Questions:Read the case study below and answer the questions that follow:

How KFC builds its brand through engagement

Learning and development is like the $$bread and butter$$of KFC$,$according to its chief people officer

for KFC SOPAC, Rob Phipps, who said that L&D has evolved within the organisation to play an

important role in customer engagement through frontline staff.

$$If an employee is not trained, developed or looked after, then they$$re not going to provide a great

consumer experience,$$said Phipps.

$$We spend a tremendous amount of time teaching people the basics. We give them wonderful life

skills, we teach them high standards, we teach them how to work effectively in a team, we teach

them little things like turning up to work on time and presenting yourself well.$$

KFC has invested some $$15$million in training and development across the organisation, and Phipps

said this has helped significantly with retention of employees $($particularly in the younger

demographic$).$

Key people metrics such as team member turnover have also improved by $24$per cent over the past

$12$to $18$months $($KFC now has one of the lowest staff turnover rates at approximately $50$per cent, in

an industry otherwise known as the $100$per cent turnover industry$),$while management turnover

has also improved by $10$per cent.

Improving brand and customer engagement

KFC in Australia works to three$-$and five$-$year plans, and Phipps said the business$$big mission over

the coming few years is to build $$brand love more overtly$$rather than just concentrating on overnight

sales and profit.

$$So$,$how do we create a relationship with our consumers that stands the test of time?$$he said.

$$In order to do that, we need to make sure that our people internally love our brand, so this is about

transitioning from more of a functional state to one that is more emotional or engaging in nature $$

both for our consumers and also the people in our organisation. From a business point of view, that$$s

the big plan.$$

A few years ago, KFC was struggling to realise consistent same$-$store sales growth $$one of the best

indicators of business success for KFC$.$

$1$

In response, a number of teams were brought together from across the organisation to examine this

issue and help develop a framework for taking the brand forward, and there were four central themes

that emerged from this process $($building a retail brand, a world$-$class operations experience, a sound

business model, and employing the best people possible$).$

In supporting this framework, Phipps said it was important to invest in and develop people in helping

them engage with customers.

$$We wanted to pull people together and make sure that everybody is singing from the same hymn

sheet, so to speak, in order to drive business performance,$$he said.

$$Culture wise, we used the Human Synergistics Circumplex across our company$-$owned organisation

to help people be more constructive more often.

$$So we$$ve done that as a process over the past three years and have no doubt that$$s been a very

positive thing in helping people to engage in conversations in a constructive way in order to get the

best out of the business,$$said Phipps.

$1\mathrm{.}1.$The theory of bureaucracy is a formal system of organisation and $(10)$

Administration designed to ensure efficiency and effectiveness and is based

on five principles.

With reference to the above case study, discuss in detail the principles of the

Theory of Bureaucracy according to Max Weber.

$1\mathrm{.}2.$Dynamic capabilities, a theory, that explains the process of having ways in $(10)$

which managers can organise and control an organisation$$s activities to

respond to changes in both its external and internal environments.

Apply the theory of dynamic capabilities to KFC and explain why you would

consider KFC as dynamic.