Analysis of KFC Financial Statements Samples †MyAssignmenthelp.com

Question: Discuss about the Analysis of KFC Financial Statements. Answer: Introduction: KFC was founded by Colonel Harland Sanders, its abbreviation was adopted in 1991. In the year 1952 Kentucky Fried Chicken had the new corporate brand programs along with restaurants. In 2007 KFC initiated its original title for signage, packaging and advertising in United States (Jealous Farhat,2016). Born and raised in Henryville Sander was passed through several professions in his lifetime, where he also served in the middle of the Great Depression at gas station where he was owner. It happen in 1930 that the first fried chicken started to cook, later on upgrading to pressure fryer resulted compatible to deep frying Sanders Chicken. Earlier chicken used to get cook in iron skillet with 30 minutes too cook in his own restaurant in North Corbin. All KFC franchise operations sold $2 million USD across US and Canada, with more than 600 numbers franchise. Now renamed to Yum! Brands Colonels nephew, Lee Cummings took the Kentucky fried Chicken franchises along with chicken recipe, converting to own spin off Lees famous Recipe Chicken Tricon Global Restaurants division as a part of PepsiCo which started off in 1997. Its products had samples of each 11herbs and spices Kentuckys origin handwritten recipe, which is locked away at KFC corporate headquarters in Louisville. Multiple suppliers are provided with the final ingredients, two executives are allowed for maintaining. John Y after few year in 1971, from Hublien Inc. of Hartford Connecticut acquired the company. Colonel died in 1980 post travelling 250,000 miles annually and visiting different restaurants around the world (Leo Paul Dana, 2016). Collins Foods which had169 operational stores of YUM! had 160 outlet in Australia and largest of 53 independent franchises in Australia. Major food suppliers in Australia consisited of Steggles, Inghams and Turi. Australian chicken production were hitting 38 percent creating a major impact in 1968 in Guilford, the first Australian KFC on a suburb of Sydney was opened by Canadian entrepreneur called Bob Laponite. Later between 1970 and 1971, 75 outlets were added with good market place. KFC thus emerged to be the most popular fast food company in the whole world. Cultural and critical approaches for the analysis of Australian Company: Primary reason for the creation of culture is Socialization. Specific culture definition as both dominant and minority cultures are in permanent evolution, as Unger and Schwartz (2012) cited believes that there has been stress for the definition the fact that there is no precise definition of culture (Kagwa Singer, 2012 cited on Alfredo Moorabia, Michael C. Costanza). Culture is not unitary specially within organization, characterized by multitude of subcultures and often ambiguous hence culture encompasses title for being complicated to define emergent (Collins Foods, 2017). Analysis with the cultural approaches Values integral part of culture followed influences in making their decisions with basic values by a society. Culture within a company encompasses ways in which a company operates, regarding how its owners and employees feel, think and act, resulting in direct companys vision application. Elements of culture are languages, attitude, values, aesthetics, customs, manner, education, social institutions language and religion (Jealous Farhat ). KFC Companys staff are different across different countries. As in US, India, China, Nepal, UK and so on come from different cultures, norms and values not only follows organizational cultural norms and values at work. Australia is the country with diversity, where lots of people come from different countries. When KFC started in the country, KFCs slogan and recognized word with So Good catchy phrase to proclaim massage that the taste of Colonel Sanders. A customer at the store complained to manager Ken Harbough that Harman was licking his fingers, to which Mr Harbough replied him well its finger lickin good. Analysis with critical approaches: KFC depended on competitors strategy as market was highly competitive. Companies develop their own strategy for long term following their long term goals, as for example Mc Donald investment in risky market X and took advantage but failed. KFC took advantage of Mc Donald competitive strategy which is a strong competitor for KFC, which allowed the company to plat safe. Products of KFC was linked to obesity with its environmental impact and concerned for this matter was showed by Eric Schlossers book Fast Food Nation (2002) and Morgan Spurlocks film Super Size Me (2004). In 21st century, KFC was criticized for its animal welfare record for the choice of poultry suppliers worldwide by People for Ethical Treatment of Animals (PETA). In 2003, KFCs was protested, mischaracterized as a poultry producer instead of purchases of chicken, President of KFCs US division Gregg Dedrick had to call PETA. For influencing the way animals supplied to the Company, they were treated in the year 2008 Yum! was held with the opportunity and responsibility, for racism over television. In 2010, KFC faced another criticism to serve a drumming, dancing and singing group of black west indies supporters. The criticism was on television where the Australian arm of KFC was accused showing, the white cricket fan, who was handed out pieces of fried chicken. The black people in the once segregated south, which was criticised in US, where in the video it shown that the fries chicken closely related with the age-old racist stereotypes. Remuneration: A large portion of the association faces Remuneration is one of the significant challenges. In bookkeeping it is depicted as an official issue. between organization's administration and the organization's stockholders The CEO and manager are assuming part of a specialist, such as to gain more advantages along with better compensation The administrator by ways and means wants to expand shareholder's riches. This is dependably an issue to each association providing services that KFC restaurants have a good history. It has additionally it has been confronted with numerous issues. In the timeframe most recent couple of years there is variance after some time Taking after its share price of KFC. Even after a substantial period of time, the organization did not appear to be ready to bring the share price up in market. The organization share cost sharply fell between 2012 to 2014. However, organization's share price post 2015 was slightly high (Collins Foods, 2017). The Company remunerated its CEO $22 million in 2013 according to YUM! report (Proprietor of KFC, Taco Bell and Pizza Hut). In absolute remuneration Chipotle's CEO brought home $13.8 million and McDonald's CEO remuneration totalled to $7.7 million. Pay incorporates compensation, reward and the estimation of practiced alternatives of fast-food CEOs has quadrupled since 2000 was at par with normal remuneration. Standard and Poor's Executive database and organization intermediary statements. Named Executive Officers ("NEOs") for 2016 financial year with accompanying tables and given data on the remuneration. Amongst other most very remunerated official officers for our 2016 monetary year decided as per SEC standards and two previous official officers who were at no time in the future filling in as official officers as of the finish of the year. The Company's NEOs are Chief Executive Officer, Chief Financial Officer(s). In order to concede receipt of compensation into the Executive Income Deferral, the above sums indicated did not diminished to mirror. The NEOs' races, assuming any sign-on reward included $500,000 and, for Mr. Russell, a maintenance instalment $180,000. Apart from sums appeared in this section speak for Mr. Kesselman 2015 and 2014. Amounts that came in this part speak, give date reasonable qualities for execution share units (PSUs) allowed in 2016. The "Gifts of Plan-Based Awards" and Additional data with respect to the 2016 honors is incorporated into. Later in the intermediary proclamation "Extraordinary Equity Awards at Year-End" tables. In this segment is the objective payout in light of the likely result of the execution condition, Decision was made to allow date, a reasonable estimation of the PSUs reflected. PSUs is 200% of focus on, the most extreme estimation of the November 2016 honours is 100% of target. The greatest potential estimations of the February 2016, at give date reasonable esteem would be $7,000,116 as per Annual Report, 2016. For 2016, Mr. Statement of faith's PSU received most extreme incentive. In future the eateries there have ventured extend arrangements to expand the inner effectiveness and competency of the eateries in understanding to the request of the market. Whether the activities are really for the improvement of the organization or a simple way for the officials to snatch the motivation benefits notwithstanding, shareholders of the organization are worry. As per the Annual Report of 2016, such speculation arranges and are uncertain. Recommendation: KFC needs to focus on equality and proper power as well for both male and female. Most of the front desk of KFC have higher number of female in their customer service in every branches of the Australian KFC company, they are not focused on racism at their work. They changed their food standards to better for less oily food and food with less cholesterol. They can work on healthy food as in todays date everyone conscious about their diet and food as KFC food are still oily. They can also increase their trading hours as they dont serve for 24 hours. They are a worldwide popular company and too many loyal customers. Its no use if they take too long to serve in that as well and they can even use e-commerce like online-ordering. Apart from the drive through, sometimes customers have to wait for long time as they are on drive through waiting for quick service. Conclusion: KFC share cost has sharp fall in 2012 to 2014, even after that the organization was not appear ready to bring the share price up in market. It is competitive market everywhere so fast food company has to take their strategy in comparison to their competitors. The market being full of competitors, every company in the industry should think and do beyond their competitors. Multiple customers complaints regarding service process as well with the packing orders and waiting in lines. References Paul Dana, L. 1999, "Kentucky Fried Chicken",British Food Journal,vol. 101, no. 5/6, pp. 493-496.Link "Kentucky Fried Chicken", 2013,Nation's Restaurant News,vol. 47, no. 12, pp. 24.Link Stone, N. 2003, "Kentucky Fried Chicken and communism. (Life)",Student BMJ,vol. 11, pp. 198.Link Apte, U.M. Reynolds, C.C. 1995, "Quality Management at Kentucky Fried Chicken",Interfaces,vol. 25, no. 3, pp. 6-21.Link Marketing: Kentucky Fried Chicken2006, , Centaur Communications Limited.Link Warshaw, H.S. 2002,Kentucky: fried chicken. (fast food restaurant fare), American Diabetes Association, Alexandria.Link Farhat, J. 2016, A Brief History of KFC, Scribd, viewed 19 april,2016, https://www.scribd.com/doc/39507717/A-Brief-History-of-Kfc Dixon, J. 1999, "Reflexive Accumulation and Global Restructuring: Retailers and Cultural Processes in the Australian Poultry Industry",Rural Sociology,vol. 64, no. 2, pp. 320-333.Link Schrder, M.J.A. McEachern, M.G. 2005, "Fast foods and ethical consumer value: a focus on McDonald's and KFC",British Food Journal,vol. 107, no. 4, pp. 212-224.Link Morabia, A. Costanza, M.C. 2012, "Culture(s)", Preventive Medicine, vol. 55, no. 5, pp. 351-352 https://en.wikipedia.org/wiki/KFC#Controversies_and_criticism Collins foods, 2017. Retrieved From: https://www.intelligentinvestor.com.au/company/Collins-Foods-Group-CKF-6531883 Yum Annual Report, 2016. Retrieved From: https://www.yum.com/annualreport/pdf/2016-Yum-AR.pdf