XÂY DỰNG CHIẾN lược HOẠT ĐỘNG của CÔNG TY KFCE

BUILDING OPERATION STRATEGY OF KFC COMPANY I DEFINE TARGET MARKET AND COMPETING PRIORITIES Introduction of KFC - Kentucky fried chicken (KFC), brand was pioneered by Mr Harland Sanders, has grown and become one of the world's largest fast food serving systems, with more than billion KFC dinners served annually in more than 90 different countries, with over 10,000 restaurants and has created more than 200,000 labors Select target market and competing priorities - Currently, KFC has become a popular fast-food brand developed in many countries KFC has been known much in Ho Chi Minh City, Hanoi in particular and in Vietnam in general - this is a new market with around 170 stores, more and more the number of customers are familiar and accept food KFC targets to the youth market, the Vietnamese market is considered as a promising market Half of Vietnam's population is under the age of 30, meaning that young people will easily accept KFC's fast food than adults With the goal of building trust in customers through quality, reputation and food safety, KFC Vietnam just selects the material reputation and quality assurance supplier, such as CP Vietnam KFC selects to develop in major cities such as Ho Chi Minh City, Hanoi… * Competing priorities and define competitors: As penetrating into the market, KFC will face traditional products such as Pho 24, different fast food products (BBQ, Chicken, Lotteria, Macdonald ) KFC determined its opponents from then making brand development strategy gradually, slowly to create the trust from its customers through special quality of the products - Awareness of consumers about the competitors: Assessing consumer awareness about the major competitors is to assess the understanding of the information of competitors… - Evaluation of the position of the competitors: The information research from the market helps KFC determine its market share as well as existing competitors; Lotteria is a typical competitor threatening the market share of KFC Besides Vietnamese brands (Pho 24) are also competitors of KFC - Analysis of consumer preferences: Through research data (collected), KFC is the product which is used most by groups of students, 78% and those with incomes of less than million dong is 49% It shows that young people are the main consumers of KFC products and those with un-high income are main customers of KFC Also, through the obtained results, it people not buy KFC products, Lotteria accounts for 45% of customers trust It can be seen that Lotteria is the main rival of KFC - Making Decision: KFC has chosen for its own direction in accordance with the Vietnamese cuisine as for new products such as soft bread, cabbage jumbo KFC confirms the quality of its products by the quarantine certificates Moreover, KFC products also make a difference with other products in the mix 11 different spices that make the difference for the KFC products… - Monitoring implementation of the strategy: The process is to ensure the positioning strategy of KFC is always in the right direction, goals Simultaneously, detect errors or mistakes to have immediate corrective measures… 2.1 Objectives of KFC in Viet Nam: - Building an organization with dominant dedication - Always bring quality and value in products and services - Maintaining a commitment to continuous improvement and innovation for development, always strive to be the leader in the constantly changing market - Create financial resources and strong profits for investors as well as employees of the company 2.2 Competing priorities of KFC in Vietnam - Health Priority: Today's customers not only need eye-catching food they are but also interested in health issues Especially in the current period, the rate of obese children is increasing The main thing is that health is a top concern in the dish selection criteria of the customer Many customers tend to go back to nature, enjoy the food and herbal flavors with bold local culture -Price priority: The life of Vietnamese has been higher, people pay more attention to food safety issues, especially after the bird flu, the more people have a lot more cautious when eating the dishes of chicken, and KFC is one of the trusted addresses It is said that "On average, each meal from 60,000-80,000 dong, prices are so reasonable, inexpensive compared to office rice SERVICE DESIGN & SELECTION OF PRODUCTION PROCESS AND CAPACITY 2.1 Service design: Product service design consultancy is one of the important issues, how to be beautiful, satisfy customer needs For specific product, groups selected KFC fast food as one particular product that includes two factors: manufacturing and services In store chef will create the right product and also provide goods and sell products to customers (consumers) Thus, service design process is presented via following diagrams by our group: Equipment Materials Employees Products Products Products Production and service supply system Facilities Customers Contact staff Service Diagram -1 The specific type both of production and sales, quality and service factors are chosen and put on top Therefore, the human factor is also our interest because people will serve, contact with customers, the basic requirement is communication skills, 2nd is understanding products to better sales We would like to make the comparison table and supply of ordinary goods Criteria Goods production and supply Service supply and system production system People who create demand for people who directly involve Customers producers and distribute customers The stability of the More stable to in system Lack of stability product in the system The distribution intermediaries Customers who want to use sell goods directly the right services products need go and to manufacturers; Distribution channel intermediaries only sell the right of using products and services Hence need the choice of System flow distribution more closely Information Goods a Basic products of KFC: Buckets, Burgers and Colonel Crispy Strips There are also other products such as traditional fried chicken, boneless crisp chicken rice; Shrimp Burgers Combo, Spicy Crispy Chicken Combo, Seafood Combo b Select product designs When entering Vietnam market, KFC has changed the taste, size to suit the Vietnamese consumers, make a difference for other products In addition to traditional dishes such as fried chicken in general when entering Vietnam market, KFC has created few dishes to serve the food taste of Vietnamese people such as boneless chicken crisp, soft bread, carry chicken rice, cabbage mixed Jumbo Expand products into shrimp, fish materials, and some beverages to replace freshwater products As we all know KFC is one restaurant chain offering fast food to its customers The system creates KFC as well as other systems, but has been designed to save time for customers Be described by the following diagram: SYSTEM DIAGRAM Customers go to the store Serv ice staff at stall Order fast food, drinks Payment Selected food Processing equipment Kitchen staff Listing paper Food processing Customers Restaurant Material environment For service, KFC selects methods: improving staff capacity to satisfy customer needs and increase profits Besides KFC always commits to diversity and creates the best working environment for employees, also KFC not only pays attention to its staff but also running a restaurant system chain to bring the most convenience for customers Product standard now used in KFC is ISO -9000 to control the quality of dishes here Fast food service is associated with physical products: foods, beverages, invisible part is the service attitude of contact staff, reliable feeling of quality, products 2.2 Selection of production process and capacity a Theory: Types of product process • Sort by the number of produced products and repeated nature: - Single production, - Mass production • Sort by production organization form - Continuous manufacturing process, - Interruption manufacturing process - Production under project • Sort by relationship with customers - Produce to reserves (production on demand) - Production of the request (order) • Sort by structure of products: the convergence process (assembly process) and divergent production process (The process) Decision on capacity Types of capacity - The maximum capacity could be achieved under theoretical conditions that machinery, equipment can operate 24 hours a day and 365 days/ year - This capacity only counts the maximum limit that can not be achieved The expected capacity - also called the effective capacity - The capacity of the enterprise is seeking to achieve compliance with the standards, processes and technology, operating production capacity, maintenance planning, maintenance and balance activities - Efficiency capacity is often taken up by 90% because machinery is generally impacted by outside factors Level uses the effective capacity Real capacity = Expected capacity / Design capacity - is capacity that we gain in fact conditions Performanc = Gained real output e Factors affects to capacity: / - Product demand, - Nature of products Output to the expected output - Technology level - The human factor, - Production plan, - External factors: The standards and regulations Capacity selection Three types of decision models are: + Decision-making in certain conditions: in which the decision maker knows for sure consequences or outcomes of any decision to be selected + Decision-making in uncertain conditions: in which decision maker does not know what will happen to the results of each of their choices + Decision-making under conditions of risk: in which the decision maker knows the probability for the result of the chosen method Breakeven analysis - The goal of breakeven analysis is to find cash point at which expression cost and income are the same To analyze breakeven, it is needed to assess the fixed costs and variable costs - Fixed costs are costs that continue to exist even if no product is produced - Variable costs are costs that vary with the number of products made Hence choosing the production process and capacity for production KFC only upon request of customers, and products can be processed pre-order after having serving staff orders, chef has just introduced finished product to the consumers so that capacity depends on having customers or not SELECT LOCATION AND BUILD SUPPLY CHAIN Location is the most important factor in the field of food and drinks business, especially fast food The location selection is not only prerequisite "golden key" to determine the success of the brand but also the premise and foundation for the brand to provide simple and professional standard services First, KFC will be more flexible in opening restaurants in big cities like Ho Chi Minh, Hanoi to choose the time and place of opening This creates a competitive advantage of KFC over itsrivals About distribution locations, KFC selects distribution locations to open stores as buildings, supermarkets, bookstores, commercial centers such as Parkson, Diamond Plaza, Maximark Supermarket, Mark Coop, Big C The landmark of restaurant first developed in the provinces: July 1997 - HCM City, June 2006 - Hanoi, August 2006 – Hai Phong and Can Tho, July 2007 - Dong Nai Bien Hoa, Jannuary 2008 - Vung Tau, May 2008 – Hue, December 2008 - Buon Ma Thuot, November 2009 - Da Nang * Develop distribution strategy: - Closely manage its distribution systems from the selection of the personnel, facilities, location, purchasing, warehousing, sales ensure consistency in the quality of stores over the country - A reality of Vietnam market today is there are not many enterprises with strong brand in the field of fast food, so KFC need to further standardize its store system - Create different spaces to suit each object in stores: bustling, vibrant spaces suit young age… - The waiters at the KFC restaurants should be trained and keep good service attitude even when the restaurant is crowded GENERAL PLAN 4.1 General plan Market demand Demand forecast Production decision Production General Process MRP Plan and 8material moderation capacity plan Workforce Production Material reserve Diagram: General Plan 4.1.1 Demand Forecast - Demand forecast is set out from survey of market needs specifically according to criteria such as the appeal of the brand, consumer culture of the client, the population pyramid - Demand forecast will be made according to the season As in the north, there are seasons in which in summer and winter there are more customers than in spring and autumn As in the south there are more customers in the dry season than in rainy season - KFC develops strategy to hit consumers under the age of 35 that accounting the majority population of 65%, so the demand will be so great 4.1.2 Process and capacity - KFC products in Viet Nam are processed according to common standards worldwide However, KFC Vietnam is also working to change the size and design, taste to suit for consumers in Vietnam such as crispy boneless fried chicken, crispy chicken salad, mixed cabbage, soft bread, chicken soup, chicken pasta … 4.1.3 Labor force - Significant impact to the General Plan: In addition to serving employees with overall style of the KFC brand, there are employees who directly create products such as the role of the restaurant's chef - This force will be trained carefully to make products with the best quality and the most professional service style - These forces in Vietnam are relatively various and cheap 4.1.4 Materials - Quite diversify with our main economy of primarily livestock and planting in rural areas - Can be purchased at the farm and households, however quality is uneven and quarantine procedures as well as safety of livestock is also very difficult to control 4.1.5 Reserves production - In Vietnam, the holidays or festive occasions, the consumer demand will surge so plan to have reserves to avoid out of products 4.2 Strategies of general plan 4.2.1 Strategy to change inventory / storage - According to this strategy, managers can increase inventory levels in low demand periods to provide and enhance for the increased demand period in the future If we choose this strategy, we will be subject to an increase in the cost of storage, insurance, maintenance, and damaged level and the investment capital We will increase the level of reserves in the timing of events such as festivals, Independence, 30/04 and 01/5 when people have days off and take their family to eat and drink out leading the increase of demand When we have this strategy, we will not affect: The production process and timely satisfaction of customer needs; 4.2.2 Strategy to change labor forces 10 - Increase or decrease according to changes in labor demand: Based on the level of production of each stage, managers decided to hire additional workers as needed and ready to let them stop working if unnecessary This strategy avoids risk due to the erratic fluctuations in demand; reduce the cost of some of the other options such as goods storage cost But it will take more costs to training service staff For big brand as KFC, this strategy will sometimes lose the image of the professional staff 4.2.3 Strategy to use of part-time employees, increase shifts, reduce overtime hours - Use of part-time workers: To reduce the onerous administrative procedures and to take advantage of human resources without highly skills, restaurants can use workers work part-time With abundant force of students who wish to work part time to increase the income, KFC is not difficult to implement this strategy - Increase shifts, reduce overtime hours: In this strategy, KFC can be fixed its number of workers but change the number of working hours When demand increases, it can organize overtime, during low demand periods; it can allow employees to relax and not have to resign This strategy helps to stabilize the workforce in each store 4.2.4 Price changes or other measures affecting market demand - When market demand is low, KFC restaurants can affect demand by advertising, promotions, discounts, expanding sales form for example, the KFC promotion for summer: when coming any KFC restaurants, you just need to buy a combo of KFC and change normal Pepsi to get big Pepsi for 2,000dong and get lucky scratch card immediately Scratch card includes pieces associated with two very attractive winning scratch opportunities There are 5,000 prizes that are vouchers of VND 50,000 you can change for silver layer upon rake in piece At piece 2, you will receive one code to join electronic dial program If you are lucky, you will become the owner of the car Ford Fiesta 1.6AT, or iPhone - 16GB, or Canon SX240HS camera 4.3 Management of service demand and supply 4.3.1 Impact on demand - Managed by demand classification: the demand on forecast / established: Customers had appointment; unusual demand, current customers Encourage customers to make an appointment first: At the busy time of serving, the customers who books first will 11 be given priority The service is done via internet and fixed line of KFC restaurants It helps us to manage the demand and the number to prepare - Preferential policies on low demand: In addition to programs for customers with VIP card and special Tuesday program, in May, 2011, KFC also introduces the new EZ Menu with prices reduced up to 40% , only 35,000 instead of 65.000d as normal 4.3.2 Impact on supply - Schedule shifts: Statistics and forecast accurately customer demand (during the day - by the hour) to plan staffing accordingly This helps KFC have staffing plans accordingly It's always just enough without wasting excess manpower - Increase customer engagement: In the KFC restaurants customers have to go get the spicy food and clean up after eating - Flexibility to adjust supply ability: At KFC restaurants, there maybe have chicken roasted ovens, at conventional time, use only 2, but at the peak time, they can use the third oven This flexibility helps the KFC have a better service at rush hour to minimize customer’s waiting time - Crossed staff training: At KFC restaurants, if the area does not have many customers, sales staff needs to go into the kitchen to help employees in the area to prepare materials, at rush hour, the kitchen staff can go to the counter to help sales staff This makes staff less disturbed when one person has days off, it’s ready for other people to replace PLANNING RESOURCES OF MATERIAS FOR PRODUCTION PREPARATION Planning of human resources - More than 15 years creating and developing Kentucky Fried Chicken restaurant chain in domestic under the international standards of Yum! International Group, KFC Vietnam is growing constantly, keeping conquering potential markets across the province and cities of the country Specific culture of Yum! International group is to recognize merit and reward efforts of individuals, groups more than 4,000 employees of KFC Vietnam who live and work in the spirit of "How We Win Together." With specific job is to serve products, need the service attitude of the staff is the most important factor, so the human resources strategy of KFC is given as recruitment without evaluation of education 12 but to assess the awareness, attitudes each of staff Thus, people working in KFC are invested in training soft skills; service attitude during recruitment time to process working at KFC With the kind of service work, KFC has strategy to recruit part-time and full-time employees divided into shifts to ensure customer service in rush hour of the day: eating lunch, dinner, in the week: the weekend and the occasions of holiday KFC has calculated the peak time and low time in recruitment for manpower planning timely At peak time: May to September, this is the stage of students preparing to graduate or school leaver looking for internship opportunities and new jobs KFC takes this opportunity to plan the expansion of the sales points Therefore, KFC has maintained the strategy by choosing this moment to consider salary increase, bonus, promotion for that year as well as building the emulation program to raise awareness of working associated with the benefits of staff KFC CULTURE From the first day to Vietnam in 1997 with the first restaurant in Saigon Superbowl with only 70 employees, so far, KFC Vietnam is one of the leading fast food brand with chain stores available all provinces and cities of Vietnam The success of KFC Vietnam today is built and developed from global brand, excellent product quality, and most importantly is dedicated service attitude, professional young, dynamic staff It’s the enthusiasm, the spirit of collective solidarity over 2500 employees that have distilled, formed and developed culture "How We Win Together" - "Consensus for success, concentricity to take the range" KFC in Viet Nam Believe in human: We believe that each member of the team always has the potential to make a difference: We actively listen to opinions of the individual to make the right 13 decision for collective We always guide and support individuals to showing their potential! Wish to serve: We love serving customer work and always serve with “Yes” spirit for customers to feel the taste and satisfaction each time they go to any restaurants of KFC Vietnam Create outstanding results: At KFC Viet Nam, each work is started with the question “How should we to get the outstanding results?” It's the determination that is the beginning for bold, creative ideas so that each individual performs work with all dedication, ability, responsibility Build basic knowledge: We develop with the desire to explore, to seek knowledge, to learn from the experience in every step of the way that has gone through and applied best what we learned We executed a perfect stability through the establishment of the tool and efficient workflow The outstanding results will come until we promote creative thinking in individuals Promote teamwork: We discuss the plans of the action plan for each job objective We candidly discuss all issues No matter what can not be discussed with the motto always appreciated the value of the positive argument to make good, valuable decisions, closely link Recognizing merit: We attract and retain talents and transmit work momentum, striving by recognizing merit respectfully Joy is to be congratulated as the result of individual / collective and we're always happy to perform recognizing merit 5.2 Planning resource materials - KFC has selected solutions to authorize most decisions of the supply of raw materials to the factories of the company separately but under the supervision of a nerve center, KFC always checks regularly - KFC products are the main ingredients (chicken, mashed potatoes, spices) determined by the headquarter vendor, raw materials are usually materials (bread, beverage puree, vegetable, packing, etc.) Furthermore, KFC uses top-quality materials from reputable suppliers such as Nestle, UBF, Kerry that has made the main strengths for the company PLANNING PRODUCTION MODERATION 14 Objective: - The administrators of KFC in particular and other companies and businesses in general are often deployed to the production moderation of each particular stage to evaluate the results achieved and detect the shortcomings In the process of building service supply that has affected the business performance of the company Through the moderation of the production, leaders and the departments will draw experience and find solutions to improve the manufacturing process to reduce the supply of services at the lowest cost consistent with existing technology and managing quality products well, satisfying customer demand, inspiring for workers to make tireless efforts and dedicate to the company a Specific moderation plans - Pursuant to the company's strategy-through market research, the advantage of the company’s competition, under the operational strategy and implementation of long-term short-term decisions of the company, considered based on the fact through business results of each service area, each store we planned it this way: - For the market forecast production, - Workforce - Inventory level -Work time adjustment - Some other solutions 7: Planning for Quality Management 7.1 The nature of service quality Excellent customer service is the lifeblood of any business You can make promotion or lower the price to acquire new customers as you want, but ff you not keep customer then your business will not make long-term profits Excellent customer service is all what can bring your customers back your business and now sending out funny messages –funny enough to communicate a clear feedback about your business to the customers that then try the product and services you offer If you are a good salesperson, you can sell any item for anyone But the poll to your customer service will determine whether you can sell for that person any other product or 15 not The essence of perfect customer service is to establish a relationship with a customerrelationship that customers feel special and want to pursue How will you establish a relationship? By remembering an authentication secret in excellent customer service and follow it You will be highly appreciated for what you do, not what you say 7.2 Plan for service quality management in restaurants Based on the Rater model about measurement of service quality, service management quality planning includes general requirements: - Reliability: good food, regular supply, long-term, full-on brand spices, food hygiene and safety - Guarantee: Experience in skilled, friendly and polite chefs - For facilities: tidy kitchen, ensuring fresh ingredients, clean furniture, reasonable dining room layout under brand identity standard, polite neatly dressed staff - Standards for customer service for staff at the counter: at store with major salesmen, serving fast, precise and dedicated, in particular: + Proactively inform customers at the end of the transaction and ask the customer's needs, at the end of transaction thank customers and express their desire to serve the customers; + Actively ask for the name, remember the name and call clients’ name during the transaction; + Initiatively suggest, consult more services and products to the relevant cross-sell products and help customers choose products that can bring benefit for customers 16 - For standard for waiters parts: in the shop at least waiters and hygiene staff and delivery staff upon request: + Fast serve the food that customers expect, professional in the eyes of clients + When problems arise, not proactive to make suggestions to serve the needs + Ensure delivery time as agreement Specify the implementation plan: Work Objectives Success Implementation Implemen Deadli Person measure activity tation in ne ments measure charge At the Admini Work - Security officers need to No - Work with ments Within 30 with wear uniform neatly, rightly customer Security services days of end of stration security - Always have an attitude of complain company and with working the and services respect for the customers, ed about security officers security quarter human company guide customers graciously the directly officer day resourc for polite attitude if security es quality of of officers hired security not security officers comply officer with the rules, they will be Working - Fresh raw materials, ensure No - Regularly check changed If check with food hygiene requirements customer food quality and find and compani complain - Work and require wrong process es in the ed about specifically the food ing input the criteria for regulation parts material quality companies that s for the supply of food offer, there is a 2nd time, guarantee immediate - purchase inputs ly change 17 Daily Kitchen with multiple the new vendors to have supplier more choices and comparison Impleme+ Refer to the standards of KFC - - Head of the store, Ensure nting quality service standards and Satisfacti selling controller transaction month the effective practical needs of clients and on of give situations for s from of store, training implement criteria: customer salesperson to January former adminis (coachin proactively notify customers s in practice at the end 2013 employ trative g) for 02 when finishing transaction opinion of morning on received ees (re- personn old sales and ask customer needs, after polls of Saturday weekly 70% coach) el staff and finishing transaction, thank customer - On the basis of minimum and 02 new customers and express the s customer segments, level of months sales desire to serve customers; - Comptroller guides customer for new staff + Initiatively suggest, consult Evaluati for salespeople to satisfactio employ (probatio more services and products to on of understand the n ees n, if any, the relevant cross-sell store package to cross- to products and help customers controlle sell products for replace) choose products that can r to gain customers bring benefit for customers good + Captures the food, the completi prices and the services on attached workflow 18 After Head of Impleme - Dress neatly polite KFC 100% - Sales controllers, There is a nting uniforms customer head of the store weekly the effective - Ensure quick, clean after satisfacti perform coaching evaluation store, training serving customers on to be effectively on of the adminis (coachin - Quick-serve speed, accurate served at every Saturday quality of trative g) for troubleshooting as arising the store morning weekly service of personn service well or at the - Regular monitor each el staff and order service style, employee delivery place consult the opinion at the of customers store, to staff Weekly the base salary Planning steps above are also applied parallel with 5S model to improve the work environment to increase productivity, including: Seiri: Select Seiton: Arrange Seiso: clean Seiketsu: take care (daily remain) Sitsuke: ready (rush hours) References http://mywork.vn http://www.kfcvietnam.com.vn/vn/career/detail/22/van-hoa-kfc http://www.doanhnhan360.com/Desktop.aspx/Thi-truong-360/Hang-hoa-Dich-vu360/KFC_7_nam_chiu_lo_va_chien_luoc_than_trong/ 19 Head of ... capacity is often taken up by 90% because machinery is generally impacted by outside factors Level uses the effective capacity Real capacity = Expected capacity / Design capacity - is capacity that... on capacity Types of capacity - The maximum capacity could be achieved under theoretical conditions that machinery, equipment can operate 24 hours a day and 365 days/ year - This capacity only... capacity - also called the effective capacity - The capacity of the enterprise is seeking to achieve compliance with the standards, processes and technology, operating production capacity, maintenance