Sample Management Paper on Critical analysis of Leadership and Strategy of KFC Company

Having the capacity to manage an organization successfully is crucial to achieving the objectives
of a business or organization. There are two distinct responsibilities when it comes to
management: decision-making and leadership. The first function is responsible for the
formulation of organizational objectives, the development of operational strategies, and the
planning of the execution process. According to Uddin (2020), leadership is defined as how
senior management reacts to changes in the external environment to accomplish organizational
objectives. Various factors, including the surrounding environment, will have an impact on
whether or not a substantial role will be performed. Kentucky Fried Chicken is a fast-food chain
business based in Kentucky in the United States of America (Husna et al., 2020). Despite the fact
that the organization started in a humble setting, it has evolved to incorporate multiple branches
around the U. S. and even outside of their boundaries. Because of the strong leadership shown by
its executives, this organization has achieved success. A significant emphasis of this study will
be the principles of leadership that have led to the organizational brilliance of Kentucky Fried
Chicken and the role of leadership on decision-making during the Covid-19 Pandemic.

 

2.0 Introduction
KFC is one of the most well-known and successful fast-food franchises globally. Chicken and
other poultry-based dishes are the focus of this section. Various individuals direct several

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organization divisions, and the organization is split into multiple sections (Husna et al., 2020).
When it comes to picking branch managers, the company's headquarters is very picky since it is
not just anybody who can be a leader in this business. KFC has accepted gender equality across
the board. Consequently, the corporation has indeed been able to diversify its staff. Leadership is
often a genetic attribute that a small population can only inherit. This is true to some extent but
does not discount the potential of persons who were not created leaders becoming successful
leaders.
According to Ogdol (2018), the conduct of a leader is essential since it may have an impact on
their performance as well as the performance of their subordinates. As with KFC, the branch and
department heads at the chain's restaurants and offices are honest and loyal. This is a critical
component of KFC's business model, given that the company has a proprietary formula that
should never be disclosed to the general public. Therefore, if the formula is divulged to a
manager who is not committed to this firm, that leader is likely to share it with rivals, resulting in
the organization losing many clients. Furthermore, a leader's conduct should be mirrored in the
behavior of their subordinates since one cannot preach water while drinking wine. An effective
leader should serve as a role model for their subordinates since this inspires them to respect
them.

3.0 Organizational design and structure
KFC's organizational structure is organized into six tiers, representing a functional area. The
organizational hierarchy begins with a management board comprising the president, regional
directors, and CFO. The following layers of management to be achieved are the general

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managers, senior directors, heads of department, team members, and, finally, the workers. The
general managers are the first to be reached.

Figure 1: KFC’s organizational structure.
A top-to-bottom instruction and guiding system are completely apparent at KFC, with
information being delivered from the head director's office to the unit director's office. After that,
the personnel would be given the instructions (Panjaitan, 2018). To communicate with their staff,
managers use the KFC gateway email, which they then print out as a note and give out or display
on the administrative notice board of the KFC store.
When a worker has an issue, their unit manager is notified promptly. Workers' unions are
responsible for providing feedback to the company via teams. To communicate directly with
KFC's chief executive officer, they use the KFC portal email, which can be accessed by all
regional directors and is constantly reviewed by the management board. The management board

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is responsible for the majority of organizational decision-making (Panjaitan, 2018). The
managers and supervisors that meet with the firm's president make up the corporation's executive
committee. Local employment-related decisions are also delegated to the general manager, who
retains complete authority in this regard. Following the KFC unit branches' activities might also
help him resolve branch concerns. The region's general manager is responsible for a particular
number of units. The unit manager is entirely responsible for operating and managing a KFC
location. He is assisted by a shift manager and works in a team environment. The general
manager is the one who has ultimate authority over them all. Additionally, KFC's website has a
feature that allows customers to provide feedback directly to the company's unit managers and
executives.

4.0 Organizational Culture of KFC
According to Rahman (2019), the organizational culture comprises particular pre-defined
policies that serve to guide and steer people and create a feeling of direction to the firm. A
complicated system that consists of shared ideas, values, and assumptions that determine the
conduct of people inside an organization, organizational culture is defined as follows: KFC's
vision statement is concise and to the point, as is its mission statement. For this reason, the
company has avoided presenting its views and positions to the wider populace and other key
stakeholders via long speeches or talks. Vision statements should be brief and thorough in
helping stakeholders understand the company's philosophy and business strategy. They should
describe the substance of the business and its future goals to convey the essence of the
organization.

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The KFC has successfully established a reasonable balance between mean and goal alignment. It
emphasizes the importance of accomplishing the goals while encouraging workers to take action
only if the actions are worthwhile, investing their time and effort in completing (Rahman, 2019).
As a result of concentrating on the average orientation, KFC guarantees that its staff adopts
ethical and integrated approaches to achieving its objectives, as the company regards integrity as
its basic value (Megawaty, Saeni, and Baottong, 2021). The option to promote healthy
competition is provided to employees so that they are only supporting competitiveness.
Moreover, employees at KFC are urged to put out their utmost effort to meet the goals they have
been assigned. Workers are not punished for new ideas or for taking a leap of faith. KFC has
indeed been able to successfully lessen failure-related stress in its workforce by using this
strategy.
When it comes to responding promptly to customer requests, the company's senior management
is devoted, but they also openly advocate the need to retain an ethical perspective. Integrity and
honesty are woven into every part of the company's operations (Megawaty, Saeni, and Baottong,
2021). An integral and consistent corporate culture has allowed the company to capitalize on its
morally sound corporate image as nothing more than a competitive edge over its rivals.
An examination of KFC's organizational culture has shown that a rigorous work culture defined
as a hierarchy structure and a comprehensive level is more commonly connected. It shows that
the management keeps control over decision-making and exerts direct control over the behavior
of the personnel at all times (Husna et al., 2020). Incentives of many kinds, including monetary
and non-monetary ones, are used to promote employees' innovative and creative work habits, but
the inclination of companies to impose rigid work rules limits their freedom and agency.

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However, management has opted to gradually move away from a hierarchical to a wide range of
institutions over the coming years in response to the rising desire for independence and
empowerment among employees. Organizational power is being delegated from the top-down as
a consequence of these changes, and a new equilibrium between rigidity and fluidity is being
achieved. The company promotes a professional work ethic among its employees—no need to
behave in a certain way. Individual variations are embraced at KFC, where variety is
acknowledged and promoted (Husna et al., 2020). Make use of the opportunities offered by
constructive disagreement. It is vital to maintain a professional culture in a wide-ranging
company environment, such as KFC's.
KFC's corporate culture reveals that the company prefers the liberal side of life. It's not
uncommon for KFC to have open lines of communication and a culture that's both adaptive and
diverse. KFC's ability to manage an extensive and varied workforce is another competitive edge.
KFC has used its varied workforce's unique talents, abilities, and experiences thanks to an
inclusive organizational structure (Megawaty, Saeni, and Baottong, 2021). When it comes to
adapting quickly to customers' needs in different parts of the world, worldwide firms like KFC
place great importance on these two attributes.

5.0 Leadership Strategies Employed in KFC
5.1 Cost leadership Strategy
Using an integrated low-cost/differentiation approach, KFC is able to differentiate itself from the
competition while still engaging on value to the economies of scale it has achieved by using its
brand image, original taste, and recipes (Omer, 2018). This approach aims to gain a competitive

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advantage by reducing the cost of products and services. KFC's primary generic strategy in
different consumer sectors is maintaining a low price advantage over competitors.
5.1.1 When and how KFC employs a cost-cutting approach
Sustaining the corporation's market-leading position via efficient value chain management is a
significant objective of this strategy (Omer, 2018). Affluent consumers, who make for the
majority in most countries' capita consumable market mix in terms of market share, are KFC's
target audience. Cost leadership appears to be the most successful strategy for satisfying the
needs of middle-class clients, who place a premium on pricing.
As per Wamalwa (2018), high brand awareness, sales volumes, and a solid competitive
advantage resulted from KFC's focus on its products' affordability and ease of availability. To
reach sales targets and cope with the rivalry from its closest competitor, KFC constantly offers
discounts and coupons while maintaining cheap pricing by reducing production costs and
improving supply chain efficiency. Customers will be more likely to purchase the brand's items
due to these advertising efforts.
KFC's general cost leadership strategy has several benefits when developing brand recognition,
expanding customer base, increasing consumption, and reaching sales targets (Wamalwa 2018).
KFC However, to maintain its competitive advantage, KFC also utilizes a strategy of
differentiation is due to cost leadership, which is getting more crowded in the fiercely
competitive environment consumer market.
5.2 Differentiation Strategy as utilized in KFC
Another common strategy for establishing a competitive edge is differentiation. KFC's
management uses differentiation and cost leadership to achieve its growth goals.

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5.2.1 When and how KFC employs its differentiation strategy
KFC's management strategy goal in using this technique is to differentiate itself from
competitors by introducing innovation and addressing the growing health concerns of consumers.
For instance, KFC has increased its product selection due to closely monitoring evolving
customer satisfaction to differentiate itself from competitors and widen the reach of potential
customers inside the company (Omer, 2018). Because of the combination of uniqueness and
price leadership, KFC has been able to build an extensive and devoted customer base.
KFC management frames their product offerings in a way that makes them special out and
distinguishes them from the competition by employing a generic differentiation method to
differentiate them (Omer, 2018). To reduce the strain imposed by rival brands on the company's
well-established brand and strong market position, it adopts uniqueness as a marketing approach.
Investing heavily in advertising, advertising, and celebrity endorsements, KFC exists exclusively
for the goal of differentiating itself from competitors in the food industry.

6.0 Influence of KFC Leadership on Decision-Making during the Covid-19 Epidemic
As the Covid-19 epidemic has swept the whole globe by storm, companies have been forced to
respond with lightning-fast response times. There is no exception in the case of the fast-food
restaurant brand KFC. After closing its take-out and dine-in outlets throughout the majority of
the Gulf Region and the rest of the world, KFC must educate and encourage consumers that they
can make orders safely and successfully on the KFC website (Motoc, 2020). KFC introduced a
new contactless shipping service in a short period to respond to increasing social distancing
habits and guarantee that its customers were comfortable placing their orders. It was a passionate
plea from the company, urging people to remain at home and be safe. KFC made advantage of

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Facebook's Dynamic Ads' powerful targeting capabilities to keep its brand front and center in
customers' thoughts until it reopens its doors and welcomes everyone back.
6.1 Safety First
A new contactless delivery system was introduced by KFC immediately after learning of the
threat of coronavirus in the Middle East, as well as a broad range of additional cleanliness and
safety measures, all of which were based on KFC's global KFC network. Contactless delivery
was used by KFC even before social distance became the norm so that customers could purchase
with complete confidence (Motoc, 2020). Customers may enjoy their meal in the knowledge that
they are contributing to their safety and surroundings thanks to the contactless delivery system,
which completely removes the necessity of person-to-person interaction between the delivery
driver and the client.
When the restaurant initially began providing its contactless service, many customers were
unsure about what they were getting themselves into. In the case of those who are used to human
connection, having their meal left for them might seem a bit impersonal. According to the
company, when individuals realized why KFC was introducing the technique, their reaction was
extremely favorable (White, Nieto, and Barquera, 2020). The clarity in communication is vital to
KFC, which believes that you should inform people what to anticipate and, more significantly,
why you are doing what you are doing. If you concentrate on establishing trust, you will reap the
benefits.
6.2 Spreading the Word
The Kentucky Fried Chicken Company (KFC) used data-driven marketing to engage customers
and encourage them to buy food online to assist alleviates the effect of shop closures. In

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collaboration with its marketing firm Hearts & Science, the company took use of Facebook's
Dynamic Ads offering to customize content depending on the interests and characteristics of
each consumer. According to the company, the delivery of messaging was based on indications
relevant to user behavior on KFC's website (White, Nieto, and Barquera, 2020). KFC's e-
commerce investments became more effective due to the increased efficiency, with the product's
cost per order reducing by 90 percent, resulting in significant cost savings for the firm due to the
increased efficiency.

7.0 Conclusion
Instead of pursuing an excessive cultural orientation, successful organizations attempt to find the
right balance in order to create an influential culture. This is what KFC's corporate culture study
demonstrates. Since its inception, Kentucky Fried Chicken has cultivated a solid corporate
culture that is well-received by its diverse workforce. Organizational culture may be utilized to
achieve strategic objectives if a company can combine its structures, culture, and business
strategy effectively and comprehend the complex link between underlying assumptions, core
values, and observable behaviors. The KFC Corporation is excellent work culture and has
maintained its position in a highly competitive market.

8.0 References

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Amoako, G.K., Caesar, L.D., Dzogbenuku, R.K. and Bonsu, G.A., 2021. Service recovery
performance and repurchase intentions: the mediation effect of service quality at
KFC. Journal of Hospitality and Tourism Insights.
Husna, N., Kee, D.M.H., Amirah, N.W., Syazreeza, R., Fatihah, N.A., Pandey, S., Agnihotri, S.
and Pandey, R., 2020. How organizational management affect employees’ motivation and
service quality: A study of Kentucky Fried Chicken (KFC). International Journal of
Applied Business and International Management (IJABIM), 5(2), pp.73-81..
Megawaty, M., Saeni, N. and Baottong, M.H., 2021. Organizational Culture and Leadership
Style against Employee Perfor-mance. Point Of View Research Management, 2(1), pp.59-
65.
Motoc, A., 2020. Crisis management and resilience for restaurants in Romania during the
COVID-19 pandemic. Management Dynamics in the Knowledge Economy, 8(4), pp.435-
449.
OGDOL, R.E.R., 2018. IMPACT OF LEADERSHIP STYLES ON EMPLOYEE JOB
SATISFACTION WITHIN QUICK SERVICE RESTAURANTS (QSRs) in the
UAE (Doctoral dissertation, Cardiff Metropolitan University, United Kingdom).
Omer, S.K., 2018. SWOT ANALYSIS; THE TOOL OF ORGANIZATIONS STABILITY
(KFC) AS A CASE STUDY. Journal of Process Management. New Technologies, 6(4).
Panjaitan, F.A.B.K., 2018. EFFECT OF PERCEPTION OF PRICE, PERCEPTION OF
PRODUCT QUALITY, AND CUSTOMER RELATIONSHIP MANAGEMENT,
TOWARDS KFC CUSTOMER SATISFACTION IN SURABAYA.

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Rahman, M.M., 2019. Cultural Differences, Strengths, Weaknesses and Challenges of Kentucky
Fried Chicken (KFC)–A Comparison between and United Kingdom (UK)
Malaysia. Global Journal of Management And Business Research.
Tien, N.H., 2019. Customization and Standardization of the Business Strategy of Foreign
Enterprises in Vietnam–the McDonald’s Case and the Fast Food Sector.“. International
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Uddin, S.M., 2020. Operational strategies and management of KFC: An enquiry. EPRA
International Journal of Research and Development (IJRD), 5(4), pp.172-179.
Wamalwa, C.N., 2018. Franchising as an Operational Strategy by Java Restaurants Within
Nairobi City County (Doctoral dissertation, University of Nairobi).
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in the times of COVID-19. Obesity (Silver Spring, Md.).