KFC has seen much success over the years, but they still have much to improve on. I recently created a marketing report for KFC, which allowed me to further understand their organizational subsystems. Throughout my research, I have found that not only has KFC been lacking in their marketing department, but also in their organizational management. With the right corrections to their underperforming subsystems, KFC can run more efficiently, effectively, and increase their profits. In this paper, aspects of KFC's management and subsystems will be discussed including the subsystems in need of change, comparison to a successful subsystem, the impact of change, stakeholder satisfaction, attracting, developing, and maintaining human resources, internal consistencies, connectivity to the course, and the application of a personal Christian worldview.
Subsystems in Need of Change
Subsystems are smaller components of larger systems in organizations (Schermerhorn, 2014). The success of an organizations subsystems determines the success of the entire organization. There are three major subsystems that KFC needs to change. The first and biggest subsystem is their marketing operations. Marketing is what draws customers to organizations, and it must be done right for the organization to be successful. Unfortunately for KFC, this is an area that they have been performing poorly in recent years. The reason for this is because KFC has switched from food-focused advertising, to comedic advertising that is more about Colonel Sanders then their products. A survey was conducted to see how audiences like their new advertisements, and the response was not good, with one out of five viewers said they hated the new advertisements (Peterson). Instead of focusing on what makes KFC great, the company has shifted to pandering to viewers with low quality comedy, a contributing factor in KFC closing 29 stores (Winship). The second and third subsystems also in need of change are their food quality and customer service subsystems. KFC is lacking in both areas, and with improvements to all three of these subsystems, KFC can be successful once again.
Comparison to Successful Subsystem
To understand why KFC should change their three subsystems, it is important to look at how a successful organization manages their subsystems. One fast food competitor to KFC that has successful marketing, customer service, and food quality subsystems is Chic-Fil-A. Chic-Fil-A has focused on creating positive customer experiences through their advertising, food quality, and excellent customer service (Sutton). These three areas have created brand loyalty and a positive company reputation for Chic-fil-A, and has lead them to having 800 million dollars in sales in 2013 (Wong). Regarding KFC, Since 2014, they has seen a 9 percent drop in customer satisfaction (Weisbaum), where Chic-fil-A leads the fast food industry in customer service (Taylor). From food scandals to using expired chicken in their products, KFC has also lacked the quality products that it's consumers deserve (Roberts). In order to be successful like Chic-fil-A, KFC must appoint quality management to improving these three subsystems, which will lead to greater success as an organization. To improve their marketing subsystem, KFC should focus on their food in their advertisements. They should go back to the commercials that people enjoyed, and aim to show their products instead of colonel sanders in their advertisements. To improve their customer service subsystem, KFC should develop a new training program that focuses on positive attitudes, and hire managers to help employees learn and develop these attitudes in the workplace. Finally, to improve their food quality, KFC must allocate more finances to ensuring they are serving quality food. They must not cut corners that jeopardize the quality of their food, but must focus their efforts to make the best quality products they can.
Impact of Change
KFC has had their biggest problem with their marketing subsystem, and by addressing the problems with this system, it will benefit both other subsystems. When KFC changes their marketing strategy to focus on their food and menu items, it gets consumers wanting to try it. Without proper marketing, consumers would not even set foot in a KFC because they would not be inclined to eat there. However, when the marketing subsystem is done right, customers will be able to experience the quality food and customer service that KFC will bring. To do this, KFC must improve on its other two subsystems. But with the proper marketing, both the food quality management subsystem and the customer service subsystem will be able to do their job properly. Proper marketing will bring consumers in, who will then get to experience fantastic food and customer service. This will help KFC grow as an organization, and it will lead to better consumer trust and brand loyalty.
Stakeholders are those interested in how an organization performs (Uhl-Bien, Schermerhorn, Osbourne, 2014). The first stakeholder group in KFC is its consumers. Anyone who purchases something at KFC has an interest in the company, and consumers are no exception. With the changes to KFC's three subsystems, consumers will be getting a fantastic dining experience. They will develop consumer value and great experiences when eating at KFC, and this will keep them satisfied and loyal to the company. The second stakeholder group in KFC is its employees. By having better management in teaching customer service, employees will benefit from a healthier work environment. When management truly cares about their employees, and desires a positive attitude from them, company morale is heightened. By making these three changes to KFC's subsystems, employees will be happier to work for a great company, and they will desire to provide excellent customer service. Finally, the last stakeholder group in KFC is its suppliers. The farms and factories that supply KFC with their food depend on KFC to sell their products well. By changing the three subsystems that KFC struggles with, they will sell more products to consumers, and will be able to purchase more products from their suppliers. This will translate to greater revenue for the suppliers, and they will be satisfied with the new changes to KFC.
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