KFC's New Division: How Will The New Division Achieve Competitive Advantage? (Research Paper Sample)
Purpose of Assignment
Students will have the opportunity to research a company and industry to conceptualize forming a new division of an existing company based on a new product or service. The assigned text and Strategic Planning Outline serve as a guide to complete sections of the capstone project each week. This will allow the student to lay the basic foundation for an effective strategic plan. A final plan will be presented in Week 5.
Assignment Steps
Resources: Strategic Planning Outline and Week 2 textbook readings
Use the Strategic Planning Outline as a guide to complete sections of your capstone project each week. A final strategic plan is due in Week 5. Cite your resources.
Develop a minimum 1,400-word proposal in which you explain the importance of innovation in your selected division's vision, mission, and values, and determine your business model for this new division.
Include the following:
Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement. Ensure you are differentiating your product or service.
Describe how the division addresses customer needs and achieves competitive advantage.
Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future.
Explain how the vision, mission, and value of the new division align with the company's mission and vision.
Summarize how the vision, mission, and values guide the division's strategic direction.
Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics.
Cite a minimum of two peer-reviewed references.
KFC’s New Division
Student’s Name
Institution
Introduction
In every business venture, the main aim is usually to enhance their net profit by attracting more customers. This is usually done through the provision of superior goods and enhanced customer services. Normally, it is a race to lure more consumers; therefore, it is a norm to find rebranding themselves or re-engineering the way they deliver their services, enhancing the quality of their products all in a bid to survive in a market with stiff competition. With the advancement in technology and most business integrating it into their business model, the cost involved has been tremendously reduced with an increase in the net profit and company’s market share. In this paper, I will be discussing a new division in KFC adopting cutting edge technology to improve its products and enhance customer service. Additionally, this new unit can incorporate new and unique products that will ensure it has an edge over its competitors. Furthermore, I will be touching on the new division mission and visions and how it can be used to benefit the company in general. Additionally, it will be essential to align the new unit vision and mission with that of the main company. It will also be important to note the importance of vision and mission in coming up with the company strategies.
New Enhanced Service
Changes in business dynamics have affected most companies inclusive of KFC outlets. With the ever-increasing cost of doing business, these companies have resulted in looking for an alternative way of doing business. The skyrocketing prices have been caused by an increase in medical insurance, re-evaluation of minimum wage policies and completions. Establishment of a new division by KFC is a viable idea. With this new division, the company will be able to cope up with completion through an increment in it market shares. This means more profits will be realized and with the introduction of new menu items more people will want to sample them. The major factor that will make this division different from others will be the adoption of an advanced food processing line. The inclusion of this food processing line will ensure a fast rate of high-quality food production. Moreover, the inclusion of robot-like machine in this processing line will ensure the cost of production is brought down. The idea of including machines in the production of company’s products will go a long way in fulfilling the vision and the mission of the company, which is to produce high-quality food and meet the demand of its huge consumers CITATION Mar15 \l 1033 (Ford, 2015).
How will the new division achieve competitive advantage?
Use of automated processing lines has played a big role in revolutionizing the fast-food industry. This has enabled companies to produce high-quality products while still serving the huge and ever growing clients. Additionally, the reduction of production cost has enabled these products to be available to customers at a cheaper price. Use of automated machines in the new KFC’s division will not only reduce the cost involved in production will also ensure a significant reduction in the time taken to deliver client’s orders. Relative to its competitors the new division will be able to process chips, pizzas, sandwiches and other food related items in their menu at a click of a button. This will ensure customers have enough time to specify how they want there and the company delivers it without a miss. To add to this, with the automated machine a client can be guaranteed on the time that will be taken before his order is ready CITATION Dir00 \l 1033 (Donk, 2000).
The company’s Vision and Business Model
With the expectation of large consumer base, the vision of the new division will be to use cutting edge technology to ensure they are top notch in the industry while gaining a competitive advantage over others. Adaptation of this technology will ensure the company ensures excellent services while maintaining production of high-quality foodstuff that will make it standout. Additionally, an ample space with a serene environment will be provided whereby clients can relax while waiting for their product to be delivered and even take their food at this place in the event they did not want a takeaway. In addition to a huge menu on the wall behind the counter, the tables in this area will have booklet-like menus that will include a variety of food items. These food items can include different type of pizzas, coffee, and even sandwiches.
Another technology that will enhance the company operations and ensure it increases its net profit is the use of an online portal where clients can make their orders remotely. Once the order has been placed it will be processed and delivered to or collected by the customer. The automated machine will be linked with this portal and there will be no need for a manual control system since all orders will be processed as they arrive. Furthermore, the machine will have the capability of estimating the size of different orders and how to process it the way the client want. Also, the system will be able to keep track of various transactions hence accounting for everything happening within the company hence ensuring the needed stock is always available and no time will there be low inventories in the shelves. Another thing that the machine will guarantee is the reduction of work related stress to the company’s employees since most tasks will be handled by the system CITATION Ioc14 \l 1033 (Iocchi, 2014).
Aligning the new division’s vision and mission with that of the main company
Operating under the mother KFC’s company, for everything to work the new division’s mission and vision should be in line with that of the main company. In this case, what is being adopted in this new division is what has already been envisioned by the mother company. That is to use cutting edge technology that will ensure the company reduces its operational costs while producing high-quality products that will ensure they become the best in the market. With the reduction in costs, the company is able to achieve its other mission which is to produce high-quality food that will be sold to its clients at a lower price CITATION Mar15 \l 1033 (Ford, 2015).
Automated machines can have a significant influence on the capacity and the price of items being produced by the company. This will facilitate the company in coming up with competitive prices that will ensure the involved parties have been satisfied. Despite the initial investment cost of the machine being high, comparing it with the cost that will be incurred in running the business in its absence will warrant for its acquisition. In addition to this, a machine has very low percentage of errors as compared to employees whose presence will guarantee error related losses. Furthermore, with the system consistency in the production of high-quality food items the company will be able to maintain its loyal customers while attracting new ones. Also, long queues associated with manual systems will be taken care of CITATION Dir00 \l 1033 (Donk, 2000).
How the mission and vision will have a say in the company’s strategy
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