Business Strategy
Group B
Case Study- KFC Business Analysis
Abstract
Introduced in 1952 by Colonel Sanders
Second largest restaurant chain today in terms of popularity
Annual revenue of $23 billion
Diversified its menu to suit cultural needs of people across different countries
Hindering factors in KFC’s growth are growing consumer health consciousness, animal welfare criticism, environmental criticism
Introduction
KFC was born in 1952 and its founder was Colonel Sanders
First franchise to grow globally over international market
By the 1960s – 1980s the market was booming in countries like England, Mexico, China
Management and ownership transferred over the years to Heublin, Yum Brands and PepsiCo.
Annual revenue of $23 billion in 2013
KFC had expanded its menu to suit cultural needs of people across different countries
Hindering factors in KFC’s growth are growing consumer health consciousness, animal welfare criticism, environmental criticism, logistic management issue in UK, cultural differences in Asian countries towards accepting the fried chicken menu.
Factors contributing to KFC’s global success
The core reason for KFCs success is it’s mandate to follow strict franchise protocols that have continuously satisfied customers demands:
The quality of the chicken cooked in KFC has certain specific guidelines
The size of the restaurant should be 24x60 feet.
The restaurant washrooms and ktichen has certain cleanliness standards
Food that is not sold off needs to be trashed
The workers need to have a specific clothing and uniform.
A certain % of the gross earnings should be used for advertisement and R&D
Air conditioning is mandatory in the outlets
Global number of KFC restaurants in the past decade
Importance of cultural factors to KFC’s sales success in India and China
Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values
“Culture is everything that people have, think, and do as members of their society”, which demonstrating that culture is made up of (1) material objects; (2) ideas, values, attitudes and beliefs; and (3) specified, or expected behavior.
Many scholars have theorized and studied the notion of cross-cultural adaptation, which tends to move from one culture to another one, by learning the elements such as rules, norms, customs, and language of the new culture (Oberg 1960, Keefe and Padilla 1987, Kealey 1989). According to Ady (1995),
“Cultural adaptation is the evolutionary process by which an individual modifies his personal habits and customs to fit into a particular culture. It can also refer to gradual changes within a culture or society that occur as people from different backgrounds participating in the culture and sharing their perspectives and practices.”
Cultural factors in India that go against KFC’s original recipe.
.
Business StrategyGroup BCase Study- KFC Business Analysis.docx
1. Business Strategy
Group B
Case Study- KFC Business Analysis
Abstract
Introduced in 1952 by Colonel Sanders
Second largest restaurant chain today in terms of popularity
Annual revenue of $23 billion
Diversified its menu to suit cultural needs of people across
different countries
Hindering factors in KFC’s growth are growing consumer health
consciousness, animal welfare criticism, environmental
criticism
2. Introduction
KFC was born in 1952 and its founder was Colonel Sanders
First franchise to grow globally over international market
By the 1960s – 1980s the market was booming in countries like
England, Mexico, China
Management and ownership transferred over the years to
Heublin, Yum Brands and PepsiCo.
Annual revenue of $23 billion in 2013
KFC had expanded its menu to suit cultural needs of people
across different countries
Hindering factors in KFC’s growth are growing consumer health
consciousness, animal welfare criticism, environmental
criticism, logistic management issue in UK, cultural differences
in Asian countries towards accepting the fried chicken menu.
Factors contributing to KFC’s global success
The core reason for KFCs success is it’s mandate to follow
strict franchise protocols that have continuously satisfied
customers demands:
The quality of the chicken cooked in KFC has certain specific
guidelines
The size of the restaurant should be 24x60 feet.
The restaurant washrooms and ktichen has certain cleanliness
standards
3. Food that is not sold off needs to be trashed
The workers need to have a specific clothing and uniform.
A certain % of the gross earnings should be used for
advertisement and R&D
Air conditioning is mandatory in the outlets
Global number of KFC restaurants in the past decade
Importance of cultural factors to KFC’s sales success in India
and China
Culture is the collective programming of the human mind that
distinguishes the members of one human group from those of
another. Culture in this sense is a system of collectively held
values
4. “Culture is everything that people have, think, and do as
members of their society”, which demonstrating that culture is
made up of (1) material objects; (2) ideas, values, attitudes and
beliefs; and (3) specified, or expected behavior.
Many scholars have theorized and studied the notion of cross-
cultural adaptation, which tends to move from one culture to
another one, by learning the elements such as rules, norms,
customs, and language of the new culture (Oberg 1960, Keefe
and Padilla 1987, Kealey 1989). According to Ady (1995),
“Cultural adaptation is the evolutionary process by which an
individual modifies his personal habits and customs to fit into a
particular culture. It can also refer to gradual changes within a
culture or society that occur as people from different
backgrounds participating in the culture and sharing their
perspectives and practices.”
Cultural factors in India that go against KFC’s original recipe.
There are few important factors affect to change KFC’s recipe
Restaurants, traditionally employed for formal celebrations, are
increasingly becoming hangouts for young, working, middle-
class Indians with money to splurge.
A very important factor that can draw our attention is that
people are eating dinner out more frequently
Research say 30 years ago, you invite someone [over], and you
would fix dinner at home. But not much at present.
Many consumers looking for a quick, tasty, and relatively
inexpensive meal are venturing out to KFC, that is considered
one of the trendiest restaurants in India.
5. Why did Kentucky Fried Chicken change its name to KFC?
Maybe because KFC is simply to say full name. Or perhaps KFC
fits better on signs. We wished to let our customers know that
people had more for them to enjoy than simply fried chicken,
and many were already calling us KFC, since it was much easier
to say.
Truth is, we didn't do a best wishes at explaining the KFC name
change, which left the doorway open for individuals to get
creative with the reason. And boy did they! Shortly following
the name change, an email chain letter—it absolutely was 1991,
remember—begun to spread the rumor that Kentucky Fried
Chicken used genetically modified chickens and was forced to
get rid of the word “chicken” from its name.
KFC Strengths And Weaknesses
It is a worldwide market leading company which has chicken
as the primary product (Omer 2018).
It has a strong market upcoming in China
Has a strong partnership combination which is KFC pizza hut,
and KFC taco bell
Weakness that KFC faces is their unhealthy food menu
Lack of good management skills
6. They face a lot of negative publicity which significantly affects
their future
KFC opportunities And Threats
KFC has created an opportunity for increasing their demand for
healthy food
They also plan on introducing new products besides their
chicken
Main threats that KFC has faced is a bad trend towards healthy
eating
KFC has faced currency fluctuations (Omer 2018).
Competition with local fast food chains creates tension for KFC
KFC has had to deal with multiple law suits from different
individuals and groups
There is saturated fast food market , which threatens the growth
of KFC
Factors That Made KFC A Successful Global Business
7. KFC has ben able to come up with significant international
marketing strategies
KFC has focused on good service provision which allows for
customer maintenance (Rahman 2019).
Product constituency is another factor that has made the
company go international
Partnership strategies allowed KFC the opportunity to grow and
become international
KFC has created a brand for itself so its not so hard to become
international
Cultural Factors In India
Large Indian families demand a variety of foods, instead of the
monotonous chicken (Manideep & Yeshwanth 2018).
Indian families believed that KFC was too expensive for them
Indians wanted KFC to resemble a family restaurant
KFC was forced to replace coleslaws with green salads
They also changed their positioning to fit the Indian family
style
The reason that KFC changed its name, is to do way with the
name “ fried “ in their name, for heath precaution
8. References
Manideep, K., Mythili, G. Y., Gowtham, K., Gowtham, V., CH,
S. V., & Yeshwanth, S. (2018). Study on eating habits among
different age group in south India. International Journal for
Advance Research and Development, 3(4), 47-49.
Omer, S. K. (2018). SWOT analysis: The tool of organizations
stability (KFC) as a case study. Journal of Process Management.
New Technologies, 6(4), 27-34.
Rahman, M. M. (2019). Cultural Differences, Strengths,
Weaknesses and Challenges of Kentucky Fried Chicken (KFC)–
A Comparison between and United Kingdom (UK)
Malaysia. Global Journal of Management And Business
Research.
48 American Family Physician www.aafp.org/afp Volume 83,
Number 1 ◆ January 1, 2011
The Geriatric Assessment
BASSEM ELSAWY, MD, and KIM E. HIGGINS,
DO, Methodist Charlton Medical Center, Dallas, Texas
A
pproximately one-half of the ambu-
9. latory primary care for adults older
than 65 years is provided by fam-
ily physicians,1 and
approximately
22 percent of visits to family physicians
are
from olderadults.2,3 It is estimated that older
adults will comprise at least 30 percent of
patients in typical family medicine outpa-
tient practices, 60 percent in hospital prac-
tices, and 95 percent in nursing home and
home care practices.4
A complete assessment is usually initiated
when the physician detects a potential prob-
lem such as confusion, falls, immobility, or
incontinence. However, older persons often
do not present in a typical manner, and atypi-
cal responses to illness are common. A patient
presenting with confusion may not have a
neurologic problem, but rather an infec-
tion. Social and psychological factors may
also mask classic disease presentations. For
example, although 30 percent of adults older
than 85 years have dementia, many physicians
miss the diagnosis.5,6 Thus, a more structured
approach to assessment can be helpful.
The geriatric assessment is a multidimen-
sional, multidisciplinary assessment designed
to evaluate an olderperson’s functional ability,
physical health, cognition and mental health,
and socioenvironmental circumstances. It
includes an extensive review of prescription
10. and over-the-counter drugs, vitamins, and
herbal products, as well as a review of immu-
nization status. This assessment aids in the
diagnosis of medical conditions; development
of treatment and follow-up plans; coordina-
tion of management of care; and evaluation of
long-term care needs and optimal placement.
The geriatric assessment differs from a
typical medical evaluation by including
nonmedical domains; by emphasizing func-
tional capacity and quality of life; and, often,
by incorporating a multidisciplinary team
including a physician, nutritionist, social
worker, and physical and occupational ther-
apists. This type of assessment oftenyields a
more complete and relevant list of medical
problems, functional problems, and psycho-
social issues.7
Because of the demands of a busy clinical
practice, most geriatric assessments tend to
be less comprehensive and more problem-
directed. For older patients with many con-
cerns, the use of a “rolling” assessment over
several visits should be considered. The roll-
ing assessment targets at least one domain for
screening during each office visit. Patient-
driven assessment instruments are also
popular. Having patients complete question-
naires and perform specific tasks not only
saves time, but also provides useful insight
into their motivation and cognitive ability.
The geriatric assessment is a multidimensional,
12. Geriatric Assessment
January 1, 2011 ◆ Volume 83, Number 1 www.aafp.org/afp
American Family Physician 49
Functional Ability
Functional status refers to a person’s ability
to perform
tasksthat are required for living. The geriatric
assessment
begins with a review of the two key divisions of
functional
ability: activities of daily living (ADL) and
instrumental
activities of dailyliving (IADL). ADL are self-care
activities
that a person performs daily (e.g., eating,
dressing, bath-
ing, transferring between the bed and a chair,
using the
toilet, controlling bladder and bowel functions).
IADL are
activities that are needed to live independently (e.g.,
doing
housework, preparing meals, taking medications
properly,
managing finances, using a telephone). Physicians
can
acquire useful functional information by simply
observ-
ing older patients as they complete simple tasks,
such as
13. unbuttoning and buttoning a shirt, picking up a
pen and
writing a sentence, taking off and putting on
shoes, and
climbing up and down from an examination
table. Two
instruments for assessing ADL and IADL include
the Katz
ADL scale(Table 1)8 and the Lawton IADL scale
(Table 2).9
Deficits in ADL and IADL can signal the
need for more
in-depth evaluation of the patient’s
socioenvironmental
circumstances and the need for additional assistance.
SORT: KEY RECOMMENDATIONS FOR PRACTICE
Clinical recommendation
Evidence
rating References
The U.S. Preventive Services Task Force found insufficient
evidence to recommend for or against
screening with ophthalmoscopy in asymptomatic older patients.
C 15
Patients with chronic otitis media or sudden hearing loss, or
who fail any hearing screening tests
should be referred to an otolaryngologist.
C 21, 23
Hearing aids are the treatment of choice for older patients with
hearing impairment, because they
14. minimize hearing loss and improve daily functioning.
A 23
The U.S. Preventive Services Task Force has advised routinely
screening women 65 years and older for
osteoporosis with dual-energy x-ray absorptiometry of the
femoral neck.
A 37
The Centers for Medicare and Medicaid Services encourages the
use of the Beers criteria as part of
an older patient’s medication assessment to reduce adverse
effects.
C 39, 40
A = consistent, good-quality patient-oriented evidence; B =
inconsistent or limited-quality patient-oriented evidence; C =
consensus, disease-oriented
evidence, usual practice, expert opinion, or case series. For
information about the SORT evidence rating system, go to
http://www.aafp.org/afpsort.xml.
Table 1. Katz Index of Independence in Activities of Daily
Living
Activities (1 or 0 points) Independence (1 point)* Dependence
(0 points)†
Bathing
Points:
Bathes self completely or needs help in bathing only
15. a single part of the body, such as the back, genital
area, or disabled extremity
Needs help with bathing more than one
part of the body, getting in or out of
the bathtub or shower; requires total
bathing
Dressing
Points:
Gets clothes from closets and drawers, and puts
on clothes and outer garments complete with
fasteners; may need help tying shoes
Needs help with dressing self or needs
to be completely dressed
Toileting
Points:
Goes to toilet, gets on and off, arranges clothes,
cleans genital area without help
Needs help transferring to the toilet
and cleaning self, or uses bedpan or
commode
Transferring
Points:
Moves in and out of bed or chair unassisted;
mechanical transfer aids are acceptable
16. Needs help in moving from bed to chair
or requires a complete transfer
Fecal and urinary continence
Points:
Exercises complete self-control over urination and
defecation
Is partially or totally incontinent of
bowel or bladder
Feeding
Points:
Gets food from plate into mouth without help;
preparation of food may be done by another person
Needs partial or total help with feeding
or requires parenteral feeding
Total points‡:
*—No supervision, direction, or personal assistance.
†—With supervision, direction, personal assistance, or total
care.
‡—Score of 6 = high (patient is independent); score of 0 = low
(patient is very dependent).
Adapted with permission from Katz S, Downs TD, Cash HR,
Grotz RC. Progress in development of the index of ADL.
Gerontologist. 1970;10(1):23.
17. Geriatric Assessment
50 American Family Physician www.aafp.org/afp Volume 83,
Number 1 ◆ January 1, 2011
Physical Health
The geriatric assessment incorporates all fac-
ets of a conventional medical history, includ-
ing main problem, current illness, past and
current medical problems, family and social
history, demographic data, and a review of
systems. The approach to the history and
physical examination, however, should be
specific to older persons. In particular, top-
ics such as nutrition, vision, hearing, fecal
and urinary continence, balance and fall
prevention, osteoporosis, and polypharmacy
should be included in the evaluation. Table 3
is an example of a focused geriatric physical
examination.
SCREENING FOR DISEASE
In the normal aging process, thereis oftena
decline in physiologic function that is usu-
ally not disease-related. However, treatment
of diabetes mellitus, hypertension, and glau-
coma can prevent significant future morbid-
ity. Screening for malignancies may allow
for early detection, and some are curable if
treated early. It is important that physicians
weigh the potential harms of screening before
18. screening older patients. It is essential to
consider family preferences regarding treat-
ment if a disease is detected, and the patient’s
functional status, comorbid conditions, and
predicted life expectancy. If an asymptom-
atic patient has an expected survival of more
than five years, screening is generally medi-
cally warranted, assuming that the patient is
at risk of the disease and would accept treat-
ment if earlydisease was detected.10,11
The Agency for Healthcare Research and
Quality has developed an online tool called
the Electronic Preventive Services Selec-
tor (http://epss.ahrq.gov/ePSS/search.jsp)
that can be downloaded to smartphones.
It can assist physicians in identifying age-
appropriate screening measures.
NUTRITION
A nutritional assessment is important
because inadequate micronutrient intake
is common in older persons. Several age-
related medical conditions may predispose
patients to vitamin and mineral deficiencies.
Studies have shown that vitamins A, C, D,
Table 2. Lawton Instrumental Activities of Daily Living
Scale (Self-Rated Version)
For each question, circle the points for the answer that
best applies
to your situation.
1. Can you use the telephone?
19. Without help
With some help
Completely unable to use the telephone
3
2
1
2. Can you get to places that are out of walking distance?
Without help
With some help
Completely unable to travel unless special arrangements are
made
3
2
1
3. Can you go shopping for groceries?
Without help
With some help
Completely unable to do any shopping
3
20. 2
1
4. Can you prepare your own meals?
Without help
With some help
Completely unable to prepare any meals
3
2
1
5. Can you do your own housework?
Without help
With some help
Completely unable to do any housework
3
2
1
6. Can you do your own handyman work?
Without help
With some help
Completely unable to do any handyman work
21. 3
2
1
7. Can you do your own laundry?
Without help
With some help
Completely unable to do any laundry
3
2
1
8a. Do you use any medications?
Yes (If “yes,” answer question 8b)
No (If “no,” answer question 8c)
1
2
8b. Do you take your own medication?
Without help (in the right doses at the right time)
W ith some help (take medication if someone prepares it for
you
or reminds you to take it)
22. Completely unable to take own medication
3
2
1
8c. If you had to take medication, could you do it?
Without help (in the right doses at the right time)
W ith some help (take medication if someone prepares it for
you
or reminds you to take it)
Completely unable to take own medication
3
2
1
9. Can you manage your own money?
Without help
With some help
Completely unable to handle money
3
2
1
23. NOTE: Scores have meaning only for a particular patient (e.g.,
declining scores over
time reveal deterioration). Some questions may be sex-specific
and can be modified
by the interviewer.
Adapted with permission from Lawton MP, Brody EM.
Assessment of older people: self-
maintaining and instrumental activities of daily living.
Gerontologist. 1969;9(3):181.
Geriatric Assessment
Table 3. Sample Focused Geriatric Physical Examination
Signs Physical sign or symptom Differential diagnoses
Vital signs
Blood pressure Hypertension Adverse effects from medication,
autonomic dysfunction
Orthostatic hypotension Adverse effects from medication,
atherosclerosis, coronary artery disease
Heart rate Bradycardia Adverse effects from medication, heart
block
Irregularly irregular heart rate Atrial fibrillation
Respiratory rate Increased respiratory rate greater
than 24 breaths per minute
Chronic obstructive pulmonary disease, congestive heart failure,
24. pneumonia
Temperature Hyperthermia, hypothermia Hyper- and
hypothyroidism, infection
General Unintentional weight loss Cancer, depression
Weight gain Adverse effects from congestive heart failure
medication
Head Asymmetric facial or extraocular
muscle weakness or paralysis
Bell palsy, stroke, transient ischemic attack
Frontal bossing Paget disease
Temporal artery tenderness Temporal arteritis
Eyes Eye pain Glaucoma, temporal arteritis
Impaired visual acuity Presbyopia
Loss of central vision Age-related macular degeneration
Loss of peripheral vision Glaucoma, stroke
Ocular lens opacification Cataracts
Ears Hearing loss Acoustic neuroma, adverse effects from
medication, cerumen
impaction, faulty or ill-fitting hearing aids, Paget disease
Mouth, throat Gum or mouth sores Dental or periodontal
disease, ill-fitting dentures
26. Prostate enlargement Benign prostatic hypertrophy
Prostate nodules Prostate cancer
Rectal mass, occult blood Colorectal cancer
Urinary incontinence Bladder or uterine prolapse, detrusor
instability, estrogen deficiency
Extremities Abnormalities of the feet Bunions, onychomycosis
Diminished or absent lower
extremity pulses
Peripheral vascular disease, venous insufficiency
Heberden nodes Osteoarthritis
Pedal edema Adverse effects from medication, congestive heart
failure
continued
Geriatric Assessment
52 American Family Physician www.aafp.org/afp Volume 83,
Number 1 ◆ January 1, 2011
and B
12
; calcium; iron; zinc; and othertrace
minerals are oftendeficient in the olderpop-
ulation, even in the absence of conditions
27. such as pernicious anemia or malabsorp-
tion.12 There are four components specific
to the geriatric nutritional assessment: (1)
nutritional history performed with a nutri-
tional health checklist; (2) a record of a
patient’s usual food intake based on 24-hour
dietary recall; (3) physical examination with
particular attention to signsassociatedwith
inadequate nutrition or overconsumption;
and (4) select laboratory tests, if applicable.
One simple screening tool for nutrition
in older persons is the Nutritional Health
Checklist (Table 4).13
VISION
The most common causes of vision impair-
ment in older persons include presbyopia,
glaucoma, diabetic retinopathy, cataracts,
and age-related macular degeneration.14
The U.S. Preventive Services Task Force
(USPSTF) found insufficient evidence to
recommend for or against screening with
ophthalmoscopy in asymptomatic older
patients.15 In 1995, the Canadian Task Force
on the Periodic Health Examination advised
primary care physicians to use a Snellen
chartto screen for visual acuity, and recom-
mended that older patients who have had
diabetes for at least five years have an assess-
ment by an ophthalmologist. Additionally,
Table 3. Sample Focused Geriatric Physical Examination
(continued)
28. Signs Physical sign or symptom Differential diagnoses
Muscular/skeletal Diminished range of motion, pain Arthritis,
fracture
Dorsal kyphosis, vertebral
tenderness, back pain
Cancer, compression fracture, osteoporosis
Gait disturbances Adverse effects from medication, arthritis,
deconditioning, foot
abnormalities, Parkinson disease, stroke
Leg pain Intermittent claudication, neuropathy, osteoarthritis,
radiculopathy,
venous insufficiency
Muscle wasting Atrophy, malnutrition
Proximal muscle pain and weakness Polymyalgia rheumatica
Skin Erythema, ulceration over pressure
points, unexplained bruises
Anticoagulant use, elder abuse, idiopathic thrombocytopenic
purpura
Premalignant or malignant lesions Actinic keratoses, basal cell
carcinoma, malignant melanoma, pressure
ulcer, squamous cell carcinoma
Neurologic Tremor with rigidity Parkinson disease
NOTE: When performing a geriatric physical examination,
29. physicians should be alert for some of these signs and
symptoms.
Table 4. Nutritional Health Checklist
Statement Yes
I have an illness or condition that made me change the kind or
amount of food I eat.
2
I eat fewer than two meals per day. 3
I eat few fruits, vegetables, or milk products. 2
I have three or more drinks of beer, liquor, or wine almost every
day. 2
I have tooth or mouth problems that make it hard for me to eat.
2
I don’t always have enough money to buy the food I need. 4
I eat alone most of the time. 1
I take three or more different prescription or over-the-counter
drugs per day.
1
Without wanting to, I have lost or gained 10 lb in the past six
months.
2
30. I am not always physically able to shop, cook, or feed myself. 2
NOTE: The Nutritional Health Checklist was developed for the
Nutrition Screening
Initiative. Read the statements above, and circle the number in
the “yes” column
for each statement that applies to you. Add up the circled
numbers to get your
nutritional score.
SCORING
0 to 2 = You have good nutrition. Recheck your nutritional
score in six months.
3 to 5 = You are at moderate nutritional risk, and you should
see what you can do
to improve your eating habits and lifestyle. Recheck your
nutritional score in three
months.
6 or more = You are at high nutritional risk, and you should
bring this checklist with
you the next time you see your physician, dietitian, or other
qualified health care pro-
fessional. Talk with any of these professionals about the
problems you may have. Ask
for help to improve your nutritional status.
Adapted with permission from The clinical and cost-
effectiveness of medical nutri-
tion therapies: evidence and estimates of potential medical
savings from the use of
selected nutritional intervention. June 1996. Summary report
prepared for the Nutri-
tion Screening Initiative, a project of the American Academy of
Family Physicians, the
American Dietetic Association, and the National Council on the
31. Aging, Inc.
Geriatric Assessment
January 1, 2011 ◆ Volume 83, Number 1 www.aafp.org/afp
American Family Physician 53
the task forceadvised that patients at high risk of
glau-
coma, including black persons and those with a
positive
family history, diabetes, or severe myopia,
undergo peri-
odic assessment by an ophthalmologist.16
HEARING
Presbycusis is the third most common
chronic con-
dition in older Americans, after
hypertension and
arthritis.17 The USPSTF is updating its 1996
recom-
mendations, but currently recommends screening
older patients for hearing impairment by periodically
questioning them about their hearing.18
Audioscope
examination, otoscopic examination, and the whis-
pered voice test are also recommended. The
whispered
voice test is performed by standing
approximately 3 ft
behind the patient and whispering a series of
32. letters and
numbers after exhaling to assure a quietwhisper.
Fail-
ure to repeat most of the letters and numbers
indicates
hearing impairment.19 As part of the Medicare-funded
initial preventive physical examination, physicians
are
encouraged to use hearing screening questionnaires to
evaluate an older patient’s functional ability
and level
of safety.20 Questionnaires such as the
screening ver-
sion of the Hearing Handicap Inventory for the Elderly
accurately identify persons with hearing impairment21
(Table 5 22). Additionally, patients’ medications should
be examined for potentially ototoxic drugs.
Patients
with chronic otitis media or sudden hearing
loss, or
who fail any screening tests should be referred to
an
otolaryngologist.21,23 Hearing aids are the treatment
of choice for older persons with hearing
impairment,
because they minimize hearing loss and improve daily
functioning.23
URINARY CONTINENCE
Urinary incontinence, the unintentional leakage of
33. urine, affects approximately 15 million persons in
the
United States, most of whom are older.24 Urinary
incon-
tinence has important medical repercussions and is
asso-
ciated with decubitus ulcers, sepsis, renalfailure,
urinary
tract infections, and increased mortality.
Psychosocial
implications of incontinence include loss of self-
esteem,
restriction of social and sexual activities, and
depres-
sion. Additionally, incontinence is often a key
deciding
factor for nursing home placement.25 An
assessment for
urinary incontinence should include the evaluation
of
fluid intake, medications, cognitive function, mobil-
ity, and previous urologic surgeries.14 The single
best
Table 5. Screening Version of the Hearing Handicap
Inventory for the Elderly
Question
Yes
(4 points)
Sometimes
(2 points)
No
(0 points)
34. Does a hearing problem cause you to feel embarrassed when you
meet new people?
Does a hearing problem cause you to feel frustrated when
talking to members of your family?
Do you have difficulty hearing when someone speaks in a
whisper?
Do you feel impaired by a hearing problem?
Does a hearing problem cause you difficulty when visiting
friends, relatives, or neighbors?
Does a hearing problem cause you to attend religious services
less often than you would like?
Does a hearing problem cause you to have arguments with
family members?
Does a hearing problem cause you difficulty when listening to
the television or radio?
Do you feel that any difficulty with your hearing limits or
hampers your personal or social life?
Does a hearing problem cause you difficulty when in a
restaurant with relatives or friends?
Raw score (sum of the points assigned to each of the items)
NOTE: A raw score of 0 to 8 = 13 percent probability of hearing
impairment (no handicap/no referral); 10 to 24 = 50 percent
probability of hearing
impairment (mild to moderate handicap/referral); 26 to 40 = 84
35. percent probability of hearing impairment (severe
handicap/referral).
Adapted with permission from Ventry IM, Weinstein BE.
Identification of elderly people with hearing problems. ASHA.
1983;25(7):42.
Geriatric Assessment
54 American Family Physician www.aafp.org/afp Volume 83,
Number 1 ◆ January 1, 2011
question to ask when diagnosing urge
incontinence
is, “Do you have a strong and sudden urge to
void that
makes you leak before reaching the toilet?”
(positive
likelihood ratio = 4.2; negative likelihood ratio = 0.48).
A good question to ask when diagnosing
stress incon-
tinence is, “Is your incontinence caused by
coughing,
sneezing, lifting, walking, or running?” (positive likeli-
hood ratio = 2.2; negative likelihood ratio = 0.39).26
BALANCE AND FALL PREVENTION
Impaired balance in older persons often
manifests as
falls and fall-related injuries. Approximately one-
third
of community-living olderpersons fall at least once
36. per
year, with many falling multiple times.27,28 Falls
are the
leading cause of hospitalization and injury-related
death
in persons 75 years and older.29
The Tinetti Balance and Gait Evaluation is a
useful tool
to assess a patient’s fall risk.28,30 This test
involves observ-
ing as a patient gets up from a chair
without using his
or her arms, walks 10 ft, turnsaround, walks
back, and
returns to a seated position. This entire
process should
take less than 16 seconds. Those patients who have
dif-
ficulty performing this test have an increased risk of
fall-
ing and need further evaluation.31
Older persons can decrease their fall risk with
exercise,
physical therapy, a home hazard assessment,
and with-
drawal of psychotropic medications. Guidelines
address-
ing fall prevention in older persons living in
nursing
homes have been published by the
American Medi-
cal Directors Association and the American Geriatrics
Society.32,33
37. OSTEOPOROSIS
Osteoporosis may result in low-impact or
spontaneous
fragility fractures, which can lead to a fall.14
Osteoporo-
sis can be diagnosed clinically or radiographically.34 It
is
most commonly diagnosed by dual-energy x-ray
absorp-
tiometry of the total hip, femoral neck, or lumbar
spine,
with a T-score of –2.5 or below.35,36 The
USPSTF has
advised routinely screening women 65 years and
older
for osteoporosis with dual-energy x-ray
absorptiometry
of the femoral neck.37
POLYPHARMACY
Polypharmacy, which is the use of multiple
medica-
tions or the administration of more medications
than
clinically indicated, is common in olderpersons. Among
olderadults, 30 percent of hospital admissions
and many
preventable problems, such as falls and
confusion, are
believed to be related to adverse drug effects.38
The Cen-
ters for Medicare and Medicaid Services encourages
38. the
use of the Beers criteria, which list medication
and medi-
cation classes that should be avoided in older
persons, as
part of an olderpatient’s medication assessment to
reduce
adverse effects.39,40 In 2003, a consensus panel
of experts
revised the criteria.41 The Beers criteria can
be found at
http://www.dcri.duke.edu/ccge/curtis/beers.html.
Cognition and Mental Health
DEPRESSION
The USPSTF recommends screening adults for
depres-
sion if systems of care are in place.42 Of the
several
validated screening instruments for depression, the
Geriatric Depression Scale and the Hamilton
Depression
Scale are the easiest to use and most widely
accepted.43
However, a simple two-question screening tool …
points)
A Format
CASE STUDY PAPER RUBRIC
Campbellsville Unlversity School of Buliness and Economics
39. l. Compleæd in word
application, typed, double
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paper with margins of one
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comer with five spaces
botween runaing head ard
page number. Complies
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word "Abstract,' cente¡ed oD
paper followed by 75-100
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short prepositions, and
coordinating conjuactions.
Complies fully with rhe
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L Completed ia word
application, typed double
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oomer wità five spaces
botween ruaning head and
page number. Complies
mosdy with the assigarnent.
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3. On separate page, the
word "Abstracf' centered o¡
paper followed by 75- I 00
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mostly ¡¡ith tàe assignment.
(8-9 points)
4. Major headings centered
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capiølizod oxcept artioles,
short prepositions, and
coordinating conjunctions.
Complies mostly with the
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l. Completed in word
application, typed, double
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paper wit! margirc of one
iaoh on all sidos. Complies
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betweeu ruDljng head a¡d
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assigDment (7 points)
3. Oa separate page, the
word "Abstraof' centered oD
paper followed by 75-100
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assigDmenL (7 poiats)
4. Major headings centered
on page. Every word
capitalized exccpt articles,
short prepositions, and
coordinating oorjunctions.
Complies adequately with
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Unacceptable
l. Completed in word
applicatioo, t¡'ped, double
spaced, on sta:rdard size
paper with margias of one
inch on all sides. Does not
comply adequaæly with tbe
assignment (<7 points)
2. Runaing head and page
aumber in upper right-haad
comer with five spaces
42. between runaing head and
page number. Does rtot
comply adequaæly with the
assig xenL (<7 points)
3. On separate page, the
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on paper followed by 75-
100 word overview. Does
not comply âdequately u¡it¡
the assig¡meût (<7 poinæ)
4. Major headings centered
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short prepositions, and
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The). References properly
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roference page. Complies
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CASE STUDY PAPF'R RUBRIC
Campbellsville University School of Business and Economics
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The). References properly
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Content (50
44. points)
). V$uals labeled ¡¡ith, a¡
A¡abic ¡r¡mer¿l and i¡clude
tite on separaæ lines above
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6. Referenoes on scparate
(last) page, title coatered
one inch from top, double
spaced, and alpbabetized by
last name ofauthors. If
author is unknow4
alphabotize by first word of
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usod in the æxt a¡d o¡
reference pagc. Complies
adoquately with the
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1. Provides oompelling
supporting a¡guments,
ovideace, ald exanplos
presented in the case study.
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2. Is free oferro¡s in
gramrnar, punctuation, word
choioe, spellhg and format.
(15 points)
45. 5. Visuals labeled with an
Ar¿bic numeral and include
tidé on separate lines above
the visual flush left. Sou¡ce
provided below the table
flush left. Does not comply
with the assignnenr
(<3 poins)
6, R€feretrces on separ¿te
(last) page, title c€nt€red
one inch from top, double
spaccd and alpbabetÈed by
last ¡ame ofautho¡s. If
author is unhowa,
alphabetize by first word of
the title (exclu¡ing 4 4q
The). References properþ
used in the text and o¡
reference pago, Docs not
comply with the
assignment (<7 points)
l. Providcs adequate
zupporting arguments,
evideuce, and examples
presented in t¡.o case study.
(8-9 poi¡ts)
2. Contai¡S mi¡imal crrorS
in gnmmar, punctuation,
word choice, spelling and
formar (12-14 poinb)
¡. ,Prol'ldes med.iosre
supporting a¡gumcDts,
46. evidenoe, aad examples
preseatcd ir the case study.
(7 pôiots)
2. Co¡tai¡s numorous srro¡s
in grammar, puactuation,
word choice, çelling aud
format which are distracting
to tåc readc¡. (9-1 1 points)
i. Providas inadequate
supportingargumcnts,
evideacc, aad cxanples
presented iD the case study.
(<7 points)
2. Cont¿ins numerous errors
il g¡amroar, punctuation"
word choice, spelling and
format which confi¡se the
rcader. (<7 poiDts)
rtent Cont'd
chart, table, or map to
illusûate something in the
pape¡. (10 poi¡rs)
4. Recognize an ethical
issue from the case study or
Êom ¡ese¿¡ch ofthe
company. Evalu¿te this
issue &om a Christiar point
of view. Coraplies fi.rlly
with tåe assignmenl
47. (5 poi¡ts)
5. The introduotio¡, body
and conclusion ofthe paper
a¡e sound.
( l0 poiats)
CASE STIIDY PAPER RUBRTC
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cha:t, lable, or map to
illusn-ato soo.ethi.ng in the
paper. (8-9 points)
4. Reoognize an ethical
issue Êom the case study or
from resea¡ch of the
oompany. Evaluate tlis
issue from a Christian point
of view. Complies mostly
with the assignment,
(4 points)
5. The intoductioq body
and conclusion ofthe paper
aro adequate.
(8-9 points)
not adequately illustate the
htent intended pu+ose.
(7 points)
4. Recognize an ethical
iszue Êom the case study or
Êom resea¡ch ofthe
company. Evaluate this
48. issue ûom a Christian point
of view. Complies
adequaæly with the
assigûnoDL (3 poiats)
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iatoduction, bod¡ or
conclusion.
7 points)
t¿ble, or map to illustrate
something in the paper.
(<7 poinæ)
4. Recognize an ethical
issue Êom the case study or
from resea¡ch ofthe
Company. Evaluate this
issue from a Christian point
ofview. Does not conply
wilh the assiguent. (<3
points)
5. The introduction, body
and conclusion of the paper
a¡€ iDadequate. (<? points)
Ðoes Dot include a
Running head: KFC BUSINESS ANALYSIS CASE STUDY
12
KFC BUSINESS ANALYSIS CASE STUDY
17
49. Abstract
KFC was first introduced by Colonel Harland Sanders in 1952,
when he came up with the special fried chicken recipe and got
the idea of starting a restaurant franchise for the same. KFC was
headquartered in Louisville, Kentucky. Today it is number two
in the list of largest restaurant chains in terms of popularity
(right after KFC). Over the past decades KFC has spread its
business globally to various countries across the world. What
initially started off as a fried chicken brand has now diversified
its menu and business to other dishes including salads, pastries,
desserts, milkshakes etc. Despite having an annual revenue of
$23 billion in 2013, it has gradually started falling back and is
falling back in the race amongst chicken retailers such as
Chick-fil-a. This turning point in KFC’s growth is due to
several hindering factors such as consumers health
consciousness, stereotypical image of KFC being limited to just
chicken items, animal welfare criticisms and environmental
criticism. This paper provides an in-depth analysis of the KFC
business.
50. Introduction
Before the birth of the franchise KFC, Colonel Sanders was an
entrepreneur who started selling chicken on a roadside
restaurant in Kentucky, during the Great Depression. Colonel
Sanders discovered the special recipe for the KFC trademark
fried chicken and came up with the idea of starting a restaurant
franchise in 1952. Initially the idea of hamburgers had started in
the US and the concept of a fried chicken restaurant franchise
came of as a fresh competitive idea against hamburgers. At
some point the KFC franchise grew to such an extent that
Colonel Sanders himself couldn’t manage its growth. So, he
sold it to investors John Brown and Jack Massey. The KFC
franchise was the first fast food restaurant chain to expand
globally across other countries. By the 60s-80s countries like
Mexico, England, China were its biggest market. Over the
years, the management and leadership had changed and
transferred over to Heublein (the sprit distributor) to Pepsico
and to Yum brands. Even though, for most of its lifespan which
is continuing until today, it has received growth and expansion,
it is not without its fair share of setbacks and criticisms. It has
enjoyed a strong turnover and even boasted of a revenue of #23
billion in 2013. But over the past decade, it has seen some
criticism. For example, the franchise in China was accused of
using hormone injected chicken to boost the supply of chicken.
In the UK, DHL, which was a partner of KFC had some logistics
mismanagement issue that caused a nation wide shortage in
chicken. Countries such as India were not too welcoming of the
menu of KFC as it was not known to be very family oriented to
suit the Indian family requirements.
51. Factors that have made KFC a successful global business
KFC has undoubtedly been a leader and innovator in the fast
food industry for several decades. China has been it’s biggest
market worldwide. There are several factors that have
contributed to the success of KFC globally. But the core factors
for its success is its franchise operation protocol. Here are some
postulates of this franchise operation protocol that has
contributed to its success:
The chicken cooked in KFC has certain specific guidelines with
regards to time taken for cooking, the size of the chicken, the
margination process and timing.
The age of the chicken used has to also follow a certain limit. It
should be within 60- 70 days old from the time it is slaughtered.
The size of the restaurant should be 24x60 feet.
The restaurant washrooms should be cleaned every 3 hours.
The kitchen sink needs to be cleaned every half hour.
Food that is not sold off needs to be trashed
The workers need to have a specific clothing and uniform.
5% of the gross earnings should be used for advertisement.
1% of the gross earning should be used for nationwide
advertisement.
3% of the gross revenue should be used for R&D to find new
recipes.
The food can be ordered separately.
The restaurants need to have air condition.
Owing to these guidelines that have evolved over time, and
management has made it mandatory for all franchise owners to
implement them strictly, the quality of the KFC products and
the service offered to clients have also been top notch. This is
the most important reason contributing to KFCs continued
success over the past 60-70 years.
Global number of KFC restaurants in the past decade (Lock,
2020, Feb). Retrieved from
https://www.statista.com/statistics/256793/kfc-restaurants-
worldwide-by-geographic-region/:
52. Why are cultural factors so important to KFC’s sales success in
India and China?
With regards to the meaning of culture, Hofstede (1984) used to
define a really common but vague pair of models: “Culture
could be the collective programming of the human mind that
distinguishes the members of one human group from those of
another. Culture in this sense is really a system of collectively
held values.” In the book of Culture and International Business
(Becker, 2005), KFC offered an easy but updated definition to
produce it straightforward: “Culture is everything that folks
have, think, and do as members of these society”, which
demonstrating that culture is made up of (1) material objects;
(2) ideas, values, attitudes and beliefs; and (3) specified, or
expected behavior. This definition proposed by Becker will be
the basic guidance in this thesis.
When get down seriously to a narrower idea of cultural
adaptation in certain specific market, it can be considered as a
type of behavioral adaptation of the current organization as a
legal person. Many scholars have theorized and studied the
notion of cross-cultural adaptation, which tends to maneuver
from one culture to another one, by learning the elements such
as for example rules, norms, customs, and language of the
newest culture (Oberg 1960, Keefe and Padilla 1987, Kealey
1989). Based on Ady (1995), “Cultural adaptation may be the
evolutionary process by which someone modifies his personal
habits and customs to fit into a particular culture. It can also
refer to gradual changes in just a culture or society that occur as
folks from different backgrounds participating in the culture
and sharing their perspectives and practices.” More specifically,
“Adaptive behavior includes the age-appropriate behaviors
required for people to live independently and to function safely
and appropriately in daily life expected of his age and social
group” (Heward, 2005). To adapt to a different culture is to
manage a large challenge and to check out a new system of rules
53. in a certain group, which requires an open mind (Waldron et al,
1994)Generally speaking, cross-cultural adaptation is the
process of “adjusting the native ways of thinking and behaviors
to be consistent with the local culture” (Kotler, 1982).
Although these scholars mainly centered on the adaptation
behaviors for someone in a fresh and unfamiliar cultural
environment but not really a corporation within an unfamiliar
marketing environment, their theories and works are still
extremely valuable and important in guiding this investigation,
and provide solid theoretical foundation and methods for the
authors to continue the analysis.
Cultural factors in India that go against KFC’s original recipe.
India is known for colorfully exotic food that consumes a lot of
the afternoon to get ready, while junk food could be the
culinary reflection of the fast-paced, consumerist society the
nation has become embracing.
Restaurants, traditionally employed for formal celebrations, are
increasingly becoming hangouts for young, working, middle-
class Indians with money to splurge. KFC statistics reveal that
nearly two-thirds of Indians — or roughly 845 million people,
more than twice the U.S. population – eat out at least once a
week.
"A very important factor that can draw our attention is that
people are eating dinner out more frequently," said Professor
Abhirup Sakar of the Economic Research Unit at the Indian
Statistical Institute. "Say 30 years ago, you invite someone
[over], and you would fix dinner at home. But not really much
at present."
Many consumers looking for a quick, tasty, and relatively
inexpensive meal are venturing out to KFC, that is considered
one of the trendiest restaurants in India, drawing affluent people
who wish to be observed, Sakar says.
Changing food trends in India reflect a broad globalization of
the culture.
Increased experience of international cuisine through the media
54. and frequent travel encourages people to take part in the ever-
growing food trend and to imitate what is trendy in television,
movies and other areas of pop culture.
KFC is particularly attractive to the young because of its
contemporary look, unique menu, and ability to combine two
very distinct worlds into one taste palate. "Its like having
American food with a KFC twist to it; it tickles your tastebuds,
and that's why people keep returning, " said Soumi Paul
Chowdhury, 22, a master’s student at the Rabindra Bharati
University in Kolkata. "You can't own it once and be satisfied."
Chaudhary said in a December 2014 press conference that he's
capitalizing on such sentiments with a "brand-building strategy
centered on providing exceptional customer service, localized
menu offerings, a talented yet diverse workforce" and a wide
presence in big cities.
Why did Kentucky Fried Chicken change its name to KFC?
Kentucky Fried Chicken (KFC) is the biggest junk food chain
offering fried chicken products on earth (Deng, 2011). The
mother company of KFC is YUM! Brands, Inc. It's the largest
junk food chain when it comes to system units—owning 38,000
restaurants all over the world in more than 110 countries and
regions (Yum! Brands website, 2012).
KFC first landed in Beijing, the ancient capital of China on
November 12th, 1987, and Beijing KFC Co., Ltd. is the very
first Sino-foreign joint venture doing junk food business in
China. There after this junk food company started its rapid
expansion in the United Kingdom with the largest population on
the earth. Within their first 5-years (till 1992), they developed
11 restaurants. On June 25th, 1996, KFC opened its 100th
Chinese restaurant in Beijing, and just on the very first day of
this month, their restaurant of People's Park in Shanghai had an
everyday turnover of 400,000 RMB which made the current
restaurant a new record of highest turnover one-day in the
single store among all KFC restaurants worldwide. Nowadays,
KFC restaurants are serving almost 10 million consumers daily
in China (KFC website, 2012).
55. As the group gets more knowledgeable on running their
business in China, its team is also getting bigger and stronger.
Its rapid development creates a huge amount of positions in
China from the beginning of the entry. By the conclusion of
2007, KFC has employed more than 160.000 people as its
Chinese
staff, and it had been announced that KFC would insist to
employ local people who have a rate of 100 percent (KFC
website, 2012).
Meanwhile, whilst the pioneer and leader with this industry,
KFC also affects the supply chain from the beginning of these
business in Chinese market. Previously 24 years, KFC has
purchased more than 700,000 tons of chicken in China, fully
from the local suppliers. The group has a unique global standard
to coach and evaluate their over 500 Chinese suppliers. These
partnerships give you the restaurants with 90% of the rural
material from chicken, salad to packages and fixed equipments
(Bian, 2009).
How does the SWOT analysis of KFC affect the future of KFC?
The KFC fast food restaurant became famous for its tasty
chicken. The company has become successful due to its much
strength. However, it suffers from several threats and
weaknesses, which can be dealt with on time. One of KFC’s
strengths is that it is an internationally famous and well-known
venue with over 1500 outlets in 120 countries. Another strength
is that it offers non-meat options unlike other fast-food
restaurants, and people can enjoy vegan meals. One of the
weaknesses facing KFC is they have a flawed menu, which
consists of many calories ("SWOT analysis of KFC," 2019.
Nowadays, people have become so health-conscious that they do
not allow their bodies to be taken over by calories of greasy
chicken. Another common weakness of KFC is their franchise
system. The management system requires that every outlet is
individually managed, and this can lead to poor management
and inadequate production, which can affect the overall brand
56. due to one mismanagement. KFC has an opportunity to get into
a new market without doing away with their common chicken,
specializing their vegetarian meals, which is not familiar with
other fast-food restaurants. The most common threat for KFC
health-conscious customers and it makes KFC nervous about
losing their famous greasy chicken. Another danger is;
competition from other fast-food restaurants, and for KFC to
remain competitive, they must suffer an increased cost in raw
materials.
Closing Summary
KFC is one of the companies that have managed to go global
very successfully. The reason that KFC has been able to go
global is due to its unique international marketing strategies.
KFC knew well how to market its chicken and venture into
global markets (Jain 2019). The cultural factors that go against
KFCs original recipe in India are that the large Indian families
wanted more variety of foods other than chicken, which forced
KFC to replace its innovative menus with different preferred
menus. There were so many assumed theories as to why KFC
changed its name. However, they made it clear that they evolved
from Kentucky fried chicken to KFC to get away from the word
"fried" due to health-conscious patrons.
57. References:
Booms, B.H., Bitner, M.J. (1981), "Marketing strategies and
organization structures for service firms", in Donnelly, J.H.,
George, W.R. (Eds),Marketing of Services, American Marketing
Association, Chicago, IL, P. 47-51 .
Brown, S. W, Gummesson, E., Edvardsson, B., and Gustavsson,
B. (1991) Service Quality, Multidisciplinary and Multinational
Perspectives, Lexington Books, 2 P.26-28
Buttle, F. (1986) Hotel and Service Management, London:
Casel.
Buzzell, R. (1968). Can You Standardize Multinational
Marketing? Harvard Business Review 46 (November–
December):P. 102–113.
Calantone, R, Cavusgil, S, Schmidt, J, & Shin, G (2004),
'Internationalization and the Dynamics of Product Adaptation—
An Empirical Investigation', Journal Of Product Innovation
Management, 21, 3, P. 185-198
Chen S. (2006). The comparison analysis of the development of
Chinese and western restaurants chains. Business Culture, 2006.
21
“Chinatoday- Sudan Red I and China’s Food Safety”
http://www.chinatoday.com.cn/English/e2005/e200506/p32.htm
(5.20, 2012)
Cleveland M., Laroche M. (2007) Acculturation to the global
consumer culture: Scale development and research paradigm.
Journal of Business Research; 60 (3): P. 249-259.
CNNIC (China Internet Network Information Center) (2011),
China Internet Development Report, Publishing House of
Electronic Industry, P. 32-34
Constantinides, E. (2006) The Marketing Mix Revisited:
Towards the 21st Century Marketing, Journal of Marketing
Management 2006(22), P. 407-438
De Chernatony, L., Halliburton, C., Bernath, R. (1995)
International branding: demand- or supply driven opportunity?
58. International Marketing Review; 12 (2): P. 9-21.
Deng, J. (2011), Analysis of KCF and McDonald’s Competitive
Strategy
Douglas, S. P. and Wind, Y. (1987). The Myth of Globalization
Columbia Journal of World Business 22(Winter):P. 19–29.
SWOT analysis of KFC. (2019, September 17). PESTLE
Analysis. https://pestleanalysis.com/swot-analysis-of-kfc/
Jain, R. (2019). An Analytical Study of Customer Satisfaction
towards KFC Restaurant chain in Udaipur City. Journal of the
Gujarat Research Society, 21(16), 999-1004.
Business Strategy
Group B
Case Study- KFC Business Analysis
59. Abstract
Introduced in 1952 by Colonel Sanders
Second largest restaurant chain today in terms of popularity
Annual revenue of $23 billion
Diversified its menu to suit cultural needs of people across
different countries
Hindering factors in KFC’s growth are growing consumer health
consciousness, animal welfare criticism, environmental
criticism
Introduction
KFC was born in 1952 and its founder was Colonel Sanders
First franchise to grow globally over international market
By the 1960s – 1980s the market was booming in countries like
England, Mexico, China
Management and ownership transferred over the years to
Heublin, Yum Brands and PepsiCo.
Annual revenue of $23 billion in 2013
KFC had expanded its menu to suit cultural needs of people
across different countries
Hindering factors in KFC’s growth are growing consumer health
consciousness, animal welfare criticism, environmental
criticism, logistic management issue in UK, cultural differences
in Asian countries towards accepting the fried chicken menu.
60. Factors contributing to KFC’s global success
The core reason for KFCs success is it’s mandate to follow
strict franchise protocols that have continuously satisfied
customers demands:
The quality of the chicken cooked in KFC has certain specific
guidelines
The size of the restaurant should be 24x60 feet.
The restaurant washrooms and ktichen has certain cleanliness
standards
Food that is not sold off needs to be trashed
The workers need to have a specific clothing and uniform.
A certain % of the gross earnings should be used for
advertisement and R&D
Air conditioning is mandatory in the outlets
61. Global number of KFC restaurants in the past decade
Importance of cultural factors to KFC’s sales success in India
and China
Culture is the collective programming of the human mind that
distinguishes the members of one human group from those of
another. Culture in this sense is a system of collectively held
values
“Culture is everything that people have, think, and do as
members of their society”, which demonstrating that culture is
made up of (1) material objects; (2) ideas, values, attitudes and
beliefs; and (3) specified, or expected behavior.
Many scholars have theorized and studied the notion of cross-
cultural adaptation, which tends to move from one culture to
another one, by learning the elements such as rules, norms,
customs, and language of the new culture (Oberg 1960, Keefe
and Padilla 1987, Kealey 1989). According to Ady (1995),
“Cultural adaptation is the evolutionary process by which an
individual modifies his personal habits and customs to fit into a
particular culture. It can also refer to gradual changes within a
culture or society that occur as people from different
backgrounds participating in the culture and sharing their
perspectives and practices.”
62. Cultural factors in India that go against KFC’s original recipe.
There are few important factors affect to change KFC’s recipe
Restaurants, traditionally employed for formal celebrations, are
increasingly becoming hangouts for young, working, middle-
class Indians with money to splurge.
A very important factor that can draw our attention is that
people are eating dinner out more frequently
Research say 30 years ago, you invite someone [over], and you
would fix dinner at home. But not much at present.
Many consumers looking for a quick, tasty, and relatively
inexpensive meal are venturing out to KFC, that is considered
one of the trendiest restaurants in India.
Why did Kentucky Fried Chicken change its name to KFC?
Maybe because KFC is simply to say full name. Or perhaps KFC
fits better on signs. We wished to let our customers know that
people had more for them to enjoy than simply fried chicken,
and many were already calling us KFC, since it was much easier
to say.
Truth is, we didn't do a best wishes at explaining the KFC name
change, which left the doorway open for individuals to get
creative with the reason. And boy did they! Shortly following
the name change, an email chain letter—it absolutely was 1991,
63. remember—begun to spread the rumor that Kentucky Fried
Chicken used genetically modified chickens and was forced to
get rid of the word “chicken” from its name.
KFC Strengths And Weaknesses
It is a worldwide market leading company which has chicken
as the primary product (Omer 2018).
It has a strong market upcoming in China
Has a strong partnership combination which is KFC pizza hut,
and KFC taco bell
Weakness that KFC faces is their unhealthy food menu
Lack of good management skills
They face a lot of negative publicity which significantly affects
their future
KFC opportunities And Threats
KFC has created an opportunity for increasing their demand for
healthy food
They also plan on introducing new products besides their
64. chicken
Main threats that KFC has faced is a bad trend towards healthy
eating
KFC has faced currency fluctuations (Omer 2018).
Competition with local fast food chains creates tension for KFC
KFC has had to deal with multiple law suits from different
individuals and groups
There is saturated fast food market , which threatens the growth
of KFC
Factors That Made KFC A Successful Global Business
KFC has ben able to come up with significant international
marketing strategies
KFC has focused on good service provision which allows for
customer maintenance (Rahman 2019).
Product constituency is another factor that has made the
company go international
Partnership strategies allowed KFC the opportunity to grow and
become international
KFC has created a brand for itself so its not so hard to become
international
65. Cultural Factors In India
Large Indian families demand a variety of foods, instead of the
monotonous chicken (Manideep & Yeshwanth 2018).
Indian families believed that KFC was too expensive for them
Indians wanted KFC to resemble a family restaurant
KFC was forced to replace coleslaws with green salads
They also changed their positioning to fit the Indian family
style
The reason that KFC changed its name, is to do way with the
name “ fried “ in their name, for heath precaution
References
Manideep, K., Mythili, G. Y., Gowtham, K., Gowtham, V., CH,
S. V., & Yeshwanth, S. (2018). Study on eating habits among
different age group in south India. International Journal for
Advance Research and Development, 3(4), 47-49.
Omer, S. K. (2018). SWOT analysis: The tool of organizations
stability (KFC) as a case study. Journal of Process Management.
New Technologies, 6(4), 27-34.
Rahman, M. M. (2019). Cultural Differences, Strengths,
Weaknesses and Challenges of Kentucky Fried Chicken (KFC)–
A Comparison between and United Kingdom (UK)
66. Malaysia. Global Journal of Management And Business
Research.
Running head: KFC BUSINESS ANALYSIS CASE STUDY
12
KFC BUSINESS ANALYSIS CASE STUDY
17
Abstract
KFC was first introduced by Colonel Harland Sanders in 1952,
when he came up with the special fried chicken recipe and got
the idea of starting a restaurant franchise for the same. KFC was
headquartered in Louisville, Kentucky. Today it is number two
in the list of largest restaurant chains in terms of popularity
(right after KFC). Over the past decades KFC has spread its
business globally to various countries across the world. What
initially started off as a fried chicken brand has now diversified
its menu and business to other dishes including salads, pastries,
desserts, milkshakes etc. Despite having an annual revenue of
$23 billion in 2013, it has gradually started falling back and is
falling back in the race amongst chicken retailers such as
Chick-fil-a. This turning point in KFC’s growth is due to
several hindering factors such as consumers health
67. consciousness, stereotypical image of KFC being limited to just
chicken items, animal welfare criticisms and environmental
criticism. This paper provides an in-depth analysis of the KFC
business.
Introduction
Before the birth of the franchise KFC, Colonel Sanders was an
entrepreneur who started selling chicken on a roadside
restaurant in Kentucky, during the Great Depression. Colonel
Sanders discovered the special recipe for the KFC trademark
fried chicken and came up with the idea of starting a restaurant
franchise in 1952. Initially the idea of hamburgers had started in
the US and the concept of a fried chicken restaurant franchise
came of as a fresh competitive idea against hamburgers. At
some point the KFC franchise grew to such an extent that
Colonel Sanders himself couldn’t manage its growth. So, he
sold it to investors John Brown and Jack Massey. The KFC
franchise was the first fast food restaurant chain to expand
globally across other countries. By the 60s-80s countries like
Mexico, England, China were its biggest market. Over the
68. years, the management and leadership had changed and
transferred over to Heublein (the sprit distributor) to Pepsico
and to Yum brands. Even though, for most of its lifespan which
is continuing until today, it has received growth and expansion,
it is not without its fair share of setbacks and criticisms. It has
enjoyed a strong turnover and even boasted of a revenue of #23
billion in 2013. But over the past decade, it has seen some
criticism. For example, the franchise in China was accused of
using hormone injected chicken to boost the supply of chicken.
In the UK, DHL, which was a partner of KFC had some logistics
mismanagement issue that caused a nation wide shortage in
chicken. Countries such as India were not too welcoming of the
menu of KFC as it was not known to be very family oriented to
suit the Indian family requirements.
Factors that have made KFC a successful global business
KFC has undoubtedly been a leader and innovator in the fast
food industry for several decades. China has been it’s biggest
market worldwide. There are several factors that have
contributed to the success of KFC globally. But the core factors
for its success is its franchise operation protocol. Here are some
postulates of this franchise operation protocol that has
contributed to its success:
The chicken cooked in KFC has certain specific guidelines with
regards to time taken for cooking, the size of the chicken, the
margination process and timing.
The age of the chicken used has to also follow a certain limit. It
should be within 60- 70 days old from the time it is slaughtered.
The size of the restaurant should be 24x60 feet.
The restaurant washrooms should be cleaned every 3 hours.
The kitchen sink needs to be cleaned every half hour.
Food that is not sold off needs to be trashed
The workers need to have a specific clothing and uniform.
5% of the gross earnings should be used for advertisement.
1% of the gross earning should be used for nationwide
advertisement.
69. 3% of the gross revenue should be used for R&D to find new
recipes.
The food can be ordered separately.
The restaurants need to have air condition.
Owing to these guidelines that have evolved over time, and
management has made it mandatory for all franchise owners to
implement them strictly, the quality of the KFC products and
the service offered to clients have also been top notch. This is
the most important reason contributing to KFCs continued
success over the past 60-70 years.
Global number of KFC restaurants in the past decade (Lock,
2020, Feb). Retrieved from
https://www.statista.com/statistics/256793/kfc-restaurants-
worldwide-by-geographic-region/:
Why are cultural factors so important to KFC’s sales success in
India and China?
With regards to the meaning of culture, Hofstede (1984) used to
define a really common but vague pair of models: “Culture
could be the collective programming of the human mind that
distinguishes the members of one human group from those of
another. Culture in this sense is really a system of collectively
held values.” In the book of Culture and International Business
(Becker, 2005), KFC offered an easy but updated definition to
produce it straightforward: “Culture is everything that folks
have, think, and do as members of these society”, which
demonstrating that culture is made up of (1) material objects;
(2) ideas, values, attitudes and beliefs; and (3) specified, or
expected behavior. This definition proposed by Becker will be
the basic guidance in this thesis.
When get down seriously to a narrower idea of cultural
adaptation in certain specific market, it can be considered as a
type of behavioral adaptation of the current organization as a
legal person. Many scholars have theorized and studied the
70. notion of cross-cultural adaptation, which tends to maneuver
from one culture to another one, by learning the elements such
as for example rules, norms, customs, and language of the
newest culture (Oberg 1960, Keefe and Padilla 1987, Kealey
1989). Based on Ady (1995), “Cultural adaptation may be the
evolutionary process by which someone modifies his personal
habits and customs to fit into a particular culture. It can also
refer to gradual changes in just a culture or society that occur as
folks from different backgrounds participating in the culture
and sharing their perspectives and practices.” More specifically,
“Adaptive behavior includes the age-appropriate behaviors
required for people to live independently and to function safely
and appropriately in daily life expected of his age and social
group” (Heward, 2005). To adapt to a different culture is to
manage a large challenge and to check out a new system of rules
in a certain group, which requires an open mind (Waldron et al,
1994)Generally speaking, cross-cultural adaptation is the
process of “adjusting the native ways of thinking and behaviors
to be consistent with the local culture” (Kotler, 1982).
Although these scholars mainly centered on the adaptation
behaviors for someone in a fresh and unfamiliar cultural
environment but not really a corporation within an unfamiliar
marketing environment, their theories and works are still
extremely valuable and important in guiding this investigation,
and provide solid theoretical foundation and methods for the
authors to continue the analysis.
Cultural factors in India that go against KFC’s original recipe.
India is known for colorfully exotic food that consumes a lot of
the afternoon to get ready, while junk food could be the
culinary reflection of the fast-paced, consumerist society the
nation has become embracing.
Restaurants, traditionally employed for formal celebrations, are
increasingly becoming hangouts for young, working, middle-
class Indians with money to splurge. KFC statistics reveal that
nearly two-thirds of Indians — or roughly 845 million people,
71. more than twice the U.S. population – eat out at least once a
week.
"A very important factor that can draw our attention is that
people are eating dinner out more frequently," said Professor
Abhirup Sakar of the Economic Research Unit at the Indian
Statistical Institute. "Say 30 years ago, you invite someone
[over], and you would fix dinner at home. But not really much
at present."
Many consumers looking for a quick, tasty, and relatively
inexpensive meal are venturing out to KFC, that is considered
one of the trendiest restaurants in India, drawing affluent people
who wish to be observed, Sakar says.
Changing food trends in India reflect a broad globalization of
the culture.
Increased experience of international cuisine through the media
and frequent travel encourages people to take part in the ever-
growing food trend and to imitate what is trendy in television,
movies and other areas of pop culture.
KFC is particularly attractive to the young because of its
contemporary look, unique menu, and ability to combine two
very distinct worlds into one taste palate. "Its like having
American food with a KFC twist to it; it tickles your tastebuds,
and that's why people keep returning, " said Soumi Paul
Chowdhury, 22, a master’s student at the Rabindra Bharati
University in Kolkata. "You can't own it once and be satisfied."
Chaudhary said in a December 2014 press conference that he's
capitalizing on such sentiments with a "brand-building strategy
centered on providing exceptional customer service, localized
menu offerings, a talented yet diverse workforce" and a wide
presence in big cities.
Why did Kentucky Fried Chicken change its name to KFC?
Kentucky Fried Chicken (KFC) is the biggest junk food chain
offering fried chicken products on earth (Deng, 2011). The
mother company of KFC is YUM! Brands, Inc. It's the largest
junk food chain when it comes to system units—owning 38,000
restaurants all over the world in more than 110 countries and
72. regions (Yum! Brands website, 2012).
KFC first landed in Beijing, the ancient capital of China on
November 12th, 1987, and Beijing KFC Co., Ltd. is the very
first Sino-foreign joint venture doing junk food business in
China. There after this junk food company started its rapid
expansion in the United Kingdom with the largest population on
the earth. Within their first 5-years (till 1992), they developed
11 restaurants. On June 25th, 1996, KFC opened its 100th
Chinese restaurant in Beijing, and just on the very first day of
this month, their restaurant of People's Park in Shanghai had an
everyday turnover of 400,000 RMB which made the current
restaurant a new record of highest turnover one-day in the
single store among all KFC restaurants worldwide. Nowadays,
KFC restaurants are serving almost 10 million consumers daily
in China (KFC website, 2012).
As the group gets more knowledgeable on running their
business in China, its team is also getting bigger and stronger.
Its rapid development creates a huge amount of positions in
China from the beginning of the entry. By the conclusion of
2007, KFC has employed more than 160.000 people as its
Chinese
staff, and it had been announced that KFC would insist to
employ local people who have a rate of 100 percent (KFC
website, 2012).
Meanwhile, whilst the pioneer and leader with this industry,
KFC also affects the supply chain from the beginning of these
business in Chinese market. Previously 24 years, KFC has
purchased more than 700,000 tons of chicken in China, fully
from the local suppliers. The group has a unique global standard
to coach and evaluate their over 500 Chinese suppliers. These
partnerships give you the restaurants with 90% of the rural
material from chicken, salad to packages and fixed equipments
(Bian, 2009).
How does the SWOT analysis of KFC affect the future of KFC?
The KFC fast food restaurant became famous for its tasty
73. chicken. The company has become successful due to its much
strength. However, it suffers from several threats and
weaknesses, which can be dealt with on time. One of KFC’s
strengths is that it is an internationally famous and well-known
venue with over 1500 outlets in 120 countries. Another strength
is that it offers non-meat options unlike other fast-food
restaurants, and people can enjoy vegan meals. One of the
weaknesses facing KFC is they have a flawed menu, which
consists of many calories ("SWOT analysis of KFC," 2019.
Nowadays, people have become so health-conscious that they do
not allow their bodies to be taken over by calories of greasy
chicken. Another common weakness of KFC is their franchise
system. The management system requires that every outlet is
individually managed, and this can lead to poor management
and inadequate production, which can affect the overall brand
due to one mismanagement. KFC has an opportunity to get into
a new market without doing away with their common chicken,
specializing their vegetarian meals, which is not familiar with
other fast-food restaurants. The most common threat for KFC
health-conscious customers and it makes KFC nervous about
losing their famous greasy chicken. Another danger is;
competition from other fast-food restaurants, and for KFC to
remain competitive, they must suffer an increased cost in raw
materials.
Closing Summary
KFC is one of the companies that have managed to go global
very successfully. The reason that KFC has been able to go
global is due to its unique international marketing strategies.
KFC knew well how to market its chicken and venture into
global markets (Jain 2019). The cultural factors that go against
KFCs original recipe in India are that the large Indian families
wanted more variety of foods other than chicken, which forced
KFC to replace its innovative menus with different preferred
menus. There were so many assumed theories as to why KFC
changed its name. However, they made it clear that they evolved
from Kentucky fried chicken to KFC to get away from the word
74. "fried" due to health-conscious patrons.
References:
Booms, B.H., Bitner, M.J. (1981), "Marketing strategies and
organization structures for service firms", in Donnelly, J.H.,
George, W.R. (Eds),Marketing of Services, American Marketing
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Brown, S. W, Gummesson, E., Edvardsson, B., and Gustavsson,
B. (1991) Service Quality, Multidisciplinary and Multinational
Perspectives, Lexington Books, 2 P.26-28
Buttle, F. (1986) Hotel and Service Management, London:
Casel.
Buzzell, R. (1968). Can You Standardize Multinational
Marketing? Harvard Business Review 46 (November–
December):P. 102–113.
Calantone, R, Cavusgil, S, Schmidt, J, & Shin, G (2004),
'Internationalization and the Dynamics of Product Adaptation—
An Empirical Investigation', Journal Of Product Innovation
Management, 21, 3, P. 185-198
Chen S. (2006). The comparison analysis of the development of
Chinese and western restaurants chains. Business Culture, 2006.
75. 21
“Chinatoday- Sudan Red I and China’s Food Safety”
http://www.chinatoday.com.cn/English/e2005/e200506/p32.htm
(5.20, 2012)
Cleveland M., Laroche M. (2007) Acculturation to the global
consumer culture: Scale development and research paradigm.
Journal of Business Research; 60 (3): P. 249-259.
CNNIC (China Internet Network Information Center) (2011),
China Internet Development Report, Publishing House of
Electronic Industry, P. 32-34
Constantinides, E. (2006) The Marketing Mix Revisited:
Towards the 21st Century Marketing, Journal of Marketing
Management 2006(22), P. 407-438
De Chernatony, L., Halliburton, C., Bernath, R. (1995)
International branding: demand- or supply driven opportunity?
International Marketing Review; 12 (2): P. 9-21.
Deng, J. (2011), Analysis of KCF and McDonald’s Competitive
Strategy
Douglas, S. P. and Wind, Y. (1987). The Myth of Globalization
Columbia Journal of World Business 22(Winter):P. 19–29.
SWOT analysis of KFC. (2019, September 17). PESTLE
Analysis. https://pestleanalysis.com/swot-analysis-of-kfc/
Jain, R. (2019). An Analytical Study of Customer Satisfaction
towards KFC Restaurant chain in Udaipur City. Journal of the
Gujarat Research Society, 21(16), 999-1004.
76. points)
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paper. (8-9 points)
4. Reoognize an ethical
issue Êom the case study or
from resea¡ch of the
oompany. Evaluate tlis
issue from a Christian point
of view. Complies mostly
with the assignment,
(4 points)
5. The intoductioq body
and conclusion ofthe paper
aro adequate.
(8-9 points)
85. not adequately illustate the
htent intended pu+ose.
(7 points)
4. Recognize an ethical
iszue Êom the case study or
Êom resea¡ch ofthe
company. Evaluate this
issue ûom a Christian point
of view. Complies
adequaæly with the
assigûnoDL (3 poiats)
5. Has partial or inadequaæ
iatoduction, bod¡ or
conclusion.
7 points)
t¿ble, or map to illustrate
something in the paper.
(<7 poinæ)
4. Recognize an ethical
issue Êom the case study or
from resea¡ch ofthe
Company. Evaluate this
issue from a Christian point
ofview. Does not conply
wilh the assiguent. (<3
points)
5. The introduction, body
and conclusion of the paper
a¡€ iDadequate. (<? points)