Analysis Of The Way Of Kfc Operation Management In China

Summary

KFC is the largest western fast food chain in China at present. Since it went into the Chinese market in 1986, its chain stores have almost opened in Shenzhou for 27 years. By 2012, the number of KFC stores had reached 3,000. KFC enlarge so fast in china market. In the world, McDonald's is the most popular by people. While in China, KFC is the leader of the fast food industry. The emergence of KFC in China has not only brought a Western household brand and pure American food and culture, but also brought a new food cooking method and equipment, as well as restaurant operation mode and enterprise management system. KFC's success in China has benefited greatly from having a leadership team that understands how to translate Western management experience and business model into China. KFC's success is also due to its excellent product quality, product quality: KFC's product quality, including the freshness, color, fragrance, taste and temperature of all foods and drinks. The high quality of KFC products comes from the excellent supply chain management provided by suppliers. At the same time, KFC has adopted the chain operation mode in China. The three major competitive strategies of KFC in the Chinese market ('aiming at high-growth market, pre-empting, accelerating expansion'), multi-brand integration and coordination of strategic chain operation and two flexible chain modes ('direct chain' and 'franchise chain') guarantee the system to obtain competition. Advantages lay the foundation, but also from the reaction mechanism to obtain the speed advantage. To maximize the profits of each store in China's rapid development, wide coverage, so that the world is shocked. What magic power does KFC have to make Hamsanders' smile reflect on the land of Shenzhou?

Introduction

Kentucky Fried Chicken Kentucky Fried Chicken, usually referred to as KFC. It is a famous chain of fast food restaurants from the United States. It was founded by Colonel Harland Sanders in 1952. It mainly sells western fast food such as fried chicken, hamburgers, French fries and soda. KFC belongs to Yum Food Group. KFC, headquartered in Louisville, KFC, is the most popular fried chicken restaurant chain in the world. It has more than 14,000 KFC restaurants in more than 80 countries and receives more than 12 million customers every day. The main markets besides the United States include China, Britain, Australia, Korea, Mexico and France, Germany and the Netherlands. KFC is also developing rapidly in important emerging markets such as India, Russia and Brazil with the growth of the local economy. The opening of each new restaurant not only provides more employment opportunities, but also injects economic vitality into its community.

KFC Personnel Organizational Structure Analysis

KFC Store Management Structure

KFC adapted their traditional structure of their outlets that other food chains follow. There is one general manager, the outlet is leaded by the manager and assisted by two assistant managers, and one shift in change supervises the performance of counter workers and kitchen workers.

From its organizational structure, it is a typical linear organization. It has the following advantages.

  • The structure of management is simple and the cost of management is low.
  • The command and command relationship is clear and unified.
  • Quick decision-making and clear responsibility.
  • It is easier to maintain discipline and order.

This linear organizational structure can be said to be very suitable for the large number of KFC stores. On the one hand, it helps to improve the efficiency of daily operation and management of stores, and facilitates the transmission of information and the execution of decision-making instructions. On the other hand, the staff is relatively streamlined, which reduces the cost of management and improves the profitability of stores. It can be said that this linear organizational structure has opened a convenient door for KFC chain stores to open continuously. However, the drawbacks of this linear organizational structure are more prominent.

  • Management is often simple and extensive.
  • Members of the organization only pay attention to the upper hand and the lower hand.
  • The horizontal connection between members and organizational units is poor.

The reason for this phenomenon is that in this linear organizational structure, superior managers only need to manage their subordinates well, and how do their subordinates work and work in place? He may not know it at all. This is the usual commander-like management style, which is also the reason why the daily management of managers is more extensive. Command-and-Control is a common and wide-spread approach to management. This is the primary leadership style of the 20th century and is based on the industrial age of the early part of the century as well as the military leadership influence of two world wars and subsequent regional conflicts.

This style was adopted because efficiency was created by repetitive action, teaching people to obey directives with little or no question and to resist change. It seems to work effectively in factories and especially with assembly-line production environments.

The Command-and-Control style is clearly more autocratic (or authoritarian). Managers who employ this approach prefer to make all the important decisions and to close supervise and control workers.

When it can be effective, this style tends to communicate that leadership does not trust workers; instead, leaders simply give orders that they expect to be obeyed (one-way communication). Further, this approach can communicate that person in charge is the holder of superior wisdom, skill and experience, and they know exactly what they are. T They are doing at all times. Workers, on the other hand, are expected to simply do as they are told.

The control style has certain levels of efficiency and can be expedient. At the same time, it generally devalues individual creativity and depresses internal motivation. People act out of self-preservation and fear, instead of internal inspiration; they are generally not self-motivated or inspired to perform well. With this style it is also gene. Rally true that productivity, and certainly dignity and a sense of accomplishment, are lost in favor of tight control by leadership.

This linear organizational structure enables departments to become good brothers and sisters who live and die together and share honor in their work posts. But after work, they are likely to become strangers walking left and right. Because we usually only work in the position, each of them is responsible, upload and transmit information about the work, and work together to complete the work, but there is little communication outside the work, so it is easy to cause poor horizontal links between organizational units.

In a large sense, there are only two levels of management, namely, management team and waiters. In the case of fewer management levels, it is conducive to the control of the organization by senior managers, and also conducive to the communication of information in the organization. But the management range of managers is too wide and too large. Managers will encounter great difficulties in coordinating the work of subordinates and in effectively contacting subordinates, which makes it difficult for managers to effectively manage more subordinate managers, which limits the management effect of managers.

Although the linear organizational structure limits the management effect, KFC has made the following improvements: 1 undifferentiated management, 2 family-based management and 3 training-based management. It perfectly avoids the drawbacks of the linear organizational structure and makes management play a greater role.

Quality of Products is Paramount

Product quality: The quality of KFC products, including the freshness, color, aroma, taste and temperature of all foods and drinks. The high quality of KFC products comes from the excellent supply chain management provided by suppliers.

Model of Chain Operation

KFC's three differentiated competitive strategies in the Chinese market ('aiming at high-growth market, pre-empting, accelerating expansion'), multi-brand integration and coordination of strategic chain operation and two flexible chain modes ('direct chain' and 'franchise chain') have laid the foundation for gaining competitive advantage, and also obtained the speed from the reaction mechanism. Advantages. Maximize the profit of each store.

A Brief Talk on KFC's Basic Localization

In addition, KFC combines the local culture of China and adopts the corresponding operation plan.

Localization of Products

Since KFC entered China, it has been keenly perceived that Chinese people's eating habits are totally different from those in the West. Suitable is the best, tailor-made product adjustment strategy, so that KFC quickly open up the Chinese market.

Contrast of Eastern and Western Cuisine Culture

China vs United States

  • Chinese people traditionally eat three meals a day, each meal is larger. Americans like to eat more than one meal a day, with a moderate amount of each meal.
  • Chinese people like brown rice and ordinary flour, while Americans prefer pastries made from refined white flour.
  • Chinese people generally like soybean milk, tofu and other soybean products. Americans are not interested in tofu until now.
  • Chinese people like soup very much, but American soup is rather monotonous.
  • Chinese like cooked vegetables while Americans like lettuce.

As an emerging market, China's market prospects are immeasurable. If you want to camp in China, you must change for China! In November 2000, KFC set up the China Food Health Advisory Committee to actively develop products that conform to Chinese dietary habits. In 2005, KFC put forward the slogan 'Change for China, and strive to create a new fast food'.

KFC spared no effort in localizing its products and adopted a three-pronged approach. First, to improve the foreign flavors, such as Mexican chicken rolls, New Orleans roast wings and Portuguese egg tarts; second, to introduce Chinese fast food in line with Chinese consumers' eating habits, such as cold rice mushroom rice, lotus vegetable soup, Shredded Mushroom soup, lean porridge with preserved eggs, wolfberry pumpkin congee; third, to develop food with Chinese regional characteristics, such as Beijing. Old Beijing chicken rolls, Sichuan spicy chicken and Cantonese mutton. KFC so 'accommodate' the Chinese, so that its products are popular across the river north and south.

Localization of Raw Material Purchase

As we all know, in the international fast food industry, McDonald's is undoubtedly the big brother. But why did it lose to KFC in the Chinese market? One important reason is that McDonald's insists on importing raw materials, while KFC is keen on purchasing in China. Most of McDonald's raw materials are imported, resulting in high procurement costs, thereby reducing its profitability. It also caused the frequent price changes of McDonald's products. KFC's local purchasing rate is over 95%, so KFC's purchasing cost is low, the supply of goods is relatively stable, and the price of products is relatively stable. McDonald's has lost out of Macheng in the Chinese market, largely because of its loss in 'grain and grass'.

Personnel Localization

KFC tends to recruit locals when recruiting employees. Employees are local people who are conducive to emotional exchanges and work communication and collaboration between employees. To make employees have a strong sense of belonging is conducive to improving work efficiency and enhancing collective cohesion. This conforms to the hypothesis of social man. People are motivated by social needs, and the social power of collective partners is more important than that of superior supervisors. Only by attaching importance to the social interaction between people and arousing people's enthusiasm through cultivating and forming the sense of belonging of the members of the organization, can we promote the improvement of productivity.

KFC's Sense of Social Mission

KFC has made a lot of money in China, but at the same time, it has also devoted itself to public welfare.

Charitable activities:

  • Donating one yuan to give love and nutrition is one of the most popular public welfare projects in China at present. Through the activities of donating one yuan to give love and nutrition to primary school students in disaster areas, through restaurants throughout the country in Baisheng, consumers are encouraged to donate one yuan per person to help children in disaster areas grow healthily.
  • Emergency donation of 2 million yuan to Yushu students, KFC of China. Based on an urgent decision made on April 15 by China Business Department of Baisheng Catering Group, 2 million yuan was donated to the disaster area through the China Foundation.
  • The 'China KFC Dawn Fund' is a special public welfare fund entrusted by Baisheng Investment Co. , Ltd. and its affiliated company, the China Youth Development Foundation, to subsidize impoverished college students.

The social responsibility of enterprises determines the necessity of their existence. The greater the social responsibility, the stronger the necessity of the existence of enterprises, and the more valuable the enterprises are. KFC, as the largest fast food chain in China, has actively assumed the corresponding social responsibility. While participating in public welfare activities, KFC has also made its brand value recognized by the public. And established a good corporate image.

Conclusion

KFC, as a 'foreign monk', did recite the Sutra in China. While the Chinese society pays attention to the continuous improvement of market economy, the market competition is becoming increasingly fierce. KFC's success in China has set a good example for domestic catering industry. Whether in management or in product quality, KFC devotes its efforts to making products, using the least money in management, and playing a role in the management of enterprises. We should actively learn, learn from, and achieve 'foreign for Chinese use'.

References

  1. https://www. bartleby. com/writing/document/FKMSBZD386VS
  2. https://www. studymode. com/essays/Kfc-Adapted-Their-Traditional-Structure-Of-76701094. html
  3. https://max. book118. com/html/2017/0610/113051766. shtm
  4. https://zhidao. baidu. com/question/114009306. html
  5. https://wenku. baidu. com/view/4fb5e303f56527d3240c844769eae009581ba281. html
10 December 2020
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