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KFC: Factors of Production

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on 27 June 2014

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Transcript of KFC: Factors of Production

Packaging is what the company does with the products of the previous stage. Packaging is the preparing of the product to be distributed to the consumers. Production cannot simply go to distribution, as many products are ill-prepared for distribution. Food also applies.
Phase I: Production
Distribution is the output of a product by a company. It is how the company gets its packaged product to its customers. Companies use resources like trucks, gas, even other employees to distribute its products. This is the final goal of any company with a product.
KFC: Factors of Production
the farming of produce like potatos, spices, etc.
the providing for livestock, like the chicken.

produce is packaged before it is sent to KFC
natural resources must be prepared for a shelf life, like KFC's green beans

roads to transport the food
spaces for the restaurant to distribute its meals

Founded by Colonel Harland Sanders more than 70 years ago, this restaurant chain still uses Sanders' secret ingredient of herbs and spices to make delicious chicken. Sanders created the world's most popular chicken restaurant chain. There are more than 18,000 KFC restaurants in 115 countries around the globe. KFC is now based in Louisville, Kentucky, and still maintains a "rich, decades long history of success and innovation.
Factors on Production

-the use of all naturally occurring
resources provided by land
-the work done by employees for the
-the resources used by the company
(Physical Capital) and the skills gained by
workers (Human Capital)
-the marketing and
communication by a company to the
Production if the extraction of raw materials to create a product. Production is used in KFC to obtain the
ingredients of the food that is being prepared, and preparing the food. In some cases, materials are also used to build the buildings of the restaurants. Especially in a food chain, production is perhaps the most important phase of production.
Those who manage said workers
Workers who farm the food

Capital resources:
Tools to farm
Skill gained by workers

Once a company has
finished production, it
moves on to the second
stage of production.
workers must package the food
cooks and chefs heat and reheat the food

preservatives used for shelf life
workers get skilled at preparing the food (frycooks)

Once the product is made and packaged, it is ready to be given to the consumers
Truckers work to distribute the food
Employees at restaurants distribute customers' meals

trucks are needed for transport
gas is needed for the trucks

The product is made, packaged, and distributed. How do companies get their products in demand?
KFC, like all food chains that can easily be found, advertises heavily. Entrepreneurship is how a company advertises its products. KFC is a restaurant many people keep returning to because it is fast, convenient, and tasty. To me it is better than all other fast food chains because I do not feel gross after eating it.
In all my examples for each phase of production I described what land, labor, and capital examples would be used for each stage in KFC's process of making their food. Land, labor, and capital for the farming and cooking, the preparing and packaging, and the distribution from the farms and restaurants.
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