The literature review is an attempt to summarize the existing state of knowledge about a subject and, in research proposals, to frame the proposed research’s expected involvement to knowledge (Jeffrey, 2006). Literature review enables the researcher to position research in a large context by determining on overall review of the body of research and revealing the work that already being done and reported. The fundamental variables contribution to customer satisfaction in store about The Quality, and Environment can be ultimately enhanced but the service offered eventually provide business a competitive advantage (Evert, 1991)
The Kentucky Fried Chicken (KFC) is a major Quick Service Restaurant (QSR) operator in Malaysia, established back in 1973 and currently have more than 500 stores nationwide. It serves mainly chicken based menus and also offers add-ins for its consumers as well. In addition, to support KFC’s core activities, the company is 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.
KFC is the world largest and most well- known chicken restaurant, with chains in more than 10 thousand locations and worldwide in 80 countries. KFC and its franchised employees are more than 200 thousand in all over the world. John Y. Brown and Jerry Messy purchased KFC for USA for $2 million in 1964 that time KFC become a corporation. After five years, Colonel buys first 100 shares of KFC. In 1986, Pepsi Company purchased KFC. Pepsi Company changed the logo from Kentucky fried chicken to KFC in 1991 and then in 1992 KFC 1000 the restaurant opened in Japan and in 1994 9000th restaurant in china. KFC is the part of Tricon global restaurant. Tricon global restaurant is the world largest restaurant group, with in nearly 100 countries around the world, which in turn was spun off in 1997, and has now been renamed to Yum! Brands.
In Malaysia, all KFC products are given Halal status by JAKIM and therefore the overall supply chain activity is Halal and no non- Halal/Haram elements involved. Although exported goods are Halal, the import and export activities for example handling, storage packaging/repackaging sometimes caused the Halal status to be questionable. This is because there are loopholes within the supply chain network where the KFC Halal products are mix together during storage or handling activities, with non-Halal products such as port meat or its byproducts and alcoholic beverages. In Malaysia, material handling tools for Halal and non- Halal products are separated but in overseas market, this practice is discarded. In Moreover, during storage and warehousing activities, the exported goods are stored together with non-Halal product and this will void the Halal status of the products. In Singapore, there are no regulation restricting the separation between Halal and non-Halal food products to be stored together, so long as there are meat juices from the non-Halal products, Majlis Ugama Islam Singapura (MUIS) still acknowledge the products are Halal.
In this conclusion and regarding the overall study of Supply chain management, it has been observed that KFC in allover Malaysia follows a similar pattern of Supply chain, that enables it to reduce time involved to reach end customers and reduce expenses in supply chain. Ultimately it is able to reach and fulfill its end customers’ needs and wants at a reasonable or customer acceptable rates all over Malaysia. On the other hand KFC has yet to prescribe a minimum living wage for its members’ workers Instead KFC audits concentrate on ensuring that employers pay at least the legislated minimum wage and make the correct payments into national social security funds The great majority of members were already compliant in these respects and therefore, in most cases, KFC compliance does not increase costs of employing workers. In short we can say the Supply chain management of KFC has a positive impact on profit maximization by considering following:
1. KFC (HQ) supplies ingredients to all its outlet by its own transportation network all over Malaysia. 2. KFC has no logistics partners they are self-sufficient and efficient to all logistic operation involved in reaching the customers. KFC follows a periodic review system to keep track on all its inventory and market demand.
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