Scm of Kfc

13161 Words Nov 24th, 2012 53 Pages
Supply Chain Management of KFC - December 29th, 2010
KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept[2] of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.[citation needed]
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By 1964, the colonel had tired of running the day to day operations of the business and was eager to concentrate on public relations issue. He sold the business to two Louisville business people Jack Massey and John Young Brown, Jr. for $2 million.
During the next five years, Massey and Brown concentrated on growing KFC’s franchise system across the U.S. in 1966 they took KFC public, and the company was listed on the New York Stock Exchange. By late1960’s a strong foothold had been established in the United States, and Massey and Brown turned their attention to international markets. In 1969, a joint venture was signed with Initsubishi shoji kaisha, Ltd., in Japan, and the right to operate 14 existing KFC franchises in England were acquired. Subsidiaries were also established in Hong Kong, South Africa, Australia, New Zealand, and Mexico. By 1971, KFC had 2,450 franchises and 600 company owned restaurants worldwide, and was operating in 48 countries.

2. Stability of Demand for Products

Many KFC’s problems during the late 1980’s surrounded its limited menu and its inability to quickly bring new products to market. As KFC entered 1996, it grappled with a number of important issues. During the 1980’s, consumers began to demand healthier foods, and KFC was faced with a limited menu consisting mainly of fried foods. In

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