Final REport of AFC

Acknowledgment

All the thanks to almighty Allah, who bestowed us with courage & ability to achieve this opportunity.

In the VERY FIRST, we are praying and thanking to ALLAH to

bless us with courage and success in achieving our target.

(INSHAH-ALLAH)

We wish to convey our sincere & deepest gratitude and great

acknowledgement to our respected teacher Ms Zainab Rehman who has

provided us an opportunity to visit AFC. We have visited AFC and KFC of

Multan for our research and we are in no confusion for saying that this

activity has enhanced our knowledge about the Research work. It is the

result of the efforts of our respected teacher who provided us all the

possible directions and information for this purpose & we are thankful to

all the consulting celebrities who also helped us in performing this task &

we are especially thankful to our parents & friends who help us to do this

task.

USMAN AHMAD RAZA MBC-09-22MOB No: 03336934822E-Mail Address: [email protected] OF MANAGEMENT SCIENCES. (CITY CAMPUS). BZU. MULTAN

Declarations

We hereby declare that this “Research Project” and it is neither as a whole

or as part have developed report entirely on the basis of our personal

effort, made under the guidance of our project supervisor “Ms Zainab

Rehman

No portion of this work presented in this dissertation has been submitted

in support of any application for any other course of any other degree

program or qualification of this or any other university or institute of

learning.

It is further stated that whole document is as the partial fulfillment for the

“Research” course in M.B.A Degree Program. We understand and transfer

the copyright for this material to the department of IMS(City Campus)

Multan.


DEDICATION

“To Our Allah who is most beneficent and the merciful and who is always with us in our loneliness and in all our difficulties.

AND

To our Parents, Teachers & Friends who always pray for us to succeed in life.

TABLE OF CONTENTS


Acknowledgment.................................................................................................................1Declarations.........................................................................................................................2DEDICATION.....................................................................................................................3Executive Summary.............................................................................................................5Problem Statement:..............................................................................................................6Research Design..................................................................................................................6

SAMPLING.....................................................................................................................6Research Methodology........................................................................................................6

PROBLEM IDENTIFICATION.....................................................................................6LITERATURE REVIEW................................................................................................6

Mission Statement.......................................................................................................6An Overview of Restaurant.........................................................................................7

ADDRESS:......................................................................................................................7Main Competitors........................................................................................................7

Hypothesis Development.................................................................................................9Data Collection..............................................................................................................15Data Analysis.................................................................................................................15Results:..........................................................................................................................27

Threats to Validity:....................................................................................................27Conclusions:......................................................................................................................27References:........................................................................................................................28Appendices:.......................................................................................................................28


Executive SummaryWe were directed to prepare a Research Report by our respectable teacher Miss Zainab

Rehman.We decided to conduct Research on Al-Najam Fried Chicken (AFC), which

was facing a problem of declining rate of customers as compared to its main competitor

Kentucky Fried Chicken (KFC) .The Head Office of AFC is situated on 95-Main

Market, Samanabad, Lahore. And Multan branch is situated on Tehseel Chowk Gulgast

A Block. As AFC is providing its products and services all over the country through its

branches and franchises so it is a fast food restaurant growing very rapidly within a

strong competition.

For the purpose of finding solution to this problem we collected data by using

multiple methods of data collection. To know the reasons for declining trend to the

AFC .We got the questionnaires filled up from people of different areas. The

questionnaire was about asking the people about either they are price conscious or quality

conscious, or their preferences to products of restaurants are on the basis of food variety,

taste, environment provided by the restaurant, services provided by the staff or

presentation of the products. Open-ended questions were also asked for further

clarifications.


Problem Statement:Customer satisfaction on AFC and which factors are declining the customer ratio

and how they can increase their sales.

Research Design

SAMPLINGDuring our Research work we chased about 100 respondents as sample size and

selected the different areas of Multan as broad Problem Area of our study.

Research Methodology

PROBLEM IDENTIFICATION

The management of the AFC observed that they are facing the problem of

declining customer ratio due to their competitor i.e. KFC and LASANI. After studying

the data gathered in preliminary data gathering we found that it is true that the customer

ratio is decreasing gradually from last couple of years.

LITERATURE REVIEW

Mission StatementOur mission is to make the quality fast food available to all those people who

liked the fast food.

We did so without compromising the highest standards of food industry. We,

AFC, not only use the best raw materials available but we also provide the best of food at

a very reasonable and competitive price. All our foods are processed and prepared using

of the art machines and equipments and we always used to say that,

“No Compromise on Quality”


An Overview of Restaurant

ADDRESS:AL-NAJAM FRIED CHICKEN (AFC).

Tehseel Chowk Gulgast A Block Multan.

Telephone: +92-61-6212228

+92-61-6212229

E-Mail: [email protected]

Web site: http://www.afc.com.pk

Main CompetitorsThe main competitors of AFC are KFC and LASANI. They are providing the

services in Multan from many years but AFC Multan branch provided its services only

from last year. AFC is trying to improve its service to compete the competitors. Its

competitors are more established

In order to formulate Literature review, first we are to list and label the variables

of the study.

LIST Labels

Price Independent

Taste Moderating

Goodwill Intervening

Environment and Service Independent

Declining Customer Ratio Dependent


http://www.afc.com.pk/

mailto:[email protected]

The dependent variable is “Declining Customer Ratio”, which is the variable of primary

interest, to which the following Independent variables may cause to influence i.e.

Price

Environment

Service provided

Goodwill as Intervening Variable.

Increase in Prices of products items and products ultimately cause less attraction of

people towards Restaurant. Due to lack in the quality of products and products items

people are dissatisfied. Lack of advertisement does not introduce restaurant in the far

away areas. That’s why people would join other restaurant products unknowingly.

INTERVENING VARIABLE

DEPENDENT VARIABLE

INDEPENDENT

VARIABLES

MODERATING VARIABLES


TASTE

CUSTOMERRATIO

GOOD WILL

SERVICESERVICE

ENVIRONMENTENVIRONMENT

PRICEPRICE

Hypothesis DevelopmentWe can develop these Hypotheses between dependent and independent variables:

Hypothesis # 1

Q # 9 Prices are competitive

Develop Hypotheses

Ho: There is no relationship between Price and Customer Ratio

HA: There is relationship between Price and Customer Ratio

Level of Significance

0.05

Type of TestChi square

Fo Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

Strongly

Agree

44 20 24 576 28.8

Agree 16 20 -4 16 .8

Neutral 7 20 -13 169 8.45

Disagree 15 20 -5 25 1.25

Strongly

Disagree

18 20 -2 16 0.2

Total 100 100 0 790 39.5


Degree of FreedomDF = k-1

5-1=4

Critical Value

9.49

ConclusionCalculated value is greater than the critical value so we reject Ho and accept HA


9.49 39.5

Hypothesis # 2

Q.5How would you rate the taste of your Food?

Ho: Taste does not effect on customer ratioHA: Taste effects Customer ratio

Level of Significance0.05

Type of Test

Chi square

Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2/Fe

Excellent 34 20 14 196 9.8

Good 17 20 -3 9 0.45

Average 22 20 2 4 0.2

Below Average 18 20 -2 4 0.2

Poor 9 20 -11 121 6.05

Total 100 100 0 334 16.7

Degree of FreedomDF = k-1

5-1=4

Critical value9.49



Hypothesis # 3

Q.

How was the environment in AFC?

Ho: There is no relationship between Environment and Customer ratio. HA: There is relationship between Environment and Customer ratio.

Level of Significance

0.05

Type of Test

Chi square


Excellent 53 25 28 784 31.36

Good 28 25 3 9 0.36

Fair 7 25 -18 324 12.96


9.49 16.7

Bad 12 25 -13 169 6.76

Total 100 100 0 1286 12.86

Degree of Freedom

DF = k-1

4-1

3

Critical value

7.82



7.82 12.86

Hypothesis # 4

Q. 6How would you rate your Service?

Ho: Services does not effects on customer ratioHA: Services effects on customer ratio

Level of Significance0.05

Type of Test

Chi square


Excellent 5 16.67 -11.67 277.88 16.67

Good 15 16.67 -1.67 2.78 0.16

Average 34 16.67 17.33 300.33 18.02


Below Average 16 16.67 -0.67 0.45 0.03

Poor 22 16.67 5.33 28.41 1.7

Others 8 16.67 -8.67 75.16 4.51

Total 100 100 0 685.01 41.09

Degree of Freedom

DF = k-1

6-1= 5

Critical value

11.07


Data Collection

Personal interviews of Management

Close ended and open ended Questionnaires from general public visiting AFC

Web site of AFC i.e. www.afc.com.pk


11.07 41.09

Data AnalysisWe have collected scientific data from general people, by personnel interviews

and questionnaires. After that we have analyzed the data by using statistical tools i.e.

averages, percentages and proper graphical presentation of data has been applied. We

have chosen the new technique to present the data analyzed through charts and graphs.

This will make the whole analysis easy to understand and attractive

Q # 1

How many times you visit AFC in a month?

Percentage

Daily 3%Weekly 27%Monthly 57%

First Time 10%Others 3%


This is the GRAPHICAL REPRESENTATION of this Question. In

this it shows that how many times customers go AFC in different

time period.

0

10

20

30

40

50

60

Daily Weekly Monthly FirstTime

Others

Series1

Q # 2

Was the waiter attentive and available when you needed him?

Yes 83%

No 17%



this it shows that weather the waiter is attentive or not.

Yes

No

Q # 3

Was the waiter knowledgeable and able to answer your questions about the food?

Yes 89%

No 2%


Others 9%


this it shows that weather the waiter is knowledgeable and able

to answer or not.

Yes

No

Others

Q # 4

The menu has a good variety of items?

Strong Disagree 42%Disagree 23%Neutral 4%


Agree 20%Strongly Agree 11%


this it shows that in which category menu exits.

0

10

20

30

40

50

StrongDisagree

Disagree Neutral Agree StronglyAgree

Q # 5

How would you rate the taste of your Food?

Excellent 34Good 17

Average 22


Below Average 18Poor 9

This is the GRAPHICAL REPRESENTATION of this Question. In this it shows that in which category taste of food exist.

Excellent

GoodAverage

BelowAverage

Poor

Q # 6

How would you rate your Service?

Excellent 5%

Good 15%


Average 34%

Below Average 16%

Poor 22%

Others 8%

5

15

34

16

22

8

Excellent

Good

Average

Below Average

Poor

Others

Q # 7

The food is served


Hot 29%

Fresh 23%

Hot & Fresh 32%

Normal 14%

None 2%

0

10

20

30

40

Series1 29 23 32 14 2

Hot Fresh Hot & Norma None

Q # 8

Employees are


Patience Speaking Clearly Friendly

1 65% 44% 49%

2 11% 10% 18%

3 5% 1% 7%

4 8% 3% 5%

5 2% 2% 4%

6 2% 4% 8%

7 7% 36% 9%

0

10

20

30

40

50

60

70

1 2 3 4 5 6 7

Patience

Speaking Clearly

Friendly

Q # 9

Prices are competitive


Strongly Agree 44

Agree 16Neutral 7Disagree 15

Strongly Disagree 18

0

10

20

30

40

50

1

StronglyAgreeAgree

Neutral

Disagree

StronglyDisagree

Q # 10


How was the environment in AFC?

Excellent 53%

Good 28%

Fair 7%

Bad 12%

0

10

20

30

40

50

60

Excellent Good Fair Bad

Q # 11

Which type of music you like?

Modern 35%

Old Fashioned 11%

Slow 32%

Fast 22%


35

1132

22Modern

Old Fashioned

Slow

Fast

Q # 12

How was the music Volume?

Low 22%

Moderate 51%

High 27%

22

51

27

0

10

20

30

40

50

60

Low Moderate High


Results:

Threats to Validity:

Respondents may not give us the exact information in the questionnaire due to the lack of interest.

Due to controversial topic respondent may provided the biased information.

Conclusions:The main purpose of our Research work for the preparation of Research Proposal

was to analyze the products of both the restaurants and to find the reasons, why the

customers’ ratio of AFC is declining day by day and to know the reason that why KFC is

more appreciated by the people as compared to AFC. From our research analysis we

found that KFC provides more special packages and offers more quality products to

attract the customers.

On the basis of our data analysis we see that people also like AFC as well and it is

growing rapidly in the race and strong competition of Fast food restaurants but yet its

percentage is less as compared to KFC on the basis of various factor which are discussed

one by one in the Data Analysis by graphical and tabular representation of data gathered

by different methods.

So we can conclude over here that there were various independent variable like

quality of the products provided, prices of the products offered, service provided by the

staff and environment provided by the restaurants counts a lot due to which the dependent

variable i.e. Decline in Customer ratio was badly effected.


References:During the research process, besides our practical research, we also have

consulted some book about our practical research for the preparation of this proposal in

an effective manner. A list of all references, which has been consulted and the data has

been derived from, are given as under:

Class Notes by Miss Zainab Rehman, during our class lectures

Mr. Zeshan, Manager of AFC branch Multan

Field surveys through which data has been collected from different types of

questionnaires and different areas of Multan

(AFC) Restaurant’s Booklet and brushers

http://www.afc.com.pk

Appendices: Q # 1How many times you visit AFC in a month?□ Daily 3%

□ Monthly 27%

□ Weekly 57%

□ First Time 10%

□ Others 3%

□ Q # 2Was the waiter attentive and available when you needed him?□ Yes 83%

□ No 17%

Q # 3


Was the waiter knowledgeable and able to answer your questions about the food?□ Yes 89%

□ No 2%

□ Others 9%

Q # 4The menu has a good variety of items?□ Strongly Disagree 42%

□ Somewhat Disagree 23%

□ Neutral Somewhat 4%

□ Agree 20%

□ Strongly Agree 11%Q # 5How would you rate the taste of your Food?□ Excellent 34%

□ Good 17%

□ Average 22%

□ Below average 18%

□ Poor 9%Q # 6How would you rate your Service?□ Excellent 5%

□ Good 15%

□ Average 34%

□ Below average 16%

□ Poor 22%

□ Others 8%

Q # 7 The food is served□ Hot 29%

□ Fresh 23%

□ Hot and Fresh 32%

□ Normal 14%

□ None of the above 2%


Q # 8Employees are:□ Patient 65%_11% _ 5 %_ 8% _ 2%_ 2 %_ 7 % _

□ Speak clearly 44% _10 %_ 1 %_ 3% _ 2%_ 4%_ 36% _

□ Friendly 47%_18 %_ 7% _ 5% _ 4% _ 8 %_ 9% _

Q # 9Prices are competitive□ Strongly Disagree 44%

□ Somewhat Disagree 16%

□ Neutral Somewhat 7%

□ Agree 15%

□ Strongly Agree 18%

Q # 10How was the environment in AFC?□ Excellent 53%

□ Good 28%

□ Fair 7%

□ Bad 12%

Q # 11Which type of music you like?□ Modern 35%

□ Old fashioned 11%

□ Slow 32%

□ Fast 22%

Q # 12How was the music Volume?□ Low 22%


□ Moderate 51%

□ High 27%


Final REport of AFC

Documents

email address

usman ahmad raza mbc

research project

research course

research work

research design

research methodology

multan dedication