KFC Company Value Chain Model Analysis

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Table of Contents

Introduction
Main activities the KFC company and their analysis.
Stuff training in KFC
Technologies used by the company
Appraisal Support System
KFC Corporative Strategy
Conclusion
References

Introduction

The following work is devoted to investigation of the value chain of KFC company by analyzing its main peculiarities of functioning. The issue of value chain now obtains especial importance as companies try to win the rivalry and attract attention of a great number of customers. The term was introduced by Michael Porter and started its development. Nowadays, under the term value chain a set of activities which a company performs in order to introduce a certain good to a market or a customer is meant (Manktelow, n.d).

Usually, using the term value chain a person wants to describe the process of advertising, manufacturing and peculiarities of delivery and image of a product. That is why, it is very important to analyze the companys value chain in order to obtain complete information about it.

Main activities the KFC company and their analysis.

First of all, it is possible to say that to work efficiently a company needs well aligned system which will be able to supply it with good products. That is why, KFC company tries to find the best suppliers of chicken meat. However, taking into account the price of delivery, the company works with local suppliers in order to reduce the above mentioned price. Such politics of a company helps to achieve several purposes, except the lowering of delivery price. First of all, local manufacturers of chicken meat will be interested in the opening of new departments of the company as they will be able to work with it. Additionally, cooperation with local manufacturers can be taken as the guaranty of a good quality of products as they will not spoil in the course of delivery.

Some information about outbound logistics should also be given. KFC finished product are kept at its local departments. Great number of different kinds of food are kept in a freezer. Workers of a company just have to take them and prepare, using equipment which is placed in the kitchen However, the recipes should be obtained from headquarters in return of royalty payments. Additionally, staff trainings are also provided by headquarters and the price for products is established by them. In this way a company guaranties tight connection with its branches.

Stuff training in KFC

One of the main activities of the company is connected with education of its workers. The company has very diplomatic policy connected with stuff and proclaims that everyone can find a job there. That is why, a newcomer should be trained for him/her to be able to perform the main duties. The main skills, which a person should be taught, are determined by the officials of a company and the whole training program should be coordinated with them. Additionally, these programs are free. That is why, there are always many people who want to work there and the company does not suffer from the lack of workforce.

Technologies used by the company

Being a developed company with complicated infrastructure, KFC obviously needs some certain software in order to organize its work and make it more efficient. There are two different systems which are used in the work of KFC company. The first one is electronic cash register system which is used by the company to control sales operations and provide daily reports connected with financial side of the functioning of KFC. The second system is called Inventory Control System which main aim is to help to franchise and formulate the strategy of a company (Fosser, Leister & Moe, 2008). It is installed in the headquarters of the company and helps it to coordinate the work of all its branches

Additionally, the company obviously uses Enterprise Resource planning (ERP) system in its work. The given system helps to increase efficiency of the company significantly by providing new ways of calculation of data and working with different information obtained in the course of the functioning of the whole organization. There are several spheres where the work of ERP can be applied. These spheres are financial management, technical support, inventory management, asset management, forecasting, workforce management, time and expense management, procurement (Sahu, n.d.). Application of the main tools of ERP promotes significant increase of efficiency of the whole company.

Appraisal Support System

The company also watches attentively the level of performance of its workers. That is why, reports from different departments are collected and analyzed (Information Systems, Organizations, and Strategy, n.d.). This part of functioning of a company is aimed at distinguishing who deserves some reward and who should be punished. Such pattern helps to guarantee efficient work of the stuff.

KFC Corporative Strategy

It should also be said that ERP system is used to coordinate actions of different departments which are situated all over the world. The given tool allows to collect data all over the world and process it in order to produce universal corporate strategy according to which all departments of the company will function.

Conclusion

Having analysed the value chain of KFC company, it is possible to make a certain conclusion. First of all, it should be said that existing organization of the company helps it to achieve a certain competitive advantage. The thing is that all mechanisms, which guarantee successful functioning of KFC company, are thought through and well organised. The company has its own local suppliers which suggest products of high quality and which could be delivered without some extra spending.

Additionally, it is possible to say that all products obtained from suppliers are kept in local offices and could be prepared by specially trained stuff. This fact can also be taken as the great advantage of the company. The products suggested to customers will be of better quality and, moreover, easiness of their preparation can also serve as the evidence of the companys perfect organisation (Building Competitive Advantage, n.d). Being a modern company, KFC also uses different technologies in its work. Two different systems help to organise its work better. The first one deals with financial side of the company while the second one collects and processes information which is obtained from different departments.

It is also possible to say that great attention given by the company to its stuff and different kinds of training results in the increase of the level of its popularity. Being satisfied with the quality of services provided by KFC restaurants, people come there again and again. That is why, it is possible that KFC has certain competitive advantage. Being aimed at providing high quality products and services to its customers, KFC obviously will continue its development in this very direction. Moreover, it is also evident that further implementation of new technologies to the work of the organisation will be promoted and, that is why, it is possible to predict new ways in which the company will develop.

References

Building Competitive Advantage. (n.d.). Web.

Fosser, E., Leister, O., & Moe, C. (2008). ERP Systems and competitive advantage: some initial results. Web.

Information Systems, Organizations, and Strategy. (n.d.). Web.

Manktelow, J. (n.d). Porter’s Value Chain. Mind Tools. Web.

Sahu, S. (n.d.). Implementation of Management Information System in Kentucky Fried Chicken (KFC). Web.

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