Kfc Case Study

KFC Case Study - Presentation Transcript

1. Case Study: Kentucky Fried Chicken and the Global Fast-Food Industry

2. Relevant Case Facts - History

o Early Life of Colonel Sanders

o Sander’s First Franchise in 1952

o New Management/culture for Kentucky Fried Chicken after KFC sale for $2M

o Acquisition of KFC by Pepsico/Tricon Global

o Heublein Makes Changes in 1970

o 1980’s Profit and Expansion

3. From $105 to 7.2 Billion in 50 years

o 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check

o 1964, Col Sanders had more than 600 franchised outlets in the US and Canada.

o 1964, Sold his interest in his company for $2 million to a group of investors.

o 1966, KFC went public

o 1969, Listed on the NYSE

o 1971, KFC was acquired by Heublein Inc . for $285 million .

o 1982, Heublein & KFC Inc . was acquired by RJ Reynolds

o 1986, RJ Reynolds & KFC , was acquired by PepsiCo, Inc . $840 million .

o 1997, PepsiCo, Inc . spined-off of its qsr’s into independent Tricon Global Restaurants .

o 2002, Tricon changed it's corporation name to Yum! Brands, Inc . .

o NOW:

▪ Yum Brands, Inc . is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories.

▪ Yum! Brands, Inc ., is a Fortune 300 company

▪ Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.

▪ Current Market Cap value on the NYSE is 7.2 Billion

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5. Problem/Issue

o How would KFC maintain a market leadership in the global fast-food industry

o Issue:

o A competitive marketing strategy in the international market focused on the Latin American countries

6. Internal Analysis Functional Areas

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