QUESTION 1 [25 MARKS]

As a consultant strategist, assume you have been approached by Kentucky Fried Chicken (KFC) to solve their problems and ensure business sustainability.

As a strategist, you must be familiar with various frameworks and models that you can use to assess an organisation’s external environment to evaluate and set measures against potential or existing failures.

Conduct a situation analysis for KFC’s external environment using the appropriate tool. Critically evaluate the threats and opportunities presented to KFC by its external environment and recommend how best KFC can respond to this situation for competitive advantage.

Question 2

Armed with a snapshot of the external analysis of the environment in which the company operates, you must start the strategic planning process by revisiting the company’s vision statement to see whether it remains true, given the changes in the external environment. Below is the KFC’s vision statement and mind map of mission, vision, and its core values:

“To provide food in a quick, pleasant setting that caters to cost-conscious, health-conscious people” (KFC, nd).

Assess the company’s vision and mission statements and its core values and evaluate their relevance to its target market. Apply the balanced scorecard as a performance indicator tool to KFC and
elaborate on how, the tool can be used for competitive advantage for future strategic fit.

QUESTION 3 [25 MARKS]

As the consultant strategist for KFC, you now have a full picture of the dynamics of its external environment and a better understanding of its vision, mission, and core values.

Based on your knowledge of your client KFC, and the environment it operates in, in South Africa, recommend to its management any two grand strategies that KFC should adopt for future survival. In your discussion, discuss the grand strategies, considering any two examples of strategies under each. Justify your recommendations and give examples where applicable.

QUESTION 4 [25 MARKS]

Organisational design

An organisation’s structure must be designed according to its strategy. Organisational design refers to the arrangement of positions into work units or departments and the interrelationships between them (Enock, 2006). An organisational chart or organogram is a graphic representation of how the organisation is put together. Departmentalisation is the grouping of related activities into units or departments.

As the consultant strategist for KFC, evaluate any two departmentalisation that you recommend KFC to adopt or refine if there already is existence for competitive advantage. Give examples where possible.

Answers on Above Questions on Strategic Management

Answer 1: A situation analysis includes an evaluation of both the external and internal environment faced by an organisation. The situation analysis of KFC can be performed with the application of strategic tools in order to evaluate the external environment it faces. The strategic tools to evaluate the external environment includes PESTEL, Porter 5 forces tool etc. An application of these strategic tools in order to evaluate the external environment of KFC is performed as follows: