4014

“Business Analytics for Decision

Making”

CW - 1

STUDENT ID:11067896
 TABLE OF CONTENTS

EXECUTIVE SUMMARY ………………………………………………………. 3

INTRODUCTION …………………………………………………………………3

1. VALUE OF BUSINESS ANALYTICS ………………………………………...4

1.1 CUSTOMERS……………………………………………………………………4

1.2 SUPPLIERS ……………………………………………………………………..4

1.3 FORCASTING ………………………………………………………………….5

2. TYPES OF DATA ……………………………………………………………….6

2.1 CAREGORICAL DATA ………………………………………………………..6

2.2 ORDINAL DATA ……………………………………………………………….6

2.3 INTERVAL DATA ………………………………………………………………6

2.4 RATION DATA ………………………………………………………………….6

2.5 NUMERICAL DATA ……………………………………………………………6

3. RECOMMENDATIONS ………………………………………………………...8

3.1 REVIEWING CURRENT OPERATIONS ……………………………………...8

3.2 MAXIMIZING BENEFITS OF BUSINESS ANALYTICS …………………….9

REFRENCES ……………………………………………………………………….11
EXECUTIVE SUMMARY

The paper conducted in depth to highlight the importance of business analytics for firms in
decision making and provides and intensive approach to valuable types of data which are
approached by different firms and multinational organizations make necessary improvements to
their sales departments in terms of acquiring desired standards compatible to customers demand.
Aside, it indicates the value of business analytics evaluating customers, suppliers, and forecasters
along an insight approach to current operations and maximizing profits by using different factors
and substitutes of business analytics. The organization chosen to criticize the value of business
analytics in making informed decisions by an organization, enhancing customers experience,
improving efficiency, improving advertisement, better product management and conducting
competitive analysis is KFC, One of the world’s massive leading fast-food chain.

INTRODUCTION

KFC is one of world’s massive proliferated fast-food chains across 145 countries and territories
with 25000 restaurants which is considerable for it to be one of the huge fast-food organizations
around the world. It’s a fast food chain which specializes in fried chicken. KFC entered in to the
fast food industry in 1954 which allowed KFC to develop strong brand name recognition and a
strong foothold in the industry. Their secret recipe has long been a source of advertising which
allowed KFC to establish itself apart. KFC was the first chain to enter the fast food industry just
before McDonald’s. On the contrary KFC is well using promotion mix to persuasively
communicate customer value and maintain customer relations, especially on advertising and
sales promotion but further improvement still need to acquire by KFC as world’s massive
proliferated fast food organization. They emphasize customer service, cleaner restaurants, faster
and friendlier service, and continued high quality products. According to a survey of Oxford
KFC has been ranked 2nd worldwide where McDonald’s comes on the first number with 39000
locations in 100 countries. This is something where KFC needs to make an improvement.
Providing an insight concerning marketing mix, KFC has successfully achieved stability in
Product, Price, Promotion but still need to enhance their locations and places. Though KFC also
provides support to its employees in terms of education, hardship assistance and finance
programs. The community benefits are however considerable directing employment, food charity
and food donation schemes. (Wikipedia, 2021) Every new KFC will bring with it a range of
local investments - in jobs and award-winning training, cutting-edge restaurant d

very
community through us.
1. VALUE OF BUSINESS ANALYTICS

Business analytics plays a significant and multi-layered part inside an association. It offers help
for key arranging, conveys strategic worth, and makes upper hand.

1.1 CUSTOMERS

Well, the target segment and target audience of KFC is youngsters and even older beings. KFC
has successfully achieved stability in their promotion. Now the reason behind is they have
affordable prices which attracts their customers towards them and as a main reason for their
audience to perceive on their choice. KFC target audience doesn’t have any specific age limit but
their main audience is upper class and middle class; KFC doesn’t have always the same prices;
Depending on different factors KFC has distinguished price strategies sometimes for their
customers. So conclusion get somewhere that if you like great quality with a good price, KFC is
the right place for you as they are providing their customers the best experiences. KFC
understands what their customers want and they use customer analytics for targeting their
audience and attracting more consumers. Sometimes KFC uses term sales analytics to measure,
analyze and manage date in accordance with changes essential for targeting customers and
improving product lines. Following steps are followed by an organization for forcing customers
to perceive on their selection.

 Identifying customers and define goal

 Collecting Customer Data
 Analyze and Visualize the data
 Creating Strategic Plan for Future Prospects

1.2 SUPPLIERS

KFC gets a portion of its chicken from Britain, however not all. They said: "The entirety of our
Original Recipe chicken on the bone is from ranches in the UK and Ireland. Since request
regularly overwhelms British poultry supply, other menu things may incorporate chicken from
trusted and set up abroad providers. The company currently employs three different suppliers
Turi Foods, Baiada/Steggles and Inghams. All chickens are delivered pre-cut and unfloored. It's
basically the same chicken you're going to get at Woolworths or Coles. Chicken used by KFC is
procured from big suppliers and highest safety standards are maintained, and due to safety and
sentimental reasons all the suppliers are certified, so there is no doubt that KFC chicken served is
of superior quality. KFC has its secret recipes which are not familiar with other restaurants,
which emphasizes that KFC has been always very committed to its suppliers. KFC has said that
it is returning to its previous provider for in excess of 33% of its UK restaurants, after a switch
caused a gigantic chicken lack which constrained many outlets to briefly close their entryways.
1.3 FORCASTING

Forecasting is crucial because it gives KFC the ability to make important decisions and develop a
data-driven strategy by using different analytics tools. Associations use forecasting to dissect and
anticipate future financial conditions. This depends on past and future information. Expectation
and forecasting are two separate terms. If KFC needs to investigate their forecasting, they would
need to assemble all the data over a significant time span to see the monetary development. This
will help KFC to see the expectation for years to come. Forecasting is basic since they help make
informed business decision. There are risks in after this in light of the fact that depending on past
information what's more, past and future information can have an intense change.

Well, KFC utilizes this advantage and emphasize their customers experience by proving different
guest surveys. (KFC Great Britain Guest Experience Survey - Welcome, 2021) Different types of
business analytics techniques are used by an organization for forecasting.

 Descriptive Analytics (Helps understanding past data for comparison )

Example: Pie charts, bar charts, line graphs, tables, or generated narratives.
 Predictive Analytics (Helps to find future outcomes based on previous data)
Example: statistical algorithms
 Prescriptive Analytics (Helps taking best course of action for a given situation)
It’s is third and final phase of business analytics for the purpose of making an
advantageous prediction.
2. TYPES OF DATA

Data is classified into different types. (Evans, J., 2017, p. 44)

 Categorical Data
 Ordinal Data
 Interval Data
 Ratio Data
 Numerical Data (Quantitative Data)

2.1 CATEGORICAL DATA

Categorical data is the statistical data type consisting of categorical variables or of data that has
been converted into that form, for example as grouped data. It’s the data which are sorted into
categories according to specified characteristics.

2.2 ORDINAL DATA

Ordinal data is a categorical, statistical data type where the variables have natural, ordered
categories and the distances between the categories is not known. These data exist on an ordinal
scale, one of four levels of measurement described by S. S. Stevens in 1946.

2.3 INTERVAL DATA

Interval data, also called an integer, is defined as a data type which is measured along a scale,
in which each point is placed at equal distance from one another. ... Interval data cannot be
multiplied or divided, however it can be added or subtracted. Interval data is measured on
an interval scale.

2.4 RATIO DATA

Ratio Data is defined as quantitative data, having the same properties as interval data, with an
equal and definitive ratio between each data and absolute “zero” being treated as a point of
origin. In other words, there can be no negative numerical value in ratio data.

2.5 NUMERICAL DATA (QUANTITATIVE DATA)

Numerical data is a data type expressed in numbers, rather than natural language description.
Sometimes called quantitative data, numerical data is always collected in number form. This
characteristic is one of the major ways of identifying numerical data.
 Below is a chart for the market share within the whole of the United Kingdom. This is a
pie chart (Ordinal graph) which allows us to see which chain is the largest within the
UK. This pie chart states that KFC is among massive proliferated organizations currently,
which means they are the one of largest chains in the UK, however McDonald’s has
attained more stability.

As it could be seen that KFC has contributed up to 2.8 per in global fast food market revenue in
2019 but KFC got successful in achieving stability in their sales by acquiring highest selling rate
which can be seen from the following bar chat in which ordinal data is presented for KFC
worldwide sales. KFC had sales of $23 billion in 2013.
The presented Bar Graph and statistics shows ordinal data compatible to number of KFC
restaurants worldwide from 2010 to 2015 . (Statista, 2020) There were only about 16 to 17
thousand KFC restaurants in 2010 and by now It has approached to 25000 restaurants all over
the world which is an excessive development but still more enhancement need to attain by KFC.

Graph 2.1

As it can be seen from the graph above that KFC has made intensive development and progress to expand
its network worldwide as in 2010 there were about 13 thousand restaurants in United States and about
three thousand in China with a very small number in India but in 2015 KFC remained lucky to be
successful to proliferate its chain continuously with more than 14 thousand restaurants in US, five
thousand in China and 500 in India.

3. RECOMMENDATIONS

Well, after providing an extensive insight to business analytics and different multiple analytic
tools necessary for decision making; Here some of recommendations are mentioned to review
current operations by KFC and maximizing benefits of business analytics.

3.1 REVIEWING CURRENT OPERATIONS OF KFC

Sales product is one of the tasks which KFC is as of now attempting to improve yearly since
items are the main business factor. In this way, KFC has made a mini survey asking clients what
their number one item marks are and why they appreciate it more, and highest percentage win as
the clients need it more. Thus, they attempt and execute it in their organization. This is an
incredible business move since this aides the clients and business as it will cause the client to feel
like there are more alternatives to look over and will increment sales for the organization.
Customers Complains are a great source of getting an idea of improvement. KFC provides its
customers the service to represent their views and highlight the insufficient factors which are
need to acquire by them in terms of superior quality to maintain their standards in the
competitive environment. Last Year, According to a survey of Cambridge more than 85 percent
of KFC customers are satisfied and perceive on their quality and taste with affordable and
reasonable prices. Following line graph represents the data regarding satisfaction rate of KFC
customers within United States from 2010 to 2020.

GRAPH 3.1

3.2 RECOMMENDATIONS TO MAXIMIZE THE BENEFITS OF BUSINESS ANALYTICS

(CONCLUSION)

Analytics help organizations to develop valuable insight. Different analytic tools are used to
improve core business operations. The business impact of analytics is growing in significance.
There are certain ways for an organization to maximize the benefits of business analytic as
analytics encourages Smart Decision Making, Offers efficiency and helps you measure how
much of your mission statement is accomplished. Some of them are highlighted to anticipate an
insight of them.

For the purpose of maximizing benefits and profit, KFC needs present special offers to their
customers, specially so their target audience. This offer should be only given who visit KFC
more frequently and try their special offers; KFC should present special offers and discounts to
its frequent customers who often visit KFC and spend a specific considerable amount on KFC
products. In this way, more customers would be attracted and forced to reach the limit to avail
their special offers and discounts for their customers. In simple words it would be most efficient
way for KFC to maximize their sales and reaching the goals by phenomenal business analytics
tools and techniques in terms of maximizing profits, sales and customers.
Another term for maximizing analytics benefits is revising their customers complains and taking
the necessary steps and actions to improve them. For this purpose KFC should implement a
CRM (customer relationship management) system which allows company to interact with their
customers and providing them with the best services they expect in order to achieve more
stability in their product sales. Well, KFC has already an incredible customer satisfaction rate as
it can be clearly predicted from graph 3.1 but still a further improvement and progress can be
acquired to maximize benefits of business analytics.( Scribd,2021)(Project report on KFC)

Somehow KFC still needs expand its network more around the world. This is something KFC
still needs to make an improvement as McDonald’s has 36000 franchises around the world in
100 countries which reflects that they have really maintained great stability in expanding their
network ; however KFC hasn’t progressed a lot in recent years to proliferate their network
worldwide as shown in graph 2.1 compatible to their world’s massive food chain though they
hold high customers satisfaction rate and product sales, this is something which affects benefits
which are accessed by business analytic tools by maximizing sales , customers and expanding
the network to make it easy for its customers. The difference can be seen from following bar
graph through ordinal data presented.

Graph 3.2

It can be seen from graph 3.2 that KFC hasn’t made enough development to proliferate their
network worldwide as compare to Subway and McDonald’s. So, KFC should launch his new
projects to expand their chain providing their customers more ease to access it and to build and
organization to excellence in competitive environment.
REFERENCE:

Evans, J. (2017) Business Analytics: Methods, models, and decisions Boston: Pearson

U.kfcvisit.com.2021. KFC Great Britain Guest Experience Survey - Welcome. [online] Available at:
https://u.kfcvisit.com/gbr?AspxAutoDetectCookieSupport=1 [Accessed 27 June 2021].

Statista. 2021. KFC restaurants worldwide 2020 | Statista. [online] Available at:
https://www.statista.com/statistics/256793/kfc-restaurants-worldwide-by-geographic-region/ [Accessed
28 June 2021].

En.wikipedia.org. 2021. List of the largest fast food restaurant chains - Wikipedia. [online] Available at:
https://en.wikipedia.org/wiki/List_of_the_largest_fast_food_restaurant_chains [Accessed 27 June 2021].

The Value of Business Analytics - The Proven Method. The Proven Method. (2021).

Retrieved 16 February 2021, from https://www.provenmethod.com/the-value-ofbusiness-analytics-

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