Streamlining Business Operations: Implementing a New IT System at Shore & More Bicycles

by Herman Bailey | Apr 28, 2023 | Essays | 0 comments

Introduction

IT Infrastructures play a vital role in the success of any company today. This is because IT Infrastructures filed cover almost all the computers physical hardware used in connecting the computers and different users of the company. In a company, IT Infrastructures may typically include things such as the transmission media, telephone lines, repeaters, satellite antennas and aggregators among others. Similarly, IT Infrastructures also include software used either in receiving or sending messages. The important aspects of any business include email connectivity, firewall uptime and website accessibility that were taken care of the IT Infrastructures to ensure smooth running and trouble free of all business processes. This is a comprehensive report to Chief Information Officer (CIO) of Shore & More Bicycles about a new IT system. The proposed system will include a technology that can grow with Shore & More Bicycles business and support its entire operations including internal operations, supplier orders and communications, retail store operations and customer internet orders.

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Identify 8–10 key aspects of the IT infrastructure that must be in place to support the growth strategy of the company.

It is posited widely that to leverage functionality of information technology (IT), IT investments and business operations should be coordinate and strategically and aligned closely (Lederer & Sethi, 1988]. To exploit IT fully, the business strategy of a firm must be integrated with the IT strategy. Furthermore, to fully leverage functionality of IT, technological and organizational infrastructures should be aligned and integrated. This section of the report will identify key IT infrastructure aspects that must be put in place to support the company growth strategy. IT infrastructure offers the shared foundation of the capabilities in IT for building business applications

IT infrastructure having an enabling or supporting function

This means that an IT infrastructure is designed in supporting wide range of activities and is not only tailored to one activity. The IT infrastructure is enabling in that it is a technology with an intention of opening up a field of new activities, and not just automating or improving something that is existing to support the growth strategy of a company. This is in contrast to specifically designed to supporting one way of working within a particular field of application (Hanseth & Monteiro, 2015).

Having an enabling and supporting function also implies that it should be flexible. The current uncertainties in the environment gives rise to gives rise to the need for IT infrastructure flexibility. Organizations must frequently change more than in the pat so as to adapt to the new opportunities. Technology according to Das, Zahra & Warkentin, 1991) is also expected to exhibit more versatility and flexibility in acquisition and processing of information, and in reduction of time for response required in adjusting changes in the definition of markets by the company.

An IT infrastructure that is shared by a collection of user groups or users or a larger community

An IT infrastructure is shared by collection of users or members of a community in that ts one infrastructure that is used by all of them despite it appearing differently. User involvement also refers to the users’ psychological state which reflects the beliefs of the user that a system personally relevant and important, and performance of the user is described as an attitude or behaviour during use of systems (Hartwick & Barki, 1994). In this way, IT infrastructures are seen as irreducible and which cannot be split into different separate parts being used various users or groups independently. For instance, an email, which is an IT infrastructure is one such shared unit that is irreducible. While different word processors installations may be used completely independent of each other, of course, an infrastructure may be decomposed into various units for design or analytical purposes (Hanseth & Monteiro, 2015).

The enabling and shared aspects of IT infrastructure have made the concept very popular in supporting the growth strategy of a company. Just as in the case of IT infrastructure’s role that is believed to be essential as its enabling characters points to what may be applied or kept as a stable basis in the increasingly more dynamic and complex world (Hanseth & Monteiro, 2015).

IT infrastructure that are open

This aspect ensures that IT infrastructures are open in that there no limits on the number of stakeholders, users, nodes in the network, vendors involved and other technological components, network operators and application areas. The defining characteristics of this aspect does not necessarily imply that it has an extreme position that everything absolutely is included in every IT infrastructure (Hanseth & Monteiro, 2015). However, it implies that one cannot define a strict border indicating that there one IT infrastructure on one side of the border and other IT infrastructures on the other sides of the border and that these IT infrastructures have no relevant or important connections.

For instance, from the case study, Shore and More Bicycles is exchanging information with other dealers in bicycles, even in other regions. It is exchanging information with financial information’s and other institutions in the private and public institutions and even ordering goods from different companies. Similarly, these companies are also exchanging information with other different institutions and companies. The company sharing information virtually with other societal sectors and the information exchanged among various partners overlap. Therefore, drawing a strict line, for instance, between electronic commerce infrastructure and the company is impossible.

The IT infrastructures should be more than just pure technology but instead socio-technical networks

IT infrastructures are heterogeneous especially on the qualities of their constituencies. They comprise of the humans, components, institutions and organizations. This is particularly true as they cannot work without the input and support of the people. For instance, the ordering and processing systems of the Shore & More Bicycles do not work unless the personnel receive the orders and process them accordingly (Hanseth & Monteiro, 2015).

IT infrastructures should be interrelated and connected, constituting ecologies of networks

IT infrastructures should be different in various ways. The sub infrastructures are connected into IT infrastructure ecologies. The IT infrastructures are layered upon each other as components of software. Similarly, IT infrastructures are heterogeneous in that same logical function can be implemented in various ways. Heterogeneity is caused by two forms of IT infrastructures developments. That is when one protocol of IT infrastructures or standardised part of IT infrastructures are being replaced by a new one. During the transition period, an IT infrastructure will consist of two interconnected that run different versions. Similarly, another form is when larger IT infrastructures are developed by interconnecting two different and existing ones (Hanseth & Monteiro, 2015).

Connectivity is also the extent to which computer systems and telecommunications networks are compatible in supporting enterprise-wide applications (Brown & Magill, 1994). IT connectivity means interdependent technologically as is evident with large scale information infrastructure growth (Star & Ruhleder, 1996). According to Tapscott & Caston (1993), connectivity in the form of networking worldwide supports inter-organizational systems and enterprise wide applications, enables communications and cooperation.

The IT infrastructures that will develop through improving and extending the installed base

The installed base of an IT infrastructure implies that the infrastructures are considered always as existing and are not developed from the scratch. To support the growth strategy of a company, when designing new IT infrastructures for the company, they will be integrated into or replace a part of an older version. For instance, in the case of Shore & More bicycles, every single component of their IT infrastructures makes sense since they are tightly interwoven with other networks (Hanseth & Monteiro, 2015).

1. Technology awareness

This entails genuine interest in information technology, both outside and inside the organization. As new innovations in technology appear in the market regularly, the researchers and the practitioners must maintain their awareness of the efforts of each other (Boynton & Zmud, 1987). Similarly, members of the organization need to be updated on the latest technologies and have sufficient technical skills and organizational knowledge in making the best possible investments in technology for their companies (Boynton & Zmud, 1987).

1. Distributed computing

Many companies are restructuring their technical resources to a more decentralised structures of businesses in an effort of increasing their effectiveness and efficiency and to streamline their operations. This aspect of IT infrastructure should be in place to support the growth of the company by decentralising computers and to increase efficiency and effectiveness (Hanseth & Monteiro, 2015).

1. Skills

This involve the required knowledge and capabilities to managed technological infrastructure effectively. To support the growth strategy of a company, adequate skills is significant in operating the install IT infrastructures and maintain them appropriately. Skills are also central to the technological infrastructure operations such system development and maintenance, and control and monitoring systems. Skilled persons in the company also manage the IT architecture which consists of the data, applications and technology and are articulated in terms of configurations of software, hardware and communications (Allen & Scott, 1994, p.155).

B.  Perform a gap analysis of the company’s current IT infrastructure and future IT infrastructure needs for the aspects identified in part A.

Gap analysis is a mode of assessing the performance differences between information systems or applications of a business to determine whether the requirements of the system are being met, and if not the needed steps to do so. The report will use SWOT analysis that will review the strengths, weaknesses, opportunities and challenges for IT in Shore & More Bicycles with main objective of identifying gaps in the IT support and services

Shore & More bicycles’ mission is to design and build affordable light weight bicycles for the people desiring to ride along the road, shore or tackle mountain trails. Their bicycles are made to last longer with wear resistant parts and welds.

1. Current state

Shore & More Bicycles is in the initial phase where its IT systems needs to be integrated so as to design files and to share documents securely with the other locations. The company is also using currently the 3D software on a standalone machine. Furthermore, all the files of the company need backing up to prevent loss and for storage in case the computers of the company malfunctions.

Weather has also affected the productivity with two sites losing electrical power for the whole day. For those who were working at the workstations and also those who used desktop computers lost their data.

The current performance management systems and personnel are on standalone machines

1. Future State

The team at Shore & More Bicycles is working to complete these online options for customers for Shore & More Bicycles.

• Expand their orders to internet orders and making deliveries at dealerships that are licensed for adjustments to the owners
• To create an online system for simulating the bicycle appearance to be orders and any apparel or accessories
• To a develop a system for the customers to make a follow up from the time they make an order to the delivery point with processing timelines and bicycle images at the stages of completion

Furthermore, the proprietors of Shore & More Bicycles, Jan and Jon, are very much prepared for the work involved in creation and development of a prospectus SEC filing in accordance to Rule 424(b)(4). The investors will be completing an online form to receive updates on the company’s IPO announcements.

The company is also planning of integrating energy systems that are renewable into the electrical systems. These systems will need management capabilities and IT monitoring.

The company is also considering integrating performance management systems for all access to the site that is similar to the self-report payroll system.

1. SWOT analysis

Strengths

• The payroll system which allows self-report by the employees and approval by manager for the hours worked and the time for vacation. The system currently the company size needs
• 3D engineering design and testing can view the bicycle designs in 3D, make a 3D model using a prototype printer and finally test the design limitations on the computer
• The performance management system has human resource record information on their servers that are only accessible to their site in United States headquarters
• They have a company made database for storage that is adequate for their size

Weaknesses

• The payroll system will not be adequate for any growth of the company in future
• 3D engineering design and testing which allows for single user only to design the styles hence cannot share the program functioning with other sites. Moreover, it has a limited view only through screen share
• The email system for the company has a capacity of up to 100 users. Additionally, it has limited speed and space by amount for filtering of more than 100 users
• trainings and evaluations of Dealership are recorded using a standalone machine on their database and are not integrated
• Customer orders are primarily made at dealership sites and on phones. The orders are sent through an email with a monthly report which is reconciled to make sure all orders are in process
• Their financial system has documentation of their financial records at their headquarter sites on inaccessible servers to from other sites hence resulting to duplication of reports and even lacking integration for analysis
• Financial systems records are limited to backups per week to an external hard drives at the company site the computers of the employees still use the operating systems were in operation when the computers were bought. Moreover, loading of the software is done one at a time for every machine
• The current call centre system is limited to only 50 seats. Moreover the waiting time currently may extend up to 20 minutes for a customer care executive to attend to a customer.

Opportunities

• The number of people commuting to work using bicycles is expected to rise as many places of work install locker rooms, showers, bike racks and other facilities for changing room. Additionally, communities are designating bicycle lanes to improve safety
• The number of persons riding bikes for leisure is expected to increase since communities are continuing to invest in bicycle route plans, creating bike trails, and installing bike paths and amount of time for leisure is increasing
• Consumers like having light bicycles which they can carry and are easy to pick if necessary especially in areas that are not conducive for riding or pushing bicycles
• Consumers wish to be able to carry things while riding their bikes hence making it a necessity to have racks and baskets for attaching bags
• Consumers have real more disposable income
• Consumers living in regions that are hilly have indicated that a device which enable them easily choose gears or a power assist feature on a bicycle would be very helpful when riding uphill
• Economic conditions for some areas may make commuters to opt for bicycles for travelling since automobile ownership is difficult
• Bikes are very popular in areas that re heavily congested where bicycling reduces the time for commuting
• Regions are increasingly developing travel plans for bicycles to improve safety
• Communities are gaining areas are gaining accessibility to internet through expansion of telecommunication and may be ordering their goods and services for home delivery

Threats

• Currently their internet access is through a local provider and the system is not robust. This is because the connection is lost whenever there is technical difficulty with a router or modem. Moreover, they are using a wireless router which cannot support applications that uses high bandwidth on their current level of subscription
• There is also no encryption for hard drive data on the employee computers. The tech support team must be physically be having the machine for any repairs
• Several low end bicycles are sold in department stress and box stores that are easily accessible and recognised by shoppers.
• There have been many high end bicycle firms that have been in operation in the market for over two decades making entry into the market quite competitive.
• Their competitors’ sponsor racers and racing evens making their logos quite visible by spectators on the track and also in the media during their coverage.
• Consumers fear riding on roads with cars because of their safety concerns
• Foreign markets may be subjected to changes in currency exchange, duties and tariffs or import restrictions
• The perception of mountain biking is that it is an extreme sport and their rugged tires are not viewed as trail friendly.
• Some media portray riding bicycles as something done in under developed countries and not in developed countries.

1. Gap analysis

There is an existing gap between the company’s current and future state. As much as the company has an elaborate system for ordering, Shore & More Bicycles to expand their ordering system and embrace internet based ordering system. There is also a widening gap in the payroll system because the company has growth plans and therefore the current system may not be adequate in case of growth. The gap in their mode of design and testing is also paramount since the existing gap is widening. The gap in the email system will continue to increase if it is not updated to be able to handle unlimited number of emails. With new strategies and aggressive marketing, their email system will fail the company. The gap in the internet access can be eliminated when the company invests in reliable internet service providers, but for now there is an existing gap. The gap in the financial systems especially on documentation of financial records will continue to rise as long as the company will continue centralizing documentation. Similarly, the wide gap in employee computing is critical and needs to be addressed. Outdated software found in computers when purchased if are still in use then an overhaul is eminent. Lastly, the gap in the call center is another widening gap as long as nothing is being done to upgrade the call center as the company continue growing.

C. Propose a project to upgrade and reorganize the IT infrastructure (e.g., systems) across the company that will address the company’s future technology needs (i.e., The Gap) identified in part B

1. Internet Access For Staff

All employees of Shore & More Bicycles should be provided with free internet accounts automatically with usernames and passwords. Moreover, there should be other attached features to it such as primary email address, wireless access, and unlimited hours for usage and download quota allowance.

1. Payroll system

Shore & More Bicycles should adopt a payroll system that can handle an expanded company in future. Moreover, it should be password protect to ensure no tampering with information. The software should also be flexible and compatible in addition to functioning well with other business systems of Shore & More Bicycles and will grow with it. The system should also be credible from well-known brands and enables the employers to have control with an option of viewing historical information and reports

1. 3D engineering testing and designing

Shore & More Bicycles should acquire this software program that can share the functioning with other sites and can have unlimited view through different screens. This will enable use of the program in multiple sites for approvals and collaborations.

1. Email system

Shore & More Bicycles need to update or acquire new emailing system to manage increased number of received emails and also increased quantity of filtering the spam. This will be helpful in avoiding missing any messages due to filled space in the email system

1. performance management system

Shore & More Bicycles requires an enhanced performance management system that can record dealership performance, record employees, training and other needed categories. This will lead to financial gain. Motivate workforce and also improve management control.

1. customer order systems

Shore & More Bicycles should put in place an online ordering system in addition to their existing methods of ordering. The online ordering system will be available for any potential customer with access to internet, is dependable and flexible. Moreover, there will be no need of having single system for customer’s orders and this will also reduce possibilities of order duplication and loss.

1. Employee computers system

Shore & More Bicycles need to have in place high speed performing computers with faster operating systems. Moreover, the computers should be interconnected with remote access by the administration for repairs. Similarly, more security measures needed to be put in place especially by creating passwords and encrypting of data used in hard drives.

1. call center system

Shore & More Bicycles need an online call center in addition to the normal telephone calls. Their website needs a section for Frequently Asked Questions (FAQ) to provide responses to common questions. Moreover, the online system should be developed to be more efficient and timely in accessing the customer care representative to take an order or answer questions. Online chat system can also be efficient when implemented by the company.

D.  Create a report for management that presents important information they will need to approve the IT infrastructure Upgrade Project Proposal.

Shore & More Bicycles Information Technology Plan (FY 2015 to FY 2018)

The purpose of this plan will be to document the role IT plays in fulfilling the mission of Shore & More Bicycles as well as objectives and goals defined for three years.

Shore & More Bicycles will need to add IT personnel for the plan to be successful since some of the recommended IT infrastructures may not be known to some of the staff members. Similarly, more staff training on the proposed infrastructure can be beneficial and improve the growth of the company especially on the call center and payroll systems (Ohtaki & Bucknall, 2005).

The recommended IT infrastructure upgrade will also improve help in supporting Shore & More Bicycles globalization in many ways. By embracing technology and usage of internet, potential customers in different parts of the world will be able to access their websites and browse through their products and services. Moreover, the proposed online ordering system will make it easier to ship ordered products without customers physically coming to the company. Similarly, with the email system, Shore & More Bicycles is able to communicate with customers both locally and internationally (Business Expert Press, 2010).

The emerging technology of using the 3D engineering testing and designing can enable Shore & More Bicycles to provide new products and services to the customers. Through design, they are able to design and come up with aesthetic, durable and pleasing products to the customers compared to their competitors (Öchsner, Silva & Altenbach, 2013).

References

Allen, T. J., & Scott, M. M. S. (1994). Information technology and the corporation of the 1990s: Research studies. New York: Oxford University Press.

Boynton, A., & Zmud, R. (1987). Information Technology Planning in the 1990’s: Directions for Practice and Research. MIS Quarterly, 11(1), 59. doi:10.2307/248826

Brown, C. V., & Magill, S. L. (January 01, 1994). Alignment of the IS Functions With the Enterprise: Toward a Model of Antecedents. Management Information Systems Quarterly, 18, 4, 371.

Business Expert Press. (2010). Fundamentals of global strategy: A business model approach. New York, N.Y.] (222 East 46th Street, New York, NY 10017: Business Expert Press.

Das, S. R., Zahra, S. A., & Warkentin, M. E. (November 01, 1991). Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy*. Decision Sciences, 22, 5, 953-984.

Hanseth, O., & Monteiro, E. (2015). CHAPTER 3 Defining information infrastructures. Heim.ifi.uio.no. Retrieved 11 May 2015, from http://heim.ifi.uio.no/~oleha/Publications/bok.3.html

Hartwick, J., & Barki, H. (January 01, 1994). Explaining the Role of User Participation in Information System Use. Management Science, 40, 4, 440.

Lederer, A., & Sethi, V. (1988). The Implementation of Strategic Information Systems Planning Methodologies. MIS Quarterly, 12(3), 445. doi:10.2307/249212

Öchsner, A., Silva, L. F. M., & Altenbach, H. (2013). Design and analysis of materials and engineering structures. Berlin: Springer.

Ohtaki, R., & Bucknall, H. (2005). Human resource management. Singapore: John Wiley & Sons (Asia.

Star, S. L., & Ruhleder, K. (January 01, 1996). Steps Toward an Ecology of Infrastructure: Design and Access for Large Information Spaces. Information Systems Research, 7, 1, 111-134.

Tapscott, D., & Caston, A. (1993). Paradigm shift: The new promise of information technology. New York: McGraw-Hill.

Herman Bailey

With a student-centered approach, I create engaging and informative blog posts that tackle relevant topics for students. My content aims to equip students with the knowledge and tools they need to succeed academically and beyond.

KFC’s Marketing Mix Strategies for Overcoming Challenges

by Herman Bailey | Apr 28, 2023 | Essays | 0 comments

Introduction

KFC Corporation is the most popular restaurant chain for chicken globally and is located in Louisville, Kentucky. KFC Corporation specializes in Colonel crispy, extra crispy, original recipe chicken with home-side styles and five new sandwiches freshly made. According to KFC (2015), nearly eight million clients get served every day globally. The original recipe chicken forms the menu for KFC everywhere, and it is prepared with the matching taste that was created over five decades ago by Colonel Harland Sanders. Moreover, customers globally enjoy 300 other different products, from Japans salmon sandwiches to United States Chunky Chicken Pot Pie. KFC (2015) pointed out that KFC corporations continue to enhance their home delivery services in the United States to more than 300 restaurants and other countries.

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Similarly, KFC is collaborating with other restaurants in I united states, such as Pizza Hut and Taco Bell. “Home meal replacement” was also invented by Colonel Sanders half a century ago to sell complete meals to time-strapped harried families, and was called “Sunday Dinner, Seven days a Week.” This report will undertake a situational and environmental analysis of KFC using appropriate analytical frameworks and highlight major issues to the company. These analytical frameworks include the SWOT matrix, PESTLE, and PORTERs. Besides, the report will identify and justify two challenges based on the organization’s analysis. Lastly, the essay will discuss these challenges’ implications for the organization and how marketing mix elements can be used in addressing them.

1. The SWOT Analysis

SWOT is an abbreviation for a company’s strengths, weaknesses, opportunities, and threats. This is a good analytical tool for understanding different kinds of KFC’s decision-making. David (2012) illustrated that the report employed a SWOT analysis framework to review KFC’s direction, position, and strategy.

2. The PESTLE framework

Several factors affect a company’s decision-making in a macro environment. These factors can be overcome and analyzed by categorizing them into a PESTLE model. The PESTLE analysis is an acronym for Political, Economic, Social, Technology, Legal and Environmental and is used in identifying the external factors or the macro environment of KFC (Klotter 2010).

Political factors

These factors deal with the government’s procedures, and policies worked out through the country’s legislation. Furthermore, it comprises all the political factors such as a stable political environment. it also encompasses the position of the government on the market ethics, the policy of the government of economy, the view of the government on religion and culture, and lastly, the taxation policy on incentives and tax rates (David 2012).

To a large extent, political factors define informal and formal rules under which a company must operate. Any organization’s operations are influenced by the enforced policies of individual state governments, and KFC is not exceptional. For instance, some groups in the United States and Europe protest against their governments concerning the health implications of fast food consumption. They claim that fast foods lead to obesity due to cholesterol. Moreover, other political factors include employment laws, tax laws, and other trade restrictions. David (2012) indicated that tax rates could affect the KFC growth rate.

Economic factors

KFC has a global presence and is hence affected by exchange rates and changes in inflation. According to Llanas (2015), economic factors also determine the demand and supply relationship of the organization’s raw materials.

Global and national economic factors affect KFC Corporation, such as unemployment rates, business cycle stages such as recovery and recession, economic growth rates, inflation rates, interest rates, and cost of labor. The global recession affected KFC’s income, which dropped its income, consequently laying off many employees. Similarly, the company had to operate on a reduced budget (Llanas 2015).

Social factors

These include demographic and cultural aspects of the KFC’s macro environment. The ability of KFC to accommodate and enable people from different social and cultural backgrounds to work together is great. Moreover, KFC has to consider customer trends and needs, such as changes in consumer needs, demographics such as race, sex, age, value in society, education level, and lifestyle changes (Allison-Lewis 2015).

KFC faces challenges in understanding international countries’ cultures where they operate. To solve the issue, they hire local citizens as their employees to understand the culture of the host countries.

Technological factors

According to Ozersky (2012), technological factors are a company’s major globalization drivers and boost efficiency in the production and delivery of services. Some technological developments KFC has embraced include communication, research, marketing, customer services, cooking utensils, wireless headphones for employees, and digital screens. KFC’s customers are satisfied and delighted with the services due to the improved technology

KFC uses modern technology in its recipes and cooking to compete in the industry. Moreover, they were the first to introduce a new baking system to satisfy their clients. This means all baking, cooking, and all work involved in preparing food applies to technology.

Legal factors

There are many rules and regulations that KFC has to follow and maintain when operating in different states and countries. Some of these rules and regulations are associated with health, hygiene, and labor laws, such as proper training of their employees on the proper use of utensils, a clean environment at work, personal hygiene, and food and safety. Similarly, these legal factors deal with the environment that KFC operates in, like the minimum wage for employees, the minimum age for employment to prevent child labor, environmental conservation to avoid pollution, and the need for recycling waste (Supra 2013).BBC (2006) and Supra (2013) pointed out that KFC has received several high penalties for failing to maintain hygiene in their food.

Environmental factors

These factors ensure that the organization’s operations do not pollute the environment. By adhering to environmental factors, KFC’s operations have been friendly to the environment in all stages of their operations. For instance, Villas (2012) pointed out that KFC uses paper materials for carrying their products and packaging food rather than plastic materials, which has largely contributed to reducing global warming. Even though it is costly for the company to use paper materials in their cups, glasses, food parcels, paper boxes, and paper plates, KFC has maintained its course to environmental conservation

3. PORTER five forces model

This model is used in analyzing five competitive forces shaping every industry and is significant in determining the weaknesses and strengths of an industry (Kogan & National Bureau of Economic Research, 2009). This model assumes that five vital forces help in determining competitive power, and they include:

Supplier power: The supplier power of KFC also has low bargaining power. KFC has many suppliers that supply their raw materials, such as chicken, spices, and other products. Moreover, KFC collaboratively works with the suppliers to improve their technological advancements and, therefore, cannot work together to raise their prices against a partner who minds about their operations. David (2012) also pointed out that KFC subsidiaries in other foreign countries obtain their supplies locally and do not import them. Therefore, if international suppliers raise their prices, they can comfortably switch to local suppliers. This strategy employed by KFC created antagonism amongst suppliers, lowering their bargaining power.

Similarly, the labor cost is low on the labor supply because the supply of workers who are non-skilled both locally and internationally is high and exceeds the demand. With low supplier bargaining power, the company can control its expenditures and prices (David 2012).

Buyer power: The KFC customers predominantly are individual buyers and, therefore, have no bargaining power since an individual client boycotting KFC products cannot affect or lower the prices of KFC goods (Jia 2010).

Rivalry in competition: Contrary to expected, KFC has minimal rivalry in the fast food chains industry. This is because their primary products differ. After all, they sell fast foods of different kinds with different styles and tastes. Therefore, a price increase in chicken by KFC would not drive chicken clients to other alternative fast foods like fries or pizzas because they are different products. Similarly, restaurants in the fast food industries target different customers, that price fluctuation cannot affect other foods’ prices in other restaurants (David 2012; Osborne n.d).

The threat of substitution: KFC operates in a fast food industry that is highly competitive with many major competitors such as Subway, Domino’s, Pizza Hut, and Mcdonald’s (Yuanyuan et al. 2013). Therefore, KFC has many substitute products like sandwiches, pizza, and burgers. However, even though they are major competitors, their products greatly differ from one another since their sell fast foods that differ from KFC products. Moreover, United States families traditionally prefer meals cooked at home or bought from grocery stores, and these also pose as substitutes for fast foods. Moreover, home-cooked meal substitutes are regarded as healthy as fast foods. Other substitutes are also from street vendor foods (David 2012; Klotter & Klotter 2010).

The threat of new entry: For the current fast food market in the United States and globally, it is very easy for a restaurant serving fast food to enter. However, Llanas (2015) indicated that it would be difficult for the new entrant to make significant profits or take over the major dominant fast-food chains in the United States. Even though the United States has a large population for the survival of any fast food restaurant, KFC has a significant advantage, especially in the non-vegetable segment of foods like chicken, in addition to its brand and reputation. Patrons who are used to KFC servings would not prefer trying other new restaurants that are unknown.

Similarly, Yuanyuan et al. (2013) asserted that the brand name of KFC is already established. Besides, the United States already has a wide variety of fast food companies such as Domino, Mcdonald’s, Subway, and Pizza Hut, among others. Therefore, new entrants into the fast food industry would just be replicating what already exists in the market. Even though restaurants in small neighborhoods have low entry barriers, the above-highlighted entry barriers are similar and apply to them too.

Two challenges (positive or negative) that affect the KFC organization and their implications

1. Challenges in pricing

As a marketing factor, pricing is significant for KFC Corporation because it impacts its profits. Allison-Lewis (2015) indicated that setting the right prices brings sufficient for the company. However, KFC prices its products highly and maintains its goods’ prices compared to its competitors, who price their products at a lower price.

Similarly, KFC segmented prices for its customers using a segmented pricing strategy. For instance, KFC has used membership cards for a very long time for children. With these children’s membership cards, they get discounts when they purchase kids’ products from KFC. Additionally, the kids get special surprise presents when they register as members. These memberships do not apply to the adults who form most buyers.

Ozersky (2012) also pointed out that KFC company offers different time pricing. For example, from Monday to Frida in the afternoon, KFC has time for snacks with lowered prices. This encourages their clients to take tea

2. Challenges in communication

Another challenge faced by KFC is the challenges in their communication strategies, especially in advertising, sales promotion, and public relation. KFC currently advertises using radios, newspapers, and television, which are good for market reach but traditional. KFC mainly advertises using television during the commercial break for its promotions and meals. Similarly, the newspaper advertises new promotions and meals that sometimes offer discounts or free vouchers. Lastly, through radio, it persuades customers to come and dine in its restaurants (Stones 2013; KFC 2010).

KFC also utilizes sales promotion in promoting its new meals. This is done by providing free vouchers for discounted new foods from newspaper cuttings. Similarly, free vouchers promoted through newspapers are used for redeeming gifts.

In public relations, KFC sponsors television programs that enable the firm to capture a wider market, especially for children, by sponsoring cartoon programs. Additionally, KFC engages in many corporate social responsibilities like charities. They also employ staff who are hearing or speech impaired to assist them in building their self-esteem and confidence in their lives (Stones 2013; Siriya 2009).

How marketing mix elements might address them

The solution to pricing challenges

Using the marketing mix element of price, the pricing challenge that KFC can address is maintaining the current prices of their products. This is because price change will not be beneficial to the firm. After all, lowering the product prices might lead to the customers’ perceptions that the food quality has decreased, while highly charging the prices might make the customers shift to the competitors’ products like McDonald’s (Yuanyuan et al. 2013; Allison-Lewis 2010).

Similarly, instead of KFC only focusing on children, it can also come up with memberships for adults, especially older citizens. Older citizens, especially those above 40, are health conscious, especially in their diet; therefore, creating a membership group for this segment will attract many clients. Moreover, they can offer discounts or special prices for old registered customers. Villas (2012) suggested that when filling out the membership forms, their personal details information and preferred foods can be obtained. Eventually, they will get special food discounts when they order.

Another workable solution, according to the marketing mix, is to offer special discounted prices for their foods from midnight to 8.00 am daily because they operate 24 hours but at normal prices. This will encourage many clients to come past midnight to KFC, especially those who work night shifts (Liu 2008).

The solution to Challenges in communication

For the challenges in advertising, KFC should continue using the major traditional advertising strategies like the radio, newspaper, and television but also modern online advertisement methods like the internet. Using online marketing tools, KFC can advertise on its websites and other online platforms such as social media (Stones 2013).

To be highly competitive in the market, KFC should organize and sponsor more events for sales promotion like the sweepstakes; the lucky draws, among others. The firm will get the opportunity of attracting more customers to come to their restaurants to dine or take away food since many people tend to get attracted by sweepstakes and free lucky draws. Similarly, the free vouchers and coupons could be promoted online, unlike newspaper cuttings, to reach a wider population, especially those who use the internet frequently (Stones 2013).

Lastly, for public relations, KFC should endorse a celebrity or a singer famous for promoting their meals through sales promotions, advertisements, or singing concerts to get more publicity. This could be done by collaborating with famous and rising singing stars in the United States and foreign countries. Moreover, attendees to the singing concerts can be given half-price meals when they buy meals in KFC restaurants. Because customers like half-price incentives and discounts, KFC will eventually and successfully capture a wider market in the long run (Stones 2013).

Conclusion

In conclusion, KFC has been in operation for many decades and has expanded its operations to many countries. The report highlighted major issues for the company from the situational and environmental analysis of KFC using appropriate analytical frameworks such as the SWOT matrix, PESTLE framework, and PORTERs framework. Besides, the report identified and justified two challenges based on the analysis of the organization. The challenges identified and discussed included challenges with pricing and challenges with communication. The report discussed these challenges’ implications for the organization and how marketing mix elements can be used to address them.

References

Allison-Lewis, L. (2010). Kentucky Cooks Favorite Recipes from Kentucky Living. Lexington, Kentucky, The University Press of Kentucky.

Allison-Lewis, L. (2015). Kentucky’s Best Fifty Years of Great Recipes. Lexington, The University Press of Kentucky. http://public.eblib.com/choice/publicfullrecord.aspx?p=1915225.

BBC, (2006). BBC NEWS | UK | Wales | ‘Record fine’ for the fast food chain. [online] News.bbc.co.uk. Available at: http://news.bbc.co.uk/2/hi/uk_news/wales/6193106.stm [Accessed 28 Nov. 2015].

David Gerard Hogan. (2012). Kentucky Fried Chicken. Oxford University Press

JD Supra. (2013). Kentucky Fried Chicken Franchise Pays $40,000 to Settle EEOC Religious Discrimination Lawsuit. JD Supra. 2013-12.

Jia Lu. (2010). Modernities and proximities: McDonald’s and Kentucky Fried Chicken in Chinese television commercials. International Communication Gazette. 72, 619-633.

KFC, (2015). About – KFC.com. [online] KFC®: Finger Lickin’ Good®. Available at: http://www.kfc.com/about/ [Accessed 28 Nov. 2015].

KFC. (2010). KFC (Middle East). ScholarsArchive@JWU. http://scholarsarchive.jwu.edu/mbf_collection/188.

Klotter, J. C., & Klotter, F. C. (2010). A Concise History of Kentucky. Lexington, Kentucky, The University Press of Kentucky.

Klotter, James. (2010). A Concise History of Kentucky. The University Press of Kentucky. http://www.myilibrary.com?id=293721.

Kogan, L., & National Bureau of Economic Research. (2009). Market selection. Cambridge, Mass: National Bureau of Economic Research.

Liu, W. K. (2008). KFC in China: Secret recipe for success. Singapore, John Wiley & Sons (Asia).

Llanas, S. G. (2015). Colonel Harland Sanders: KFC creator.

Osborne, Harlan, 1947-. (n.d.). Kentucky Fried Chicken billboard on East Washington Street near Weller Street, Petaluma, California, circa 1975. http://server15763.contentdm.oclc.org/u?/p15763coll2,17958.

Ozersky, J. (2012). Colonel Sanders and the American dream. Austin, University of Texas Press. http://proxy2.hec.ca/login?url=http://site.ebrary.com/lib/hecm/Doc?id=10629547.

Siriya Vongrukthai. (2009). Consumer [sic] attitudes toward KFC’s healthy menu: a study of employees working in the Pratumwan, Silom and Sathorn areas. Bangkok, Thailand, Language Institute, Thammasat University.

Stones M. (2013). KFC discount slammed by advertising watchdog. Food Manufacture.

Villas, J. (2012). The glory of Southern cooking: recipes for the best beer-battered fried chicken, cracklin’ biscuits, Carolina pulled pork, fried okra, Kentucky cheese pudding, hummingbird cake, and 375 other delectable dishes. Hoboken, N.J., Wiley.

Yuanyuan, Savonia-Ammattikorkeakoulu, Xie, & Hu, Wei. (2013). Comparative Study of McDonald’s and Kentucky Fried Chicken (KFC) development in China. Savonia-ammattikorkeakoulu. http://publications.theseus.fi/handle/10024/60257.

Herman Bailey

With a student-centered approach, I create engaging and informative blog posts that tackle relevant topics for students. My content aims to equip students with the knowledge and tools they need to succeed academically and beyond.

Revolutionizing Healthcare through Transformational Leadership

by Herman Bailey | Apr 27, 2023 | Essays | 0 comments

1 Leadership Styles

Raffles hospital continues to be the leading healthcare provider in Singapore. The trend it has set as a benchmark hospital can be attributed to the leadership and management of the hospital. Dr. Loo Choon, the CEO and also founder of the hospital has led the hospital in a transformational period. As a transformational leader, he has managed to create a healthy environment for exemplary work by doctors and even the nurse attendants. Working under this revolutionary leader, one comes to the realization that he not only appreciates but indeed expects exemplary services, a system that has continued to render the hospital a leader in patient care.

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In his unique transformational leadership style, he has given doctors a leading capability to manage the responsibilities under them with minimal supervision. He has understood that the various sectors of the hospital require unique knowledge and skills which he may not posses. In addition, he realizes that staff are more committed to work under someone they consider to have special skills and understanding, in addition to experience (Walshe and Smith 2011). To increase loyalty in the hospital, he has put specialist doctors in charge of the various wings. They are constantly monitored by their staff, and have the ability to make the majority of decisions within the departments that they head.

The senior management of the hospital enjoys job ownership and satisfaction with regard to the strides made by the various wings. Under this leadership style, the hospital has made strides in producing exemplary, and to form strong networks which have assisted to make even greater strides in patient care. The transformational leadership style has empowered the staff, to make proper decisions and to work harder to influence the systems not just in the hospital but in healthcare as a whole. This has catapulted the hospital to a leader in health care provision.

2. MSQ profile

Interacting with patients
Patients and not clinicians are the current assets in health care. Leadership in health care institutions is directed towards interaction with patients, meeting their needs and anticipating the future with regard to patient care. Without understanding the patient needs, innovation and strides in medicine will be largely to no avail. According Haddock et al (2002), to make a difference with regard to the quality of health care provision, meet the needs of the clientele at hand, it is important to begin interacting with the people who will chart the career path as well as dictate the style of leadership. There exists several ways which can be used to ensure that communication skills and learning is effected well. Internships and volunteer programs provide access to a diverse, wide variety of patients, giving quality experience.

3 Learning through mentorship

Leadership skills are best acquired through experience. The health care industry has many unique challenges, and although there are some inborn skills in leadership they can only be sharpened by being tested in various circumstances. There are great leaders in the field of healthcare, many of whom are willing to help young individuals develop much needed leadership skills in healthcare.

4 Stimulation through innovation and creativity

Healthcare leaders, who have left great marks in the industry, began doing creative and innovative things early in their careers. A transformational leader needs to understand and create ways through which the staffs under the leader are stimulated intellectually. This process itself requires that one understand the challenges in healthcare, and also the innovative risks that can be used to resolve some of the problems.

3. Strategic Leadership Versus Ethical Leadership

Strategic leadership is about finding a vision and providing direction to the organization. It involves creating goals and plans which are incorporated into all departments and sectors of the organization, striving towards particular objectives. Ethical leadership contributes towards the success of strategic leadership. Without ethical leadership, strategic planning and leadership even with the best goals is guaranteed to fail.

Ethical leadership is directed towards holding individuals accountable for their actions. In health institutions, resources need to be accounted for, and activities need to be geared towards meeting the company objectives.

Strategic leadership relies heavily on geared performance, directed and excellent performance matrices. Such high standards are only reached, when the hospital upholds morality and ethics. With ethical leadership, the customer becomes the focus of leadership. The provision of excellent services is at the forefront of the goals. This is part, but not the whole objective of strategic leadership. In designing the structure of strategic leadership, planning for ethical leadership is a necessity as well as requirement.

Similar to strategic leadership, ethical leadership involves influencing behavior and actions. It involves effecting change in behavior so that the staff under the leader embody and indeed exhibit behavior directed at ensuring the success of the leaders’ vision. Ethical leadership goes to all departments and sectors of the organization, focusing on ensuring a culture where employees feel directly responsible for the duties they are expected to complete (McLaughlin and Hays 2008).

4. Clinical Governance

In Raffles hospital clinical governance has gone a long in guaranteeing that the quality of patient services is not only maintained, but continues to grow as the hospital increases and includes newer departments and facilities. The hospital is renowned for its high standard of services provided to the patients, which have catapulted the hospital to the leading private institution in Singapore. Mr. Kee Teck Koon has made many changes directed at perfecting the clinical governance structure of the hospital. He is responsible for not just ensuring proper audit of accounts and strengthening of the hospital services.

His experience as a chief investment officer, has gone very far towards ensuring a much more transparent work relationship, focusing on the use of hospital resources in such a manner that they are not only well accounted for but are indeed directed at insuring high profit yields.

It is important to note that health care is a fast growing industry with many changes that have often required the hospital and its management to adapt to ensure stronger and more effective clinical governance. Through the support of the independent directors, Koon has been able to transform the hospital, introducing measures that are flexible and adapt to the various changes in the industry. These measures bring out incidences of poor performance among the staff, and unreliable practices that would have otherwise thrived and infected the entire hospital. The quality of service continues to be high because such factors are identified early, and dealt with before they can fester and spread.

Koon works towards ensuring that his subordinates gain the necessary skills to increase their own competence in the variety of situations that they face within the hospital. This increases their confidence in service delivery ensuring that they strive towards and ensure high quality services to the patients. Wright and Hill (2003) stated that Networking between these competent individuals ensures that the quality of service to the patient is high and easily achieved. This is in addition to providing and securing the high technology machinery and equipment, which makes the delivery of service faster and much more efficient. Raffles hospital continues to be one of the most modernized of the private hospitals, highly rated nationally and internationally.

5 Health Care Reforms

Both nationally and internationally, health care reforms have come in plenty in the past decade. The concern for people’s health and the requirements for governments to ensure access to quality and effective heath care systems for their citizens have brought many changes. Singapore has not been left behind, and these changes have had great impact on the Raffles hospital.

· Introduction of medisave has ensured that an even larger population has access to good insurance and therefore health care. It is easier for patients to pay their bills using medisave, and this has increased the number of patients attended to at the high quality private care institution.

· Medishield, a cover provided by the government has come with many changes making the approach to health care much more flexible. Aging patients, even as old as 90 years can use the medishield to access both outpatient and inpatient care. This has led to the ballooning of aged patients visiting the hospital. This range of patients has increased so much so that the hospital has introduced a department and structured a wing, including specialists in the aging diseases to cater for this population. This has determined the flexibility of medishield, meaning more of the aging population, many of whom are unemployed and retired can now pay for health services.

· A concern for the hospital has always been that outpatient wings are not doing as well and inpatient and long term care wings. However, the government and recent reforms have targeted the access to outpatient, ensuring that patients can get treatment at the nearest and most efficient facility. Today, Raffles hospital is recording a constant increase in the outpatient care and departments (Armstrong et al (2011).

6 Health Care Management And Rules

Managers rely on ethical rules of conduct to ensure that the staff remains in high standards. However, as with any other organization, doctors and nurses among other staff in the hospital are human beings. It is therefore important and indeed paramount for the managers to remain flexible. One of the rules of the managers in decision making within the institution is to ensure fairness at all times. Even where rules of conduct may govern, fairness to the patient and the staff member must be part of the process in finding out the blame and consequences of an action. The rules are only applied when true negligence and disregard for the high quality of service expected can be seen and proved.

Furthermore, managers are also expected to ensure that decisions remain efficient and effective. There may be slight revisions to the general rules of conduct, but if such rules are effective then they are upheld within the Raffles hospital environment. It is normally up to the managers, to determine the flexibility of the rules and regulations as they apply to the different situations (Fottler et al 2010). This is why the majority of the directors in the hospital are considered as indirect directors, so that cases can be decided based in their legality and fairness rather than on the benefit that one party will accrue

References

Armstrong, E. G. (2011). The health care dilemma: A comparison of health care systems in three European countries and the US. Singapore: World Scientific.

Fottler, M. D., Khatri, N., & Savage, G. T. (2010). Strategic human resource management in health care. Bingley, UK: Emerald.

Haddock, C. C., McLean, R. A., & Chapman, R. C. (2002). Careers in healthcare management: How to find your path and follow it. Chicago, Ill: Health Administration Press.

McLaughlin, D. B., & Hays, J. M. (2008). Healthcare operations management. Chicago: Health Administration Press.

Walshe, K., & Smith, J. (2011). Healthcare management. Maidenhead, Berkshire, England: McGraw Hill/Open University Press.

Wright, J., & Hill, P. (2003). Clinical governance. Edinburgh: Churchill Livingstone.

Herman Bailey

With a student-centered approach, I create engaging and informative blog posts that tackle relevant topics for students. My content aims to equip students with the knowledge and tools they need to succeed academically and beyond.