Essay by PaperNerd ContributorUniversity, Master's November 2001

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CASE ANALYSIS "" KENTUCKY FRIED CHICKEN BACKGROUND · Colonel Harland D. Sanders founded Kentucky Fried Chicken in Corbin, Kentucky .

· By 1963, there were more than 300 KFC franchises in United States with a total revenue of five hundred million dollars.

· In 1964, Colonel Sanders sold the business to two Louisville businessmen "" Jack Massey and John Young Brown Jr. for two million dollars.

· In 1966 Kentucky Fried Chicken went public and was listed on the New York Stock Exchange.

· By 1971, KFC had 2450 franchises and 600 company owned restaurants world wide, and was operating in 48 countries.

· In 1971, Heublein Inc. acquired KFC. Soon after, conflicts erupted between Colonel Sanders, who was working as a public relations and good will ambassador, and Heublein management over quality control issues and restaurant cleanliness.

· In 1977 the new Heublein management team successfully implemented a "back-to-the-basics"� strategy, and by 1982 KFC had succeeded in establishing a successful strategic focus and was again aggressively building new units.

· In 1982, R.J Reynolds Industries Inc. acquired KFC, but they left KFC management largely intact, believing that existing KFC managers were better qualified to operate KFC than their own managers.

· In 1983, R.J Reynolds Industries Inc. sold KFC to PepsiCo Inc. By 1986, KFC had grown to approximately 6600 units in 55 countries.

· Due to strategic reasons, in 1997 PepsiCo spun off its restaurant businesses Pizza Hut, Taco Bell and KFC into a new company called Tricon Global Restaurants, Inc.

· At present there are over 11,000 KFC outlets in more than 80 countries and territories around the world.

ISSUES · Even though KFC dominates the chicken segment of the U.S fast food industry, it faces tough competition from a relatively new entrant to the industry, Boston...