Leadership Strategy Of KFC

Leadership Strategy Of KFC KFC was first introduced by Colonel Sanders. His first franchise was in year 1952. Under new management, the first sale was for $2 Million. In 1980, there were more profit and expansion of KFC was carried out. Within 50 years, the profit went up to $ 7 Billion. In 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00. Col Sanders had more than 600 franchised outlets in the US and Canada by year 1964. He sold his interest in his company for $2 million to a group of investors. In 1966, KFC went public. KFC was listed on the NYSE in 1969. Current Market Cap value on the NYSE is 7.2 Billion. A competitive marketing strategy in the international market focused on the Latin American countries is the reason why KFC can maintain a market leadership in the global fast-food industry. Key to continued growth was to find, motivate, and retain hard-working and entrepreneurial managers and franchisees around the globe .In addition to short term profits, store managers were also responsible for building local public relations, maintaining employee morale, developing customer good-will, keeping tab on the competing chains and creating a legacy of special chicken cooking recipe. KFC had a refocused international strategy to grow its company and franchise restaurant base all over the world. Their Competitive marketing strategy: was to developed three types of chicken, original recipe (pressure cooked) ,extra crispy (fried)and also tender roast (roasted) .Sweeping changes into the culture was initiated by the new management- this brings about demoralization to old KFC employees and even franchisees. Several restructurings led to layoffs throughout KFC, replacement of KFC managers with PepsiCo managers .Conflicts between KFC and PepsiCo cultures- this is manifested with PepsiCos stronger emphasis on performance rather than loyalty expressed by Col. Sanders to KFC employees over the years. According to SWOT ANALYSIS, the weaknesses of KFC are as follows.KFC finds difficulty in entering the German market (culture incompatibility) .KFC sales stagnated. There was widespread discontent among the franchisees, some of whom felt the new owners did not understand the chicken business and were not providing leadership expected from a franchisor. Company stores floundered and become underperforming the franchised operations, further convincing franchisees that the company did not know its own business. (KFC HQ acquired them to company-owned) .Overseas expansion with the rapid economic growth and trend toward two-income families that had fuelled the growth of fast-food industry in the 1950s and 1960s were appearing in the late 1960s in the other country.  [1]   Primary objective is to take advantage of the potential growth in other countries, to establish a strong position and to develop their image. Key Success Factors are ever continuing cost savings through RD, innovations and use of new technology to work efficiently. These success techniques will lower costs and increase profits in the industry. KFC uses an integrated low cost/differentiation leadership, since it can count on its brand name and original taste and recipes to be unique while at the same time compete on price using the benefits of cost savings from economies of scale. Based on the analysis, we can conclude that they should start by solving their internal issues such as management and restaurant menu before thinking about expanding. They should work on the management issues to create a good atmosphere where employees are happy to work in. I certainly do not believe that by treating employees poorly, a company can be successful. They also need to make sure that their restaurants offer a diversified menu, provide their customers with quality food, excellent service and restaurant cleanliness. KFC should always listen to their customers and try to follow the new trends on the market in order to fully satisfy their customers. Otherwise, competitors will satisfy them and will eventually outperform you as Boston did with its grilled chicken. Even though, KFC seems to have an emotional attachment to their original recipe that made their success, they definitely need to move on and develop new products that customers want in order to increase their financial performance and value. We have seen that Boston and Popeyes are stealing customers away from KFC because they understood what customers wanted and started offering healthier items. KFC should certainly do the same and enhance their menu.  [2]   On the other hand, it is time to talk about another local business success story and how can we talk about successful organizations without talking about Al-Baik. It is next to impossible that you are living in Jeddah or ever visited it without being to Al-Baik. The local fast food chain has been around since 1974. After 35 years by now, the restaurant is mainly operating in Jeddah with minimum number of branches in Makkah, Madinah, Yanbu and Taif. Arguably, Al-Baik possesses the highest market share and customer loyalty amongst its competitors especially in Jeddah; noting that when I say competitors, I mean international multibillion brands like McDonalds, KFC, Pizza Hut etc. For those of you familiar with the debate surrounding Porters Generic strategies, Al-Baik is a living proof that you could follow a strategy that combines both differentiation and cost leadership. Although there are a lot of restaurants serving fried chicken, the quality and taste of Al-Baik are certainly unique and its prices are way below the average. Al-Baik has very strong brand equity whether we are measuring it by evaluating the restaurants products or by studying its brand impact on customers. Al-Baik brand communicates strong messages of quality, fast service, trust, affordability, convenience, and social responsibility. Its management has been very smart emphasizing these values into the brand using different methods of advertisements, public relations, or even by spreading stories about the brand. The entrepreneurial story of its founder and how he struggled to raise his community awareness about eating outside the home which was strange back then and how he has been working alone in the restaurant preparing the food, serving it, and then cleaning the small shop are all meant to build some kind of connection with its customers. Also, some suspense and mystery would not hurt either; the secret chicken formula that is only known by few individuals is one of the most preferred stories amongst such food and beverages organizat ions. Whether we are talking about fast service, servicescape design, or cleanness of the restaurants environment; Al-Baik is providing exemplary services in all of that. Even more, Al-Baik is one of the few restaurants that introduced items to the menu based solely on customers suggestions. Al-Baik marketers are masters in choosing locations for their restaurants. One has never seen a branch of Al-Baik without it being packed with customers. The huge expansions they carried out in Jeddah have been built on population distribution analysis. That is why wherever you live in Jeddah now; there must be Al-Baik branch within your easy reach. Al-Baik has always been known for its socially related campaigns. They have a regular presence in Hajj seasons providing free meals to pilgrims and they are periodically campaigning for environmentally related causes like banning smoking in their restaurants or preserving the city clean image. Furthermore, their active participation in the aftermath of Jeddah floods by providing free meals to those devastated by the catastrophe is one shiny example of how organizations could be interacting with its society. Nevertheless, staying on the top is not an easy job. Al-Baik management has to deal with many issues to facilitate its growth. One of these important issues is on the mind of every fan who happen to live outside Jeddah; how much should they expand? Should they consider opening new branches in other cities at the Kingdom? What about being multinational or even global? Moreover, how Al-Baik should respond to the growing concerns raised by healthy and organic foods advocates. And most importantly, how its managers are going to maintain its competitive advantages and how are they going to nurture its sustainability strategy.  [3]   As conclusion, the best selling food in my view is KFC. People nowadays has less time to eat since they are busy working. Therefore, they would choose fast food restaurants as their choice. Thus, the managers of these restaurants need o ensure on cost leadership and make sure they can get the best way to keep the price reduced. This is a marketing strategy in a way to attract customers. More customers make the business more powerful and expand fast. (1505 WORDS)

Resuming Internationalization at Starbucks Essay

Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world. The first Starbucks store was opened in Seattle in 1971. The current CEO, Howard Schultz, joined the company in 1982 and decided bringing the Italian coffee-drinking culture to the United States. In 1992, the company went public. In 1996, with the home market becoming increasingly saturated, Starbucks opened the first outlet in the Far East. Ever since, the company has pursued a relentless international expansion. By 2012, Starbucks had achieved a global reach of 18,066 stores in 62 countries. With revenues grew on average 30 per cent per year, Starbucks experienced substantial growth from $160 million in 1993 to $10 billion in 2009. In 2007, Starbucks had a presence in 56 countries through approximately 17,000 stores. However, Starbucks’ relentless march had been slowed by increasingly intense competition and rising coffee bean prices between 2007 and 2009. After 2007, demand for Starbucks’ products was badly hit by the global economic recession. At the end of fiscal 2009, nearly all of the approximately 800 US Company-operated stores, 61 stores in Australia and 41 Company-operated stores in other International markets had been closed. Approximately 70 per cent of the stores that were closed had been open for fewer than 3 years. In the third quarter of 2009, The company achieved the first profit since the first quarter of 2008 by the self-save closure. Finally, CEO Schultz made Starbucks backed to the growth trend. But as the criticism the company had receiv ed on a number of fronts, he needed to decide again how to approach international markets. Industry Analysis The 5 forces approach is used in this part and the aim of this analysis is determining the attractiveness of the industry and understanding factors driving past, current and forecast industry profitability. Barriers to Entry: A cup of coffee could be served from many kinds of sources, such as independent operated coffee shops, quick-service restaurant, specialty coffee shops, and international retailers. Considering different types of independent operated coffee shops, the barriers of this industry is not that high. However, being one of recognized and respected band in this industry needs standard quality and high level of capital to support. In this case,  the barriers to entry are medium. Bargaining Power of Suppliers: The coffee beans are mainly plant in Latin America, East Africa and South Asia. Exporters collect coffee beans which are already roasted from farmers and trade with retailers all over the world. Although there are plenty of suppliers in the industry, with the increasing consumption globally and the decreasing production in the large coffee producing countries, the average wholesale price for coffee had increased twofold between 2001 and 2010. The suppliers still keep strong power on bargaining. Bargaining Power of Buyers: The customer have lots of choices even though there will be a variety of request on flavor for different people. They also have low switching cost because of many competitors and brands in the market. Product differences are small and price sensitivity is high. All of these reasons give consumers strong bargaining power. Threat of Substitutes: There are a number of substitutes in the market to buyers. Juice, Tea and other beverages could be another choice for people. There are also many kinds of coffee related products recognized by different making process. In some regions which coffee drinking is not the main habit in daily life. For example in China, Tea obtains considerate market shares in beverage market. Competitive Rivalry: Coffee industry possesses intense competition. The differentiation of products between different entities is low and easy to replicate. Worldwide demand of coffee is growing. More than 500 billion cups of coffee were being consumed yearly. Meanwhile, hundreds of exist competitors led to low switching cost of customers. Starbucks roast 4 hundred million pounds coffee annually. It has high quality requirement on coffee beans. In that case, the company cultivates the stable relationship with its own suppliers. So Starbucks has high cost on switching suppliers. However , Starbucks highlights and chases the experience that their customers can obtain in coffeehouse. The company positions itself as the third place besides workplace and home. This high level of experience and also good quality coffee raise the switching cost of customers and reduce the power of bargaining. SWOT Analysis Strength Starbucks stands one of the most recognized and respected brands in the world. It has the largest chain stores, which is operating approximately 18,000 stores in 62 countries. Besides high coffee’s quality, the strongest advantage of the company is the experience it delivers to the customers. Starbucks is not just passionate purveyors of coffee, but everything else that goes with a full and rewarding coffeehouse experience. The company also provides well offers to employees compared with other competitors in the industry. Weaknesses Starbucks has high price in the market based on its quality and so-called experience. The main was the high cost of the products. It contains the rent of the stores where located in very popular districts. The company offers good paid to their employees. And also, it is influenced by the coffee beans’ price. Starbucks’ main target consumers are well educated white collars. So it is influenced by the cycle of economy to some extent. Opportunities About 79% of the revenue comes from the company-operated stores, which means Starbucks has low levels of diversification. The company need to develop more kinds of products to meet different demand. There are great opportunities in local market, the company could focus on the expansion to emerging economies. The smart phone and moving technology is developing really fast. From online promotion to offline sails, new form of sail brings the company more opportunities. Threats Local competitors could be the direct threat to Starbucks on internationalization. The model and the style is easy to be replicated by new entrants. High cost is the weakness of Starbucks and also brings threats compared with other competitors. The saturated demand in some market needs to be considered carefully in future strategy. SWOT Analysis of StarbucksStrength -Good reputation -Largest chain stores -Quality and experience -Well employees treatmentWeaknesses -High price -High cost -Influenced by economy Opportunities -Diversification -Expansion on emerging -Online to Offline model -Chain stores could promote the diversification -New technology such as App would be used widely -Good financial statement provide capital on emerging -Reduce the influence by diversification and emerging -New model could enhance sails and also get lower on the price Threats -Competitors in local market -Be replicated -Rising price of the cost -Saturated market-Good reputation has strong competitive power in new market -Hard to be replicated -Reliable loyalty of customers -High cost could bring the competitors more opportunities -Close stores after crisis in saturated market Internationalization Company-operated versus licensed stores Starbucks set the mix form of company-operated and licensed stores in a given market. About more than 70% revenue is generated from company-operated stores. See the below chart. Actually, Starbucks could be considered has both forms of chain and franchise stores. The chain stores consist its main profit annually. Compared with Mcdonald’s, the very success in franchise model worldwide, Starbucks has its own advantages on internationalization. The company has the absolute dominate right to decide every aspects of a new store. It contains the decoration style, location picking, training new employees and so on. This form could fully maintain the value and culture of a company. To Starbucks, the experience of the customers and the spirit are the target and  the core value of their products. Its mission is to inspire and nurture the human spirit. Company-operated store is the right way which could assure that the value will be delivered completely. After repurchased the shares of some stores in some first level cities in the world, Starbucks shown its insist in the quality on the expansion road. However, this form costs more higher than franchise. Starbucks need to decide main issues such as the store’s design respectively. The most important is, without local partner, the company will hardly know and understand the real demand and then provide the suitable service. These real problems could not be ignored on internationalization. Local Competition After entering the new market, what is waiting for Starbucks is the intense local competition. Starbucks has to face new problems and balance the profits and its belief in coffee. Price The Price Discrimination in different countries was questioned by media. Starbucks was doubted on the reasonability of price. High price compared to the other coffee retailers let Starbucks to be luxury products in some developing countries. High cost is the main reason of the price. Sails to some extent rely on the growth of economy. This brings more chances to local competitors. Local Demand Coffee is not the irreplaceable drink in people’s daily life in some countries although the consumption of coffee is increasing annually. This situation requires Starbucks obtain brilliant ability on innovation and diversification on products. Providing tea products and acquiring tea producer’s company is the necessary strategy in featured markets. Competitors Starbucks needs to compete with local competitors and international retailers after entering the new market. For example, Mcdonald’s possesses stable relationship with local partners based on its stores and also has long time experience than the others. The wide spread network and well understanding to the local market provide McCafe a perfect stage. The local competitors also have obvious advantages on cost and distribution. Conclusion After experienced the stores closure issue, Starbucks was doubted and received criticism for going and expanding too fast. Actually, Starbucks did not stop its pace on internationalization. According to the numbers provided by the company in 2009, there are about 800 US. company-operated stores were closed out of 1000 planned closure globally. The measurement of Starbucks could be considered as an adjustment which emphasized on the demand saturated market. Its global expansion is still going on especially in the developing market which obtains tremendous potential demand such as China. However, on the road of expansion worldwide, Starbucks still has variety of problem which need to deal with. No matter how its strategy is adjusted, Starbucks should maintain its quality and experience to their customers. Their belief on coffee is the only sustainable way to the future. Reference Resuming Internationalization at Starbucks; Richard Ivy School of Business, The University of Western Ontario Starbucks’ Annual Reports of 2012

Female Body Image and the Mass Media Essay - 2272 Words

Emily Smith is buying groceries at Farm Fresh. She is walking to the register and the new cover of Self magazine catches her eye. She sees that Miranda Kerr, the Victoria’s Secret supermodel is on the cover in a crop top and bikini bottom. She compares her body to the image depicted on Self magazine. She starts nitpicking every part of her body. She looks down at her denim clad- thigh and thinks, â€Å"did my thighs and stomach get bigger than they were this morning? â€Å" Influenced by the depiction of the image of Miranda Kerr, she now views her body as inadequate or ugly. Since she feels that her body is not beautiful and has negative thoughts, Emily seems to have negative body image. This perception of her physical appearance is known as body†¦show more content†¦The media has an obsession with perfection, and sends subliminal messages that often lead to a negative effect on a person’s body image. The greatest influence that the media has is on body imag e. The media stockpiles images that are highly retouched and they make both men and women feel bad about themselves. The models or celebrities that are depicted do not look like they are depicted in the magazine in real life. The magazines use a ton of makeup m Photoshop and airbrush their images so that they can be aesthetically pleasing. The media can promote negative body image. Negative body image is feeling bad or dissatisfied with his or her body. The media promotes negative body image by the depiction of perfect bodies. Both men and women compare themselves to the images they see and feel dissatisfied with their bodies. It can change cultural views on beauty, and it can promote eating disorders. Promotion of positive body image can also be achieved by the media. It can lead to positive body image by portraying images of people with varying body types, ethnic groups, and sizes. Positive body image is feeling good and accepting the body the way it is. 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Risk Assessment Is The Top Priority For Any Type Is...

Findings Networks are very vulnerable to any holes that are within its infrastructure. In fact, many may believe that they have the best security measures in place, but no system or network of any type is impenetrable (Trim Lee, 2014). Risk assessments are extremely necessary so that corrective countermeasures can be applied and overall security can be enhanced (Broder Tucker, 2011). Security should ensure that this is the top priority for any company or organization. A detailed risk assessment shows which policies are essential and how well the company complies with those specific policies (Broder Tucker, 2011). For those that manage the budget and spending need measurable justification for all of the company’s spending. By having†¦show more content†¦Finally, the risk assessment gives the necessary information about any form of threats and vulnerabilities, how to safeguard against those threats, and what elements of the security policy are gone (Broder Tucker, 2011). Quantitative and Qualitative Risk Analysis A quantitative and qualitative analysis of computer information systems recognizes technical and administrative deficiencies which allow the prioritizing task to become more efficient (Broder Tucker, 2011). Security is a main concern in all layers of networks that provide a defense in-depth approach. By detecting known or potential risks, threats, and vulnerabilities helps in drafting the security model that is designed to see adverse occurrences (McCarthy, Todd, Klaben, 2012). An emergency response team should be available to resolve problems as quickly as possible to help limit any damage (McCarthy, Todd, Klaben, 2012). By outsourcing IT, tasks trigger an imbalance in favor of cost over benefit. In addition to the mobile computing that is available, the IT staff at GFI will offer cloud computing to conduct their e-commerce Wrightson, 2012). In order for the company to prosper, they will need to keep a competitive presence and products and services must be available globally at a ll times. By being able to offer these products and services; it requires planning for the authentication, monitoring services, accounting for and