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Kfc's Swot Analysis

4385 words - 18 pages


1. Introduction of KFC....................................................................................................2

2. Operations of KFC.......................................................................................................3

3. SWOT analysis.............................................................................................................5

1. Strengths...........................................................................................................5

2. Weaknesses.......................................................................................................7

3. ...view middle of the document...

The man behind the great story of KFC is Harland D. Sanders, who was born on 9 September 1890 in the sub-urban area of Henryville, Indiana. In 1930, Sanders, in his 40, was the manager of a service station on highway in Corbin, Kentucky, and started to make food for travellers who dropped by the station which by then included a section named “Sanders Court & Cafe”. As the number of customers drawn to his eatery proliferated, he moved across the street and opened a 142-seat restaurant called “Sander’s Court” where he, at that very time, invented a special recipe for marinating the chicken constituted from 11 spices and herbs. That seasoning mix, which is called “Original Recipe”, is now still applied at each and every KFC unit all over the world.

In 1936, Sanders’ restaurant became so famous that the owner was rewarded “Colonel” title by the Governor himself for appreciation of his devotion to the state’s culinary. The first franchise of KFC was granted to Pete Harman in Salt Lake City in 1952; and by 1964 there were 600 stores in the United States and Canada, and a few first units in other continents. Sanders sold KFC Corporation to a group of American investors led by John Y. Brown for USD 2 million in that same year and moved to Canada to oversee KFC operations there and continued to collect franchise and appearance fees both in Canada and in the United States. Once to mammoth for Brown to manage, the company was sold to the Connecticut-based packaged food and drinks corporation Heublein in 1971 for USD 285 million (around 1.6 billion in 2013) before R. J. Reynolds – a tobacco giant – acquired it 1982. Then Reynolds, in 1986, disinvested KFC to Pepsi Co for a book value of USD 850 million (around USD 1.8 billion in 2013). Pepsi Co did some restructuring and expansion; and in 1997 spun of its restaurant division as a public company valued at USD 4.5 billion (around 6.5 billion in 2013). The new public company was named Tricon Global Restaurant Inc., which was renamed Yum! Brands in 2002.

For the last 20 years of his life, Sanders was always seen, when in public, in his signature white suit and string tie with his brand name moustache and goatee; and was very active in the business even when aged. Sanders established a trust and a charitable organisation named after him to aid charities and fund scholarship. Colonel Harland Sanders died in Kentucky in 1980 due to complications from pneumonia and leukaemia, leaving a gigantic legacy of what is now the most famous and the second largest (measured by sales as of December 2012) fast-food franchise in the world.


KFC is a company specialising in fast-food restaurant chain and following the franchise model. The KFC brand belongs to Yum! Brands, Inc. Basically, there are 3 forms of franchise:

• Single-unit franchise: is the form of franchise whereby the franchisee directly signs contract with the franchiser (either the owner of the brand or a master...

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