KFC
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Introduction
In January 1983, Dick Mayer; the newly appointed CEO of Kentucky Fried Chicken (KFC) focused much of his attention on the challenges he faced concerning KFC-international. As he conferred with KFC-I managers about the problems they face and their opportunities, he became exposed to various ways in which KFC's growth and profitability can be realized overseas. At one end was Loy Weston, the president of KFC's highly successful venture in Japan, who believed that the independence of the spirit of local entrepreneurship is the key factor contributing to the success in Japan, and headquarters' interference would compromise the local management. Back in the headquarters, people like Gary Burhow, (vice president of strategic planning) complained that less control of firm wide effective planning had led to suboptimal financial performance, inconsistent strategies and stalled expansion into the new markets.
The Beginning
KFC Corporation, which is based in Louisville, Kentucky, was founded by Harland Sanders (AKA Colonel Sanders). In 1956, he decided to franchise his chicken recipe and in less than nine years, he was able to sell about 700 franchises. His style of managing the business is by trusting his franchisees and people around him to play fair.
Factors Needed For Growth and Development
Colonel Sanders, as a pioneer in the fast food industry was able to set the standards needed to survive in the business. The most important of these factors is;
o Expansion through franchising; this allowed companies understand operating economies, gain control of operations and it allows franchising fees to enhance by profits.
o Economies of scale; this is another important factor that seriously needs to be taken into consideration...