Kfc Swot and Strategic

5018 Words Apr 27th, 2011 21 Pages
TABLE OF CONTENTS

1.0 COMPANY BACKGROUND 2 2.0 WHAT IS SWOT ANALYSIS 5 3.0 FINANCIAL STATEMENT FOR KFC HOLDINGS (MALAYSIA) BHD 6 3.1 Conclusion of financial ratio 13 4.0 SWOT ANALYSIS 14 4.1 STRENGTHS 15 4.2 WEAKNESSES 20 4.3 OPPORTUNITY 23 4.4 THREAT 25 5.0 COMMENT AND RECOMMENDATION 28 6.0 CONCLUSION 29 7.0 REFERENCES 31

1.0 COMPANY BACKGROUND
KFC Corporation (KFC) was founded and also known as Kentucky Fried Chicken with began by Colonel Harland Sanders. KFC is the famous chain of fast food restaurants in Malaysia. Colonel Harland Sanders discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. In
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It helps us to evaluating a company’s resource capabilities, relative cost position, and competitive strength versus rivals. 1. Profitability Ratios

a) Gross Profit Margin = Revenue-Cost of Goods SoldRevenue 2008 | 2009 | = 2,179,788-1,064,5482,179,788 ×100% = 51.16% | = 2,297,431-1,078,4982,297,431 ×100% = 53.06% |

The gross profit margin shows the percentage of revenue available to cover operating expenses and yield a profit. It is strong because the percentage is increase from 51.16% in year 2008 compare to 53.06% in year 2009 in KFC HOLDINGS (MALAYSIA) BHD.

b) Operating Profit Margin = Operating IncomeRevenue 2008 | 2009 | = 175,0162,179,788×100% = 8.03% | = 195,4542,297,431 ×100% = 8.51% |

The operating profit margin is strong because the percentage is increase from 8.03% to 8.51%. It shows that the profitability of current operations without regard to interest charges and income taxes in year 2009 is more than in year 2008. c) Net Profit Margin = Profit After TaxesRevenue 2008 | 2009 | = 120,3502,179,788 ×100%= 5.52% | = 132,7972,297,431 ×100%= 5.78% |
Net profit margin show after tax profits per dollar of sales. It is strong because the percentage is increase from5.52% in year 2008 compare to 5.78% in year
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