2010

Psychology
KFC
Information about KFC

Submitted to: Mam Zunaira

Submitted by: Achievers
2/25/2010
Dedicated To
our Beloved
Parents
And
Respectable
Teacher
 Acknowledgement
I wish to express a deep appreciation and gratitude to Almighty Allah,

who made this study possible and successful. I am highly thankful and

wish to express my appreciation and gratitude to the various persons

whose guidance, assistance and moral support in one or other way

.greatly contributed to the successful completion of this Project

First of all I am highly obliged to the whole management of

Business department, especially Lecturer Mam Zunaira for her

.invaluable suggestions, guidance and cooperation

Truly and frankly speaking, we would like to say that, Mam! If you are proud

to your students, then we, your students are thrice proud to have a teacher, not really a

.teacher, but indeed a true course leader like you, as well as friendly teacher
About KFC
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken,
is a chain of fast food restaurants based in Louisville, Kentucky. KFC has been a
brand and operating segment, called a "concept", of Yum! Brands since 1997 when
that company was spun off from PepsiCo as Tricon Global Restaurants Inc.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary
focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes
and desserts. Outside North America, KFC offers beef based products such as
hamburgers or kebabs, pork based products such as ribs and other regional fare.

The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in
1952, though the idea of KFC's fried chicken actually goes back to 1930. The
company adopted the abbreviated form of its name in 1991. Starting in April 2007,
the company began using its original name, Kentucky Fried Chicken, for its signage,
packaging and advertisements in the United States as part of a new corporate re-
branding program; newer and remodeled restaurants will have the new logo and name
while older stores will continue to use the 1980s signage. Additionally, Yum!
continues to use the abbreviated name freely in its advertising.

History

KFC (An Entrepreneurial Business)

9/9/1890
Harland Sanders is born just outside Henryville, Indiana.

1900-1924
Harland Sanders holds a variety of jobs including: farm hand, streetcar conductor,
army private in Cuba, blacksmith's helper, railyard fireman, insurance salesman, tire
salesman and service station operator for Standard Oil.

1930
In the midst of the depression, Harland Sanders opens his first restaurant in the small
front room of a gas station in Corbin, Kentucky. Sanders serves as station operator,
chief cook and cashier and names the dining area "Sanders Court & Café."

1936
Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky
Colonel in recognition of his contributions to the state's cuisine.
1937
The Sanders Court & Café adds a motel and expands the restaurant to
142 seats.

1939
The Sanders Court & Café is first listed in Duncan Hines' "Adventures in Good
Eating."

Fire destroys The Sanders Court & Café, but it is rebuilt and reopened. The pressure
cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry his
chicken to give customers fresh chicken, faster.

1940
Birthdate of the Original Recipe

1949
Sanders marries Claudia Price.

1952
The Colonel begins actively franchising his chicken business by traveling from town
to town and cooking batches of chicken for restaurant owners and employees.

The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A
handshake agreement stipulates a payment of a nickel to Sanders for each chicken
sold.

1955
An interstate highway is built to bypass Corbin, Kentucky. Sanders sells the service
station on the same day that he receives his first social security check for $105. After
paying debts owed, he is virtually broke. He decides to go on the road to sell his
Secret Recipe to restaurants.

1957
Kentucky Fried Chicken first sold in buckets

1960
The Colonel's hard work on the road begins to pay off and there are 190 KFC
franchisees and 400 franchise units in the U.S. and Canada.

1964
Kentucky Fried Chicken has more than 600 franchised outlets in the United States,
Canada and the first overseas outlet, in England.

Sanders sells his interest in the U.S. company for $2 million to a group of investors
headed by John Y. Brown Jr., future governor of Kentucky. The Colonel remains a
public spokesman for the company.

1965
Colonel Sanders receives the Horatio Alger Award from the American Schools and
Colleges Association.
1966
The Kentucky Fried Chicken Corporation goes public.

1969
The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange.

1971
More than 3,500 franchised and company-owned restaurants are in worldwide
operation when Heublein Inc. acquires KFC Corporation.

1976
An independent survey ranks the Colonel as the world's second most recognizable
celebrity.

1977
Colonel Sanders speaks before a U.S. Congressional Committee on Aging.

1979
KFC cooks up 2.7 billion pieces of chicken. There are approximately 6,000 KFC
restaurants worldwide with sales of more than $2 billion.

12/16/1980
Colonel Harland Sanders, who came to symbolize quality in the food industry, dies
after being stricken with leukemia. Flags on all Kentucky state buildings fly at half-
staff for four days.

1982
Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. (now
RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.

1986
PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc.

1997
PepsiCo, Inc. announces the spin-off of its quick service restaurants - KFC, Taco Bell
and Pizza Hut - into Tricon Global Restaurants, Inc.

2002
Tricon Global Restaurants, Inc., the world's largest restaurant company, changes its
corporate name to YUM! Brands, Inc. In addition to KFC, the company owns A&W®
All-American Food® Restaurants, Long John Silvers®, Pizza Hut® and Taco Bell®
restaurants.

2006
More than a billion of the Colonel's "finger lickin' good" chicken dinners are served
annually in more than 80 countries and territories around the world.

2007
KFC proudly introduces a new recipe that keeps the Colonel's 11 herbs and spices and
finger-lickin' flavor, but contains Zero Grams of Trans Fat per serving
thanks to new cooking oil.

Mission Statement

To sell food in
a fast, friendly
environment
that appeals to
pride
conscious,
health minded
consumers

Vision Statement

“Our passion, as a restaurant company, is to put a YUM on people's faces around the
world, satisfying customers every time they eat our food and doing it better than any
other restaurant company”.
KFC In Pakistan
Food, fun & Festivity, this is what KFC is all leading the market since its inception;
KFC provides the ultimate chicken meals for a chicken loving nation. Be it colonel
sanders secret original recipe chicken or the hot & spicy version, every bite brings a
yum on our face. At KFC we can proudly say, “We do chicken right”.

Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore,
Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) with
45 outlets nation-wide. Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in
1997, and KFC wore the title of being the market leader in its industry. Serving
delicious and hygienic food in a relaxing environment made KFC everyone’s favorite.
Since then, KFC has been constantly introducing new products and opening new
restaurants for its customers. In Pakistan totally Chicken buy from Pakistani Poultry
Forms, and also this Chicken is 100% Halal.

About Cupola
Cupola is a Dubai based multinational company involved in several business
including, oil gas exploration, plastic cards, retail markets and food franchising.

Cupola Pakistan

Cupola holds the master franchise rights to operate KFC in Pakistan since 1999. That
was a major difference that when Cupola takes complete Operate in Pakistan that was
only 05 Outlets in all over Pakistan, and then now the major difference that Cupola
takes 45 Outlets in Pakistan. Apart from fulfilling the commitment of serving
delicious, fresh and hygienic food and at the same time providing the customers with
the ultimate entertainment; KFC also plays part in the economic development of our
country.

Facts
Apart from fulfilling our commitment of serving delicious, fresh and hygienic food
and at the same time providing our customer with the ultimate entertainment; KFC
also plays in the economics development of our country.

 Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000
individuals directly dependent in KFC Pakistan.
 The Government of Pakistan receives over Rs.10 million per month from KFC
Pakistan as direct taxes.
 95% of all food and packing material used in KFC Pakistan is procured
locally, which sums up to a purchase of over Rs.35 million per month.
 Each new outlet developed by KFC Pakistan costs approximately Rs.40
million, which is a huge amount for our construction industry.
KFC and Pakistan…Growing Together.
Food at KFC
KFC Growth under Tricon/Yum! Brands
KFC had benefited from the hands-on management style of David Novak, who
became head of Tricon. In the year before the spinoff, KFC had surprised investors
with an increase in profits of over 20 percent. Novak attributed the chain's
perseverance in spite of general stagnation in the domestic fast-food market both to
strategic menu changes, such as the Mega-Meal and chicken pot pie, and to a more
friendly and encouraging corporate culture. Novak spent three days a week on the
road, often sleeping in the homes of franchisees, and he cultivated a friendly and
inclusive corporate culture along the lines of Wal-Mart and Mary Kay. Novak seemed
to have a deft touch, shepherding in some successful innovations, such as a chicken
sandwich that brought in 30 percent more sales than anticipated. Nevertheless, the
chicken business was touchy. While the chicken sandwich sold well, it may have
eaten into sales of other KFC products. KFC's bottom line was also propped up by
sales of company-owned restaurants to franchisees. In 1999, the chain had domestic
sales of $3.2 billion, which was almost equivalent to the combined sales of its top four
competitors. Boston Market, which had been a strong competitor only a few years
earlier, was in bankruptcy in 1999. While there were some good things happening in
the domestic market, overall, fast-food chicken was no longer an expanding area, and
at home, KFC was stuck in flat or 2 to 3 percent sales growth.

KFC's parent Tricon came up with one solution to low growth beginning in 1998,
opening what it called multi brand stores which combined two or three of the Tricon
chains. By 2002, Tricon had developed 1,375 multi brand stores. Tricon changed its
name in 2002 to Yum! Brands, and it acquired two more restaurant chains, the
seafood restaurants Long John Silver's, and the hamburger and root-beer chain A&W.
This opened up some more possibilities for multi branded stores. In 2003, KFC Corp.
got a new top executive, Gregg Dedrick, who succeeded Cheryl Bachelder. David
Novak still headed the parent company. While total sales reached $4.8 billion in 2002
and KFC controlled some 46 percent of the U.S. fast-food chicken market, the brand
was still seen as troubled. Issues regarding the healthfulness of its predominantly fried
food, and of KFC's treatment of animals, had dogged the company in recent years. In
2004, parent Yum! Told KFC that it could not open any more multi brand restaurants
(of which there were almost 1,000) until its domestic same-store sales figures
improved.

While the domestic market was far from vibrant, KFC continued to do very well
internationally, especially in Asia. By 2001, Kentucky Fried Chicken was the most
recognized foreign brand in China, where the company had 500 restaurants. KFC also
had about 300 outlets in Thailand, and more than 150 in Indonesia. The company
adapted its recipes to local tastes, and successfully navigated the differing political
and regulatory climates abroad. Tricon's profits increased by close to 50 percent for
its combined China operations in 2000, a figure not dreamed of by any domestic
divisions. By 2006, KFC had 1,700 restaurants in China, more than tripling in five
years. Profit and sales figures saw increases of over 25 percent for some quarters,
while comparable figures domestically were 1 and 2 percent. KFC significantly
outsold McDonald's in China, and by 2006, KFC was opening a new Chinese outlet
every 22 hours. Yum!'s boss David Novak told Business Week (October 30, 2006) that
he hoped to eventually have as many KFC restaurants in China as in the United
States. "There is no one else in China expanding at this level with the returns we are
generating," he told the magazine. Thus while the U.S. market had
continued to slumber for KFC in the years it had been run by
Tricon/Yum!, overseas KFC was a powerful force.

Colonel scholar:

The KFC Colonel's Scholars Program® is looking for high school seniors with
entrepreneurial drive, strong perseverance, demonstrated financial need, and who
want to pursue a college education at an accredited public institution in the state they
.reside

The KFC Colonel’s Scholars Program is about you, your dreams and aspirations, and
the perseverance to succeed. This program is offered to high school seniors planning
to attend a public in-state college or university. Students who meet the criteria may
apply online to become a KFC’s Colonel’s Scholar. Students selected for this
scholarship are eligible to receive up to $20,000 to complete a bachelor’s degree
program.

Global Diverty:

For us, diversity is not a target - it's a way of life and a way of doing business.
Everyone can and does make a difference in our organization. One of our
HWWT2 principles - Believe in all People - underscores the importance of
actively seeking diversity in others; believing everyone has the potential to
make a difference; and coaching and supporting every individual to grow to
their full capacity. This adds perspective and depth to everything we do.
We've also found that a diverse team makes for better problem solvers,
services all our customers more effectively, and creates a richer culture for all
.of us to enjoy

In our company-owned operations in the U.S. for example, about 30 percent of our
associates are Caucasian and the remaining 70 percent are Hispanic, African
American and/or Asian. Minorities and women made up 64 percent of our external
.management hires and 41 percent of internal management hires (promotions) in 2007
We are also increasing the representation of African Americans,
Hispanics and women among our key talent/decision makers, and
.growing the pipeline of diversity in our mid-level manager ranks

All of our brands have leadership initiatives focused on high-potential diversity talent,
and all leaders serve as mentors. In addition, last year each of the brand presidents
 went into their communities to provide business-growth coaching for
.local networks of minority businesses
Making progress in diversity is a business priority and the work of everyone in our
system. This commitment is reflected in David Novak's annual goals, or "Blue
Chips." We also have a dedicated Global Diversity and Inclusion Officer who guides
our strategy and a number of initiatives that enhance our inclusive workplace
 Supplier code of conduct
YUM! Brands, Inc. ("Yum") is committed to conducting its business in an ethical,
legal and socially responsible manner. To encourage compliance with all legal
requirements and ethical business practices, Yum has established this Supplier Code of Conduct (the
"Code") for Yum's U.S. suppliers ("Suppliers").

Compliance with Laws and Regulations

Suppliers are required to abide by all applicable laws, codes or regulations including,
but not limited to, any local, state or federal laws regarding wages and benefits,
workmen's compensation, working hours, equal opportunity, worker and product
safety. Yum also expects that Suppliers will conform their practices to the published
standards for their industry.

Employment Practices
Working Hours & Conditions: In compliance with applicable laws, regulations, codes
and industry standards, Suppliers are expected to ensure that their employees have
safe and healthy working conditions and reasonable daily and weekly work schedules.
Employees should not be required to work more than the number of hours allowed for
regular and overtime work periods under applicable local, state and federal law.

Non-Discrimination: Suppliers should implement a policy to effectuate all applicable

local and federal laws prohibiting discrimination in hiring and employment on the
grounds of race, color, religion, sex, age, physical disability, national origin, creed or
any other basis prohibited by law.

Child Labor: Suppliers should not use workers under the legal age for employment for
the type of work being performed in any facility in which the Supplier is doing work
for Yum. In no event should Suppliers use employees younger than 14 years of age.

Forced and Indentured Labor: In accordance with applicable law, no Supplier should
perform work or produce goods for Yum using labor under any form of indentured
servitude, nor should threats of violence, physical punishment, confinement, or other
form of physical, sexual, psychological, or verbal harassment or abuse be used as a
method of discipline or control.

Notification to Employees: To the extent required by law, Suppliers should establish

company-wide policies implementing the standards outlined in this Code and post
notices of those policies for their employees. The notices should be in all languages
necessary to fully communicate the policy to its employees.

Audits and Inspections

Each Supplier should conduct audits and inspections to insure their compliance with
this Code and applicable legal and contractual standards. In addition to any
contractual rights of Yum or Unified Foodservice Purchasing Co-op, LLC ("UFPC"),
the Supplier's failure to observe the Code may subject them to disciplinary action,
which could include termination of the Supplier relationship. The business
relationship with Yum and UFPC is strengthened upon full and
complete compliance with the Code and the Supplier's agreements
with Yum and UFPC.

Application
The Code is a general statement of Yum's expectations with respect to its Suppliers.
The Code should not be read in lieu of but in addition to the Supplier's obligations as
set out in any agreements between Yum or UFPC and the Supplier. In the event of a
conflict between the Code and an applicable agreement, the agreement shall control.
KFC versus Other Brands

KFC v/s McDonalds

The young generation of Pakistan has drifted towards junk food against the
traditional Pakistani's homemade food. People have started to live a fast track life, so
much so to that they prefer going to the junk foodies restaurant and pick up a quick
grab in just few minutes instead of making lunch/dinner at home and easting 2 to 3 hrs
preparing it.

It all started with the invention of McDonald’s in Pakistan, junk food has
become more popular between the young youth as McDonald’s launched its branch in
most of the major cities of Pakistan. Along with McDonald’s many other junk food
brands started their businesses here.

One of a direct competition to the evergreen business of McDonald’s that

recently launched here in Sialkot is Kentucky Fried Chicken 9commonly known as
KFC) which is famous for its fried chicken.

When it comes to Quality – KFC is far behind from MC Donald’s, they really
need to maintain their quality standards well if they want to rise up the ladder and
compete with McDonald’s.

Presentation skills also matters – and no one can really beat MC Donald’s for
that, they have these different offers from time to time, they have special offers for 12
months of the year for kiddies, they give away free toys etc, all this is really required
if you want to win away the masses. KFC does not offer any of those. Presentation
skills at KFC are really poor. But KFC also has a strength that they didn't take extra
government taxes but McDonalds can take it.

KFC v/s Subway

Subway is epic, and the sandwiches are good. They have a lot of healthy
choices, but they do have baked potato chips and sodas. They are mostly good for
their subs, and delicious...

Like other fast-food restaurants, they offer "limited time offers" or LTO from
time to time. In addition to their standard menu, Subway also offers catering for all
types of occasions. They offer "Giant Subs", which are a minimum of three feet long.
These giant sandwiches can be ordered in bulk and to nearly any specification,
something which Subway has promoted as a part of their campaign to tailor every
sandwich to the individual customer's taste. Subway also offers sandwich platters,
which consist of 5 footlong sandwiches per platter. Cookie platters are also offered.
Each platter consists of 3 dozen freshly-baked cookies.

In KFC, chicken and other meats are fried but in subway they use baked
chicken. In Subway they use fresh vegetables and salad, they also give choice to the
customer to make the meal of their own choice.
KFC v/s Local brands in Pakistan

Although the competition level for KFC is increasing day by day, because
today's youngsters like to eat fast food. The local brands like Al-Maidah, HFC, Mac-
Chicken, Chicken Hut, Frangoz etc. They mostly serve the menu which has a mixture
of McDonalds and KFC. The local brands started their business with chicken burger
and spread it towards the Arabian meal and they have the same offering which KFC
offered.
The local brands food cost is low but their food quality little bit low than KFC.
"No matter what brand image its competitor carries," said a friend who is a reputed
marketer himself. "Because this is a local brand and is known to masses, it can easily
cash in the current consumer preference, that is for Pakistani brands and outdo the
MNC competition." I couldn’t agree anymore with it.

KFC Policy

Customer service policy

While there are many simple ones they can vary depending on
if you are going through drive-thru or coming inside. If you do go inside, the main
policies are to always greet the customer in a timely manner. Take the order, repeat it
back to them, suggestive sells if possible, and have the order packed or pack it
yourself. Always thank them and wish them a great day. If going through drive-thru
the process is a little more complicated. You must greet the customer within 5
seconds of the customer reaching the intercom, take the order, repeat it back,
suggestive sell, thank them ask them to pull forward. You must answer the window
with a Hi, tell them the total due, cash it out, give the change due with food and thank
them again, wishing them a great night. All products must be within acceptable
guidelines and a drive thru order should take no longer then 3 minutes to execute for
maximum efficiency

Security Guarantee

Shop Arcade is committed to safeguarding your privacy online. We

recognize your need for reasonable control of personally identifiable information that
you share with ShopArcade.

ShopArcade Pakistan Online and its partner 2Checkout.com (payment

processor) pledge that the information you enter will not be shared with (or sold to)
any outside party ( does not include fraud cases ) and that any emails you receive
from ShopArcade Pakistan Online and/or 2Checkout.com will be related to your order

For security reasons card numbers are transmitted directly to the banking
network for authorization. ShopArcade Pakistan Online and 2Checkout.com do not
record your card number anywhere.
 Credit cards are processed online through the 2Checkout
payment network, account ShopArcade Pakistan Online and charges
will appear on your credit card bill or bank statement under the name: 2Checkout.com
Inc.
Refund Policy

Replacement - items not received in good condition

In case of perishable items, the request for replacement should be submitted within 24
hours of receipt of the items. In case of all other items, the request for return /
exchange should be submitted within 48 hours of receipt of the items. There are no
extra shipping charges for the delivery of replacement items.

Refunded FULL (If not deliver on Exact Date)

We will be refunded in full , if the items not Deliver on exact/delivery date

Please place your order at least 48 hours before delivery. Late placement of order &
Late Approval of the Credit are not included in refund .
Invalid Address / Tel No. , Strikes / Other Casualties also not included in refund

Refund against non-delivery (delivery through courier)

For delivery of goods through courier, our logistics partners will attempt delivery of
the items twice. Incase the delivery is not executed during all the two attempts, due to
recipient not available/premises locked, etc., the customer shall still be charged for the
order. In case the delivery is not executed at all, the customers can request for refund
against the non-delivered items.

Refund against non-delivery (cakes and flowers)

For delivery of cakes and flowers the delivery of items will be attempted only once.
Being perishable in nature, neither shoparcade.com nor our enabling partner will be
able to provide any refund against such items. However if for some reason the
deliveries are missed or have not been attempted, the customers can request for a
refund against the non-executed deliveries.

Refund against cancelled orders

for all the approved cancellations the order amount will be refunded in full .Customer
have to inform within 24 hours after placement of order.

Partial-Refunds

In case of multiple goods being ordered, if the delivery is not done for certain items,
customers will be refunded against the non-delivered goods or services
 :Target People

:a) Age
Generally there is no age limit which is focus by the KFC. They target &
focus on each and every age of the society. But for somehow in our opinion they
.target heavily on the youngster as compared to the middle & old age

:b) Gender
In this case they generally focus on the both Males & Females of
.the society & similarly target them

:c) Household Size

Household size plays a vital role in the demographical factor of
KFC. Generally they target the whole family not a single family member. That’s why
.he introduced many family packages meals

:d) Population
Population also plays a vital role in the demographical factor of KFC. In
.the light of this population they can make their strategy
Ordering / Delivery Policy

Please place your order at least 48 hours before delivery.

Payments can be made thru:

1) Credit Card
2) Wire Transfer
3) Bank Draft

Delivery is subjected to approval and confirmation of your credit card.

We do our best to deliver the gift on specified date, but sometimes we may fall short,
due to :
Late placement of order
Late Approval of the Credit Card
Invalid Address / Tel No.
Strikes / Other Casualties

All gifts are wrapped and delivered along with a greeting card and will carry a line
saying : "Thru the courtesy of Shoparcade Online"

Delivery Confirmation / Credit Card Decline Email will be sent to you

Payment Options

Credit Card

We accept all major International credit cards like American Express, VISA,
MasterCard and Discover credit. The authorization is done via the online payment
gateway 2checkout.com.

2checkout.com also accept

Electronic Check Drafts - also known as ACH or Digital Checks.

FXSource - Direct electronic funds transfer service.
(for using these methods , must order 3-4 days before delivery date)
 :Target People

:a) Age
Generally there is no age limit which is focus by the KFC. They target &
focus on each and every age of the society. But for somehow in our opinion they
.target heavily on the youngster as compared to the middle & old age

:b) Gender
In this case they generally focus on the both Males & Females of
.the society & similarly target them

:c) Household Size

Household size plays a vital role in the demographical factor of
KFC. Generally they target the whole family not a single family member. That’s why
.he introduced many family packages meals

:d) Population
Population also plays a vital role in the demographical factor of KFC. In
.the light of this population they can make their strategy
Marketing Environment
There are certain forces, inside and outside an organization that affect marketing
management's ability to build and maintain successful relationships with target
customers. Like all other companies, KFC also has such forces around it; marketing
environment is made up of Micro environment and Macro environment.

Micro Environment

Suppliers
As KFC cannot compromise on the quality of food they provide, so reliable suppliers
are very much important to them. There are two categories of supplies. The Dry food
supply and the Frozen food supply. For the dry food , like a "Burger buns" they have
established their own warehouses and dry-stores for the South region. Where as for
the North region, they get dry material from the vendors like „ Dawn Bread ‟. For the
Frozen food „chicken‟ they have agreement with the K&N Chicken for supplying
chicken and fish is supplied by Thailand and spices are supplied by Dubai to all over
restaurants in Pakistan.

Customers
It includes these categories.
 Consumer Markets KFC has large chain of consumers. According to KFC,
“We are growing only with our customer.” KFC has great environment for
their consumers and families. They are concerned about the comfort and
satisfaction of their customers. That is why 40 million on a single outlet.
Midnight deals are there for the consumers with 50 % discount, which is
being appreciated by the individuals.
 Business Market Business markets buy good and services for further
processing or for use in their production process. In case of KFC there is no
such business market.
 Resellers KFC is dealing in fast food, and so they don‟t have any resellers as
such.

Competitors
They are classified into direct and indirect competitors.

Direct Competitors: It includes

 Mc Donald‟s
 HFC
 Subway
 Al-Maidah
Indirect Competitors: It includes all other restaurants. Like Salt & Pepper, Kabana,
Village, Bundu Khan etc.

Marketing Intermediaries: It includes the firms that help the company to promote,
sell and distribute its products and services. As in KFC, the goods are manufactured
according to needs and wants of the customers and immediately served
to customers on their outlets. So no marketing intermediaries are at
KFC.

The Macro Environmental Forces

These are not controlled by the company and are environmental forces. It includes

Demographic Factor
KFC has designed its menu according to taste of population. People of
each age like to visit KFC. It has deals for families as well as deals for the children.
They also visit their competitors to have better idea about changing trends and taste of
people as well as their competitors. KFC reconsider its menu and taste after every
three months. KFC always encourages feedback and suggestions from its customers.

Natural Factors
KFC always produces fresh food. The supply houses are well prepared
and well maintained for changing factors of weather.So it is not affected by natural
factors.

Technological Factor
Their machines and boilers are according to latest technology and
standards. After every six months, technical checkup is conducted and that equipment
is replaced which becomes useless. Efficient billing system is implemented, to
eliminate the redundancy and maintain the daily ledger account.

Political Factors
It consists of laws, govt. agencies and pressure groups that influence or
limit various organizations and individuals in a given society. But KFC has its own
strong links and politics, it is not been influenced by any external factors. No pressure
groups are there inside and outside organization to pressurize in any aspect.
Ethically there might be certain forces that have been impact on the overall sale of
KFC, for that; it has also made certain strategies and road-maps to overcome them.

Cultural Factors
KFC is always concerned about the culture and ethical values of the
community. As, the customer are from the same community that they are serving in,
KFC takes care of ethical and moral values of the society. As Pakistan is an Islam
country, so KFC serves Halal food here.
Employment Act of KFC In Pakistan
The Constitution of Pakistan contains a range of provisions with regards to
labour rights found in Part II: Fundamental Rights and Principles of Policy.

• Article 11 of the Constitution prohibits all forms of slavery, forced labour and
child labour;

• Article 17 provides for a fundamental right to exercise the freedom of

association and the right to form unions;

• Article 18 proscribes the right of its citizens to enter upon any lawful
profession or occupation and to conduct any lawful trade or business;

• Article 25 lays down the right to equality before the law and prohibition of
discrimination on the grounds of sex alone;

• Article 37(e) makes provision for securing just and humane conditions of
work, ensuring that children and women are not employed in vocations unsuited
to their age or sex, and for maternity benefits for women in employment.

Labour Legislation

Pakistans labour laws trace their origination to legislation inherited from India
at the time of partition of the Indo-Pak subcontinent. The laws have evolved
through a continuous process of trial to meet the socio-economic conditions,
state of industrial development, population and labour force explosion, growth
of trade unions, level of literacy, Government’s commitment to development
and social welfare. To meet the above named objectives, the government of the
Islamic Republic of Pakistan has introduced a number of labour policies, since
its independence to mirror the shifts in governance from martial law to
democratic governance.

Under the Constitution labour is regarded as a ‘concurrent subject’, which

means that it is the responsibility of both the Federal and Provincial
Governments. However, for the sake of uniformity, laws are enacted by the
Federal Government, stipulating that Provincial Governments may make rules
and regulations of their own according to the conditions prevailing in or for the
specific requirements of the Provinces. The total labour force of Pakistan is
comprised of approximately 37.15 million people, with 47% within the
agriculture sector, 10.50% in the manufacturing & mining sector and remaining
42.50% in various other professions.

Contract of
Employment

While Article 18 of the Constitution affords every citizen with the right to enter
upon any lawful profession or occupation, and to conduct any lawful trade or
business, the Industrial and Commercial Employment (Standing Orders)
Ordinance was enacted in 1968 to address the relationship between employer
and employee and the contract of employment. The Ordinance
applies to all industrial and commercial establishments throughout
the country employing 20 or more workers and provides for security of
employment. In the case of workers in other establishments, domestic servants,
farm workers or casual labour engaged by contractors, their labour contracts are
generally unwritten and can be enforced through the courts on the basis of oral
evidence or past practice.

Every employer in an industrial or commercial establishment is required to issue

a formal appointment letter at the time of employment of each worker. The
obligatory contents of each labour contract, if written, are confined to the main
terms and conditions of employment, namely nature and tenure of appointment,
pay allowances and other fringe benefits admissible, terms and conditions of
appointment.

Termination of the Contract

The services of a permanent worker cannot be terminated for any reason other
than misconduct unless one month’s notice or wages in lieu thereof has been
furnished by the employer or by the worker if he or she so chooses to leave his
or her service. One month’s wages are calculated on the basis of the average
wage earned during the last three months of service. Other categories of workers
are not entitled to notice or pay in lieu of notice.

All terminations of service in any form must be documented in writing stating

the reasons for such an act. If a worker is aggrieved by an order of termination
he or she may proceed under Section 46 of the Industrial Relations Ordinance
2002, aimed at regulating the labour-management relations in the country, and
bring his or her grievance to the attention of his or her employer, in writing,
either him or herself, through the shop steward or through his or her trade union
within three months of the occurrence of the cause of action. Forms of
termination have been described as removed, retrenched, discharged or
dismissed from service. To safeguard against any colorful exercise of power,
victimization or unfair labour practices, the Labour Courts have been given
powers to examine and intervene to find out whether there has been a violation
of the principles of natural justice and whether any action by the employer was
bonafide or unjust.

Working Time and Rest Time working Hours

Under the Factories Act, 1934 no adult employee, defined as a worker

who has completed his or her 18th year of age, can be required or
permitted to work in any establishment in excess of nine hours a day and
48 hours a week. Similarly, no young person, under the age of 18, can be
required or permitted to work in excess of seven hours a day and 42 hours
a week. The Factories Act, which governs the conditions of work of
industrial labour, applies to factories, employing ten or more workers.
The Provincial Governments are further empowered to
extend the provisions of the Act, to even five workers.

Where the factory is a seasonal one, an adult worker shall work no more
than fifty hours in any week and no more than ten hours in any day. A
seasonal factory, per section 4 of the Factories Act is that which is
exclusively engaged in one or more of the following manufacturing
processes, namely, cotton ginning, cotton or cotton jute pressing, the
manufacture of coffee, indigo, rubber, sugar or tea. However, if such
adult worker in a factory is engaged in work, which for technical reasons
must be continuous throughout the day, the adult worker may work no
more than fifty-six hours in any week.

Section 8 of the West Pakistan Shops and Establishments Ordinance,

1969 likewise, restricts weekly work hours at 48 hours. The Shops and
Establishments Ordinance regulates persons employed in shops and
commercial establishments, who are neither covered by the Factories Act
nor by the Mines Act. The Ordinance is exclusive in the whole of
Pakistan except for the Federally Administered Tribal Areas. Section 22-
B of the Mines Act, 1923 also fixes weekly hours of work for workers at
48 hours or 8 hours each day, with the limitation of spread-over 12 hours
and interval for rest for one hour every six hours. Section 22-C further
limits the spread-over to 8 hours for work done below ground level.

In factories, the periods and hours of work for all classes of workers in
each shift must be notified and posted in a prominent place in the
principal language in the industrial or commercial establishment. The law
further provides that no worker shall be required to work continuously for
more than six hours, unless he or she has had an interval for rest or meals
of at least one hour.
During Ramadan (fasting month), special reduced working hours are
observed in manufacturing, commercial and service organizations.

Paid Leave
As provided in the Factories Act, 1934, every worker who has completed
a period of twelve months continuous service in a factory shall be
allowed, during the subsequent period of twelve months, holidays for a
period of fourteen consecutive days. If a worker fails in any one such
period of twelve months to take the whole of the holidays allowed to him
or her, any holidays not taken by him or her shall be added to the holidays
allotted to him or her in the succeeding period of twelve months.
A worker shall be deemed to have completed a period of twelve months
continuous service in a factory notwithstanding any interruption in service
during those twelve months brought about by sickness, accident or
authorized leave not exceeding ninety days in the aggregate for all three,
or by a lock-out, or by a strike which is not an illegal strike, or by
intermittent periods of involuntary unemployment not exceeding thirty
days in the aggregate; and authorized leave shall be deemed not to include
any weekly holiday allowed under section 35 which occurs at beginning
or end of an interruption brought about by the leave.
Maternity Leave and Maternity Protection
While article 37 of the Constitution makes reference to maternity benefits
for women in employment, there are two central enactments, one federal
and the other provincial providing maternity benefits to women employed
in certain occupations. The Maternity Benefit Ordinance, 1958 stipulates
that upon the completion of four months employment or qualifying
period, a worker may have up to six weeks prenatal and postnatal leave
during which she is paid a salary drawn on the basis of her last pay. The
Ordinance is applicable to all industrial and commercial establishments
employing women excluding the tribal areas. It also places restrictions on
the dismissal of the woman during her maternity leave. Similarly, the
Mines Maternity Benefit Act, 1941 is applicable to women employed in
the mines in Pakistan.

Other Leave Entitlements

In addition to the 14 days of annual leave with pay, the Factories Act,
1934 provides that every worker is entitled to 10 days casual leave with
full pay and further 16 days sick or medical leave on half pay. Casual
leave is granted upon contingent situations such as sudden illness or any
other urgent purpose. It should be obtained on prior application unless the
urgency prevents the making of such application. As a customary
practice, causal leave is approved in most cases. Sick leave, on the other
hand, may be availed of on support of a medical certificate. Management
should not refuse the leave asked for if it is supported by a medical
certificate.

In addition to the leave entitlements, workers enjoy festival holidays as

declared by the Federal Government. The Provincial Government under
section 49 of the Factories Act, 1934, states all festival holidays,
approximately 13 or as further declared, in the Official Gazette.
Additionally, every worker is entitled to enjoy all such holidays with pay
on all days declared and notified by the Provincial Government. If
however, a worker is required to work on any festival holiday, one day's
additional compensatory holiday with full pay and a substitute holiday
shall be awarded.
Under agreements made with the Collective Bargaining Agent, employees
who proceed on pilgrimage i.e., Hajj, Umra, Ziarat, are granted special
leave up to 60 days.

Minimum Age and Protection of Young Workers

Article 11(3) of Pakistan’s Constitution expressly prohibits the

employment of children below the age of fourteen years in any factory,
mine or other hazardous employment. In addition, the Constitution makes
it a Principle of Policy of the State of Pakistan to protect the child, to
remove illiteracy and provide free and compulsory education within the
minimum possible period and to make provision for securing just and
human conditions of work, ensuring that children and women are not
employed in vocations unsuited to their age or sex.
The Factories Act, 1934 allows for the employment of
children between the ages of 14 and 18 years provided that each
adolescent obtains a certificate of fitness from a certifying surgeon. A
certifying surgeon, per section 52 of the Act, shall on the application of
any child or adolescent who wishes to work in a factory, or, of the parent
or guardian of such person, or of the factory in which such person wishes
to work, examine such person and ascertain his or her fitness for such
work.

The Act further restricts the employment of a child in a factory to five

hours in a day. The hours of work of a child should thus be arranged in
such a way that they are not spread over more than seven-and-a-half hours
in any day. In addition, no child or adolescent is allowed to work in a
factory between 7 p.m. and 6 a.m. The Provincial Government may, by
notification in the Official Gazette in respect of any class or classes of
factories and for the whole year or any part of it, vary these limits to any
span of thirteen hours between 5 a.m. and 7.30 p.m. Moreover, no child is
permitted to work in any factory on any day on in which he or she has
already been working in another factory.

Factories are further required to display and correctly maintain in every

factory a Notice of Periods for Work for Children, indicating clearly the
periods within which children may be required to work. The manager of
every factory in which children are employed is compelled to maintain a
Register of Child Workers identifying the name and age of each child
worker in the factory, the nature of his or her work, the group, if any, in
which he or she is included, where his or her group works on shifts, the
relay to which he or she is allotted, the number of his or her certificate of
fitness granted under section 52, and any such other particulars as may be
prescribed.

The provisions of the Factories Act, 1934 are cited in addition to, and not
in derogation of the provisions of the Employment of Children Rules,
1995. The Employment of Children Rules extends to the whole of
Pakistan with the exception of the State of Azad Jammu and Kashmir and
delimits finite labour conditions afforded for the protection of minors.
Rule 6 insists on cleanliness in the place of work. No rubbish, filth or
debris shall be allowed to accumulate or to remain in any part of the
establishment and proper arrangements shall be made for maintaining in a
reasonable clean and drained condition for the workers of the
establishment. Rule 7 further calls for proper ventilation in work places
where injurious, poisonous or asphyxiating gases, dust or other impurities
are evolved from any process carried on, in such establishment. As long
as workers are present in an establishment, the latrines, passages, stairs,
hoists, ground and all other parts of the establishment in so far as the
entrance of the said places is not closed, must be lighted in such manner
that safety is fully secured. In addition, in every establishment an
arrangement of drinking water for child and adolescent workers is to be
provided free of charge. All shafts, couplings, collars, clutches, toothend
wheels, pulleys, driving straps, chains projecting set screws,
keys, nuts and belts on revolving parts, employed in the
establishment, shall be securely fenced if in motion and within reach of a
child worker and further may not be operated by a child worker.

Under the Employment of Children Rules, anyone who employs a child or

permits a child to work in contravention of the Constitution is punishable
by imprisonment for a term extending up to one year or may be fined up
to Rs. 20,000 or subject to both. Repetition of the offense is punishable by
imprisonment for a term extending up to two years and shall not be less
than six months.

Equality

Article 38 of the Constitution imparts the State’s obligations aimed at

achieving equality in the form of securing the well-being of the people,
irrespective of sex, caste, creed or race, by raising their standard of living,
by preventing the concentration of wealth and means of production and
distribution in the hands of a few to the detriment of general interest and
by ensuring equitable adjustment of rights between employers and
employees, and landlords and tenants. All citizens are bestowed, within
the available resources of the country, facilities for work and adequate
livelihood with reasonable rest and leisure and the basic necessities of
life, such as food, clothing, housing, education and medical relief, for all
such citizens, irrespective again of their sex, caste, creed or race, as are
permanently or temporarily unable to earn their livelihood on account of
infirmity, sickness or unemployment.

Pay Issues

Wages are construed as the total remuneration payable to an employed

person on the fulfillment of his or her contract of employment. It includes
bonuses and any sum payable for want of a proper notice of discharge, but
excludes the value of accommodations i.e., supply of light, water, medical
attendance or other amenities excluded by the Provincial Government; the
employer’s contribution to a pension or provident fund, traveling
allowance or concession or other special expenses entailed by the nature
of his or her employment; and any gratuity payable on discharge.

The Payment of Wages Act, 1936, regulates the payment of wages to

certain classes of industrial workers. It applies to those workers whose
monthly wages do not exceed Rs. 3,000 (51.68 US$) and are employed in
factories, railways, plantations, workshops and establishments of
contractors. The main object is to regulate the payment of wages to
certain classes of persons employed in industry. The provisions of the Act
can, however, be extended to other classes of workers by the Provincial
Governments after giving three months notice to the employers of their
intention to do so. The Act stipulates that wages to workers employed in
factories and on railways are to be paid within seven days of completion
of the wages period, if the number of workers employed therein is less
than 1,000. In other cases, the time limit for payment of
wages to the workers is 10 days. No deduction can be made
from the wages of the workers excepts as specified in the Act, such as for
fines, breach of contract and the cost of damage or loss incurred to the
factory in any way other than an accident.

The employer is responsible for the payment of all wages required to be

paid to persons employed by him or her. Similarly any contractor
employing persons in an industry is responsible for payment of wages to
the persons he or she employs. The persons responsible for payment of
wages must fix wage periods not exceeding one month. Wages should be
paid on a working day within seven days of the end of the wage period, or
within ten days if 1,000 or more persons are employed. The wages of a
person discharged should be paid not later than the second working day
after his or her discharge.

Workers' Representation in the Enterprise

Until the adoption, on 29 October 2002, of the Industrial Relations

Ordinance, 2002 (IRO 2002), which repealed the Industrial Relations
Ordinance, 1969, Pakistan had a three-pronged system of participation in
management (i.e., the Works Council, the Management Committee and
the Joint Management Board), independent of each other and each having
its own sphere of activities.

The new text simplifies the system, introducing a single body in place of
the three previous ones: the Joint Works Council (Article 24 of the IRO
2002). A Joint Works Council must be set up in any establishment
employing fifty persons or more. It consists of no more than ten members,
forty per cent of which are workers’ representatives. In the previous
system, the Management Committee and the Works Council were
composed of an equal number of representatives of the employer and
workers, whereas the Joint Management Board had a workers’
participation of 30 per cent. The Convener of the Joint Works Council is
from the management.

The Joint Works Council deals with matters, which were of the
competency of the earlier Joint Management Board, such as the
improvement in production, productivity and efficiency, provision of
minimum facilities for those of the workers employed through contractors
who are not covered by the laws relating to welfare of workers. It has also
taken up tasks of the previous Works Council, i.e. promoting settlement
of differences through bilateral negotiations, promoting conditions of
safety and health for the workers, encouraging vocational training within
the establishment, taking measures for facilitating good and harmonious
working conditions in the establishment, provision of educational
facilities for children of workers.
 Freedom of association

The right to association is guaranteed by Article 17 of the Pakistani

Constitution imparting on every citizen the right to form associations or
unions, subject to any reasonable restrictions imposed by law in the
interest of sovereignty or integrity of Pakistan, public order or morality.
Under Article 3 of the IRO 2002, workers as well as employers in any
establishment or industry have the right to establish and to join
associations of their own choosing, subject to respect of the law. Both
workers' and employers' organizations have the right to establish and join
federations and confederations and any such organization, federation or
confederation shall have the right to affiliate with international
organizations and confederations of workers' and employers'
organizations.

Registration of trade unions

Registration of a trade union is to be made under the Industrial Relations

Ordinance. Workers’ trade unions are registered with the Registrar Trade
Unions in the Province, and if the industry or establishment is nationwide
with the National Industrial Relations Commission, after fulfilling a
number of requirements, listed in Article 6 of the IRO 2002. Through its
registration, the trade union obtains certain benefits: registration confers a
legal existence as an entity separate from its members. Trade unions in
Pakistan generally function on plant-wide basis, with their membership
contingent on the size of the industry/trade to which they belong. Once
established, the trade unions and employers' associations have the right to
draw up their constitutions and rules, to elect their representatives in full
freedom, to organize their administration and activities and to formulate
their programmes.

Collective Bargaining and Agreements

To determine the representative character of the trade union in industrial

disputes and to obtain representation on committees, boards and
commissions, the Industrial Relations Ordinance makes provision for the
appointment of a Collective Bargaining Agent (CBA).
The CBA is a registered trade union elected by secret ballot. The CBA is
entitled to undertake collective bargaining with the employer or
employers on matters connected with employment, non-employment, the
terms of employment or any right guaranteed or secured to it or any
worker by or under any law, or any award or settlement
.
Collective agreements are thus formulated by the CBA. The agreements
may contain matters such as the facilities in the establishment for trade
union activities and procedures for settling collective disputes including
grievances and disciplinary procedures. Substantive provisions settle
terms and conditions of employment, wages and salaries, hours of work,
holiday entitlement and pay, level of performance, job grading, lay-offs,
retrenchment, sick pay, pension and retirement schemes. Such agreements
 once duly executed by both parties become the source of
law. The agreements should invariably be in writing and
should be drafted with care, for they are meant to settle disputes rather
than raise them.

In addition to statutory benefits under the labour laws, the adjustment of

rights takes place through collective bargaining including adjudication in
Labour Courts. The IRO 2002 has changed the appellate procedure on the
provincial level, which used to be brought before a Labour Appellate
Tribunal. This institution was abolished by the IRO 2002. Appeals of
Labour Court decisions now lie directly with provincial High Courts.
Office bearers of trade unions are given protection against arbitrary
transfer, discharge and dismissal. Any ill-intentioned action on the part of
the employer against an office-bearer of a trade union or against a worker
for trade union activities, is construed as an unfair practice and the
National Industrial Relations Commission is entrusted with the task of
preventing such offenses. Security of service is ensured to the workers.
Similarly, unfair labour practices on the part of workers and trade unions
is elaborated and incorporated in law.

Collective Labour Disputes Commencement of a dispute

Under the IRO 2002, if an employer or a Collective Bargaining Agent finds that
an industrial dispute has arisen or is likely to arise, they may communicate their
views in writing to the other party. Upon receipt of the communication, the
other party has fifteen days (or more if agreed) to try and settle the dispute by
bilateral negotiations.

Conciliation

If the parties do not manage to reach a settlement, the employer or the

CBA may, within fifteen further days, serve a notice of conciliation on
the other party, with a copy to the Conciliator and to the Labour Court.

If the dispute is settled before the Conciliator, or a tripartite Board of

Conciliators, a report is sent to the Provincial or Federal Government,
with the memorandum of settlement.

Arbitration

If the conciliation fails, the Conciliator tries to persuade the parties to

refer their dispute to an arbitrator. If they agree, the parties make a join
request in writing to the arbitrator they have agreed upon.
The arbitrator gives his or her award within a period of 30 days or a
period agreed upon by the parties. The award of the arbitrator is final and
valid for a period not exceeding two years.
A copy of the award is sent to the provincial or Federal
Government, for publication in the official Gazette.

Strikes and Lock-outs Proceeding of strikes and

lock-outs

If dispute settlement proceedings before the Conciliator fail and no

settlement is reached, and if the parties have not agreed to refer their
dispute to an arbitrator, the workers retain the right under section 31 of
the Industrial Relations Ordinance 2002, to go on strike providing due
notice to their employer within seven days, and the employer has the right
declare a lock-out after the delay of notice of conciliation has expired.
The party raising a dispute retains the option, at any time, either before or
after the commencement of a strike or lockout, to make an application to
the Labour Court for adjudication of the dispute.

Where a strike or lock-out lasts for more than fifteen days, if it relates to a
dispute which the Commission is competent to adjudicate and determine,
the Federal and/or the Provincial Government may, by order in writing,
prohibit the strike or lock-out at any time before the expiry of thirty days,
provided that the continuance of such a strike or lock-out causes serious
hardship to the community or is prejudicial to the national interest. In
such case the Federal Government or the Provincial Government shall
forthwith refer the dispute to the Commission or the Labour Court. After
hearing both parties, the Commission, or the Labour Court shall make
such award as it deems fit, as expeditiously as possible but not exceeding
thirty days from the date on which the dispute was referred to it.

Under section 32 of the IRO 2002, if a strike or lockout occurs within the
public utility services sector the Federal Government and the Provincial
Government may, by order in writing, also prohibit its occurrence at any
time before or after the commencement of the strike or lockout.
No party to an industrial dispute may go on strike or declare a lockout
during the course of conciliation or arbitration proceedings, or while
proceedings are pending before the Labour Court.
In addition, the National Industrial Relations Commission (the
Commission), adjudicates and determines industrial disputes to which an
industry-wise trade union or federation of such trade unions is a party , as
well as disputes which are of national importance.
The Commission also deals with cases of unfair labour practices.

Illegal strikes and lock-outs

A strike or lockout is declared illegal if it is commenced without giving

notice of conciliation to the other party of the dispute, or if it is
commenced or continued in a manner other than that provided by the IRO
2002 or in contravention with this text.
 In case of an illegal strike or lockout, an Officer from the
Labour Department may make a report to the Labour Court,
and require the employer or CBA or the registered trade union concerned,
to appear before the Court. The Court may, within 10 days, order the
strike or lockout to be stopped.
In case of contravention of the order of the Court by the employer, and if
the Court is satisfied that the pursuance of the lock-out is causing serious
hardship to the community or is prejudicial to the national interest, it may
order the attachment of the factory and the appointment of an official
receiver, who will exercise the powers of management and may do all
such acts as are necessary for conducting business.

In case of contravention of the order of the Court by the workers, the

Labour Court may pass orders of dismissal against the striking workers,
or cancel the registration of the trade union that committed such
contravention.

Settlement of Individual Labour Disputes

Pursuant to Article 46 of the IRO 2002, a worker may bring his or her
grievance in respect of any right guaranteed or secured by or under any
law or any award or settlement to the notice of the employer in writing,
either him or herself or through the shop steward or Collective Bargaining
Agent, within one month of the day on which cause of such grievance
arises. The IRO 2002 reduces the delay from three months to one month.
Where a worker brings his or her grievance to the notice of the employer,
the employer must within fifteen days of the grievance, communicate his
or her decision in writing to the worker

If the employer fails to communicate a decision within the specified

period or if the worker is dissatisfied with such decision, the worker or
shop steward may take the matter to the Labour Court within a period of
two months.

Labour Courts

Section 33 of the Industrial Relations Ordinance, 2002 permits any CBA or any
employer to apply to the Labour Court for the enforcement of any right
guaranteed or secured by law or any award or settlement. The Provincial
Government derives its authority to establish as many Labour Courts as it
considers necessary under section 44 of the Ordinance. Each Labour Court is
subject to jurisdictional limitations derived by its geographical parameters or
with respect to the industry or the classes of cases allocated. Each Labour Court
consists of one Presiding Officer appointed by the Provincial Government.

The Labour Court adjudicates industrial disputes which have been referred to or
brought before it; inquires into or adjudicates any matter relating to the
implementation or violation of a settlement which is referred to it by the
Provincial Government; tries offenses under the Industrial
Relations Ordinance; and exercises and performs such other
powers and functions conferred upon or assigned to it. While deliberating
offenses, the Labour Court follows as nearly as possible procedure as prescribed
under the Code of Criminal Procedure, 1898. For purposes of adjudicating and
determining any industrial disputes, the Labour Court is deemed to be a Civil
Court and retains the same powers as are vested in such Court under the Code of
Civil Procedure, 1908 (Act V of 1908) including the enforcement of attendance
and examination under oath, the production of documents and material objects,
and the issuance of commissions for the examination of witnesses or documents.

An award or decision of a Labour Court is produced in writing and delivered in

open Court with two copies subsequently forwarded to the Provincial
Government. Upon receipt, the Provincial Government within a period of one
month publishes the award or decision in the Official Gazette.
The IRO 2002 abolished the Labour Appellate Tribunal. Any party aggrieved by
an award or a decision given or a sentence passed by the Labour Court may now
submit an appeal to the High Court (Article 48 of the IRO 2002). The High
Court, may vary or modify an award or decision or decision sanctioned by the
Labour Court. It may, on its own motion at any time, call for the record of any
case or proceedings in which a Labour Court within its jurisdiction has passed
an order, for the purpose of satisfying itself as to the correctness, legality, or
propriety of such order, and may pass such order, in relation thereto as it thinks
fit, provided that the order does not adversely affect any person without giving
such person a reasonable opportunity of being heard.

Official Gazette
The Federal Laws of Pakistan are published by the Government in a document
called the Gazette of Pakistan. The Ministry of Justice, Law and Parliamentary
Affairs in addition publishes individual Acts through the Official Gazette.
Consumer Buying Behavior at KFC
Types of consumer buying behavior at KFC are determined by:
 Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
 Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores others.

High involvement purchases-- High priced goods, products visible to others, and the
higher the risk the higher the involvement.
Types of risk:
 Personal risk
 Social risk
 Economic risk

The four type of consumer buying behavior are:

 Routine Response/Programmed Behavior--buying low involvement
frequently purchased low cost items; need very little search and decision
effort; purchased almost automatically. Examples include soft drinks, snack
foods, milk shake etc.
 Limited Decision Making--buying product occasionally. When you need to
obtain information about unfamiliar brand in a familiar product category,
perhaps. Requires a moderate amount of time for information gathering.
 Extensive Decision Making/Complex high involvement, unfamiliar,
expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend a lot of time seeking information and deciding.
Information from the companies MM; friends and relatives, store personnel
etc. Go through all six stages of the buying process.
 Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior.
Product can shift from one category to the next.
 Criticisms on KFC
:Environmental concerns

KFC in the US has been accused by Greenpeace of a large destruction of the Amazon
Rainforest, because the supply of soy used for chicken food that KFC receives from
Cargill has been traced back to the European KFC. Cargill has reportedly been
exporting soy illegally for several years. The Greenpeace organization researched the
issue and brought it to the attention of the parent company YUM! Brands, Inc. The
parent company denied the illegal operation, and said that their supply of soy is grown
in parts of Brazil. Greenpeace has called on KFC to stop purchasing soy from Cargill,
.to avoid contributing to the destruction of the Amazon

:Trademark disputes

In 1971, Sanders sued Heublein Inc., KFC's parent company at the time, over the
alleged misuse of his image in promoting products he had not helped develop. In
1975, Heublein Inc. unsuccessfully sued Sanders for libel after he publicly referred to
."their gravy as "sludge" with a "wallpaper taste

In May 2007 KFC (Great Britain) requested that Tan Hill Inn, in the Yorkshire Dales,
North Yorkshire, UK refrain from using the term 'Family Feast' to describe its
Christmas menu, although this problem was quickly resolved with the pub being
.allowed to continue use of the term
 :COMPETITIVE EDGE

 Unique modality of fast-food availability, with unmatched preparation times

 Lower capital costs and overheads and high margin unit sales through broad
exposure.

 Healthy, fresh, fast, quality, price competitive alternative

 New funky, identifiable brand, professional approach and solid management

 Aimed at segment of large market not currently exploited by the competition

:KFC and Pakistan Growing Together

 Presently KFC has provided employment to more then 1200 Pakistanis, which
adds up to 6000 individuals directly dependent on KFC Pakistan.

 The Government of Pakistan receives over Rs.10 to 11 million per month from
KFC Pakistan as direct taxes.

 95% of all food and packaging material used in KFC Pakistan is procured
locally, which sums up to a purchase of over Rs.35 million per month.

 Each new outlet developed by KFC Pakistan costs approximately Rs.40

million, which is a huge amount for our construction industry.

 Annual turnover in Pakistan 2.5 billion.

 :SWOT Analysis of KFC
:Strength

 Strong Cash Flows

 Generate $1B each year

 Very strong Internationally UK, Middle East, Thailand, China, Japan, Korea,
Mexico

 Strong Franchise and License Fee revenues for cash flow.

 Interactive relationship marketing

 Strong trademarks recipes

 Ranks highest among all chicken restaurant chains for its convenience and
menu variety.

 Largest multi branded restaurant in the world 100 KFC

:Weaknesses

 Recent drop in sales for KFC

 Failed to rank in top 20 in growth in 2000.

 Same Store sales declined

 Lack of point of scale scanning system

 Admitted inability to provide quality service

 Lack of knowledge abut their customers

 Lack of relationship building with employees, customers and suppliers i.e.

Chick-fil-a

 Question of over franchising leads to loss of control and quality

 Lack of focus on R&D

:Opportunities

 Growth of 18-24 age demographic

 Increase in U.S. median income

 International beef scare from mad-cow and hoof and mouth disease

 Home Meal Replacement Market will exceed an estimated $577 billion by

2020

 Targeting to growing ethnic markets – Asian American and Hispanic

 New Leadership

 Domestic markets

 Updating restaurants

 Balanced menu

 Customer focus

 Increase delivery service

:Threats

 Rated 83 out of 100 in terms of competitiveness

 Increasing wage rates directly affect menu prices

 85% annual employee turnover for fast –food market

 Supermarkets and new competitors threaten HMR market

 International Exchange Rates

 Health Trend away from fried foods

 Changing customer demands

 Quality of Service Focus

 :PEST Analysis of KFC
:Political Factor )1
Following are the factor involve in the political factors of the
-:KFC

:a) Government Policies

Although KFC is a foreign company, but they have to obey the

policies of the Government where he run its business activities. KFC has handle this
situation very tactfully and obey the policies of the Government as prescribe by the
.government in order to run this kind of business

:b) Price Policies

Price policies is also an important factor. KFC maintain & design its
price policies keeping in view the income & income distribution of the people living
.in the country. That’s why all the classes are the target market of KFC

:c) Political Stability

Political stability is very important if KFC want to become the
.leader in fast food business in Pakistan. So this is also an important political factor

:Economical Factors )2
Following factors are included in the economical factors of the
-:KFC
:a) Income

Income is an important economical factor of the KFC. This factor

decides which class KFC is going to target. In the early time of KFC they focusing on
the upper class but they introduce some meal through which we can say that they
.target the middle & the upper level as well
:b) Consumption Behavior
KFC also estimated the consumption behavior of the people,
.their liking and disliking and make decision accordingly

:c) Payment Methods

Payment method is an important factor in the economical factor
of the KFC. They check the behavior of the regarding the payment methods of the
.people. They check whether the gives money in the form of cash or plastic money
 :Social Factors )3
-:Social Factors includes the following things

:a) Social Class

As we discuss earlier that KFC target all the class including the upper
.class, upper middle and lower middle class etc

b)
:Culture
Though the culture of KFC from where they come is different but they
.adopt the Pakistani culture also

:c) Religion
KFC not only adopt the Pakistani culture but also the Religion as well. They offer
Halal foods to the customers, which is the symbol that they adopted the Muslim
.religion

:Technological Factors )4
-:Technological factors include the following

:a) Pace of Change

Pace of change mean rate of change. KFC has
strategy to introduce new technology whenever they think that it is a time to introduce
.new technology

:b) Research & Development

Research & Development is also an important factor in the
Technological factor. KFC always support the work of research & development in
.order to introduce the new technology

:c) Capital Formation

Capital formation means stock of machinery. KFC has a stock of
machinery in order to run its business activities. In other words KFC has a good
.amount of Capital Formation