Kentucky Fried Chicken and the Global Fast Food Industry is a case at number 10 of Strategic Management Book by Arthur A. Thompson, Jr. and A.J Strickland III. This case presentation provides very useful information about KFC and Global Fast Food Industry\'s Facts and Figures.

1. Kentucky Fried Chicken & the Global Fast Food Industry Presented by: Awais Ahmad CIIT/FA09-MBA-027/LHR M. Adeel Khan CIIT/FA09-MBA-069/LHR Zara Abid CIIT/FA09-MBA-169/LHR Najm-ul-Hassan CIIT/FA09-MBA-112/LHR Sabahat Abid CIIT/FA09-MBA-130/LHR Ghulam Asghar CIIT/FA09-MBA-039/LHR

4. KFC INTRODUCTION: Mission To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers. Stated Objectives Product development Increase variety on menu Introduce desert menu Introduce buffet to restaurants

6. PACKAGES OFFERED:

11. QUESTION 1: What are the chief Economic and Business Characteristics of Fast Food Industry?

12. ECONOMIC CHARACTERISTICS: • Market size. According to 2009 figures, Market Share of Yum! Brands reached to 9% of the Total Fast Food Industry

13. Scope of competitive rivalry – International Market • Market growth rate and where the industry is in the growth cycle? – Maturity Stage in Industry Life Cycle; (The industry has been through the shake-out stage of the industry life-cycle, and the largest companies now own some of their former competitors.) • Number of rivals and their relative sizes – Is the industry fragmented with many small companies or concentrated and dominated by a few large companies? – Large Companies ECONOMIC CHARACTERISTICS (CONTD.):

14. ECONOMIC CHARACTERISTICS (CONTD.):

16. ECONOMIC CHARACTERISTICS (CONTD.):

24. QUESTION 2: What Forces are Driven Changes in the Industry?

40. What does your 5 Forces analysis of the fast food Industry tells you about the competition facing KFC? QUESTION 3:

44. 1. Rivalry Among Existing Competitors : The First competitive force is the extent of competition or rivalry among established companies in the industry. For instance, if the rivalry is weak, companies have an opportunity to increase prices and gain more profits. While, if there is a strong competition, companies would compete in prices, which might result in a price war. This would reduce or limit profitability due to the reduction in the sales margins.

53. 3. The Bargaining Power of Buyers (Contd.): In the First case the Bargaining power of the industry like KFC will be high. As KFC is a single company including others is small in number and big in size, which gives them the ability to bargain for price reduction as they purchase in large quantities from suppliers. KFC is a multinational company. it has large internal cash flow that allows it to invest in cheap and in less risky countries like Asia and Latin America. As a result, the suppliers would be threatened and forced to reduce their prices. Which gave them Advantage to reduce their production Cost and grape more market share

57. What factor do you see as critical to competitive success in the fast food industry? QUESTION 4:

67. Critical Success Factors McDonald KFC Burger King Subway Location 9 8 7 9 Speed of Service 10 7 8 9 Adaptation of Localization 9 9 7 8 Quality of food 9 8 7 9 New Products Menu selection and pricing 10 9 7 8 Environment 9 9 8 7 Overall Strength rating (unweighted) 56 50 44 50

68. Is fast food industry attractive? What factors make it attractive? Unattractive? QUESTION 5:

72. Industry growth: Sales of major Fast Food items from 1970 to 2010

74. Industry growth factors Factors that make the Fast Food Industry growing continuously

103. KFC COMPETITIVE POSITION: QSRs (Chicken Segment Rank) QSRs (Fast Food Rank) Chain Sales ($M) 1 9 KFC 5,200.00 2 14 Chick-fil-A 2,962.30 3 20 Popeyes 1,593.00 4 25 Church's Chicken 1,150.00 5 29 Zaxby's 664.00 6 31 Boston Market 648.00 7 33 Ell Pollo Loco 626.00 8 34 Bojangles' 607.00

104. What are KFC internal strengths and weakness? What are its external opportunities and threats? QUESTION 7:

120. What are the KFC’s alternatives for expanding internationally? Is Latin American market attractive? Why or why not? QUESTION 8:

133. FINANCIAL ANALYSIS OF YUM! BRANDS INC. : Ratio 2010 2009 Current Ratio 0.945 0.731 Return on Assets (ROA) 13.92% 14.98% Net Profit Margin 10.21% 9.88% Sales Growth 3.93% (4.37%) Earning Per Share (EPS) 2.44 2.28 Return on Equity Ratio 69.38% 96.14%

136. QUESTION 9: What recommendations would you make to KFC’s management regarding the company’s operations in Latin America and Mexico?