Management structure of kfc

Kfc strategic plan

It modifies its recipes according to the local taste, while some like the 11 herbs and spices and the zinger recipe remain universal. Firms in the franchise industry, hence, do face an exit barrier as per strategic inter relationships are concerned. So, it can increasingly lose its customers due to above mentioned factors. If the cost is high then the probability of customer to switch will be low. Hence, KFC do not face this issue so price cutting or chronic overcapacity is not a problem. The chapter discusses about organization structure, teamwork, and communication. The core products offered by all remain more or less the same; hence do not pose a high barrier to entry.

This type of control focuses on the outputs of the organization after transformation is complete. KFC Pakistan is helping the people suffering from impaired hearing. When a customer switches from a product to its substitute, then he has to bear a switching cost.

However, there are no restrictions as such for KFC or any other franchise to exit the industry as far as it does not have any loans it needs to pay back.

kfc strategic management

Management Structure Of Kfc Yum! Therefore, the rivalry increases. Substitute products for KFC have gained power due to renewed health and obesity concerns. However, during the process it lost some of the trust people placed upon it and has given space to substitutes like made to order and ready made recipes.

Kfc organizational culture

Also, switching costs are quite low, as customers do not have to incur any cost for not buying from a firm. Halal on the other hand has no uniqueness in service. The high-status person is in a culturally valued position in the group. They highlight the strengths, weaknesses opportunities and threats along with their significance of the industry. Hence, KFC do not face this issue so price cutting or chronic overcapacity is not a problem. Status contributes to a number of group processes and behaviors. Tradition of strategic responses 5. Therefore, this barrier does not necessarily serve as shield against new entrants. Exit barriers for the firm are high due to accountability to not only its loyal customers but its suppliers, employees and the band name itself. Hence, because the overall profitability from the industry is high, the rivalry is not very bitter and everyone gets its share of profits without diverging into severe price-wars and advertising battles. All managers should be involved in the control function even there units are performing as planned. Organization structure reveals vertical operational responsibilities, and horizontal linkages, and may be represented by an organization chart. Selecting the organization structure is one of the most important points to start any project. KFC also take great pride in serving each other to become the best service provider in worldwide.

As the barriers set by the existing players increase, the threat of new comers to enter the market will decrease.

Rated 5/10 based on 34 review
Structural Analysis KFC