Kfc Business Model

The KFC Business Model

The Colonel began franchising his chicken business in 1952 by traveling from town to town and cooking batches of chicken for restaurant owners and employees. The Colonel awarded Pete Harman of Salt Lake City with the first KFC franchise. A handshake agreement stipulated a payment of a nickel to Sanders for each chicken sold. Sanders sold his interest in the U.S. company for $2 million to a group of investors headed by John Y. Brown Jr., future governor of Kentucky.

The Colonel remained as public spokesman for the company. In 1966, the KFC went public. KFC was listed on the New York Stock Exchange in 1969. More than 3,500 franchised and company-owned restaurants were in worldwide operation when Heublein Inc. acquired KFC Corporation in 1971. On 16 December 1980, Colonel Harland Sanders, who came to symbolize quality in the food industry, died of leukemia. Flags in all Kentucky state buildings fly at half-staff for four days.

The report about new business plan-KFC
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Category: Uncategorized Pages: 8 Type: Essay Level: Bachelor Style: Harvard A Kentucky Fried Chicken (KFC) franchise operation will offer several advantages. Franchise operator will have the benefits of well-established name, brand, and reputation. This franchise would also provide a strong brand or trademark of the fast food concept, a proven business system, extensive training and further product development, along with a number of initial and on-going managerial support services. It is also likely that the franchisor brand name would help the operator secure funding and offer benefits, including discounted supplies.

Additional advantages would be reduced research and development costs, access to training, access to franchisor’s marketing and advertising campaigns and guaranteed quality control and standards. However clinching fact would be the expected enthusiastic response from target population of locals, students and visitors of Aberystwyth town. Typically, an established brand name’s franchise business would be less risky than other new ventures because the business idea has been tested and the KFC products enjoy global acceptance and saleability.

Studies have reported that franchises are safer than other capital deployments in businesses with a failure rate of less than 5 percent rate compared to 90 percent failure rate for some independently initiated restaurants. Banks are also more liberal in extending finance to a franchising business, given above facts, and can finance up to 70 percent of the initial capital costs. Taking up a small business model franchisee of KFC appears to be a challenging, profitable and safe business opportunity. In the following paragraphs a business plan is taken up to commence this business systematically.

Discuss the application of one of the ten key strategic operations management decisions to a servicebased organisation. ————————————————-

Category: Miscellaneous Pages: 8 Type: Essay Level: Bachelor Style: MLA The importance of operational management has significantly increased in the service industry. Any service providing company faces many challenges and problems which can be solved by operational management strategies. In most organizations, it comprises a drastic percentage of physical assets and human resource. The Manager operations decided what should be produced/ delivered, how to produced, when to produce.

He is also responsible for all the sensitive issues like Planning for capacity, material management, purchases and logistics, scheduling and maintaining the quality. Now in this fast moving and rapidly changing business environment, the operational managers face high pressures. This is because shorter service life cycle, competition is significant, the market is full of conscious consumers. All such pressures lead to high expectation from manager operations. He has to improve productivity while providing high quality services. In this way, he can bring high yields for the company.