QUESTION You are required to select a Public Listed Company, Government Linked Company or Multinational Organization currently operating

in Malaysia and from the standpoint of a management consultant you are required to prepare a business report detailing the following: 1. Provide a historical background of the company. This will require you to carry out a detailed research of the company. Thus, when selecting that company, ensure that you will be able to find sufficient information for the research. This section of your report MUST NOT exceed 500 words. 2. Then, using the techniques you are studying in the Strategic and Operations Management subject, conduct an environmental analysis of the organization. You may wish to conduct internal and external analysis using PESTEL,SWOT , and Porters Five etc. Please note that you do not have to use all the techniques. (Approximately 1000 words)

3. Once you have completed your analysis of the company the MAIN SECTION of your report should concentrate on your proposal for a way forward for the company, focusing your attention on growth strategies such as strategies asserted by Igor Ansoffs Growth Strategies as well as Porters Generic Strategies. Besides a recommendation for a way forward you should also consider change management and the potential issues surrounding change which essentially would be required in order to facilitate the successful implementation of the proposed strategy. Your answer in this section may also include issues of corporate governance , CSR, issues etc (approximately 1500 words)

ANSWER: Name of Company : Kentucky Fried Chicken Holding (Malaysia) 1.0 Company Overview

Kentucky Fried Chicken Corporation (KFC) was the worlds largest chicken restaurant chain and third largest fast-food chain in 2000. KFC had a 55 percent share of the U.S. chicken restaurant market in terms of sales and operated more than 10,800 restaurants in 85 countries. KFC was one of the first fast-food chains to go international in the late 1950s and was one of the worlds most recognizable brands. KFCs early international strategy was to grow its company and franchise restaurant base throughout the world. By early 2000, however, KFC had refocused its international strategy on several high growth markets, including Canada, Australia, the United Kingdom, China, Korea, Thailand, Puerto Rico, and Mexico. KFC planned to base much of its growth in these markets on company-owned restaurants, which gave KFC greater control over product quality, service and restaurant cleanliness. In other international markets, KFC planned to grow primarily through franchises, which were operated by local business people who understood the local market better than KFC. Franchises enable KFC to more rapidly expand into smaller countries that could only support a small number of restaurants. KFC planned to aggressively expand its company-owned restaurants into other major international markets in Europe and Latin America in the future. Latin America was an appealing area for investment because of the size of its market, its common language and culture, and its geographical proximity to the United States. Mexico was of particular interest because of the North American Free Trade Agreement (NAFTA), which went into effect in 1994 and created a free-trade zone between Canada, the United States, and Mexico. However, other fast-food chains such as McDonalds, Burger King, and Wendys were rapidly expanding into other countries in Latin America such as Venezuela, Brazil, Argentina, and Chile. KFCs tasks in Latin America were to select the proper countries for future investment and to devise an appropriate strategy for penetrating the Latin American market. 1.1 KFCs in Malaysia

The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 500 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own.

1.2 Main Business Portfolio Invested KFCH operates The KFC chain of restaurants in Malaysia, Singapore, Brunei, Cambodia and India (over 640 outlets)

The RasaMas chain of restaurants in Malaysia and Brunei (27 outlets)

The Group also owns 74 Kedai Ayamas, making us the nation's first branded chicken and chicken-based retail chain. In addition, to support our core activities, we are extensively involved in poultry production and processing, as well as a host of ancillary businesses such as vegetable farming, baking and sauce production. After a successful restructuring exercise, KFCH has emerged as a strong player in the Malaysian corporate world with a high reputation for excellent products, efficient friendly service and financial strength. Indeed, KFCH is the only KFC restaurant operator in the world whose Western Quick Service Restaurant market share is greater than that of McDonald's. KFCH is part of QSR Brands Bhd (QSR Brands) a leading, fully-integrated quick-service restaurant enterprise and the local franchisee and operator of the KFC and Pizza Hut restaurants. QSR Brands is in turn a subsidiary of Kulim (Malaysia) Berhad, a conglomerate focusing mainly on palm oil operations, oleochemicals, biodiesel production and quick service restaurants. 1.3 Main Issue Faced by KFCH Hereby is the main issue faced by KFCH : Political Risk (e.g., war, revolution, changes in government, price controls, tariffs and other trade restrictions, appropriation of assets, government regulations, and restrictions on the repatriation of profits). Economic Risk (e.g., inflation, high interest rates, foreign exchange rate volatility, balance-of trade movements). Supplier Risk (e.g., changes in quality, shifts in supply, and changes in supplier power). Product Market Risk (e.g., changes in consumer tastes and availability of substitute products). Labor Risk (e.g., labor unrest, absenteeism, employee turnover, and labor strikes). Behavioral Risk ( e.g., control over franchise operations, product quality and consistency, service quality, and restaurant cleanliness).

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Situational Analysis 2.01 SWOT Analysis Strength