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KFC: Right Strategy - Poor Execution?

As KFC almost said, ‘We had one job to do and……’

When your value chain is highly dependent upon one link you had better make sure the link works – simply put…

No Chicken = No Revenues

If you make change to that link, ensure a full risk analysis is carried out and back-up plans are in place.

All companies should embrace change, but change requires excellent implementation.

  • Changing a sole distributor always requires close monitoring at the start of the change, and possibly a trial run.
  • Changing from a multi- to a single distribution centre at the same time rings even more risk bells.
  • Finally, timing the change during a period of peak demand during half-term is trusting the gods too much.

Remember that using a third-party contractor in your value chain generally creates a weaker link that requires close attention.

If the downside risks are very high even more attention is required.

The KFC strategy looks sound – faster and cheaper distribution will add value. But if execution is not at the same level trouble can arise.

KFC have built their brand values over the years and this has served them well currently as they managed the situation with humility and humour. For other companies it might not turn out that way.

If you are looking for safe business growth proposals and tools that ensure quality execution just get in touch at: ignite@tinderboxbusinessdevelopment.co.uk or on 0116 232 5231 or contact me personally at the contact points below.

David Beer

Managing Director

david.b@tinderboxbusinessdevelopment.co.uk

07423 059356

 

 

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