show the loss and profit of KFC, it

shows monthly profit and in years, three years. As the company

profit increase, this give the advantage for the company to

open more restaurants in many more other regions.14


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Projected Cash Flow

A bar graph and chart below show the project cash flow of KFC

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Projected Balance Sheet

Below is a balance sheet of our company.

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Balance Sheet

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Bibliography

http://www.yum.com/annualreport/

http://en.wikipedia.org/wiki/KFC

http://www.kfc.com/about/

http://www.bsx.com/AllCompanyDocuments/2009%20Financials/KFC

%20Bda%20FYE%20Jan09.PDF

http://www.bplans.com/coffee_kiosk_business_plan/images/

7a644cc490e44b27a56832e65338fe00.png

http://www.bplans.co.uk/coffee_kiosk_business_plan/images/

72ff27e3b3ce40049e1b6925bcbc5ca4.png


7ccb72d1f8eb44069aa3c2e35adf839f.png


b3fb5e620c9c4d71b60ed074fa0b3ad3.png

http://www.referenceforbusiness.com/business-plans/images/

bph_02_img0174.jpg

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http://www.referenceforbusiness.com/business-plans/images/bph_02_img0174.jpg

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http://www.bplans.com/coffee_kiosk_business_plan/images/b3fb5e620c9c4d71b60ed074fa0b3ad3.png

http://www.bplans.com/coffee_kiosk_business_plan/images/b3fb5e620c9c4d71b60ed074fa0b3ad3.png

http://www.bplans.com/coffee_kiosk_business_plan/images/7ccb72d1f8eb44069aa3c2e35adf839f.png

http://www.bplans.com/coffee_kiosk_business_plan/images/7ccb72d1f8eb44069aa3c2e35adf839f.png

http://www.bplans.co.uk/coffee_kiosk_business_plan/images/72ff27e3b3ce40049e1b6925bcbc5ca4.png

http://www.bplans.co.uk/coffee_kiosk_business_plan/images/72ff27e3b3ce40049e1b6925bcbc5ca4.png

http://www.bplans.com/coffee_kiosk_business_plan/images/7a644cc490e44b27a56832e65338fe00.png

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http://www.bsx.com/AllCompanyDocuments/2009%20Financials/KFC%20Bda%20FYE%20Jan09.PDF

http://www.bsx.com/AllCompanyDocuments/2009%20Financials/KFC%20Bda%20FYE%20Jan09.PDF

http://www.kfc.com/about/

http://en.wikipedia.org/wiki/KFC

http://www.yum.com/annualreport/


http://kelley_keith.tripod.com/mgmnt5313.html

http://www.scribd.com/doc/17818440/KFC-marketing-strategies

http://www.slideshare.net/skdrugs/kfc-case-study-presentation

http://www.slideshare.net/guestea96e4/kfc-case-complete

Muavia Khan M. (2010) KFC- Facility Location and Layout

http://www.scribd.com/doc/36494124/KFC-Facility-Location-and-

Layout-Operation- Management-Project last accessed 2.2.2012

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http://www.slideshare.net/guestea96e4/kfc-case-complete

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Accountin 1 project

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