KFC critical situation in an organisation and its mangerial solution in INDIA

1. CRITICAL SITUATION IN AN
ORGANISATION AND
MANAGERIAL SOLUTION
NAME: RA.RAM NARESH
REG NO: RA1952001020015
COURSE: MBA I ‘A’

3. INTRODUCTION
 KFC was founded by Harland Sanders (Sanders)
 It Was Started In Early 1930’s
 He Started his service station in Corbin, Kentucky, US.
 His chicken delicacies became popular and people started coming
just for food

4. Problems faced in india
 KFC entered India in 1995 and has been in midst of controversies since then
 The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC)
business operations in India
 The regulatory authorities found that KFC's chickens did not adhere to the Prevention
of Food Adulteration Act, 1954
 Chickens contained nearly three times more monosodium glutamate (popularly
known as MSG, a flavor enhancing ingredient)
 Since the late
1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA),
an animal rights protection organization

5. Solution for the problem
 KFC entered India in 1995, but a controversy surrounding the levels of MSG in
its preparations
 Subsequent protests from farmers' groups and animal rights activists spelt
trouble for the company
 Ultimately, the company had to shut all but one outlet in the country Only
recently in 2003 it made a quiet re-entry into the Indian market
 Then came up with the strategies and menu that is desirable by the Indian
consumers
 And since 2003 it is expanding successfully its business in India

6. OUTCOME OF KFC IN RESPECT OF SRC
(SELF REFERENCE CRITERION)
 KFC has not understood the significance of cultural, economic, regulatory and
ecological issues while establishing business in a country like india
 KFC has not Appreciated the need for protecting animal rights in developed and
developing countries like India
 They have not understood the importance of ethics in doing business
 They have not examine the reasons for protests of PETA

7. INTERVIEWOF TRANEE AT KFC,SEC.18,NOIDA:-
TRANEE’S NAME:- MR. DEBASHISH
 HE SAID THAT WHEN KFC ENTERED IN INDIA IN 1995 IT WAS NOT SUCCESSSFUL BECAUSE THEY HAVE
NOT ADDED THE FLAVOURES AND SPICES IN THE KFC MENU WHICH INDIAN PEOPLE LIKE.
 THE MAIN REASON OF KFC FAILURE WAS THAT KFC WAS TARGETTING HIGHER CLASS INCOME GROUP
IN INDIA TO HAVE THE COMEPETITIVE ADVANTAGE WITH THE LOCAL ‘ CHICKEN DHABA WALAS’.
 BUT DUE TO PROTEST OF INDIAN FARMERS AND GOVERNMENT PRESSURE IT HAD TO LEAVE INDIA.
 BUT AGAIN IN 2003 IT CAME BACK INTO INDIA WITH THE STRATEGIES LIKE TARGETTING HIGHER
INCOME GROUP LEVEL.
 BUT AT THE SAME TIME PROVIDING MENU WHICH CAN BE AFFORDED BY THE MIDDLE INCOME
 MIDDLE INCOME GROUP LEVEL LIKE KFC MINI BURGER AT RS.25 AND CAME UP WITH MENU LIKE HOT
CRISPY CHICKEN WHICH CONTAINS INDIAN SPICES WHICH INDIAN PEOPLE LIKE
 BUT NOW THEY ARE ADHERING THE RULES OF FOOD CORPORATION OF INDIAAND PETAAND
EXPANDING BUSINESS SUCCESSFULLY.

8. Kfc vision and mission
VISION
To be leadind integrated food servies group in ACEAN
Region delivary consistent quality products and excellent
cutomer focused.
MISSION
To sell food in fast,friendly environment that apples to
pride conscious, health minded customers.

9. GOALS OF KFC
 Build an organization dedicated to the excellence
 Deliver superior quality and value in our products and services
 Maintain a commitment to innoviatior
 Generate consistently superior financial returns and benefits our
owner and employees
 Establish in india our position as leading WQSR (Western Quick
Service Restarent) chain,serving good value.

11. conclusion
 To increase outlet
 To increase income of urban India
 Shift in food habits eg: Vegetarian
 To concentrate in price of the food according to the place
 Increse focus on their food development in India