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1.0 Introduction Colonel Harland D. Sanders established Kentucky Fried Chicken Corporation (KFC) in August 1952 in Salt Lake City. Due to the over-whelming response, Colonel Sanders cashed in his $105 social security check to begin franchising his dream. In 1964, Harland Sanders (age 74) lessen his load by selling his business to Jack Massey and John Young Brown Jr, who turned their attention to the international markets. KFC subsidiaries were later established in Hong Kong, South Africa, Australia, New Zealand and Mexico. In 1971, KFC entered into negotiations with Heublein, to discuss a possible merger. However, Heublein later acquired KFC as Brown decided to pursue other interests, which includes political career. Heublein was in alcohol beverages business and has little experience in the restaurant business. Conflicts quickly erupted between Colonel Sanders and Heublein management. R.J. Reynolds (RJR) then acquired Heublein in 1982. R.J. took a more laid-back approach and allowed business to...

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