Objective of the Kentucky Fried Chicken (KFC) have two objectives are stated objective and implied objective. First objectives in the stated objective are product development. In this objective the KFC do the increase variety on menu, introduce desert menu and introduce buffet to restaurants. Second objectives from the stated objective is introduction on the Neighborhood Program with menu items target African Americans in major cities with the items of greens, macaroni and cheese, peach cobbler and red beans and rise. Besides that, menu items targeting Hispanics in major cities with the items of fried plantains, flan and tress leeches.

Others objectives is implementation on non-traditional units including the shopping mall food courts, universities, hospitals, airports, stadiums, amusement parks, office building and mobile units. After that, in this objectives want to increase profitability of KFC through the reduced overhead costs, increased efficiencies, improved customer service, cleaner restaurants, faster and friendlier service and continued high quality products. Also have to resolve franchise problems in the United States.

In implied objectives have four objectives. First objective is expansion of international operations to provide the increased percentage of overall sales growth and increased percentages of profit growth. Also want to increased expansion of franchises into Mexico. The next objective is expansion of franchise operation beyond Central America, continued promotion of healthier image through removal of the world “fried” from the name and to improve menu selection of rotisserie.

Industry analysis is important to unusual for a firm in a troubled industry to perform well. The economic structure of an industry is not an accident. It is complexities are the result of long term social trends and economic forces. But its effects to the business manager are immediate because it determines the competitive rules and strategies to use. Five forces that are widely use to assess the structure of any industry. The five forces are the bargaining power of supplier, bargaining power of the buyers, threat of new entrants, threat of substitute and rivalry among competitors. The strength of the five forces determines the profit potential in an industry by influencing the price, costs and required investment of business it is the element of return on investment. Stronger forces are associated with a more challenging business environment.

In the first forces is bargaining power of suppliers that’s means any business requires inputs such as labor, parts, raw, materials and services. The cost of inputs can have a significant effect to company’s profitability. Whether the strength of suppliers represent a weak or string force thing on the amount or bargaining can exert and ultimately on how can influence the terms and conditions of transaction in their favor. Besides that’s, to reducing the bargaining power of suppliers are reduce inventory costs by providing just in time delivers, enhance the value of goods and services supplied use of information about customer needs and preferences and speed the adoption of new technologies.

Second forces is bargaining power of buyers that’s the power of buyers describe the effect that the customers have on the profitability of the business. The transaction between the seller and the buyer creates value for both parties. Buyers have more power when the industry has many small companies supplying the product and buyers are few and large. After that the customers have access to and are able to evaluate market information. To reducing the bargaining power of buyers are increasing their loyalty to the business through partnerships or loyalty programs, selling directly to customers, or increasing the inherent or perceived value of a product by adding features or banding.

The next forces of the industry are threat of new entrants that’s means the new entrants is the possibility that new firms will enter the industry. New entrants bring a desire to gain market share and often have significant resources. Analyzing the threat of new entrants involves examining the barriers to entry and the expected reactions of existing firms to new competitors. These barriers protect the companies already in business by being a hurdle to those trying to enter the market. Entry barriers are unique for each industry and situation, and a change over time. The threat of new entrants is greatest when the processes are not protected by regulations or patents and competitors may be scared away when the learning curve is steep, competitors will be attracted to an industry where the production process is easily learned.

The threat of substitutes is forces of industry. Be aware that substitute products can come in many shape and size, and do not always come from traditional competitors. Products from one business can be replaced by products from another. Substitute products are those that can fulfill a similar need to the one product fills. Substitutes are a greater threat when the products does not offer any real benefit compared to other products. After that, it is easy for customers to switch. Means that’s a grocer can easily switch from paper to plastic bags for its customers, but bottler may have to reconfigure its equipment and retains its workers if it switches from aluminum cans to plastic bottles. To reducing the threat of substitutes is using tactics such as staying closely in tune with customer preference and differentiating the product by branding.

The last forces are rivalry among competitors. Competition is the foundation of the free enterprise system yet with small business even a little competition goes a long way. Because company in an industry is mutually dependent, actions by one company usually invite competitive retaliation. Rivalry among competitors is often the strongest of the five competitive forces, but can vary widely among industries. If the competitive force is weak, companies may be able to raise prices, provide fewer products for the price, and earn more profits. The most intense rivalries occur when one firm or a small number of firms have incentive to try and become the market leader or when the market is growing slowly or shrinking. To reducing the threat of rivals is employing a variety of tactics. To minimize price competition, distinguish the products from the competitors by innovating or improving features.

WHAT IS KFC

KFC Corporation founded and also known as Kentucky Fried Chicken is a chain of fast food restaurants based in Louisville, Kentucky. KFC has been a brand and operating segment, called a “concept”, of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, through the idea of KFC’s fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, fir its signage, packaging and advertisement in the United State as part of a new corporate rebranding program, newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage.

Since its inception, KFC has evolved through several different organizational changes. These changes were brought about due to the changes of ownership that followed since Colonel Sanders first sold KFC in 1964. In 1964, KFC was sold a small group of inventors that eventually took it public. Heublein, Inc, purchased KFC in 1971 and was highly involved in the day to day operations. R.J. Reynolds then acquired Heublein in 1982. R.J. took a more laid back approach and allowed business as usual at KFC. Finally, in 1986, KFC was acquired by PepsiCo, which was trying to grow is quick serve restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut and KFC. The PepsiCo management style and corporate culture was significantly different from that of KFC.

By the end of 1994, KFC was operating 4 258 restaurants in 68 foreign countries. KFC is the largest chicken restaurant and the third largest quick service chain in the world. Due to market saturation in the United States, international expansion will be critical to increased profitability and growth. The companies of KFC have more than 36 000 locations around the world. The company is ranked number 239 on the Fortune 500 list, with revenues in excess on $11 billion in 2008. Every day, more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. The companies of KFC more than 15 000 units around the world.

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. A SWOT analysis must first with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

After that, in SWOT analysis have the strengths, weaknesses, opportunities and threats. The strengths are attributes of the person or company that are helpful to achieving the objectives. The weaknesses are attributes of the person or company that are harmful to achieving the objectives. After that, the opportunities means external conditions that are helpful to achieving the objectives and the last is threats means that external conditions which could do damage to the objectives.

In the strength have the lack of secondary trading such as sukuk flexibility of the Syariah, Syariah Supervision, advantages of religious preposition, less use of money for speculative purpose, divine sources, Islamic rating agencies, morale and commitment to serve, huge amount of saving, innovative aspect, location wise and geographically, transparency, justice and fairness, according standards, quality of service, legal and regulatory framework and information system.

After that, the weaknesses have are lack of standardization, reverse engineering of conventional product, there are differences in theory and practice, lack of Islamic gedging mechanism, no fixed obligations, unresolved fiqh issue, small percentage of profit loss sharing product, lack of qualified personnel, time or season factors, disadvantages of proposition, divergence of Shariah opinion and lack of Shariah compliant investment avenue.

The opportunities have the technological advances, Islamic is a complete solution, the growth of socially responsible investing, faith based customer, large potential ahead in retail, corporate and investment banking, potential relating to sukuk, better customer relations, serving for all potential specific sectors, potential in fund management and provide innovative product.

The last is threats have the global financial crisis, economic uncertainty in global market, market demand, shortage of recourses, lack of sustainable financial backing, intense competition from the conventional institutions, paucity of 100% Syariah compliant solution, liquidity and monetary management, a lot legislation is required, lack of awareness and understanding of Islamic financial product and sophisticated conventional financial system.

CALCULATION

KFC

NAB

ALL ORDINARIES

 

DATE

ADJ CLOSE

RETURN

ks-k bars

(ks-k bars)2

1

1/6/2003

3.5

 

 

 

2

1/13/2003

3.6

-0.012234456

-0.011218519

0.0001258552

3

1/20/2003

3.78

-0.021189299

-0.020173361

0.0004069645

4

1/27/2003

3.62

0.018783229

0.019799167

0.0003920070

5

2/5/2003

3.52

0.012165907

0.013181845

0.0001737610

6

2/10/2003

3.46

0.007466565

0.008482502

0.0000719528

7

2/17/2003

3.12

0.044921505

0.045937442

0.0021102486

8

2/24/2003

3.5

-0.04991345

-0.048897513

0.0023909667

9

3/3/2003

3.5

0

0.001015938

0.0000010321

10

3/10/2003

3.46

0.004991946

0.006007883

0.0000360947

11

3/17/2003

3.4

0.007597182

0.008613119

0.0000741858

12

3/24/2003

3.46

-0.007597182

-0.006581244

0.0000433128

13

3/31/2003

3.42

0.005049993

0.00606593

0.0000367955

14

4/7/2003

3.46

-0.005049993

-0.004034055

0.0000162736

15

4/14/2003

3.42

0.005049993

0.00606593

0.0000367955

16

4/21/2003

3.5

-0.010041938

-0.009026001

0.0000814687

17

4/28/2003

3.5

0

0.001015938

0.0000010321

18

5/5/2003

3.5

0

0.001015938

0.0000010321

19

5/12/2003

3.48

0.0024888

0.003504738

0.0000122832

20

5/19/2003

3.48

0

0.001015938

0.0000010321

21

5/26/2003

3.48

0

0.001015938

0.0000010321

22

6/2/2003

3.5

-0.0024888

-0.001472863

0.0000021693

23

6/9/2003

3.66

-0.019413041

-0.018397103

0.0003384534

24

6/16/2003

3.66

0

0.001015938

0.0000010321

25

6/23/2003

3.6

0.007178585

0.008194522

0.0000671502

26

6/30/2003

3.56

0.004852503

0.005868441

0.0000344386

27

7/7/2003

3.8

-0.028333599

-0.027317661

0.0007462546

28

7/14/2003

3.76

0.004595752

0.005611689

0.0000314911

29

7/21/2003

3.86

-0.01139946

-0.010383522

0.0001078175

30

7/28/2003

3.94

-0.008908917

-0.007892979

0.0000622991

31

8/4/2003

4

-0.00656377

-0.005547832

0.0000307784

32

8/11/2003

3.98

0.002176919

0.003192857

0.0000101943

33

8/18/2003

4.38

-0.041591038

-0.040575101

0.0016463388

34

8/25/2003

4.48

-0.009803903

-0.008787966

0.0000772283

35

9/1/2003

4.44

0.003895044

0.004910982

0.0000241177

36

9/8/2003

4.46

-0.001951889

-0.000935951

0.0000008760

37

9/15/2003

4.2

0.026085568

0.027101506

0.0007344916

38

9/22/2003

4.28

-0.008194479

-0.007178541

0.0000515314

39

9/29/2003

4.22

0.006131318

0.007147256

0.0000510833

40

10/6/2003

4.26

-0.004097148

-0.00308121

0.0000094939

41

10/13/2003

4.46

-0.01992526

-0.018909322

0.0003575625

42

10/20/2003

4.64

-0.017183122

-0.016167184

0.0002613778

43

10/27/2003

4.84

-0.018327381

-0.017311443

0.0002996861

44

11/3/2003

4.8

0.003604124

0.004620062

0.0000213450

45

11/10/2003

4.5

0.028028724

0.029044661

0.0008435924

46

11/17/2003

4.44

0.005829544

0.006845481

0.0000468606

47

11/24/2003

4.36

0.007896481

0.008912419

0.0000794312

48

12/1/2003

4.3

0.006018034

0.007033971

0.0000494768

49

12/8/2003

4.26

0.004058856

0.005074794

0.0000257535

50

12/15/2003

4.28

-0.00203417

-0.001018232

0.0000010368

51

12/22/2003

4.26

0.00203417

0.003050108

0.0000093032

52

12/29/2003

4.24

0.002043743

0.00305968

0.0000093616

53

1/5/2004

4.3

-0.006102599

-0.005086661

0.0000258741

54

1/12/2004

4.62

-0.03117352

-0.030157582

0.0009094798

55

1/19/2004

4.66

-0.003743941

-0.002728003

0.0000074420

56

1/26/2004

4.6

0.005628085

0.006644023

0.0000441430

57

2/4/2004

4.62

-0.001884144

-0.000868206

0.0000007538

58

2/9/2004

4.38

0.023167865

0.024183803

0.0005848563

59

2/16/2004

4.36

0.001987621

0.003003559

0.0000090214

60

2/24/2004

4.48

-0.011791525

-0.010775587

0.0001161133

61

3/1/2004

4.42

0.005855745

0.006871682

0.0000472200

62

3/8/2004

4.44

-0.001960701

-0.000944763

0.0000008926

63

3/15/2004

4.3

0.013914515

0.014930452

0.0002229184

64

3/22/2004

4.3

0

0.001015938

0.0000010321

65

3/29/2004

4.3

0

0.001015938

0.0000010321

66

4/5/2004

4.5

-0.019744058

-0.01872812

0.0003507425

67

4/12/2004

4.68

-0.017033339

-0.016017402

0.0002565572

68

4/19/2004

4.6

0.007488021

0.008503959

0.0000723173

69

4/26/2004

3.78

0.085266032

0.08628197

0.0074445783

70

5/3/2004

3.74

0.004620198

0.005636135

0.0000317660

71

5/10/2004

3.72

0.002328662

0.0033446

0.0000111863

72

5/17/2004

3.56

0.019092942

0.02010888

0.0004043670

73

5/24/2004

3.74

-0.021421604

-0.020405667

0.0004163912

74

5/31/2004

3.7

0.004669878

0.005685816

0.0000323285

75

6/7/2004

3.68

0.002353905

0.003369843

0.0000113558

76

6/14/2004

3.58

0.011964792

0.01298073

0.0001684993

77

6/21/2004

3.44

0.017324584

0.018340522

0.0003363747

78

6/28/2004

3.24

0.026013432

0.02702937

0.0007305868

79

7/5/2004

3.18

0.00811789

0.009133828

0.0000834268

80

7/12/2004

3.32

-0.018710964

-0.017695026

0.0003131139

81

7/19/2004

3.3

0.002624144

0.003640082

0.0000132502

82

7/26/2004

3.2

0.013363962

0.014379899

0.0002067815

83

8/2/2004

3.22

-0.002705893

-0.001689956

0.0000028560

84

8/9/2004

3.2

0.002705893

0.003721831

0.0000138520

85

8/16/2004

3.12

0.010995384

0.012011322

0.0001442719

86

8/23/2004

3

0.017033339

0.018049277

0.0003257764

87

8/30/2004

3.14

-0.019808393

-0.018792456

0.0003531564

88

9/6/2004

3.14

0

0.001015938

0.0000010321

89

9/13/2004

3.16

-0.002757435

-0.001741497

0.0000030328

90

9/20/2004

3.34

-0.024059384

-0.023043446

0.0005310004

91

9/27/2004

3.3

0.005232527

0.006248465

0.0000390433

92

10/4/2004

3.34

-0.005232527

-0.004216589

0.0000177796

93

10/11/2004

3.42

-0.010279639

-0.009263702

0.0000858162

94

10/18/2004

3.36

0.007686829

0.008702766

0.0000757381

95

10/25/2004

3.4

-0.00513964

-0.004123702

0.0000170049

96

11/1/2004

3.48

-0.010100327

-0.009084389

0.0000825261

97

11/8/2004

3.48

0

0.001015938

0.0000010321

98

11/15/2004

3.54

-0.007424018

-0.00640808

0.0000410635

99

11/22/2004

3.5

0.004935218

0.005951155

0.0000354163

100

12/6/2004

3.5

0

0.001015938

0.0000010321

101

12/13/2004

3.44

0.007509602

0.008525539

0.0000726848

102

12/20/2004

3.5

-0.007509602

-0.006493664

0.0000421677

103

12/27/2004

3.52

-0.002474619

-0.001458681

0.0000021278

104

1/3/2005

3.58

-0.007340363

-0.006324425

0.0000399984

105

1/10/2005

3.8

-0.02590057

-0.024884632

0.0006192449

106

1/17/2005

3.9

-0.01128101

-0.010265073

0.0001053717

107

1/24/2005

3.8

0.01128101

0.012296948

0.0001512149

108

1/31/2005

3.82

-0.002279766

-0.001263829

0.0000015973

109

2/7/2005

3.8

0.002279766

0.003295704

0.0000108617

110

2/14/2005

3.8

0

0.001015938

0.0000010321

111

2/21/2005

3.84

-0.004547628

-0.00353169

0.0000124728

112

2/28/2005

3.88

-0.004500501

-0.003484564

0.0000121422

113

3/7/2005

3.86

0.002244421

0.003260359

0.0000106299

114

3/14/2005

3.82

0.004523942

0.005539879

0.0000306903

115

3/21/2005

3.8

0.002279766

0.003295704

0.0000108617

116

3/28/2005

3.8

0

0.001015938

0.0000010321

117

4/4/2005

3.74

0.006911994

0.007927932

0.0000628521

118

4/11/2005

3.7

0.004669878

0.005685816

0.0000323285

119

4/18/2005

3.74

-0.004669878

-0.00365394

0.0000133513

120

4/25/2005

3.76

-0.002316243

-0.001300305

0.0000016908

121

5/3/2005

3.68

0.009340026

0.010355964

0.0001072460

122

5/9/2005

3.7

-0.002353905

-0.001337968

0.0000017902

123

5/16/2005

3.68

0.002353905

0.003369843

0.0000113558

124

5/24/2005

3.58

0.011964792

0.01298073

0.0001684993

125

5/30/2005

3.52

0.007340363

0.008356301

0.0000698278

126

6/6/2005

3.32

0.02540458

0.026420517

0.0006980437

127

6/13/2005

3.22

0.013282212

0.01429815

0.0002044371

128

6/20/2005

3.32

-0.013282212

-0.012266274

0.0001504615

129

6/27/2005

3.28

0.00526424

0.006280178

0.0000394406

130

7/4/2005

3.46

-0.023202255

-0.022186317

0.0004922327

131

7/11/2005

3.3

0.020562159

0.021578097

0.0004656143

132

7/18/2005

3.32

-0.002624144

-0.001608206

0.0000025863

133

7/25/2005

3.3

0.002624144

0.003640082

0.0000132502

134

8/1/2005

3.3

0

0.001015938

0.0000010321

135

8/8/2005

3.62

-0.040194631

-0.039178693

0.0015349700

136

8/15/2005

3.6

0.00240607

0.003422007

0.0000117101

137

8/22/2005

3.6

0

0.001015938

0.0000010321

138

8/29/2005

3.5

0.012234456

0.013250394

0.0001755729

139

9/5/2005

3.5

0

0.001015938

0.0000010321

140

9/12/2005

3.46

0.004991946

0.006007883

0.0000360947

141

9/19/2005

3.64

-0.022025285

-0.021009347

0.0004413927

142

9/26/2005

3.6

0.004798883

0.005814821

0.0000338121

143

10/3/2005

3.62

-0.00240607

-0.001390132

0.0000019325

144

10/10/2005

3.72

-0.011834369

-0.010818432

0.0001170385

145

10/17/2005

3.72

0

0.001015938

0.0000010321

146

10/24/2005

3.68

0.004695121

0.005711059

0.0000326162

147

10/31/2005

3.72

-0.004695121

-0.003679183

0.0000135364

148

11/7/2005

3.7

0.002341216

0.003357154

0.0000112705

149

11/14/2005

3.74

-0.004669878

-0.00365394

0.0000133513

150

11/21/2005

3.74

0

0.001015938

0.0000010321

151

11/28/2005

3.72

0.002328662

0.0033446

0.0000111863

152

12/5/2005

3.76

-0.004644905

-0.003628967

0.0000131694

153

12/12/2005

3.72

0.004644905

0.005660843

0.0000320451

154

12/19/2005

3.74

-0.002328662

-0.001312725

0.0000017232

155

12/26/2005

3.82

-0.009191761

-0.008175823

0.0000668441

156

1/3/2006

4.1

-0.030720494

-0.029704556

0.0008823607

157

1/9/2006

4.12

-0.002113359

-0.001097422

0.0000012043

158

1/16/2006

4.02

0.010671163

0.011687101

0.0001365883

159

1/23/2006

3.94

0.008729831

0.009745769

0.0000949800

160

2/6/2006

4.16

-0.023597109

-0.022581171

0.0005099093

161

2/13/2006

4.14

0.00209299

0.003108927

0.0000096654

162

2/20/2006

4.04

0.010618976

0.011634914

0.0001353712

163

2/27/2006

3.98

0.006498293

0.007514231

0.0000564637

164

3/6/2006

4.04

-0.006498293

-0.005482355

0.0000300562

165

3/13/2006

3.88

0.01754964

0.018565577

0.0003446807

166

3/20/2006

3.8

0.009048129

0.010064067

0.0001012854

167

3/27/2006

3.82

-0.002279766

-0.001263829

0.0000015973

168

4/3/2006

3.78

0.004571563

0.005587501

0.0000312202

169

4/10/2006

3.8

-0.002291797

-0.001275859

0.0000016278

170

4/17/2006

4.32

-0.05570015

-0.054684212

0.0029903631

171

4/24/2006

4.22

0.010171296

0.011187234

0.0001251542

172

5/2/2006

4.1

0.012528594

0.013544532<