company can hardly get revenue. Also the image of a company in customers’ perception is important, bad image will lead to low sales. For example, the KFC offer variety of
meals, namely kids’ meal, family meal, budget meal etc.
Suppliers
Supplier is very important to a company, especially restaurant like KFC because food that they supply need to be fresh, and for Malaysian context, Halal policy need to be strictly
adhered. Furthermore, their interest may include building mutual relationship based on integrity, legal, and ethical behavior. Supplier will always try to avoid dealing with a
company is not mutually trusted.
Government
Government played a vital role in Malaysian restaurant, especially in the Halal policy. Because Malaysia is an Islamic country, obeying certain rules regarding Islam practices is
necessary. The government may impose certain rules that will portrait threat for company, for example there are certain discussions among government pupils regarding of
banning the advertisement of fast food industry.
SBU Past Performance
KFC
2003
RM 000
2004
RM 000
2005
RM 000
2006
RM 000
Profit Before Tax
66,056
66,736
5,563
142,304
No. Restaurants
336
350
350
375
From the table above, KFC has lower revenue dramatically in the year 2005. This is mainly due to the legacy issue of mainly property assets which requires KFC to pay huge and
one-off impairment charges. But KFC only manage to get profit before tax of only 5,563 thousand due to legacy issues of their assets. KFC suffered a loss of 32,475.4 thousand in
2005 (
KFC
2007). The growth of sales and revenue began to stable in 2006 as KFC launched a few new products such as Cheesy BBQ Meltz and others after the aftermath of
bird flu issue no longer threaten the market in Malaysia as stated in The Edge Daily (Tong 2006).
Awards & Achievements
Source: KFC 2007
SBU Customers
Market Performance
Figure
above is
Revenue of KFC Restaurants from Year 2003 to 2006.
By referring to the table above, there was a low growth of 0.03Billion of revenue
generated between year 2003 and 2004. As in 2004, there was a breakout of Asian Bird
Flu in Asia. This had triggered the alert of public to avoid eating poultry such as chicken
and this had slight impacted the sales of KFC Restaurants. During the outbreak, shares
in Malaysia's KFC Holdings (Malaysia) Bhd slipped 1.4 percent on the Kuala
Lumpur (
Kentucky Fried Fish? Asian Bird Flu Wings KFC
2004). In addition to that, there
was a protest leaded by Animal Liberation Victoria fromAustralia against the KFC
chickens sale in Kuala Lumpur. They were protesting that the “Meat is Toxic” and “Eating
Meat is Hazardous to Life” which were referring to the Asian Avian Bird Flu Outbreak. This had slightly impact the brand name of KFC Restaurants (
KFC Cruelty
2004).
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From 2004 to 2005, there was an increase of 0.05 Billion of revenues. This was mainly due to the new launched of combo meal called KFC X-Meal, which offers extra choice
and variety. It consists of an OR Fillet Burger, one piece of chicken and a choice of either regular potato wedges or regular coleslaw or a regular whipped potato. This was the
