KFC Resource Based Operation Strategy Matrix

Physical Human IP,Software and Ecosystem Financial

Resources Resources Methods Resources Resources
Resource Base 17000+ 24000 highly KFC secret More than Deep pockets
(Type, Capacity restaurants motivated recipe with thousands of of Parent
and Utilization) worldwide. employees combination of chicken suppliers company.
20% across the 11 spices. around the world. Profits from
company globe with Recolonelization Customer existing
owned combination program to involvement in business.
stores and of department employees for product
80% heads to exact improvement.
franchised bottom line preparation.
stores. workers. QSR software
Equipment for Kitchen
in store: Efficiencies.
Pressure
Fryers,
Grills,
Internal
décor etc
Resource Franchise KFC Centralised Distributed Most of the
Integration heavy restaurants is software for resource planning revenues
(Organization, model, an organized controlled fryer (DRP) system used realised by
Planning and computer management. cooking times by KFC for Franchise fees
Decision system for organizational linking front supplier planning. and training
Making) controlling structure is counters with Customer costs for the
equipment flat and the kitchen, feedback trough franchises.
and horizontal drive-thru MYKFCExperience
centralised rather than window, .
monitoring. vertical. manager’s
office, and
company
headquarters.

Resource Moving KFC provides KFC New Supplier changed Investments

Development completely all staff product to BIDVEST in increasing
and Acquisition to franchise training for developments logistics and the global
(Innovation, model. self are done delivery contract foothold to
Development Expansion is improvement. through Colonel to DHL. double.
and M&A) mostly KFC believes in Sanders
organic well-trained Technical
staff, better Center.
staff.
R&D – ECOSYSTEM: All of KFC's chicken was delivered by Bidvest until
February 13, when the supply contract was switched to DHL, which uses
software developed by the firm Quick Service Logistics (QSL)

Resource Intefration- Ecosystem:  Through MyKFCExperience, they continuously

collect customer experience to understand their perspective about their work. These
surveys aren’t for free! They give amazing rewards to their customers.

Resource Integration – HR: Behind the KFC restaurants is an organized management.

The KFC organizational structure is flat and horizontal rather than vertical. This saves a
lot of trouble in the communication network at KFC. It reduces the time and money
spent in communicating. The head office of KFC has departments and departmental
heads. It is like an inverted pyramid because at the end of the day, it is the bottom line
workers who have to deal with the customers.

Each departmental head has a senior manager reporting to him. Senior manager
supervises three to four junior managers. Junior managers work with the executives on
different projects and assignments. This shows that the management of KFC has a
relatively wide span of control. The approach to departmentalization at KFC is a
combination of functional and divisional.

Resource Development – HR:  They have staff incentive programs, conventions, Champs
Elysees, that is include the cleaning, hotel, maintenance, accuracy, speed of service and
product quality of the challenges and the motivation will be one to one meetings and etc.
that can enhance employee motivation. the company must be bottom-up approach and a
top to down in strategic decision-making after the exercise. This method will not only make
real-time information market, enabling the company is take to master the latest
developments in the market, and develop positive, proactive strategy. This will also improve
the motivation level of staff and they can feel proud, because they can contribute to
organizational strategy. KFC is provided all staff to training. They bear the high cost of
providing to each organization. KFC is believe that well-trained staff, better staff. They offer
each employee a form entitled “Training Needs Assessment”, which is completed for each
person in the organization. there are constantly adapt to new online technologies and
ensures that the most effective training and recruitment

R&D – IP: to foster new product introduction, in 1986 Kentucky Fried Chicken opened
the $23 million, 2,000,000-square-foot Colonel Sanders Technical Center. In addition,
the company began testing oven-roasted chicken through multiple-franchisee Collins
Foods

Resource integration – Physical Resources: Higher capital spend and higher operating
expenses for company-owned restaurants on the one hand, and the ease in expansion
through a franchisee model on the other, have encouraged many restaurant companies to
shift towards a fully franchised model. Case in point McDonald’s.

Globally McDonald’s is moving towards a situation where 95 per cent of its stores will be
franchised. KFC, that operates as a subsidiary of Yum! Restaurants in India since 1995, a
year before of its biggest rival McDonald’s set foot in the country, seems to be moving in the
same direction. KFC began franchising in 1952, when it made Pete Harman from Salt Lake
City, Utah the first franchise owner. Pete is often considered the brains behind KFC’s
famous slogan: “It’s finger-lickin’ good”. Recently, KFC was named by the Entrepreneur
Magazine as one of the top 20 franchises in the world.

computer system not only controlled fryer cooking times, it linked front counters with
the kitchen, drive-thru window, manager’s office, and company headquarters.

Resource integration – software :"KFC management realized it was time to

streamline operations and upgrade to a modern cloud system," said Sergey
Vereshchagin, managing director of Acumatica Singapore. "Acumatica allowed
KFC to make the upgrade and gain real-time access to a single business system
to manage accounting, purchasing, catering sales, fixed assets and inventory."

By gathering sales, accounting and purchasing data, Acumatica delivers real-

time dashboards and reports to help management make informed decisions.
Acumatica also includes robust integration tools to simplify data import and
communication with other external systems.
MC Donald’s Resource Based Operation Strategy Matrix

Physical Human IP,Software Ecosystem Financial

Resources Resources and Methods Resources Resources
Resource Base McDonald's 33000 highly Mc Donald’s McDonald’s Profits from
(Type, Capacity operates motivated uses Decision doesn’t make existing
and Utilization) 37,855 employees support any of its Raw business.
restaurants across the system, materials. Huge cash
worldwide. Out globe. Transaction Instead, it balance.
of which 95% McDonald’s processing contracts with
are franchised. right from its system etc. for suppliers to
The restaurant headquarters better meet this
is equipped to the operations. massive
with the latest franchises McDonald`s requirement.
cooking and treats its registered Suppliers are
storing employees as trademark. part of
equipment and valuable asset. McDonalds’
Play Place for three-legged
students stool.
Resource Franchise McDonald McDonald’s Only purchase Most of the
Integration heavy model, serve as POS system from suppliers revenues
(Organization, primarily training center hooks up to who meet our realised by
Planning and implementing where day-to- printers and stringent food Franchise fees.
Decision the McDonald’s day coaching screens in the safety Leasing the
Making) system. and shoulder- kitchen, standards, but stores to the
Systematization to-shoulder creating a who also share Franchises.
of knowledge interaction smooth our
followed by between ordering commitment
detailed set of managers and process with to social
rules to outlets. crew are minimal room responsibility
At McDonald’s, emphasized. for error. and
the production sustainability.
line method
maximizes
efficiency and
capacity
utilization.
Resource Expansion is Its employees Mc Donald’s Suppliers Investments in
Development mostly organic are offered acquired regularly visit Information
and Acquisition with few M&A world-class, Dynamic Yield, McDonald’s technologies
(Innovation, activities. Mc award-winning a machine factory to and AI.
Development Donald’s is training and learning build a deep
and M&A) known for its the company to relationship.
Innovation. opportunity study about
for career customers.
development.

employees rely on McDonald’s requires Practising advanced creates a link between

teamwork and high suppliers to food safety standards the quality of a product
energy to get the job demonstrate a globally,  working with and the skills of the
done. commitment to food companies, employees by training.
Serves fresh food – meeting fundamental academia, and
prepared when quality requirements. regulatory agencies.
ordered.
Assembly line McDonalds’s POS systems and New initiatives focusing
production of food. forecasting application, standardised process on customization and
Exceptionally trained namely JDA Manugistics across all the stores. speed of service.
crew and high number 7 is an approach to Training for fast service.
of stores evaluate and report its
data for never be out of
stock.
Standardised store A well-managed supply Standardised McDonald's menu
design and food chain that provides a manufacturing and features
preparation process stable flow of goods preparation process. certain products that
and services are permanent and do
no change
changes the product Partnership with Temporary products
type and its ingredients suppliers to meet developed to provide
according to the local variable menu in customer new
country or region different regions. experience.
requirement.
Provides quality and stock control data base McDonald emphasizes Provides training to
cheap food together system to avoids more and more on employees to work
with quality service unnecessary ordering; reducing its cost of efficiently and reduce
with more stores. keep the stock up to operational activities costs.
date in store. 
Capacity Supply Network Process Technology Development and
Organization

Slide 11:

McDonalds is a fine example of how vertical integration can keep costs

down and profits up. They grow their own beef through contracted
producers, process their own meat, create their own spices and mixes in
factories that they contract, grow their own potatoes and other vegetable
through contracted producers, transport their goods on their own. McDonalds
owns the land that their restaurants are situated on, so they do not have to
deal with leases and landlords. They have taken control of their supply
chain nicely.
Everything that makes McDonalds, McDonalds, is done through a vertical
integration supply chain, and evidently it really works for them.  Of
course, they are a large volume buyer (that may be one of the biggest
understatements) which makes the vertical integrated supply chain the best
option, but there are plenty of companies using the system and not
experiencing the growth that they do.

QSC&V (Quality, Service, Cleanliness & Value)

While claiming an expense of 1000 cab bill where itc is not allowed. Whether I can
claim full bill under direct tax. Under pgbp

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