Project on KFC - November 4th, 2009 SUBMITTED BY:Ramanpreet Kaur Taluja Prakriti Ahluwalia Vikas Dubey Ashish DhawanAditi Chopra Amit Saini Integrated Assignment On Concepts & Application On KENTUCKY FRIED CHICKEN PREFACE Our institute K. R. Mangalam Global Institute of Management has given us an opportunity to show our intellectual ability through an integrated project and allow us to decide the service sector on which we want to make our project. For this we have chosen the KFC food chain. KFC is the growing brand in the world for food industry. KFC basically deals in chicken recipes whose main focus in crispy and deep fried chickens. To know the market response of KFC we visited various chains of KFC and we also had survey on the public (who are the basic consumers of the KFC). We visited KFC chain of Noida Sector18, Lajpat Nagar, Center Stage Mall, Noida, and Ghaziabad. We concluded that according to the areas the demand keeps on fluctuating, like there is more demand in Sector 18 market chain of Noida in comparison to Center Stage Mall and we have the maximum demand in Lajpat Nagar. After the survey on chains we had a survey on the public of city through a feed back form. We also had a survey on the people working in the KFC through the human recourse feed back from. We found that they are totally satisfied by the human resource strategies of KFC. By people we concluded that they are also satisfied by the service provided by KFC, and the product what they provide are up to the mark. They find KFC food a best quality food. But then also KFC have to work hard to earn the goodwill in market in comparison to other fast food chains. ACKNOWLEDGEMENT To complete this project, there have been many people who graciously gave their time and expertise in reviewing the manuscript. Their experience and direction has significantly helps us to complete this project. We would like to thank the following: 1. Dr. Athar Ali (Dean of KGIM) 2. Prof. S.S.Khullar (Programme director, MBA) And all the faculty members and all of our fellow mates who help us to complete the task. Several people have been of tremendous assistance in the fine-tuning of this project. All the Mangers and workers of KFC outlet where we visited and also the citizens of New Delhi who gave us their precious time for feedback. CONTENTS S.No. TOPIC PAGE NO. I Introduction 4 II History of KFC 5-8 III Success Story 9 IV KFC‟s Success in India 10 V Factors Against KFC in India 11 VI Finance Strategy 12-19 VII Human Resource Strategy 20-28 VIII Operations Strategy 29-38 IX Marketing Strategy 39-49 X Management Information Systems Strategy 50-54 XI Annexures 55-56 XII Bibliography 57-58 INTRODUCTION xxxx KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Twister and Colonel's Crispy Strips chicken with homestyle sides. KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500 KFC, A&W All-American Food™,Taco Bell, Long John Silver's and Pizza Hut restaurants in more than 100 countries and territory. 1. Founded by Harland Sanders in 1950s when fast moving franchising was still in its infancy. Colonel Sanders was able to tap a talent hunt. 2. Secret recipe of chicken with eleven herbs and spices. 3. His foreseeing seemed to be true which is less than 13 years the chain had crossed the 300 mark. 4. His growing age promoted colonel sanders to sell off the business for $2million in 1964 to Jack Massey and John Brown Jr-two Louisville businessman. 5. In 1970 KFC merged with Heublien Inc, a producer of alcoholic beverages with little restaurant experience. 6. However soon enough conflicts arose regarding quality control issues and restaurant cleanliness. 7. In 1986 KFC was sold to Pepsico. 8. Next KFC turned their attention towards tapping into international markets and by around 1980s it had entered Japan, Australia, Mexico and places in the Carribean and UK. 9. In the 1990s it could foresee the virgin markets if INDIA and CHINA. KFC HISTORY AT-A-GLANCE 9/9/1890 1965 Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges Association.S. (now RJR Nabisco.Harland Sanders is born just outside Henryville. 1969 The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange. 1964 Kentucky Fried Chicken has more than 600 franchised outlets in the United States. company for $2 million to a group of investors headed by John Y. Inc. insurance salesman. Inc.J. 1957 Kentucky Fried Chicken first sold in buckets 1960 The Colonel's hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U. Sanders sells the service station on the same day that he receives his first social security check for $105. 1979 KFC cooks up 2. is acquired by Reynolds. 1982 Kentucky Fried Chicken becomes a subsidiary of R. Inc. Congressional Committee on Aging. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers fresh chicken. 1966 The Kentucky Fried Chicken Corporation goes public. 12/16/1980 Colonel Harland Sanders. future governor of Kentucky. Sanders serves as station operator.S. 1940 Birthdate of the Original Recipe 1949 Sanders marries Claudia Price. tire salesman and service station operator for Standard Oil. acquires KFC Corporation. There are approximately 6. Reynolds Industries. A handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold. dies after being stricken with leukemia. 1900-1924 Harland Sanders holds a variety of jobs including: farm hand. The Colonel remains a public spokesman for the company. 1977 Colonel Sanders speaks before a U. railyard fireman." Fire destroys The Sanders Court & Café. The pressure cooker is introduced.) when Heublein.000 KFC restaurants worldwide with sales of more than $2 billion. army private in Cuba. The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. streetcar conductor. 1939 The Sanders Court & Café is first listed in Duncan Hines' "Adventures in Good Eating. and Canada..7 billion pieces of chicken. Indiana. 1952 The Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. 1986 . Harland Sanders opens his first restaurant in the small front room of a gas station in Corbin." 1936 Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the state's cuisines 1937 The Sanders Court & Café adds a motel and expands the restaurant to 142 seats. Brown Jr. blacksmith's helper.S. He decides to go on the road to sell his Secret Recipe to restaurants. he is virtually broke. chief cook and cashier and names the dining area "Sanders Court & Café. Kentucky. 1976 An independent survey ranks the Colonel as the world's second most recognizable celebrity. faster. Sanders sells his interest in the U. 1955 An interstate highway is built to bypass Corbin. who came to symbolize quality in the food industry. but it is rebuilt and reopened. After paying debts owed. Canada and the first overseas outlet.500 franchised and company-owned restaurants are in worldwide operation when Heublein Inc. 1930 In the midst of the depression. Flags on all Kentucky state buildings fly at half-staff for four days. 1971 More than 3. Kentucky. in England. • Was able to foresee a huge untapped market in the Asian Countries. 2006 More than a billion of the Colonel's "finger lickin' good" chicken dinners are served annually in more than 80 countries and territories around the world. • Were able to provide a wider variety to the customers to chosen from. • “Think like a local …………. Inc. • PepsiCo taking over KFC proved to be a turning point in its life cycle. the company owns A&W® All-American Food® Restaurants.into Tricon Global Restaurants.. Inc. • Being a leader in its field PepsiCo provided that extra edge to KFC whereby the soft drinks were made available at KFC outlets along with their menu. CULTURAL FACTORS CONTRIBUTING TO KFC‟s “SUCCESS” IN INDIA . KFC gelled with the people as the operations were in their hands. In addition to KFC. but contains Zero Grams of Trans Fat per serving thanks to new cooking oil. acquires KFC from RJR Nabisco. Inc. Long John Silvers®. 2007 KFC proudly introduces a new recipe that keeps the Colonel's 11 herbs and spices and finger-lickin' flavor. the world's largest restaurant company. Inc 2002 Tricon Global Restaurants. • Coordinated through national advertising. KFC‟S SUCCESS STORY: • Colonel sanders commitment to quality and hygiene. thus strengthens their market positions. Inc.PepsiCo. announces the spin-off of its quick service restaurants . changes its corporate name to YUM! Brands.not like an American Company”. 1997 PepsiCo.. Inc. • Consumers were able to relate the soft drinks with the snack foods. Taco Bell and Pizza Hut . • Customization in different countries. • Mellowed down their Fried chicken image by changing their name to KFC in 1991. Different relief programmes and other social undertakings have been well executed by them. Pizza Hut® and Taco Bell® restaurants. Different culture and customers preferences were taken into account to attain GCTC [GETTING CLOSE TO THE CUSTOMERS].KFC. • KFC is also quite aware of its “CSR”. no value for money. Since the late 1990‟s. • Believed to be expensive ……. • Tried to target the vegetarian segment. • Wanted to position itself as a “family restaurant” . an animal rights protection organization. a flavor enhancing ingredients) as followed by the act. • The target customer of KFC [upper. However this backfired as in India having veg food cooked in a non veg kitchen doesn‟t come out well with the vegetarian segment. not as a “teenage hangout” • Ambience was missing.. • Got an edge since chicken is a staple dish and is taken more frequently in Asian countries. middle and above] are health conscious and hence to cater to their interest Kentucky fried Chicken changed its name to KFC. • Price sensitivity of the two economies drove KFC to introduce menus that were easy on the consumer‟s pocket. 1954. FINANCE STRATEGY . PETA accused KFC of cruelty towards chickens and released a video tape showing the illtreatment of birds in KFC‟s poultry farms. • More accustomed to take out food over the counter. KFC faced severe protests by people for Ethical Treatment of Animals (PETA). Chickens contained nearly three times more monosodium glutamate (popularly known as MSG. ETHICAL FACTORS: The regulatory authorities found that KFC‟s chicken did not adhere to the prevention of FOOD ADULTRATION ACT. tastes and preferences. • Perceived differences in eating habits. • Able to adapt to cultural differences. For example keeping in mind the Indian tastes buds KFC launched a fierier “ZINGER BURGER”.• Reducing the psychic distance by handling over of operations to local people so that customers could relate to them more easily. CULTURAL FACTORS IN INDIA THAT GO AGAINST KFC‟s ORIGINAL RECIPE: • KFC is perceived as a restaurant serving only chicken-Indian families obviously wanted more varieties. 61 Conclusion Higher ratio indicates a risky financial position while a lower ratio indicates safe financial position.its current asset ratio is closer to ideal ratio of 2:1 or we can say that its current assets can be more readily converted into cash to meet the current liabilities. 3. indicates that long term funds are being used for short term purpose i. The higher the numbers more secure the lender in respect of his periodical interest income. Interest Coverage Ratio =NPBIT/Interest on fixed(long term) loans or debenture Interest cover 9. It measures margin of safety to lenders. Fixed Asset Ratio = Shareholder fund + long term loan / Net fixed asset =Equity share+ Reserve+ secured loan+ unsecured loan / Net block Investment Fixed asset ratio 1. Short Term Solvency Ratio Current Ratio: Ideal is 2:1 = Current Assets/Current Liabilities =Stock + debtors + cash + loans & advances/current liabilities CURRENT RATIO 1.Factors Average Demand(per day per branch ) During regular period 150-200 During peak period(promotion schemes) 350-450 During festivals 450-650 GRAPHICAL REPRESANTATION COMPARISION OF FINANCIAL STATEMENT 1. 4.firm has adopted imprudent policy of using short term funds for acquiring fixes assets.e for financing working capital.14 Conclusion If ratio < 1. If ratio > 1. Also it indicates the amount of capital supplied to the company by its proprietors and of asset cover availability to its creditors on liquidation. It is not good from the firms point of view as it‟s usually more difficult to raise long term funds. Long Term Solvency Ratio 2.12 Conclusion This ratio indicates how many times the profit covers fixed interest. Debt Equity Ratio = Acceptable ratio=2:1 (Although now days lending institutions prefer 1:1) = Debt (Long term loan) / Equity (Shareholder fund) = Secured loan +unsecured loan/Equity + Reserve surplus Debt equity ratio 0.64:1 Conclusion Short term solvency of KFC . Proprietary Ratio =Proprietary fund /Total asset =Equity share+ Reserve and surplus / Net fixed asset+ Current asset . 3. 80 Key operating ratios Year end Mar 07 EPS(Rs) 38.58 Conclusion This ratio measures profitability and soundness of business.11 Conclusion This ratio determines the overall efficiency of the business. Return on equity(ROE) = Net profit(after interest. Higher ratio indicates better position.67 Conclusion Ratio helps in evaluating the prevailing market price of share. Capital Turnover Ratio =Net sales / Fixed asset + Networking capital Capital Turnover Ratio 0.Preference dividend / Number of equity share EPS(Rs) 38. tax & dividend) /Equity shareholder fund ROE(%) 26. ACTIVITY RATIO 5. Ratio below 50% may be alarming for creditors since they may have to loose heavily in the event of company‟s liquidation on account of heavy looses.89 Conclusion This ratio measures the earning power of net assets of business. Earning Per Share = Net profit.e profit available to equity shareholders. A higher ratio shows safety for creditors. However too high ratio may indicate over trading resulting in paucity of funds. Higher the ratio better it is.11 . Higher ratio is preferable.76 Conclusion This ratio is of particular importance for creditors. More earning per share is preferable. Net Profit Ratio = Net profit*100/Net Sales NPM(%) 22. Higher the ratio better it is. OVERALL PROFITABILITY RATIO 8.Proprietary Ratio 0. 9.29 Conclusion This ratio indicates how efficiently capital employed is being used.33 Net profit 91. 7.67 NPM(%) 22. Operating Profit Ratio =Operating profit*100 / Net Sales OPM(%) 43.87 Conclusion This ratio help the shareholder of the company to know how much there investment have earned to them i. Return on investment(ROI) = PBITD*100 / Capital Employed ROCE(%) 28. PROFITABILITY RATIO 6.78 Operating profit 180.50 Equity cap pd 22. Key financials Year end Mar 07(in crores) Net sales 413. 10. High turnover means efficient utilization and improves liquidity and profitability of business. which is committed to serving the best chicken at the fastest speed and with a smile.13 PAT/PBIDT(%) 50.58 ROCE(%) 28.09 Market cap/sales 3. The Restaurant General Manager reports directly to an Area Manager and is accountable for successfully implementing and maintaining all Company policies and procedures in relation to operations. Restaurant General Managers: The Restaurant General Manager is accountable for creating and running an energetic and valuable work environment. purchasing. training and development.76 ROE(%) 26. health & safety.29 PBDIT/net assets(%) 0.61 Interest cover 9.12 Valuation ratios Year end Mar 07 EV/EBIDTA 10.87 HUMAN RESOURCE STRATEGY HUMAN RESOURCE POLICY IN KFC Hiring and retaining the right employees is critical to the success of your restaurant's operation.87 Debt/equity 0. customer service.97 Dupont model Year end Mar 07 PBIDT/sales(%) 43.74 Net assets/net worth 3. administration. . which is committed to serving the best chicken at the fastest speed and with a smile.58 Sales/net assets 0. Area Manager: Area Managers are accountable for providing coaching. leadership and operational support to 8-10 KFC Restaurants within a defined Area. cash handling. Here you'll find news and research on getting the most from your human resources processes. human resources.OPM(%) 43.89 ROE(%) 26. Assistant Managers: The Assistant Manager is responsible for assisting the Restaurant General Manager (RGM) in creating an energetic and valuable work environment. marketing. cash handling. human resources. Tanner Company. Recruitment and Selection at KFC Part of KFC‟s recruitment strategy is to offer employees high-quality options such as potential for advancement. Hence. According to its director. as it encourages employees to perform well on their jobs. purchasing. president of Kentucky Fried Chicken's U. no senior position was vacant. life and disability insurance. health & safety. customer service. purchasing. 1991). training and development. dental coverage. can sing songs for birthdays etc. KFC management strongly believes that hiring young people and later training them is the way to a successful organization. Trainee Managers help with day-to-day running of the restaurant. KFC‟s attractive salary and benefits package is an effective lure for potential employees (Rigdon.S. 2003).” From this. college-planning assistance. “KFC has the lowest turnover rate in the fast food industry because it is a fun place to work. operations. marketing. KFC also believes in promoting from within. and apparently given such incentives to join that most of the people offered jobs joined KFC even though they were told before hand that at immediate present. According to Kyle Craig. Customer Service Team Members: Responsible for working the service areas and ensuring quality product. Trainee Managers: Responsible for assisting the Restaurant General Manager and Assistant Managers in creating an energetic and valuable work environment. marketing. paid vacation and a group legal plan. marketing and corporate communications. human resources. employee discount. not even one of the company's 17 senior U.” The company ensures that coming to work is not something employees dread by making the day as enjoyable for its workers as possible. the situation has improved today. company reputation. the age factor is definitely an issue of concern for recruiters at KFC. adoption assistance.C. 1991). which specializes in helping companies motivate employees through comprehensive recognition solutions. we can safely assert that KFC believes in eliminating the glass ceiling. and hiring and keeping female and minoritygroup executives. a 410k plan (which helps employees save for their future). and need to ensure that all operations. is a medical coverage and prescription benefits. For example. managers were minority or female. with there being numerous managers either female or part of a minority group. (Kufahl & Agoglia. As far as selection is concerned. telling them that they in fact can go from being just a team member to the restaurant manager and later area or region coach (KFC Official site). When KFC was looking for senior executives who could run a business. vision/hearing coverage. cash handling. for two years it scoured the management teams across various industries and offered senior executives of companies like Coca Cola attractive benefits and a better salary scale to get them on the team. tuition reimbursement plan. KFC admits that it actively tries to recruit and promote women and minority members in middle and top management ranks (Rigdon. among the benefits package that KFC offers. we'd clearly like to have diversity. Retention Practice at KFC KFC is a client of the O. The company also strongly believes in diversification. stock options.S.Assistant Managers are also responsible for ensuring all Company policies and procedures are followed in relation to operations. which is committed to serving the best chicken at the fastest speed and with a smile. This seems to be working for the company and is an effective policy: where in 1989. These executives were promised quick advancement on their jobs. it has to deal with the added loss of employees resigning and . benefits package and salary scale. Staff retention should be a major concern for employers because it has been proven time and again that if the company is ever in a financial mess. “We want to bring in the best people but if there are two equally qualified people. Hence. Employees have been given the autonomy to have fun on the job: they can start standing ovations for they whenever they want. customer service. administration and training & development policies are followed. service and cleanliness is delivered to all customers at top speed and with a smile! Food Service Team Members: Responsible for putting the crunch in the coating and the zing in the Zinger…the cook‟s main task is to prepare and cook the irresistible KFC products! The cook must also maintain the cleanliness of the cooking area as well as the quality of product and speed of preparation. administration. a management incentive plan (under which everyone from assistant manager to senior executive is rewarded for remarkable performance). 1. including nights and weekends. age should not be a bias factor and the principle of promotion from within should be adhered to. It has incorporated a lot of recognition programs in its culture. Nationally Recognised Training Programs are available to employees*. and they are rewarded for their achievements through competitive salary packages. like Floppy Chicken. As for selection and recruitment practices. strong work ethic. • Certificate II in Retail Operations • Certificate III in Retail Supervision • Certificate IV in Retail Management What do you need to become part of our team? Good interpersonal skills. Availability varies by area* Corporate Culture "Reward and Recognition" "Promotion from within" "Belief in People" Our Restaurant General Managers are No. Training and Development are Priority! On the path from Team Member to Restaurant General Manager.leaving the company. commonsense and great customer service skills. right when their energy and work is needed the most. it is better to promote older employees rather than hiring people from external sources. 2001). KFC is one of those companies which realizes this factor. We are an Employer of Choice Yum!'s commitment to being an "Employer of Choice" is demonstated by Yum! being a Registered Training Organisation and our: • Equal Opportunity Employment Policy • Executive Trainee Program • Family Friendly Policies • World Class Training Systems • Education Assistance Program • Product Discount Program • Performance based salary increases and • Employee franchising . incentive scheme and share ownership programs for company employees. This is because for companies like KFC. hence. it is very important to promote a certain employee culture. or KFC President Charles Rawley's Bulldog Award to motivate employees and keep them happy (Serving up a bucket of recognition. Recommendations The recommendations that I would offer KFC is to maintain its current low turnover rates and incorporate even more practices in its culture which provide recognition to employees and make them feel valued. extensive training and development is a priority. You must be prepared to work shiftwork. MC‟DONALDS.) 3 month to 6 months d. Q8. Q6.)Subway c. or have you worked.What is your job title and duties at the fast food outlets? _________________ __________________________________________________ ___________. Please list the days and shifts you have worked that? Q7.) more than 1 year.) casual full-time d.)McDonalds.) yes b.) less than three months c.What suburb is the outlet located in?_________________________________ __________________________________________________ ____________.what training did you receive for the job? .How long you have worked for the fast food outlets? a. Q3. Q4.) other (please specify) _______________________________________________ Q5. for one of the following fast food outlets (if worked for more than one outlet pls fill in other questionnaire of each outlet)? a.What is for employment status? a.) permanent full-time e.) less than one month b.) apprentice/training b. Q9.KFC FAST FOOD INDUSTRY QUESTIONNAIRE 0N HUMAN RESOURCE PLEASE READ THIS PAGE BEFORE STARTING THE QUESTIONNAIRE: AIM: The aim off the survey is to find out about the experiences and problems of young people working in the fast food industry as part of the research study. Q1. etc…….)Pizza hut b.) permanent part-time f.For example: KFC. DEFINITIONS: Fast food industry include businesses which primarily sell meals that are ready to eat immediately and are packaged in take away containers or are packaged where no table service is involved (that are eaten on the premises but there are not waiters or waitresses).Did you sign an employment contract when you started your job? a. Q2.) 6 months to 12 months e.) no c.)Subross d.) casual part-time c.Do you work.) do not know. On an average how many hours would you work a week? ________________ _________________________________________________. They did not understand the importance of ethics in doing business. PepsiCo planned to open 60 KFC and Pizza Hut outlets in the country over the next seven years. Apart from Bangalore.) no c.) on the job training c. 1954. b.) yes b. . Indian people condemned KFC's entry into India.a. KFC did not appreciate the need for protecting animal rights in developed and developing countries like India. it was considered India‟s fast growing metropolis in the 1990.) do not know Q11. KFC received permission to open 30 new outlets across the country. with a trend of families eating out. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG.) training before commenced the job.Did your employer pays you during your training period? a. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act.:____________________________ AGE:______________________________ SEX:______________________________ ETHNIC BACKGROUND:_____________________________________ THANK YOU FOR YOUR TIME AND ASSISTANCE IN TAKING PART IN THIS SURVEY. However. KFC became embroiled in various controversies even before it started full-fledged business in India. saying that it was unethical to promote highly processed 'junk food' in a poor country like India with severe malnutrition problems.) yes b. It chose Bangalore as its launch pad because the city had a substantial upper middle class population.Do you have a supervisor at a work place? a. KFC entered India in 1995 and has been in midst of controversies since then. However. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms. KFC did not add the flavours and spices in their menu which Indians favoured. a flavor enhancing ingredient) as allowed by the Act. owned by PepsiCo. OPERATIONS STRATEGY One of the first fast food multinationals to set foot in India was Kentucky Fried Chicken (KFC). Since the late 1990s. an animal rights protection organization.) no training d.) do not know NAME:_________________________________ ADDRESS: __________________________________ PHONE NO. ISSUES FACED BY KFC IN INDIA:The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC planned a massive expansion program in India.) no c.) do not know Q10. The Bangalore outlet was opened in June 1995. Also. undeterred by the protests by PETA and other animal rights organizations. KFC faced severe protests by People for Ethical Treatment of Animals (PETA). They did not examine the reasons for protests of PETA. P. the Supply Chain operates at its best. and mistrust between supply chain partners. Major reason was KFC was targeting higher income group in India in order to compete with the local chicken dhaba wala‟s. Yum! has adopted best operational practices to ensure high customer orientation. Rs. KFC‟s Supply Chain A Supply Chain is a network of facilities including . Stringent cleaning standards ensure that all tables. says that KFC also operates on the franchisee model. This is called the Bullwhip Effect. And so.338 outlets. Ultimately. people and the overall experience. by a separate crew distinctly identified by their colour-coded uniform. transformation of materials into semi-finished and finished products. To encourage compliance with all legal requirements and ethical business practices.S. geographically dispersed activities. Yum! is a fortune 500 corporation that operates or licenses Taco Bell.S stands for: cleanliness. various suppliers. higher transportation and manufacturing costs. KFC caters to nearly 7 million customers in more than 78 countries through 11. The expansion drive would take Pizza Hut across 33 cities. And since 2003 it is expanding successfully its business in India. At the same time it provided menu items which can be afforded by the middle income group level like KFC‟s Mini Burger for Rs. facilities. a diesel engine manufacturer may be able to integrate a GPS locator system into its engine control system. and Long John Silver‟s restaurants worldwide.H. product quality and speed. Depending on the situation. Then it came up with the strategies and menu that was desirable by the Indian consumers. Director. Yum has established this Supplier Code of Conduct for Yum's U. legal and socially responsible manner. raw material flows as follows: supplier . the Supply Chain may include major product elements. owing to its size and growing aspirations of an upwardly mobile middle class. For example. Its immediate customer. Long John Silver's is America's largest quick-service seafood chain with more than 1. The company aimed at targeting cosmopolitan cities like Chandigarh. Now they are adhering to the rules of Food Corporation of India and PETA. is a critical market in its overall scheme of things. The balance between these 3 flows is what a Supply Chain is all about. accuracy. When there is a balance in the finished product ordering. maintenance. It is critical to go beyond one‟s immediate suppliers and customers to encompass the entire chain. KFC Marketing.M. KFC. a trucking company with a large fleet. a heavy truck manufacturer. had successfully established a strong foothold in India. Ms Sharanita Keswani.A. Such meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and immediate areas outside the restaurant. "Pizza Hut". KFC has around 10.286 units worldwide. It has developed a range of pure vegetarian food. 25. YUM! Brands. "We expect to scale up to 12-13 restaurants by the end of this year.manufacturer – distributor – retailer – consumer. Kolkata. Did you know that every year. 50. The company believes that India. However.A. Any major fluctuation in the product ordering pattern causes excess / fluctuating inventories. the downstream customer. Pune. So.H." Both Pizza Hut and KFC have made various alterations to their menus in India to attract more footfalls.S. Hot Crispy Chicken which contained Indian spices that were liked by Indian‟s. is a critical market in its overall scheme of things. followed by Taco Bell with 7. suppliers. and distribution of products to customers and their "downstream" customers at all levels.200 units worldwide. helping them to expand business successfully. KFC caters to nearly 7 million customers in more than 78 countries through 11.000 crore worth of food produce is wasted in India? This is mainly because of the lack of proper infrastructure for storage and transportation under controlled conditions.P. measuring and rewarding an employee's performance against customer standards.111 restaurant units world over. PepsiCo also decided to concentrate on the expansion of KFC since its other brand. KFC will set foot in Kolkata and Hyderabad after having forayed into Pune recently. where mall culture is fast developing. even before they opened their first restaurant in India. This is the umbrella operation programme for training. the company had to shut all but one outlet in the country. KFC‟s challenge here is to make sure to meet our quality standards in terms of food. KFC spent a few years setting up a unique Supply Chain. may see no need for this functionality. Chennai and Hyderabad.material flow from suppliers and their "upstream" suppliers at all levels. chairs. says Ms Keswani. Information and money flows in the reverse direction.M. shortages/stock outs. is committed to conducting its business in an ethical. Only recently in 2003 it made a quiet re-entry into the Indian market. but a controversy surrounding the levels of MSG in its preparations and subsequent protests from farmers' groups and animal rights activists spelt trouble for the company. longer lead times. KFC is looking at extending its presence across India to create a national footprint. since hidden value often emerges once the entire chain is visualized. highchairs and trays are sanitised several times each hour. KFC Re-entry into Indian Market KFC entered India in 1995. may be . which is demonstrated through C. from six at present. The company believes that India. Inc. and both upstream and downstream activities. Pizza Hut. hospitality. All the vegetarian products are stored. owing to its size and growing aspirations of an upwardly mobile middle class.338 outlets. cooked and served separately. C. KFC want to ensure that the customers experience in India is no different from a Pizza Hut outlet anywhere else in the world. KFC is committed to providing quality products while supporting other Indian businesses. They believe eating sensibly. Cold Chain The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. Vista Processed Foods Pvt. has : • Separate processing lines for chicken and vegetable foods. KFC's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. • Drip and sprinkler irrigation in raised farm beds with fertiliser mixing plant. • Capability to convert milk into cheese. procedures and support services. Uttar Pradesh. and KFC India Pvt. Salient strengths are: • A one-stop shop for all distribution management services. The HACCP verification is done at least twice in a year and certified. • Installed capacity of 6000 litres per hour for producing homogenized UHT (Ultra High Temperature) processed milk and milk products. Maharashtra. combined with appropriate exercise. casein & whey protein and humanised baby food. • Strict quality control supported by a fully equipped quality control laboratory. The Cold Chain is an integral part of the Supply Chain. skimmed milk powder. • Refrigerated truck for transportation. Foodland specialises in handling large volumes. special herbs and many oriental vegetables. Understanding the value to the downstream customer is part of the supply chain management process.. transportation and retailing of food products under controlled temperatures. • Capability to produce frozen foods at temperature as low as -35 Degree Celsius to retain total freshness. butter/ghee. Its plant has: • State-of-the-art fully automatic machinery requiring no human contact with product.Gagan Milk and Nandan Ghee at its factory at Ghaziabad. data collection. Ltd. As the ingredients move from farms to processing plants to the restaurant. storage. Vista Processed Foods Pvt. deliveries. Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes prevention of illness or presence of microbiological data within KFC‟s supplier facilities and the outlets rather than its detection through inspection. • Dry and cold storage facility to store and transport perishable products at temperatures up to . lactose. • International standards. Vital Links in KFC‟s Cold Chain All suppliers adhere to Indian government regulations on food.Supplier of Chicken & Vegetable A joint venture with OSI Industries Inc. Dynamix Diary – Supplier of Cheese Dynamix has brought immense benefits to farmers in Baramati. an ISO 9000 company. Setting up of the Cold Chain has also enabled KFC to cut down on operational wastage. • Stringent quality control measures and continuous Research & Development Amrit Food – Supplier of Milk & Milk Products( Frozen Desserts) Amrit Food. Ltd. Triyaka Agriculture – Supplier of Iceberg Lettuce Implementation of advanced agricultural practices has enabled Trikaya to successfully grow speciality crops like iceberg lettuce. Ltd. quality inspection. KFC offers a variety of menu items for those that want lower fat and lower calorie choices in their menu. The term Cold Chain describes the network for the procurement. who have now become an integral part of the Cold Chain. manufactures widely popular brands . within a temperature range of –18ºC to 4ºC. inventory management. About 52% of the food products need to be stored under these conditions before they are used. warehousing. recording and reporting.22 Degrees Celsius.very interested in a locator system. produces a range of frozen chicken and vegetable foods.. KFC‟s outlets store products to be used on a daily basis. Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. • Pre-cooling room and a large cold room for post harvest handling. Local Sourcing . Based on HACCP guidelines. A world class infrastructure at its plant at Taloja. Setting up the Cold Chain involves the transfer of state-of-the-art food processing technology by KFC and its international suppliers to pioneering Indian entrepreneurs. health and hygiene while continuously maintaining KFC's recognized standards. Farm infrastructure features: • A specialised nursery with a team of agricultural experts. USA. control points and critical control points for all KFC major food processing plants and outlets in India have been identified. providing the entire range of services including procurement. is the best solution for a healthy lifestyle. The factory has: • Fully automatic international standard processing facility. • Effective process control for minimum distribution cost. Radhakrishna Foodland – Distribution Centre An integral part of the Radhakrishna Group. KFC take great pride and care to provide customers with the best food and dining experience in the quick service outlet business. for total hygiene. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. . and 800 mg of calcium (vitamins and iron are supplied by pills). manufacturing and packaging. and let represent the number of servings of food i in the diet.. Let us label the foods 1. protein. All in all. contractors. and gets exposure to advanced agricultural practices and the ability to grow or to export. our commitment to halal underscores our commitment to putting “Customers First” in all that we do. What is the least cost satisfactory diet? Formulation:First we decide on decision variables.KFC has always been committed to sourcing its requirements from local suppliers and farmers. handling. While some of us would be happy to subsist on 10 servings of pork and beans. which can be written We have constraints for energy. have certifications from our suppliers to confirm that they comply with halal requirements. To ensure that all our locally manufactured products conform to halal requirements. and for each serving/day limit. How can we find such a diet? Suppose the only foods in the world are as follows: After consulting with nutitionists. . In keeping with this belief. health and hygiene is now a top priority. be inexpensive. we decree that a satisfactory diet has at least 2000 kcal of energy. 55 g of protein. As KFC expands in India. KFC Operational Model Problem What is the perfect diet? An ideal diet would meet or exceed basic nutritional requirements. we implement stringent internal controls over raw materials. we have decided to impose variety by having a limit on the number of servings/day for each of our six foods. the supplier gets the opportunity to expand his business. Our objective is to minimize cost. preparation. labour and maximum local content in materials. 2. thus ensuring that KFC commitment to growth was mirrored by that of its partners. Even our restaurants are constructed using local architects.6. KFC has carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality products. packaging and transport of our products. We also adhere to best practices to maintain the highest standards of quality and hygiene. Adherence to Indian Government regulations on food. and be ``pleasing to the palate''. The relationship between KFC and its Indian suppliers is mutually beneficial. This assurance is rooted in the philosophy of our company's founder. All our raw materials too. have variety. calcium. This gives the formulation: MARKETING STRATEGY KFC as a Brand KFC is one of the best-known brands worldwide Doing Integrated assignment we study how KFC continually aims to build its brand by listening to its customer's also identifies the various stages in the . KFC India today purchases more than 96% of its products and supplies from Indian suppliers. He firmly believed in mutual benefits arising from a partnership between KFC and the local businesses. has access to the latest in food technology. We are extremely careful to prevent cross contamination with filth or dangerous contaminants during the storage. Meeting the needs of Key audience There are a limited number of customers in the market. To meet the needs of the key market it is important to analyses the internal marketing strengths the organization. e. As the economy and social attitudes change. Market research identifies these factors and anticipates how they will affect people‟s willingness to buy.Promotion Using that detailed information about its customers. Lf psychological factors are important. What products are well received? 2. social factors retail environment and many other elements affect KFC success in the market. To build long-term business it is essential to retain people once they have become customers. . design and image which gives a recognizable face . prices charged. promotions Created and where restaurants are located. Marketing involves identifying customer's needs and requirements and meeting these needs in better way then its competitors.Price 3. What T. newspapers and advertising consumer read or view? 4. product or service.marketing process. what image does the product give or how the consumer feels when purchasing it? Through marketing. It is to the needs of specific group.At KFC this is represented by its familiar logo-Colonel Harland Sanders is shedding his white suit jacket for a red cook. What restaurants are visited? Market research is the format which enables KFC to identify this key information. In this way a company creates loyal customers. legal and technological changes. Market research considers everything that affect buying decisions. Children want to visits as it is fun place to eat. The people KFC identifies as likely customers are known as key audiences.Product 2. Programmes. This is known as Branding. The Marketing Mix and Marketing Research.Place 4. For example a parent with two children might visit and visits KFC to give the children a treat. Brand Image represents how consumers view the organization. It is their needs that determine the type of products and services offered. so do buying patterns. Each has different reasons to come KFC. The stating point is to find out who are potential customers are-not everyone will want what KFC has to offer.g. What prices consumer willing to pay? 3. such as advertising and promotion. KFC needs to identify whether the number of target customers is growing or shrinking and whether their buying habits will change in the future. KFC's marketing department can determine: 1. These examples represent just a few of KFC's possible customer‟s profile.V. Branding only works when behaves and presents itself in a consistent way. Additionally economic. Having identified its key audiences a company has to ensure a marketing mix that created that appeals specifically to those people. Using this type of information KFC can tailor communication to the needs of specific groups. In all its market KFC faces competition from other businesses. A business customer visits KFC during the work day as service is quick the food taste is great and can be eaten in the car without affecting a busy work schedule. These buying decisions can often be affected by wider factors than just the products itself. Marketing communication methods. The marketing mix is a term used to describe the four main marketing tools(4P's): 1. Accurate research is essential in creating the right mix to win customers loyalty. are used to created colors. Branding develops a personality for an organization. McDonald‟s establishes a prominent position in the minds of customers. The analysis will include the: • Company‟s products and how appropriate they are for the future • Quality of employees and how well trained they are to these additional psychological factors are significantly offer the best service to important to the customer. To meet the needs of the key market it is important to analyze the internal marketing strengths and weaknesses must be identified. • Systems and how well they function in providing customer satisfaction example marekting database • Financial resources available for marketing Once the strengths and weaknesses are determined. Using this type of information KFC can tailor communication to the needs of specific groups. A children wants to visit KFC As it is a fun place to eat A business customer Visits KFC during the work day as service is quick. so that a marketing strategy which is right for the business can be decided upon. marketing databases and restaurant systems. They can be even more customers important than the products‟ physical benefits. The analysis will include the: • Company‟s products and how appropriate they are for the future .g.therefore they have to keep innovating. They can be even more customers important than the products‟ physical benefits. These examples represent just a few of KFC possible customer profiles each has different reasons to come KFC. • Financial resources available for marketing. This is known as SWOT analysis (Strengths. Swot Analysis Strengths(Internal) the brand detailed market research to create the right marketing mix. Opportunities (External) increasing number of customers looking for food that is served in quick and friendly way. • Systems and how well they function in providing customer satisfaction e. Teenager visits KFC The Rupee saver menu is affordable and there is Internet access in some restaurant. For example: A parent with two children might visit Visits KFC to give the children treat. Weaknesses (Internal) Kfc has been for around long time. . so that a marketing strategy which is right for the business can be decided upon.the food taste is great can be eaten in the car without affecting busy work schedule. The business can then determine what it needs to do in order to increase its chances of marketing successfully. prices charged. Opportunities. The business can then determine what it needs to do in identify different types of customers. promotions created and where restaurants are located. they are combined with the opportunities and threats in the market place. Weaknesses. It is their needs that determine the type of products and services offered. • Quality of employees and how well trained they are to these additional psychological factors are significantly offer the best service to important to the customer.Strengths and weaknesses must be identified. and Threats). Care is taken not to adversely affect the sale of one choice by introducing another choice which will cannibalize the sale from the existing one( trade off). More people day by day becoming Vegetarian day by day. Market research establishes exactly what this is. What is fashionable and attractive today may be discarded tomorrow. The objectives communicate what marketers want to achieve Long-term objectives are broken down into shorter-term measurable targets. Their ability to generate profits will vary at different points in their life cycle. it also has psychological connotations for the customer.KFC knows that items on its menu will vary in popularity. These can be related to market share. However customer‟s requirements change over time. In order to meet these changes KFC has introduced and phased out old ones. Objectives guide marketing actions and are used to measure how well a plan is working. Marketing continuously monitors customer‟s preferences. It gives flexibility marketing objectives are set the next stage is to define how they will be achieved. And will continue to do so. Some of KFC's option growing tremendously but some Halal products is in its maturity stage. Price The customer‟s perception of value is an important determinant of the price charged. The marketing strategy is the statement of how objectives will be delivered. and goals. 4P's of Marketing At this point the marketing mix is put together: 1. KFC's places considerable emphasis on developing a menu which customers want. Results can be analyzed regularly to see whether objectives are being met. At any time company will have a portfolio of products each is in different stage of its life cycle. Products go through a life cycle which is illustrated below: The type of marketing taken and amount invested will be different. sales. reaching the target audience and creating awareness in the marketplace. It explains what marketing actions and resources will be used and how they will work together. This type of feedback allows the company to change plans.Threats(External) New competitors changing lifestyles. Marketing Objectives A marketing plan must be created to meet clear Objectives. Product It is important thing to remember when offering menu items to customers is that they have a choice. . which KFC uses as milestones along the way. depending upon the stage product is reached. A product is more than a physical item. Therefore. 2. they have a huge number of ways of spending their money and places to spend it. Customers draw their own mental picture of what a product is worth. For example launching a new product involves automatically television and other advertising support. A thorough understanding of what the brand represents is the key to a consistent message the purpose of most marketing communications is to move the target audience to some type of action. Help Us to prepare a integrated assignment and improve KFC . purchase of the menu item. What distinguishes advertising from other marketing communications is that media owners are paid before the advertiser can take space in the medium. ok 4. news paper. to reach a single professional woman with income above a certain level. In Delhi KFC has open its shop where middle and higher class family. This may be supported by in store promotions to get people to try the product and a collect able promotional device to encourage them to keep buying the item support each other and do not confuse customers.bad 5. ok 4. 4. For example.good 3. Promotion The promotions aspect of the marketing mix covers all marketing communications.worst Frightening Service -Quick Ferrari 1.! Please rate on the following Criterion: Ambience Airline 1. exhibitions. etc. The right media depends on who the viewers. Key Objective of advertisement is to make people aware of an item feel positive about it and remember it.V. It encompasses the management of range of processes involved in bringing products to the end consumer. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. loyalty schemes door drops. Advertisements conducted on T. Messages should gain customers‟ attention and keep their interest. by preparing questionnaire and making a hypothesis on the result of questionnaire.worst Blue line Décor Inviting 1. To advertise to mothers with children. Other promotional methods include sales promotions. telemarketing. it may be more effective to take advertising space in cinemas during Disney films.so that every visit to KFC “will have you say . It is important when deciding on price to be fully aware of the brands and integrity. The methods include advertising. Radio.. The next stage is to get them to want what is offered.excellent 2. A further consequence of price reduction is that competitors match prices resulting in no extra demand . This means the profit margin has been reduced without increasing sales. This may be to buy the product. Questionnaire Please tell us what you liked and what you didn't about your visit.The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised.good 3.bad 5. sometimes known as „above the line‟ activity.bad 5. What we have find about KFC .it finger licking good. and recommend the choice to a friend or increase. demonstrations. on website.”. the right message must be targeted to the right audience. TV advertising makes people aware of a food item and press advertising provides more detail. For example. teenagers will come and enjoy the food. seminars. ok 4. The more KFC knows about the people it is serving the more it is able to communicate messages which appeal to them.excellent 2. is not just about the physical location or distribution points for products.worst Anari -Impressive . 3. Showing the benefits which they will obtain by taking action are usually sufficient.good 3. readers or listeners are and how closely they resemble the target audience. it may be better to take an advertisement in Cosmopolitan than Woman Era.excellent 2. visit a restaurant. etc. Place Place in the marketing mix. good 3.excellent 2. MIS systems can be used to transform data into information useful for decision making. ok 4.worst Hostel Mess -Taste Tastes yummy 1. ok 4. ok 4. monitoring and implementation of strategy.Occasionally We had done survey on 40 people.Monthly 4.bad 5. With computers being as ubiquitous as they are today.worst N't again yaar -Price Not to much 1.worst Lets go dutch Courtesy Yahoooo 1.001 significance level 24. Each KFC outlet use MIS in accounting.weekly 3.good 3.worst Tastes funny -Variety Hazzar 1.good 3.bad 5.bad 5.excellent 2.bad 5.good 3. ok 4.bad 5.good 3. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. ok 4.excellent 2. By studying these reports .good 3. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.excellent 2.good 3.good 3. -Washrooms Soap se bhi saaf 1. ok 4.excellent 2. However.excellent 2.Daily 2.worst Cold -Complete All there 1. MANAGEMENT INFORMATION SYSTEMS STRATEGY Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. ok 4.Gold 1.bad 5. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. there's hardly any large business that does not rely extensively on their IT systems.bad 5.excellent 2.good 3.worst Dump Cleanliness -Dining area Can eat off the floor 1. 30 people were showing result product oriented and 10 mainly on service oriented at.worst Can't eat here anymore. and very useful in formulating HR policies which helps them to rate their employees.bad 5. knowing production.excellent 2. there are several specific fields in which MIS has become invaluable.excellent 2.worst I left broke How often do you visit KFC 1.bad 5.good 3. Computers can provide financial statements and performance reports to assist in the planning.bad 5. ok 4.worst Are bhai maaf Karo Value For Money I left happy 1.worst What -when-where Food -Hot 'n' Fresh Mother's Kitchen 1.32 goodness of fit.excellent 2. ok 4. ok 4. ) 01 Small Coke 20 02 Medium coke 35 03 Large coke 45 04 Small coke+ Lollipop Chicken 65 05 Fried Chicken tub(small) 105 06 Small French Fries 25 . enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Benefits of MIS The field of MIS can deliver a great many benefits to enterprises in every industry. Realistic and Time-Specific. For instance. These factors help KFC to work smoothly and efficiently as we already known that they are the only fast food chain which is selling fried chicken in which they are specialized. MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. allowing for faster decision making and quicker reflexes for the enterprise as a whole. Agreed. Measurable. MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product which is very useful for KFC future development.decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. a function they perform better than their competition. Product code Product name Product price (in Rs. per week and per month because a copy of the bill is stored in the computer. Objectives are set using the SMART ratio: that is. MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of „what if‟ questions regarding alterations in strategy. objectives should be Specific. Enhance Supply Chain Management Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain. but they also provide a valuable time saving benefit to the workforce. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. Management by Objectives While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems. whenever they are making bills it helps them to count sales per day. Not only do MIS systems allow for the collation of vast amounts of business data. Quick Reflexes As a corollary to improved supply chain management comes an improved ability to react to changes in the market. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself. Better MIS systems enable an enterprise to react more quickly to their environment. • Access stored information easily and manipulate it for the needs of their clients‟ while billing or taking order they just enter the code of the product requested at that time and the quantity demanded. KFC „s Core Competencies Every market leading enterprise will have at least one core competency – that is. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor. MIS systems let the KFC management: • To capture information and store it. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Depreciation 118. they suit your purposes and can be customized to do so. and relate to the needs of the organization. • Manage and track employee records of work.48 Secured Loans 207. • Maintain records needed for quality control so that the success story of all the employees can be appraised.10 Net Current Assets -33. • Manage resources this is a very important function as every day inventory is recorded and therefore resources could be managed.They given codes to their 45 products just by entering the code the product name comes out with cost on the screen. ANNEXURES Annexure 1 KFC Balance Sheet Year Mar 07(in crores) Share Capital 22. the clients and the curriculum that they are delivering.45 Less: Accum.404.15 Loans and Advances 99. • Produce reports for themselves so that they can compare their own performances with their own and other. • Work within legislation such as the Data protection Act.61 Miscellaneous Expenses not w/o 0. around and out of the systems.45 Net Block 1.31 Sundry Debtors 13. One has to be sure that.40 .68 Total Shareholders Funds 1.00 Total Assets 1.07 08 09 10 Large Fries 45 Chicken Burger 25 Fried Chicken tub(large) 145 Veg.63 Provisions 79. • Manage marketing information to further improve sales. • Control flow of information into.30 Cash and Bank 34.80 Reserves & Surplus 1. • Record and track outcomes.76 Unsecured Loans 0.36 Current Liabilities 109. then they work well and effectively.83 Total Liabilities 1. Burger 20 In KFC the above mentioned kind of information is stored in each computer that they use to maintain is SAP-sale module . whatever systems you use.07 Total Debt 209.404.171.33 Investments 24.505.387. If Management Information Systems are flexible.00 Shop Security Deposits 2. • And a host of other information related functions.31 Gross Block 1. achievement and progression for promotions. are easy to use and allow rapid data entry with rapid and flexible access for reporting purposes..31 Contingent Liabilities 2. NOTE: This is a hypothetical table and the prices mentioned may differ the actual prices.00 Capital Work in Progress 26. • Respond confidently to the demands of the Common Inspection Framework MIS help them because they now easily check when the last stocking was done.194.59 Inventories 8. Ghaziabad. Corporate Finance by Khan & Jain.98 Depreciation 22.12 Food. Lajpat nagar. 2. We got all the information about KFC group from various resources like: We visited on various outlets of KFC in Delhi.35 Profit before Depreciation & Tax 162.com. Marketing Management by Philip Kotler & Armstrong.52 Power & Fuel Cost 22.K Sharma 5.50 Adjustment below net profit 0.Services & Others 413. We visited KFC website Welcome to KFC. .11 Profit Before Tax 140. Books References:1. Operations Research by J. Management Information Systems by Lauden & Lauden. They were clear on the statement that they have no authority to expose the information about KFC strategies. one at secor 18 and second at center stage mall. C. carried down 118.78 Other Income 1. Statistical Methods by S.26 Employee Cost 53.00 P & L Balance brought forward 62. Human Resources authored by VSP Rao. Depreciation & Tax 180. A. delhi Some of them gave us the favorable response and some of them were reluctant in not providing us the information on various functions of KFC.33 Interest & Financial Charges 17.72 Appropriations 35.87 Tax 49. 3. Through this we were able to know what people think about KFC and were able to draw the information about KFC.34 Total Income 415.48 BIBLIOGRAPHY KFC is the Service sector company which we have chosen for our integrated assignment.00 Profit before Interest.93 Extraordinary Items -1.P Gupta 4.94 Miscellaneous Expenses 13. Noida and Ghaziabad for getting the information about services and resources used in making food at KFC.29 P & L Bal. Bevarages & Provisions Consumed 33.37 Profit After Tax 91. 6.47 Less: Preoperative Expenditure Capitalised 0. B.60 Other Operating & General Expenses 111. We did the sample survey in all the markets we visited at different location of Delhi and NCR region for getting the knowledge about potential demand of KFC. Two outlets at Noida.Annexure 2 Profit and Loss Account KFC Year Mar 07(in crores) Restaurants. its products. We used search engines of google. outlets and global information. . yahoo and rediff for getting more knowledge about KFC.