Business

Strengths

- Brand Equity
- 2nd Only to McDonald’s in Foreign Sales $550M
- Strong Cash Flows
- Generate $1B each year
- Very strong Internationally UK, Middle East, Thailand, China, Japan, Korea, Mexico
- Strong Franchise and License Fee revenues for cash flow.
- Interactive relationship marketing
- Strong trademarks recipes
- Ranks highest among all chicken restaurant chains for its convenience and menu variety.
- Largest multibranded restaurant in the world 100 KFC and Pizza Hut combos 600 KFC and Taco Bell combos.

Weaknesses

- Recent drop in sales for KFC
- Failed to rank in top 20 in growth in 2000.
- Same Store sales declined
- Lack of point of scale scanning system
- Admitted inability to provide quality service
- Lack of knowledge abut their customers
- Lack of relationship building with employees, customers and suppliers i.e. Chick-fil-a
- Question of over franchising leads to loss of control and quality
- Lack of focus on R&D

Opportunities

- Growth of 18-24 age demographic
- Increase in U.S. median income
- International beef scare from mad-cow and hoof and mouth disease
- Home Meal Replacement Market will exceed an estimated $577 billion by 2020
- Targeting to growing ethnic markets – Asian American and Hispanic
- New Leadership
- Domestic markets
- Updating restaurants
- Balanced menu
- Customer focus
- Increase delivery service

Threats

- Rated 83 out of 100 in terms of competitiveness
- Increasing wage rates directly affect menu prices
- 85% annual employee turnover for fast –food market
- Supermarkets and new competitors threaten HMR market
- International Exchange Rates
- Health Trend away from fried foods
- Changing customer demands
- Quality of Service Focus