Effective Business Proposal On Addressing Organisational Issues For KFC

Structure

Write a Business Proposal for any significant Organisational Issue. It could be any hypothetical or real issue in the Organisation.

A business proposal is an aim of preparing and sending the tender to business for attracting the managers and directors to accept the offer and benefiting both the parties. The business proposal involves the ideas which are needed by an organisation to achieve upgrading. There is a set format of business proposal. Focusing on the current report the organisation selected is KFC and organisational issues are figured out and opportunities are created out of it.

Initially, entire issues are discussed in the structure of business proposal which states the enhancement of quality in certain franchising, the inauguration of paper bag manufacturing machine could be initiated to curb the expenses that were generated while purchasing these bags from Wendy’s. QMS registration could be made by paying registration fees. Appropriate software should be opted for carrying out better research and development. The new outlet should be opened in South America for expansion purpose and adding things to the menu for attracting more consumers and increasing customer loyalty.  Appropriate cost estimation on tendered ideas is constructed and timelines are set so that work gets accomplished within the tenure. Involvement of project manager is discussed and benefits on inculcating the changes are analysed followed by a conclusion.

Lastly, it could be cultivated that an organisation like KFC also requires certain organisational changes in order to grow and achieve heights. Major challenges should be initiated so that new routes get opens and area of opportunities broadens up.

Kentucky Fried Chicken popularly known as KFC was initiated in the year 1930. The outlet was basically a service station located in Corbin, Kentucky. Harland Sanders, a 40 years old man used to serve the travellers who halt by the place for attaining gas service. Sanders serve the southern-style chicken to travellers. Slowly and gradually the fame of Harland’s chicken spread in the entire city and crossed boundaries. People used to travel distances to enjoy Sander’s special chicken. For the nine long years, Sanders learn about improving the dish even more and getting clarity upon the usage of 11 herbs and spices. The technique of preparing the food was improved and these ingredients and recipes are used till date. By the passing year around 20,500 outlets of KFC were opened in about 125 countries of the world[1] (KFC, 2017).

Costs (estimated)

In Australia, the restaurant was opened in the year 1968 in Guildford, NSW. At the initial stage, it got started with 25 employees.  Now the scenario is such that about 612 outlets are opened in Australia. About 160 stores of KFC are owned by KFC and the remaining outlets are handled under the franchisees. There are around 30,000 Australian natives appointed to work in these outlets holding the strength of about 2 million and more customer base weekly[2] (KFC, 2016).

KFC is the fastest growing fast food chain after McDonald’s and is famous for its quality chicken and secret recipes it follows from years. Though being at the top there are certain organisational issues that KFC faces, focussing which will increase the ladder of success. First of all, KFC lacks on the part of research and development. There are certain franchises that are not delivering a quality product, therefore these outlets are to be figured out and corrective actions must be taken so that brand image not gets affected. Another issue that KFC faces is they do not have their original packaging criteria. The bags used for packing food stuff are taken from Wendy’s restaurant. For such packaging, purpose makes option can be selected instead of buying to save the remaining cost. Since KFC is famous for its chicken but they should try the expertise in other food material as well. Many vegetarians, as well as non-vegetarian variety, can be initiated. The focus should be paid on dishes of fish as well by setting a new benchmark and achieving the target. The expansion is required in South America to increase the market share[3] (Kasi, n.d.).

On considering the requirements and issues that organisation is facing it could be decided to construct an estimated cost that needs to be incurred while implementing the changes[4] (ACCA global, 2017). As far as research and development are considered appropriate training should be rendered to the concerned department. External can be appointed for the time being to make the staff learn about better research. Fresh talent can also be invited to fulfil the gap. For that recruitment and selection cost will be incurred or the option of employment exchange can be selected so that work shall be diverted and the only certain amount is to be paid to employment agencies and requirements are demonstrated to them. Another exposure is to improve the quality of the food served. Quality check is made and QMS should be adopted. Certification from ISO9001:2015 should be gained[5] (Greendot, n.d.).  For acquiring the QMS certification $5000-$ 50,000 is charged as registration fees though it is an expensive treat involves the entire documentation and training program which is way more beneficial. Also, there is a requirement to manufacture own packing bag which is a one-time investment which can be recovered. For that bag manufacturing machine need to be implanted and human resource is required to operate the machine and renders output. Therefore the cost of manufacturing along with the hiring of people gets cumulated which costs around USD 80,000[6] (India mart, 2017).

Timelines

Also, there is a need to add some more variety other than chicken as well. As the company has mastered in preparing chicken by following the age old secret recipe there for the recipes related to fish and beef could also be introduced. Deep understanding of customers taste should be noted and a list of dishes should be prepared and according to varieties, the budget is set. This costs minimal and raises up the standard of KFC even higher. Along with that KFC should focus on achieving the market at South America as well. There less number of outlets prevailing in South America and the market is healthy enough to gain the portion by ensuring growth and development along with the expansion. For that purpose again the need for research and development will be there. For opening up, new outlet capital will be required. Capital can be managed either from the reserves of the company which will be beneficial for the entire organisation. Another option is to render loan and pay timely interest upon it, this may be a costly avenue but once the franchising gets flourished and profit maximisation takes place things will settle on place slowly and gradually. Opening an outlet is risky measure but risks and growth are interdependent. More risk more will be the profit which results in development. For opening new outlet location needs to be select which should be within the reach of customers [7](Bishop, 2016). New hiring will be made and warehouse is required to store the stuff for future usage. Promotional activities will be conducted along with adequate transport which should favour the home delivery procedure as well[8] (Restaurant owner.com, 2017)

Items	Cost estimation
Involving advanced R&D software	$60
Hiring employees for R&D, operating machine and staff for a new outlet.	$7,500
Purchasing and implanting paper bag manufacturing machine.	$80,000
Obtaining ISO 9001 certification.	$25,000
Equipment for preparing the new menu.	$4,000
Opening outlets in South America: Total start-up cost (including land purchase). Start-up cost per sq. ft. (including land).	$7,50,000 $170
Warehousing cost	$5,00,000
Total estimation	$1,366,730

To settle the above-mentioned issues around 2 years are required. Certain issues are such which are easily initiated while some require time for settling in the organisation. Research and development can be immediately implemented in around 2 days. The hiring of fresh talent is a bit time consuming but the installation of software is not the issue. For purchasing paper bag manufacturing machine comparison should be made this might take fortnight or more. For adding the new varieties in the menu again research will take place, which dish to be added will be discussed with the kitchen management and board of directors. Accordingly, ingredients are arranged and imported if needed. This may take a couple of months for completion. Afterwards, QMS certification is achieved which might require time for completion of entire process, documentation and training required for attaining relevant quality. Lastly, new opening will require most of the time. For new opening in South America first of all location need to be accessed, a warehouse near the outlet is selected, better transport facility is chosen. Around a year time will be required in making research, analysing market, choosing a suitable location to establish the outlet. After confirming the place and accomplishing the paper work, construction of the workplace get started; furniture and fittings, lightings, water supply and multiple essentials are completed. For final settlement and inauguration, another round year will be spent this way for complete settlement of new outlet 2 years estimated time will be required[9] (Project a to z, 2017).

Being a project manager for this project the role played was to render the idea to directors for expansion and growth. The internal and external market was studies and competitors move was analysed. Customer preferences were given priority and information was gathered by making consumers fill the feedback form. From the data collected through experts and consumers, immediate action towards the organisational issues was taken. The idea to introduce the new dishes to the existing menu was initiated. Hiring work was allotted to the human resource department for the selected field. QMS was introduced and the standardised chart was made to follow. Comparison for purchasing manufacturing machine was done and suitable cost effective machinery for packaging got selected for the organisation. The thereafter research was made upon opening a new outlet in the developing areas of America. The strategy to capture the market was made. Location for opening the new franchising was finalised, the land was purchased and construction work took place where site duty was given as well. Recruitment at that outlet was also done to appoint competent and confidential staff[10] (Anantatmula, 2010).

From the above proposal, it could be derived that when organisational issues are figured out and fixed by following the adequate steps company will definitely face benefits. The cost will be incurred and some require heavy cost as well but results are more than the invested amount[11] (Berry, 2013). Considering the above proposal if benefits are counted, out of it various changes and challenges will be achieved.

• First of there will be clarity in the mind of staff that what will be the wise step for the organisation. This will be achieved with the help of appropriate research and development.
• Secondly, when paper bag manufacturing will take place in the organisation than by the passing time the cost of machinery will be covered up and the machine will turn out to be the fixed asset delivering profits which were earlier diverted to Wendy’s.
• With the increasing staff efficiency of the organisation will get increased.
• When more varieties of fish will get added to the menu of KFC than the sea food lovers will get attracted as well enhancing the customer base. Accordingly, consumer loyalty will also increase. This would result in expansion as well as development will take place[12] (Smith, 2017).
• On opening, the new outlet in South America expansion will take place and popularity gets an increase. The organisation will be able to explore and establish in the new market. With the opening of new franchising competition among the existing outlets and similar business will take place. If the competition is healthy in nature then chances of growth of all the outlets will take place.
• Lastly, on achieving ISO 9001 Certification for QMS; the authenticity of the organisation increases thereby trust with the company will also enhance. Rendering of quality automatically expands the brand image and faith among the consumers.

Conclusion

Thus, from the above business proposal, it could be concluded that there is a various organization that prevails in the market carrying divergent organisational issues. The organisation selected here is Kentucky Fried Chicken (KFC) whose organisational issues are figured out and corrective actions are taken. Thereafter structure for proposal is designed and the cost was estimated. Timelines were marked to accomplish the project on time. Being a project manager the contribution is briefly discussed and at the end benefit of the proposal to the business is described. To apply the changes and resolving organisational issues deep study in regards to changes will be made and minute aspects are considered to avoid adverse condition and initiate smooth functioning of the organisation.

References

ACCA global, Target costing and lifecycle costing, 2017, https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/target-lifestyle.html,(accessed on 7^th August 2017).

Anantatmula. V.S., ‘Project manager leadership role in improving project performance’, Engineering Management Journal, vol.22, no.1, 2010, p.13-23.

Berry. T., 10 business plan benefits you might be forgetting, 2013, https://www.entrepreneur.com/article/228220, (accessed on 8^th August 2017).

Bishop. R., KFC to open more than 500 new outlets across UK: find out where your nearest restaurant will be, 2016,  https://www.mirror.co.uk/news/uk-news/kfc-open-more-500-new-8788444, (accessed on 8^th August 2017).

Greendot, ISO 9001 quality management system, n.d., https://greendot.co.in/iso-9001-quality-management-system/, (accessed on 7^th August 2017).

India mart, Fully automatic paper bags making machine, 2017, https://dir.indiamart.com/impcat/fully-automatic-paper-bags-making-machine.html, (accessed on 7^th August 2017).

Kasi, KFC Swot analysis, n.d.,  https://marketingmixx.com/marketing-basics/swot-analysis-marketing-basics/174-kfc-swot-analysis.html, (accessed on 7^th august 2017).

KFC, About KFC Australia, 2016, https://www.kfc.com.au/kfc-australia, (accessed on 7^th August 2017).

KFC, What made us great is still what makes us great, n.d., https://www.kfc.com/about, (accessed on 7^th August 2017).

Projects A to Z, How to develop a successful restaurant construction schedule, 2017, https://www.projectsatoz.com/info-library/restaurant-project-plan-info-library/how-to-develop-a-successful-restaurant-construction-schedule.html, (accessed on 8^th August 2017).

Restaurant owner.com, Industry survey: how much does it cost to open a restaurant? 2017, https://www.restaurantowner.com/public/How-Much-Does-it-Cost-to-Open-a-Restaurant.cfm, (accessed on 8^th august 2017).

Smith. C., What are the benefits of preparing a business plan? 2017, https://smallbusiness.chron.com/benefits-preparing-business-plan-2702.html, (accessed on 8^th August 2017).

 KFC, What made us great is still what makes us great, n.d., https://www.kfc.com/about, (accessed on 7^th August 2017).

 KFC, About KFC Australia, 2016, https://www.kfc.com.au/kfc-australia, (accessed on 7^th August 2017).

Kasi, KFC Swot analysis, n.d.,  https://marketingmixx.com/marketing-basics/swot-analysis-marketing-basics/174-kfc-swot-analysis.html, (accessed on 7^th august 2017).

ACCA global, Target costing and lifecycle costing, 2017, https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/target-lifestyle.html,(accessed on 7^th August 2017).

, ISO 9001 quality management system, n.d., https://greendot.co.in/iso-9001-quality-management-system/, (accessed on 7^th August 2017).

India mart, Fully automatic paper bags making machine, 2017, https://dir.indiamart.com/impcat/fully-automatic-paper-bags-making-machine.html, (accessed on 7^th August 2017).

Bishop. R., KFC to open more than 500 new outlets across UK: find out where your nearest restaurant will be, 2016,  https://www.mirror.co.uk/news/uk-news/kfc-open-more-500-new-8788444, (accessed on 8^th August 2017).

Restaurant owner.com, Industry survey: how much does it cost to open a restaurant? 2017, https://www.restaurantowner.com/public/How-Much-Does-it-Cost-to-Open-a-Restaurant.cfm, (accessed on 8^th august 2017).

Projects A to Z,  How to develop a successful restaurant construction schedule, 2017, https://www.projectsatoz.com/info-library/restaurant-project-plan-info-library/how-to-develop-a-successful-restaurant-construction-schedule.html, (accessed on 8^th August 2017).

Anantatmula. V.S., ‘Project manager leadership role in improving project performance’, Engineering Management Journal, vol.22, no.1, 2010, p.13.

Berry. T., 10 business plan benefits you might be forgetting, 2013, https://www.entrepreneur.com/article/228220, (accessed on 8^th August 2017).

Smith. C., What are the benefits of preparing a business plan? 2017, https://smallbusiness.chron.com/benefits-preparing-business-plan-2702.html, (accessed on 8^th August 2017).