Mcdonalds vs Kentucky Fried Chicken Essay

Mcdonalds vs Kentucky Fried Chicken Essay.

Kentucky Fried Chicken (KFC) and McDonalds, which one do you prefer? Actually, they both serve delicious fast food. McDonalds focuses primarily on hamburgers and fried chicken but KFC does wraps, salads or sometimes pies and kebabs. they are hazards to health. In the Middle East they sell halal food. McDonalds and KFC have similar types of food, popularity and history.

McDonalds and KFC both are global fast food chains but they have a really different history. Harland Sandors known as Colonel Sanders founded KFC.

Ray Kroc created McDonalds However, McDonalds logo is smiling clown where’s KFC logo is the founder of KFC.

McDonalds and KFC both serve fast food. McDonalds most common items are hamburgers, cheeseburgers, chicken nuggets, fries, salads, and shakes they also serve breakfast items and children’s meals. however, KFC chicken are crunchy and it is delicious. The chicken comes in original and spicy flavor. McDonalds burgers it consist of the Big Mac, Chicken Burger, double Beef burger and others.

Both KFC and McDonalds are international companies. they are worldwide and have their own market. As you can see McDonalds and KFC are obviously really popular Still McDonalds operate their businesses for 24 hours for local consumers. As KFC doesn’t yet KFC and McDonalds had been broadcasted through television, newspapers and magazines. However, McDonalds and KFC actually have many similarities like their polite attitude and their extremely fast food.

Be it McDonalds or KFC, you will surely have a great meal. But they both are hazardous to health. The ministry of health had been experimenting both McDonalds and KFC and they discovered that they discovered that they have a lot of oil and fats in it, so people have been debating about it the fats and oil that are in both the restaurant. Besides I prefer McDonalds because there is more choice on the menu, and its better value than KFC. McDonalds is cheaper than KFC and McDonalds tastes much better than KFC and some people have other opinion about that.

Mcdonalds vs Kentucky Fried Chicken Essay

Distance Still Matterthe Hard Reality of Global Expansion Essay

Distance Still Matterthe Hard Reality of Global Expansion Essay.

CAGE Distance Framework

Distance Still Matters analyses several factors that impact both success and failure in global expansion strategies. The challenges discussed are dimensions of distance. The four dimensions of distance discussed are cultural, administrative, geographic and economic. Cultural distance is essentially the differences in communication, interaction, religion, race and social norms. Administrative or Political distance refers to the absence of colonial ties, shared political association and institutional weaknesses. Examples of political barriers are tariffs, trade quotas and restrictions on foreign investment.

Political associations between countries, typically that exist in a colony/colonizer relationship facilitates international trade due to similarities in administrative dynamics. Geographic distance is created due to remoteness or the lack of access due to transportation, communication limitations or differences in size and climate. Economic distance is created by a discrepancy in resources such as financial, intellectual, human and natural.

Star TV

Star TV’s attempt to expand into the global media television market was given as an example of a failed initiative due to the lack of focus on dimensions of distance between foreign markets.

Star TV was founded in 1991 with a mission to deliver television programming to Asian audiences. Their motivation was that they perceived the Asian audience as being starved for diverse media choices. Star projected that English language programming would transition into the Asian culture, especially with the socio-economic elite (top 5%). The strategy to gain a competitive advantage over broadcaster was to use satellite technology to transmit programming.

Star’s expansion attempt failed, recording losses of $141 million in 1999 and $500 million between 1996 and 1999. Without extensive Asian market research this initiative was unrealistic. An assumption was made that cultural distance did not exist between Asia and the United States. The Asian media market was not as interested in English speaking programming as Star’s management projected. Additionally, Asian governments imposed barriers to politically driven programming which created even more political distance that initially existed. Star TV’s mistake was the lack of market research and a “go/no go” decision making process. Too many assumption were made that the international media television market was immune to dimensions of distance such and cultural and political.

Recommendation

Identify a sample market and run a pilot test with several typical English-speaking programming options.

CPA Approach

The CPA approach or the Country Portfolio Analysis looks at how the actual and potential markets measuring per capita income and per capita industry consumption. The two indicators plotted on a grid creating bubbles that represent the size of each country’s market Tricon Restaurants International (TRI)

Tricon spun off from Pepsico in 1997. The company’s core business is managing fast food chains such as Pizza Hut, Taco Bell and KFC both domestically and internationally in 27 countries. In 1998 the company began evaluating the possibility of consolidating operations within high performing markets. Two thirds of TRI’s revenues and even a higher proportion of profits came from 7 of the 27 markets. Based solely on market size, TRI’s initially plan was to dispose of its investment in Mexico. Mexico fast food market ranked 16th of 20, with a total fast food consumption of $700 million. Using the CPA approach, TRI identified Mexico as a top 3 priority based on geographic distance from Dallas, TX (TRI’s Headquaters), common land borders and favorable trade agreements with the United States. (Beamish, 2011)

References

Beamish W. Paul and Bartlett Christopher, Transnational Management: Text, Cases, and Readings in Cross-Border Mangement, pg. 95-105

Distance Still Matterthe Hard Reality of Global Expansion Essay

Mcdonald’s vs Burger King Essay

Mcdonald’s vs Burger King Essay.

Let’s look at fast food restaurants. When you hear someone say, “Let’s go to McDonalds or Burger King,” what comes to mind would you consider the Big Mac or a Whopper? Think of how many calories that goes into each one. When you look at the Big Mac your calorie count is, “540 with 29 grams of fat and 45 grams of carbohydrates. ” The Whopper shows, “670 calories, 39 grams of fat and 51 grams of carbohydrates. ”(www. associatedcontent. com) So which is healthier, McDonald’s wins this one.

Less calories in the Big Mac than the Whopper even though Burger King promotes flame broil is better and much healthier.

When walking in the restaurants of McDonald’s you get the since of not welcomed until it is your turn to order. Looking around the place, it is clean yet not many people stay to eat there. One or two people will sit and chat for a while before leaving and making their order. One thing is true about McDonald’s, if they mess up your order while you are still there, they will make it correctly and bring it to your table nice and hot no matter what it was you ordered.

Now for Burger King, when you enter their door the cashier says “Welcome to Burger King, can I take your order,” this research has been done in several restaurants in the area.

Once you have placed your order you are given a number and a cup to fill your drink, by the time you are done filling your drink you food is ready to go. Looking around the restaurant there are a number of patrons sitting eating laughing and joking around with one another so the atmosphere is a warm and inviting one. McDonald’s seems to be more of a get it and go type of place and Burger King was sit for a while and chat. The goals of each restaurant are simple. The customer is first, satisfaction is a must.

We all know that it’s not as simple as it sounds. Let’s compare the two, at Burger King’s customers are greeted with a smile when you walk in, when a customer places an order they have a choice of dining in or take it to go. The customer is given an option to say, “I will dine in or take it to go,” this shows they are given customers a choice of what they want to do. McDonald’s on the other hand, satisfaction is number one also, but you’re not greeted with a smile, sometimes it seems that the cashiers don’t want to work there or they just seem so tired.

When placing an order the customer have to wait for at least five minutes before it is ready. Not so good in the fast food world of service, but satisfaction is what they are striving to have. They both share the same goals but one is more of an over all than the other. McDonald’s have a goal of satisfying their customers at 100% but they sometimes fail at making this goal work. How does the public differ in the choices of McDonald’s over Burger King? For one which taste better, which has better quality, would the customer prefer flame broiled over fried.

Take a taste test first, McDonald’s signature burger the Big Mac; as the commercial says, “Two all beef patties, special sauce, lettuce, cheese, pickle and onions on a sesame seed bun. ” When the customer orders it in the restaurant, it is in fact, much smaller compared to the advertisement suggest. When doing this research, two out of five people got what they really wanted; the other three had to ask for more sauce and less lettuce. When the order was received, it was sloppy, sauce on the sides of the bun and not on the burger.

The taste was satisfactory but if you present something that isn’t prepared right the taste falls short. Burger King’s signature burger the Whopper; “Beef patty, sesame seed bun, mayonnaise, lettuce, tomato, pickles, ketchup, sliced onions, flamed broiled on a sesame seed bun. ” Research shows out of the five customers that were tested at Burger King, each customer got exactly what they ordered and was satisfied with the taste of the meal. One even asked for an extra slice of cheese. Burger King satisfied more customers in the area of taste. Which has better quality of food?

This falls very hard when thinking about both restaurants. McDonald’s and Burger King have in fact, had good quality but one out shines the other. As it was stated before McDonald’s Big Mac was served sloppy that was not quality service. In terms of Burger King, the customers were very satisfied with the quality of food and service that they received. Looking at the companies goals is a major difference. Let’s take the Mc Donald’s organization, one hundred percent customer satisfaction. When looking at this goal, it’s not always reachable. When this goal is not met, they will do what ever it takes to fix the problem.

The next goal that puts them at a higher standard than other competitors, it’s founded on giving back to the community with the Ronald Mc Donald House and Ronald McDonald Children’s Charities. In each restaurant and drive thru there’s a donation box so money can be placed into helping the charities. So many times there have been full boxes of money given. Over the years McDonald’s has given millions of dollars back to communities in an effort to help children in need of care. Burger King was founded in 1953, the worlds #2 hamburger chain since McDonald’s. All of the burgers cooked at Burger King are prepared by grilling over flamed fire.

When looking at how the structure works for them, Burger King doesn’t advertise their products like most competitors. There is no way Burger King can produce more sales than McDonald’s due to their marketing strategy which puts them at a disadvantage with McDonald’s. Where they can improve on this, they can do more advertisement of their products and open more chains around the world. Burger King does offer its “own in house charitable organizations” and programs which is the “Have It Your Way Foundation,” which is also a “US based non-profit corporation to alleviate hunger and disease prevention. (http://en. wikipedia. org)

However Burger King also offers Scholarship Programs for millions of high school children across the United States which is in the memory of the co-founder James W. McLamore. This year alone they have awarded more than $1. 4 million in scholarship funds to 1,258 students and they also have four new awards that they give out but the major scholarships includes one King $25,000 and three James W. McLamore Whopper scholarship $50,000. (Burger King Corporation) The interaction with the public for both restaurants is very different.

When walking in the restaurant the employees are very busy taking orders. The sense of urgency is upon them to get the food out fast and perfect. Once the order is placed, there is no time to talk however at Burger King, while waiting on your order the manager has time to chit chat with you. Managers make sure that the environment is warm and inviting. The employees that are cleaning around the tables and chairs make sure that they do notice you. There have been times where the employee asks if they could get something more or a refill.

This is what customer service should be like. McDonald’s, on the other hand, there is no sense of warmth. Maybe one person may look your way and ask is everything’s alright, but that’s as far as the conversation will go. At both restaurants there is a difference between the employee and manager. They both have different shirts and tags. Sometimes though it could be hard to tell the difference because if you go to the restaurant late at night it’s more lax than the day time hours where you will have employees and mangers playing around but still doing their jobs.

One other thing that these companies do, they do hire the less fortunate, meaning people with disabilities. Both companies start with their signature logo and end with their logo, major difference McDonald’s only takes the order. Sometimes it’s hard to understand what is being said over the pa and the order may get mixed up but there is time when getting to the window to fix it. Not all the time at McDonald’s does the employee have the food ready so the customer is asked to pull over and food will be brought out to them? On one occasion, while waiting for the order as the minutes passed by, no order was delivered.

The customer had to go into the restaurant to get the order and it was still not what the customer ordered. One would wonder how many times this has happen in the past. Is drive thru really fast and easy? Thinking it may be better to order inside so the order can be done properly. Burger King Employees smile when taking and giving the orders. Even in the drive thru, the smile can be heard over the pa when placing an order. If a customer has to wait on their order thru the drive thru, they are asked to pull around the front and someone will be out with the order.

It is never long that you will have to wait maybe two minutes at the most and the food is hot when it is received. There are healthy choices on the both menus, but do customers often choose the healthy choice? Not always. Looking at the choices of the menus: In some states McDonald’s is required to show the calorie count for the customers. On their boxes that the food comes in, there is also a calorie count that the customer can look at and see just how many calories is listed for the choice that was made for the order.

Mcdonald’s vs Burger King Essay

Industry Analysis Chipotle Essay

Industry Analysis Chipotle Essay.

The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).

The QSR industry is seeing growth due to the fact that today’s society is more strapped for time than ever. According to the American Sociological Review, “more than 50% of American families are dual earner household…multitasking allows parents to accomplish more within a limited amount of time” (Offer & Schneider, 2011). However, with both heads of the house working part-time or full time jobs people have less time to prepare meals and QSRs offer another way for these families to multitask and save time.

In 2011 the QRS industry saw stock values beat the overall restaurant market. Bloomberg U.S. Quick-Service Restaurant Index, gained 13.5 percent while the full service restaurant index dropped by 1 percent (Wolf, 2012).

Competitive Analysis New Entrant Threat While entry into the quick service industry has low barriers (Cambrian Group, 2011) it is highly competitive and has high saturation. Only 40-50% of new entrants will survive their first year and see profits (Paiz et. al., 2011 p.4). While many of players in the QSR industry are franchises, approximately 300,000 (Franchise Direct), Chipotle operates differently. All of their locations are company owned and have relatively low start up costs (“Chipotle Mexican Grill”, 2007). Due to this Chipotle is able to grow their bottom line much quicker than new entrants into the same markets. While others may see low success rate in the first year due to start up costs, Chipotle is able to effectively generate profit and growth quickly. Rivalry

In the sub-category for quick service Mexican restaurants, Chipotle competes with Qdoba, Moe’s Southwest Grill, Baja Fresh, Taco Bell and El Pollo Loco. Mexican quick service accounts for $5 billion of the $20 billion market (Cambrian Group, 2011). At the end of 2010 Taco Bell held the largest market share among Mexican QSRs with 52% of the market and 5,635 locations in the U.S. and 262 locations in 21 foreign countries (Yum! Brands, 2011). Qdoba in contrast holds locations in 42 states for a total of 583 locations (Jack in the Box, 2011). Threat of Substitutions

Chipotle faces 6 major substitutes, McDonald’s, Yum! Brands, Wendy’s/Arby’s Group, Burger King, Jack in the Box (owner of Qdoba), and Doctor’s Associates Inc. (owner of Subway) which occupy 35.5% of the market (Paiz et. al., 2011, p.6). These QSRs offer dine-in, carry-out and delivery services and have been in the market longer than Chipotle (Chipotle, 2010). In addition to this they use a much broader marketing plan which includes, print, radio, and television advertisements which Chipotle does not; relying mainly on radio and billboards (“Burrito Buzz”, 2007).

Chipotle actually “spends less in a year on advertising than McDonald’s Corp. spends in 48 hours” relying mainly on word of mouth (“Burrito Buzz”, 2007). Many of these substitutes have diversified their menus. While Chipotle’s menu is standard in all of their locations others in the industry now offer menu items that focus on consumer preferences. Low carbohydrates, low calorie, and low fat options are showing up more often on menus. Many also emphasize lower-cost, “value meal” menu options, which Chipotle has not yet looked at pursing (Chipotle, 2010). Power of Buyers

The quick service restaurant industry has relatively high price elasticity due to the fact that fast food is not essential to customers and therefore relies heavily on the customer’s choice preferences and disposable income. Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle.

Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010). Due to economic downturn the strength of the buyers’ power has increased as the industry looks to gain consumers with pricing strategies much like those of McDonald’s “Value Menu” and combination meals even though the cost of commodities have gone up (James, 2010). Customers of QSRs are looking for quality food without high costs. While Chipotle does not have a value menu or offer any type of combination meal much of their success is due to the fact that the customers are willing to pay a higher cost for higher-quality (Chipotle, 2010). Power of Suppliers:

While the Chipotle’s mission is to use naturally raised, sustainable, local and organic products sets the company apart from others in the industry it also creates a larger supplier power when compared with other restaurants in the industry (Cambrian Group, 2011). The pool of suppliers that Chipotle can purchase from is much smaller and thus does not allow for Chipotle to control the prices paid for products. Due to the fact that Chipotle’s purchases are regionalized and in most instances purchased ingredient by ingredient they may experience higher costs in some areas then others. In addition the purchase approach creates the potential for food shortages from suppliers resulting from weather related issues, such as freezes in Mexico and Florida or could lead to temporary spikes in the prices of some ingredients such as tomatoes and avocados (Jennings, 2011). Power of other Stakeholders

There are a number of stakeholders that can affect a company’s profitability. Most companies define who their stakeholders are they typically include customers, employees and shareholder (Enz, 2010). First and foremost government entities, communities, and special interest groups have an impact on the industry as a whole (Wheelen & Hunger, 2010). The restaurant industry can be affected by changes in food safety guidelines, building codes and labor laws just to name a few. Chipotle CEO Steve Ells has also been one of the key individuals that testified to Congress in 2009 to eliminate the use of antibiotics in ranching to try to change current government ranching regulations which in turn could have large affect on the profits of Chipotle and others in the industry (Chipotle Story, n.d.).

Chipotle also understands that their employees are an integral part in creating the environment and culture that the company portrays and a significant stakeholder. The image of Chipotle starts with the people. Due to the high turnover in the fast food industry Chipotle looks for ways to keep quality employees by “empowering, educating, and training to increase internal promotions, cultural sensitivity, and communication skills as well as by providing continuing English language education to all employees who request it” (People Are People Too, n.d). Chipotle has taken steps to appeal to special interest groups that focus on the humane treatment of animals, and eco-friendly processes.

By doing so they have identified a niche market focused on a healthier and more organic approach to quick service food. Being one of the first to focus on such an approach has allowed them to attract a loyal following before their competition. Being one of the first companies of its kind in the fast food industry also means that in order to maintain their current customer base Chipotle must continue to find new ways to set themselves apart from copy cat companies. One of those ways is to ensure that they continue to look for ways to make a positive impact on the environment like the creation of the nation’s first Platinum LEED certified restaurant in Gurnee, IL (Sustainable Design, n.d.). Summary

Chipotle has experienced early success and loyalty because of their unique approach to quick service Mexican food focused on their “Food with Integrity” mission. They have experienced rapid growth and profit even in a period of economic downfall, increases in food costs, and a competitive industry. Moreover Chipotle appeals to society’s desire for a more economically friendly business and a healthier way of living.

Industry Analysis Chipotle Essay

Kentucky Fried Chicken Essay

Kentucky Fried Chicken Essay.

Looking at the graph above we can see that Yum! Brands, the parent’s company of KFC are the third biggest firm in the fast food industry. By serving more than 12 million customers in 21000 stores in 109 countries every day, KFC has become the world most popular chicken fast food franchise. (1) However, over the past decade, KFC’s suppliers have been caught several time violating animal rights by PETA (People for the Ethical Treatment of Animals), the world’s largest animal rights organization.

KFC claims that all their suppliers are very well monitored and often inspected by the government; however PETA undercover investigations have proved otherwise. In 2007, 2 videos secretly recorded workers extremely violated animal rights in these slaughterhouses, showing some disturbing scenes. Although you may argue that KFC does not responsibility for the cruelty in the slaughterhouses, it has violates its own code of conduct, which will be discussed later in this report.

Besides, since KFC buys raw meat from these suppliers, they are partly support these slaughterhouses so it is also a part of their responsibility.

The main purpose of this report is to show several violations which were caught by PETA investigation in 2007 and the possible solutions for this particular scandal. The investigation takes place in Tyson’s Georgia and Tennessee factories, one of KFC’s major suppliers. Within only 9 days of the investigation, many workers have been caught on videos abusing chickens. One of the most serious acts is workers urinating in the belts that transform birds to different areas in the slaughterhouse (2). And that is not the only thing they did. Chickens are thrown from a far distance to the conveyor belt. The workers at these slaughterhouses somehow found it an entertaining thing to do so the abuse was repeated again and again. They picked up chickens and throw them to the shackles.

Chickens are also found dead after trapping their body parts under a door at the end of the belt meaning the facility quality is not good enough. One of the examples is the blade which is supposed to cut chicken’s throat, cut the chicken’s body parts instead, and many of them also miss the blade. Therefore, when being transferred to the next stage of the production, which is going to the boiling tank, they are fully conscious. Moreover, workers are told by supervisors that it is acceptable to rip off thoselive chicken’s heads which are not cut properly. The problem here is, supervisors at both these slaughterhouses were involved with the abuse and aware of it but did not do anything to stop it from happening. Moreover, most of KFC claims on their website are inaccurate and go against their code of conduct (3): “Our suppliers work with primary breeders who provide poultry specifically selected with health and well being in mind.”

This statement is, however, false. The United States Department of Agriculture (USDA) discovered that KFC’s suppliers use drugs to help chickens to gain as much weight as possible in a short period of time. The effect of this is these chickens will suffer from diseases and injuries such as broken legs, heart attacks and other problems because they are overgrown.(4) “Prior to slaughter, birds are stunned so they are insensible to pain. … Chickens are stunned and killed before they are introduced into the defeathering tanks.”This statement is again not totally true. Although all the chickens are put in an electrified bath before being throat-slitting, the bath only makes them immobility not fully unconscious. Furthermore, as stated above, there are evidences that chickens completely miss the blade therefore they are still alive when being put in the scalding tank. According to USDA, there are nearly 3 million scalded alive chickens every year.(4) “KFC suppliers, KFC and the National Chicken Council have standards for stocking density to ensure birds have sufficient space and are healthy.

… The cleanliness of these facilities and the health of the birds are top priorities for the farmers.” Unfortunately, KFC suppliers actually do not have good facility to “ensure birds have sufficient space and healthy” like they stated. They are famous for raising chickens in a small area, as small as possible so they could cut down on cost. The wastes from chickens are not even cleaned up during their life time, again just to save cost. The effect of this is causing many health problems to chickens. One of the reasons why KFC and its suppliers are so careless is because according to the federal Humane Methods of Slaughter Act, chickens are not protected. Farmed animals such as chickens, cows are also not covered by the Animal Welfare Act either.(4) Ever since the videos are published, many protests and campaigns have been taken place, causing dramatic impact on KFC’s stockholders. Activists, through the media, have made people aware of the problem and therefore most people decided to stop eating at KFC a sign of pro test.

There was a time KFC’s stock went down by 10% because of the scandal and this has made these stockholders, managers become more serious with the problem and come up with some solutions. Once of the few solutions that KFC could apply to fix the problem is to ask the suppliers to punish those who are responsible for the incidents. This includes the workers who abuse the chickens, the supervisors at these 2 facilities who completely ignored the abuse. The punishment will definitely set an example for other employees and supervisors at other supplier’s facilities. Moreover, they could install more cameras in the slaughterhouses to control worker’s act. Once a month, private investigators could be hired to make sure animal abuse will not happen again. This seems to be one of the most effective solutions since workers are in tighter control, it is very unlikely that they will violate the rules.

KFC, however, has to pay a little extra money each month to maintain the cameras and the cost of hiring private investigators. The reason why workers mistreat the chickens at these suppliers could be because they are not satisfied with their salary. This could be easily explained, firstly, since most of the suppliers will try to cut down cost as much as possible they are likely to reduce the wage rate to exploit workers. Since the demand for this type of job is high, it is workers who need the suppliers, not the other way round so employees will always feel like they are being exploited. Secondly, those farm suppliers are famous for their terrible working conditions, there is always a problem with hygiene and environment in the slaughterhouses. All the factors combined will cause workers to be easily frustrated and pass the angry to the chickens.

Therefore, the solution is KFC to force suppliers to improve wage rate and the working conditions. Once these have taken place, the rate of mistreating animals will definitely be reduced. Although, this solution seems to work in theory, it is unlikely to work in practice since it has too many disadvantages. They must spend a lot more each month to increase the salary for all workers in these suppliers. This might also set a bad habit for workers, treating chickens badly as a sign of protest to demand higher wages. In response to all the claims by PETA, KFC states on their website that PETA is actually a “radical extremist group” and their main purpose is to “promote a vegetarian health style” (3).

Because of this, PETA is unbiased and their claims are not totally correct and could be misleading. In addition to this, KFC has also ensured consumers that their chickens are bought from the same suppliers that provide raw meat to supermarkets and restaurants. Although in the real world they have no responsibility over the animal cruelty and abuse in those slaughterhouses, they did require suppliers to obey the law as well as animal welfare. In conclusion, we can see from the report that both KFC and PETA have different point of views, and they are both reasonable in their ways. However, the situation could have been much better if KFC took care of the scandal thoroughly as soon as possible so that the same mistake will not happen again in the future.

Kentucky Fried Chicken Essay

Popeyes vs Kentucky Fried Chicken Essay

Popeyes vs Kentucky Fried Chicken Essay.

Popeyes: To be the world’s best quick service restaurant. Being the best means providing outstanding quality service, cleanliness, and value, so that makes every customer in every restaurant smile. SWOT Analysis: Strengths: The strength of Popeyes is based on its distinctive brand and style of Louisiana spicy chickens that it provides on its menu along with its chicken sandwiches, chicken tenders, fried shrimps and other seafood, jambalaya, red beans and rice and other regional items.

Popeyes is a highly differentiated brand with passion for its New Orleans heritage n flavorful authentic foods.

Weakness: Popeyes is second to its sister company KFC. About 90% of their domestic restaurants are concentrated in Tennessee and Louisiana. Most of their restaurants are located in heavily populated African-American neighborhoods; giving them higher chances of being robbed and giving them a higher close-out outlook. Opportunities: Popeyes serves the food that the world craves and is continuing to expand its global reach.

Popeyes operates and franchises 1,977 restaurants in 45 states and 26 foreign countries and out of the 1,977 restaurants 1,542 of them are domestic franchise restaurants and 397 of them are international franchises.

Approximately 55% of the international franchises are located in South Korea, Canada and Turkey. Threats: Most of Popeyes’ locations can be founded in urban neighborhoods. The local competition on neighborhood fried chicken restaurant offer lower price to Popeyes’ corporate pricing. There are poor customer base in certain areas and natural disasters. The SWOT analysis for the future of Popeyes looks to be great.

Due to more consumer wanting the taste and feel of “southern hospitality” style food, many franchises are starting to pop up in many neighborhoods across America and internationally. When it comes to the marketing aspect of Popeyes, the company markets itself to a non-southern resident base that has always wanted to experience the idea of “southern hospitality”. Popeyes goes with the idea of being “Louisiana Fresh and Bonafide Fried Chicken”. With its combination of southern spices, herbs and regional foods on its menu; Popeyes brings the flavors of Louisiana to your taste buds.

The advantage that Popeyes have over their competition is that they cater to a more diverse and international customer base. They offer and have both domestic and international franchising if an individual domestic or foreign wanted to franchise a Popeyes location. Their international franchising extends as far as South Korea. It is owned and operated by Yum Brands; the same company that owns and operate KFC, Taco Bell and Pizza Hut. One distinct advantage is that all Popeyes franchises do not share the same building as you see a Pizza Hut and a Taco Bell or a KFC and a Taco Bell.

One major improvement that I feel Popeyes should improve upon is its domestic in minority based neighborhood for the safety of its employees and monetary losses and its minority base advertisement concept. They should appeal to all neighborhoods and advertise to the appeasement of all. Popeyes sells chicken so their “target market” is anybody who likes chicken. So to make it more sensible, their target markets are young, single individuals, married couples and families and older citizens who do not time at home to be in the kitchen at all times.

Their age group goes as low as five and as high as 65. You can now see Popeyes in all sort of neighborhoods: Black, White, Hispanic and Asians just to name a few. If you ever work in a Popeyes, you will see the diversity of the people who like fried chicken. The opportunity for growth in this target market is great. Because as the current market ages, they are still going to be consumers of the same products as they have been and will encourage those that they bring along to be consumer of the same products as well.

One obstacle they should be concerned about as a company on the rise is “disinterest” due to the lack of creativity if they do not become more imaginative and creative. As a human, the mind gets boring after doing and having the same thing over and over. They should also be concerned of a stiffer competition market from their competitors. Everybody wants to be the number one brand that is preferred but it is the company who is always thinking ahead and calculating risk and rewards to be the preferred brand that stays the preferred brand.

Kentucky Fried Chicken (KFC): The Kentucky Fred Chicken mission statement is “To sell fast food in a fast, friendly environment that appeal to pride conscious, health minded consumers”. Vision Statement: Food, Fun & Festival, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipe Chicken or Hot & Spicy Version, every bite brings YUM on our face. At KFC we can proudly say, “We Do Chicken right”.

SWOT Analysis: Strengths: Kentucky Fried Chicken is a very famous chain of quick-service chicken restaurant that started from Louisville, Kentucky. The company is became a sub-brand of Yum Brands in the year 2002 and benefitted greatly from the position and brand value of Yum foods. In the past, KFC chain of restaurants grew at a very fast pace and has become today one of the largest chicken restaurants chain in the world. KFC has been known to be an innovator in the chicken restaurant segment with an annual sale of more than a billion dollars.

The KFC as a brand is well established in the dining out as well as delivery service provider in the fast food industry. Despite the entrance and presence of many competitors in the fast food industry the company was able to retain its large loyal customer base because of its unique offering. Due to this reason the KFC ranks highest when it comes to chicken restaurant chains, convenience restaurants and variety food provider. KFC currently has more than fifty percent of the market share in fast food industry and the new competitions are finding it very difficult to capture any of its share.

Over the years KFC has gained great recognition as a reputable brand for fast food even after the death of Col. Sanders and has globally positioned itself well in the industry. Weaknesses: When other companies in the chicken industry were trying to increase its market share; KFC were not able to compete well in the market or retain its customers. Also the special paper buckets that is now used by the KFC for delivering large sized orders was originally introduced by Wendy’s restaurant. The company has entered so many markets in the past in the United States that its growth rate was about only one percent a year.

KFC has said not to pay attention to its resource and development. Opportunities: KFC has been trying to enter new markets and position itself in some of the hard to enter markets like South America. With more investments; the company can definitely make its position stronger in the food industry. More spending on the resources and development as well as introducing new food items and products KFC can increase its market share and profits. Threats: The competitors of KFC have successfully captured a large market share.

According to findings McDonalds has about 35 percent of the share in Sandwich Segment whereas the Burger King owns about sixteen percent of the market share in fast food industry. The local restaurants in different countries where KFC has presence pose a threat to the company. The baby boomers formed the major part of the loyal customers of the company that now have ages between 35 to 50 years and are likely to move towards healthier foods. The other competitors in the industry are continuously improving and trying to enter new markets and increase their market share and sales.

With the lifestyle of people changing due to growing awareness about healthier food people now look for something healthy, low calories and delicious at the same time. KFC as a company is doing well in its global positions and how it is the number one preferred brand in the “quick-service chicken” restaurant industry. KFC and more accurately, owners of KFC, Yum! Brands Inc. is the foreign company with the largest presence in China. KFC dominates the fast food market in China and is well over twice as large as McDonald’s there. KFC implemented a better strategy than McDonald’s in China.

While McDonald’s tried to stay true to their menu and kept their product offering in China somewhat similar to what the rest of the world knows (burgers and fries); KFC incorporated local dishes with their famous fried chicken. They also looked more to local employees to make big decisions instead of just taking their instructions from the U. S. headquarters. This allowed KFC to enter the hearts, minds and stomachs of more Chinese people. KFC have many advantages over their competitors in terms of production, innovation, and ways of appealing to the satisfaction of their target market.

Since its introduction into the American way of life, KFC has managed to always keep its original startups but yet adding new favorable additions to suit the needs of each generation. KFC provides a quick and easy meal. It can also be bought in large amounts. KFC can improve on its customer service at certain locations. Even though its mostly a franchising based company but yet the franchisee should take it upon themselves to train better and better equip their franchises to hand the demands of their negative aspects of their stores.

The interesting area for growth with KFC is in its international markets. If KFC can take the same approach that it took when it franchised in China, the results will be more international investments from different individuals who see the opportunity as a way to invest in something new. With being the number one international “quick-service chicken” restaurant, there can instances where language barrier can play a factor in transitioning into the newer markets. And also they should be concerned with the pricing they implement in those new markets that they explore as well.

Popeyes vs Kentucky Fried Chicken Essay

KFC Holding Malaysia Essay

KFC Holding Malaysia Essay.

KFC began with Colonel Harland Sanders who discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By the early 70’s, that special recipe reached Malaysia.

KFC Holdings (Malaysia) Bhd is a branded chicken retail chain operator.

KFC Holding Malaysia continues to serve finger lickin’ good, succulent pieces of chicken. The flavourful blends of 11 herbs and spices give KFC’s delicious aroma. With the chicken’s natural juices sealed-in, leaving a special mouth watering taste that cannot be replaced. KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and desserts to make a wholesome, complete and satisfying meal.

KFC chain of restaurants in Malaysia, Singapore and Brunei, KFCH operates the home-grown Rasamas chain of restaurants, the Ayamas kiosks, and the Kedai Ayamas chain of convenience stores.

We are also active in poultry production and processing and a variety of ancillary business. KFC Holding operates chain of restaurants in Malaysia, Singapore and Brunei (532 restaurants) and the new Rasamas chain of restaurants in Malaysia (about 37 outlets).The Group also owns approximately 27 Kedai Ayamas and 4 Ayamas Depots, making us the nation’s first branded chicken and chicken-based retail chain.

The company also is a part of QSR Brands Bhd (QSR Brand) where is a leading, fully-integrated quick-service restaurant enterprise and the local franchisee and operator of the KFC and Pizza Hut restaurants.QSR Brands is in turn a subsidiary of Kulim (Malaysia) Berhad, a conglomerate focusing mainly on palm oil operations, oleochemicals, biodiesel production and quick service restaurants and also is engaged in the business of poultry processing, restaurant and property holding.

After a successful restructuring exercise, KFC Holding has emerged as a strong player in the Malaysian corporate world with a high reputation for excellent products, efficient friendly service and financial strength. Indeed, KFC Holding is the only KFC restaurant operator in the world whose Western Quick Service Restaurant market share is greater than that of McDonald’s.

KFC Holding Malaysia Essay

Regulation and Pizza Hut Essay

Regulation and Pizza Hut Essay.

School cafeterias served nearly $500 million of pizza a year. Only frozen pizza was used, however, because freshly prepared pizza was effectively excluded by a U. S. Department of Agriculture (USDA) regulation that required inspection of any pizza with meat toppings that was sold at wholesale for resale. The same was true for other institutions such as hospitals and prisons. The 39 broader issue was the closure of the institutional market to freshly-prepared foods such as pizza and other fast foods.

Pizza Hut’s overall business strategy was to become a “pizza distribution” company, and the institutional market was crucial to that strategy.

According to Roger Rydell of Pizza Hut, schools were “‘a potentially enormous business for us. … We’d like to have every one of our [4,000] delivery-capable units nationwide serving at least one school. ”’1 Since Pizza Hut was excluded from the institutional market by the USDA regulation, the task before Pizza Hut was to develop a nonmarket strategy to modify this regulation to allow school cafeterias and ultimately other institutions to order fresh pizza.

There were two basic institutional arenas in which Pizza Hut could address this nonmarket foreclosure of a market. One was the regulatory apparatus of the USDA. From the perspective of a bureaucracy such as the USDA, an exemption from its meat inspection responsibilities would be required. It seems unlikely that the USDA would want to weaken its own inspection program. Indeed, the opponents of an exemption for fresh pizza, as led by the National Frozen Pizza Institute, sought to have the contentious issue resolved by the USDA.

A resolution in that institutional arena would necessitate an extensive administrative process requiring public hearings, publication of proposed regulations in the Federal Register, a comment period, possible adoption of an exemption, and possible legal challenge in the federal courts by the losing side. This process would likely be quite lengthy. (See Chapter 10 for a discussion of this process. ) Pizza Hut first attempted to obtain a USDA exemption without an administrative process but failed in its attempt. The second institutional arena was Congress, which could enact legislation to overturn regulations.

Pizza Hut worked through Congress to include a provision in a 1991 agriculture bill that would allow fresh pizza to be purchased by school cafeterias without USDA inspection. The amendment directed the USDA to issue regulations by August 1992 allowing fresh pizza with meat toppings to be sold to private and public institutions. 2 Pizza Hut had headquarters in Wichita, Kansas, and Representative Dan Glickman, whose district includes Wichita, commented that the USDA regulation was “a Byzantine, outdated and, quite honestly, an anti-competitive regulatory structure. ”3.

One question was whether this issue was resolved by interest group politics or by some public policy process based on a careful study of the costs and benefits. The opposition, for example, argued that an exemption posed a health hazard, whereas Pizza Hut argued that precooked toppings such as pepperoni had already undergone two inspections—one at the processing plant and one earlier at the slaughterhouse. These arguments likely had little effect on the decision other than to convince members of Congress that there was no health hazard in fresh pizza sold to institutions.

This issue was ultimately resolved through interest group politics, with Pizza Hut and other fast-food chains backing the exemption and frozen pizza interests opposing it. 1 Wall Street Journal, November 29, 1991. 2 Wall Street Journal, November 29, 1991. 3 San Francisco Chronicle, November 28, 1991. Assignment Questions (30%): 1. What is/are the real issue based on the case study? (2 marks) 2. Describe the 4I’s based on the Pizza Hut Case Study. (8 marks) 3. Describe the roles of news media in this case study. (10 marks) 4. From the case study, where those issues are in their life cycles? Discuss. (10 marks).

Regulation and Pizza Hut Essay

Analytical Essay Super Size Me Essay

Analytical Essay Super Size Me Essay.

Welcome to At the Movies on ABC 1 and as usual I’m your host, _______. Tonight we’ll be reviewing the socially critical 2004 documentary, “Super Size Me” directed by and starring Morgan Spurlock. The film documents the 30 day period in which Morgan Spurlock ate three meals a day consisting of nothing but McDonalds whilst following these four rules: he can only eat things on sale, he must super size his meal if asked, he must eat everything on the menu at least once and lastly he must restrict himself to the ‘average’ amount of exercise, typical of the American population.

It also documents the drastic effects this lifestyle has on Spurlock’s physical and psychological, wellbeing, and explores the fast food industry’s corporate influence, including how it encourages poor nutrition for its own profit. I found this documentary to be quite enjoyable and it was an overall quality film. “Super Size Me” was fun to watch with its colourful graphics and catchy lyrics which drew the audience closer and focused them on what Spurlock was representing.

The documentary was effective in creating shock and disgust within the audience to further help the audience agree with and accept Spurlock’s views. The narrative structure of “Super Size Me” was built around a central enigma, this being the obesity crisis facing the American people. The documentary follows a format, showing the audience Spurlock eating McDonalds food and then feeling sick because of it and then followed by footage of Spurlock seeing a specialist to inform both Spurlock and the audience of the many health risks this diet is inflicting on Spurlock. The documentary then proceeds to show such things as what school canteens are serving kids at school. This is meant to shock the audience and position them to believe what is happening to Spurlock and his health after eating fast food will also happen to the kids who are eating unhealthy and processed meals at school every day. (INCLUDE FOOTAGE HERE) Spurlock’s purpose in this documentary was to inform and position the audience to accept his views on America’s obesity epidemic.

Read Also: Analytical Essay Topics

This was achieved through cunning and intelligent choices as to what was filmed and what was cut out. He had also employed a number of other techniques such as camera angles, shot composition, editing and intentional use of music to accompany the visuals. Through these techniques Spurlock has effectively positioned the audience to accept his views on America’s aforementioned obesity epidemic. Spurlock has positioned the audience to accept a somewhat version of the truth as not all sides of the story are given a voice. The way in which Spurlock presents himself to the audience has also deliberately been altered to position the audience to coincide with the attitudes he’s presenting throughout the documentary. Spurlock intentionally wore relaxed clothing and spoke directly to the audience in order to position the audience to feel comfortable accepting Spurlock’s attitudes towards America’s obesity crisis. (INCLUDE FOOTAGE HERE)

To further position and help the audience connect with Spulock, he has introduced them to his fiancé who’s a vegan chef which will be in juxtaposition to the unhealthy food served by most fast food restaurants. These inclusions have positioned the audience to feel close and trusting of Spurlock so that his opinions could be accepted. The use of irony during this documentary has been used because if the audience finds something humorous and therefore having a positive reaction, they are more likely to accept what is being represented. The use of irony was used throughout the documentary in such scenes as when Spurlock was referring to his headaches, stomach aches and general sick feeling from the food as McHeadaches and a McTummy. (INCLUDE FOOTAGE HERE)This positions the audience to react in a way which enables them to accept the Spurlocks view on how McDonalds is affecting his health and how it’s making him generally sick.

The audience is positioned to accept certain views without hearing or seeing the other sides of the argument. Spurlock has used bias by silencing or tarnishing the credibility of certain interviewees in interviews. When Spurlock interviews the CEO of McDonalds Australia, Guy Russo, the use of higher camera angles and editing positioned the audience to disagree and view what Guy Russo said negatively which in turn has led to the audience viewing poorly of McDonalds even though they were not completely silenced. Spurlock has also positioned the audience to accept the opinions and beliefs of the three medical specialists who are monitoring Spulock’s health throughout the ‘experiment’. The use of eye level camera angles positions the audience to feel equal with the specialists as they present their opinions and to immediately believe and accept what the specialists are saying due to the camera angles and their superior level of education within the medical field which once again positions the audience to accept their attitudes.

The included footage has also been deliberately used to further position the audience to accept Spurlock’s views on America’s fast food industries and how their corporate profit is weighted over the health of their consumers. Footage of the many advertisements and meals which are specifically positioned at kids were intentionally shown to position us to believe McDonalds is using these things to appeal to and lure the kids in. This then results in the audience being positioned to reflect poorly of McDonalds and their constant need of profits which are put over the wellbeing of their customers. Frequent shots of Spurlock without a shirt have intentionally been included to show the weight he may or may not have gained as a result of his high fat intake diet. (INCLUDE FOOTAGE HERE) This positions the audience to once again think poorly of McDonalds and the food they are serving as they are seeing the drastic effects that accompany Spurlock’s heavy McDonalds diet. When the interviews between Spurlock and the three health experts took place, key terms where placed on the screen so that they were imprinted into the viewer’s mind.

These key terms included: “poor nutrition” and especially “Addiction” which led the audience to believe how fast food is affecting the health of Spurlock and to view the companies behind the food negatively without taking into consideration the amount of fast food he is eating and how often it’s being eaten. The music and soundtrack within this documentary often complements the visuals, making it easier for the audience to accept the visuals or the lyrics of the complementing soundtrack. During the opening menu of the documentary and closing credits the “Super Size Me” song was played and the colours of the menu reflected the colours of the American flag. (INCLUDE FOOTAGE HERE) This song was co-written by Spurlock and included phrases such as: “Super size me – the American way” and “everything’s bigger in America”.

These lyrics were intentionally used as they position the audience to accept that the American culture is the result of the American fast food industries influence on the American society whether it’s a positive or negative influence. Overall the documentary was very enjoyable to watch and I found the footage rather shocking and attention grabbing at times. It was a very informative and eye opening documentary with a numerous number of techniques which position the audience to accept Spurlock’s views on America’s thirst for profits which have sadly resulted in the percentage of obese citizens growing at an alarming rate.

However, the use of the included techniques and selective editing resulted in a documentary which lacked objectivity. This lack of objectivity effected the audience’s perception of fast food companies and how they might consider an alternative choice when deciding to dine at McDonalds or any other fast food ‘restaurant’. Overall I gave this documentary, 3 out of 5 stars as it was enjoyable to watch but at times I felt as if I was being positioned and the whole ‘experiment’ was over the top as someone coming from eating healthy vegan foods is obviously going to have a dramatically negative reaction to fatty fast foods, which is skewing the audiences perception of fast food companies.

Analytical Essay Super Size Me Essay

Kfc Essay Essay

Kfc Essay Essay.

It has grown enormously following its fragile birth, splashing in scintillating numbers in both franchisees and company owned stores all over. The company’s prime strength lies in providing high-quality chicken meals to its huge consumer base all over the world. Now every day, more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. The company has strong product identification through its branding, advertising as well as packaging signifies the company in various manner.

The famous paper bucket that KFC uses for its larger sized orders of chicken, its logos and the famous picture of Harland Sanders, the initial founder, all represent KFC in the most colorful way. KFC’s specialty is fried chicken served in various forms. However the recipe of 11 herbs and spices used by KFC in preparation of their chicken still remains a trade secret. KFC’s primary product is pressure-fried pieces of chicken made with the original recipe.

The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine.

Despite KFC’s success as a company, the fast food organization had faced many problems over the years. There were mostly environmental issues that had influenced their product marketing and in time they had inherited new ways and different techniques to cater their fast food products. Animal Cruelty Since 2003, the animal rights group People for the Ethical Treatment of Animals (PETA), have been protesting KFC’s treatment of the animals used for its products with the Kentucky Fried Cruelty campaign.

PETA states that they have held more than 12,000 demonstrations at KFC outlets since 2003 because of alleged mistreatment of chickens by KFC suppliers. Alleged rainforest destruction In May 2012, Greenpeace accused KFC of sourcing paper pulp for its food packaging from Indonesian rainforest wood. Independent forensic tests showed that some packaging contained more than 50 per cent mixed tropical hardwood fibre, sourced from Asia Pulp & Paper Macro environment KFC operates in a larger macro environment of forces that creates opportunities, but also threats.

A company such as KFC usually cannot influence trends in the macro environment, as they affect people and organisations on a larger scale. However, KFC has to carefully examine macro environmental trends and must create competitive responses to such trends. There are six major macro environmental forces KFC has to take into account. Micro environment The microenvironment consists of all forces that are close to KFC, and on which KFC has an impact. They directly affect KFC’s ability to serve its customers. Three major components influence KFC’s microenvironment:

COMPETITORS Because the fast food market is highly competitive, KFC faces a wide number of direct and indirect competitors. KFC’s main competitors are fast food chains such as McDonald’s and Domino’s, which are already well established throughout the world. McDonalds’s in particular is a direct competitor, as they have already successfully introduced their Salads plus line, which directly targets ‘healthy food’ conscious world we live in. But, there are a number of other competitors that is also focusing on ‘chicken’ types products.

All this competition makes it quite difficult for KFC to maintain or even broaden their customer base. However, with the introduction of a new and healthy product range, KFC can differentiate itself from most competitors and will gain a competitive advantage. CUSTOMERS KFC’s customer market consists solely of the consumer market. KFC’s products are bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer should appeal to as many people within this consumer market as possible, to ensure that the maximum amount of products can be sold.

The characteristics of these individuals and a segmentation of them are discussed later in this report. Strengths and weakness of competitors Strengths: 38 products, Attractive Outlets, Huge Marketing, Budget, More entertainment for kids Weaknesses: Same type of Menu, No Home Delivery How they compete with their competitors? It is found that KFC compete its competitors by five ways: •KFC compete its competitors through marketing strategy •They offered different packages at different events like Ramadan offer, midnight offer etc. •KFC compete their competitors by providing good services They must hired the hard selling persons to market their product in the market and motivate their employees for the sake of organizations and employees do well and they compete there competitors KFC has quality products and through these quality products they compete their competitors Current Sales Analysis Market Share Market Share KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share. It becomes difficult for the companies like Sub way, Mc Donald’s, Chicken planet, Dixie or those who may want to enter in the market of fast food restaurants.

Due to with over 50% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in and to capture the market share in adopting a chicken loving experience. Environmental factors and opportunities Political: The operations of KFC are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country.

Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market. Economic: Though for last 1 year there was economic slowdown all across the globe but the sales of KFC and other fast food chains did not slow down to that extent that of other sectors in. The GDP (Purchasing Power Parity) is estimated at2. 965 trillion U. S. dollars in the year 2010.

The GDP- per Capita (PPP) was 2700 U. S. dollars as estimated in 2008. The GDP- real growth rate in 2007was 8. 7%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U. S. and China. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5. 5 billion a year earlier. Socio cultural: India is the second most populous nation in the world with an approximate population of over 1. 1billion people. This population is divided in the following age structure: 0-14 years – 31. 8%, 15-64 years – 63. % and 65years and above – 5. 1%. There has also been a continuous increase in the consumption of fast food in India. The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food consumption from the year 2002-2007. This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent), Russia (50 per cent) and China (almost 60 per cent). Thus this shows a positive trend for fast food industries in India. Technological: The fast food Industry is heating up with a lot of foreign players entering the market.

The technological knowhow and expertise will also enter the market with an increase in competition. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. For e. g. KFC and Domino’s pizza. For a fast food restaurant, technology does not give a very high impact on the company and it is not a significant macro environment variables. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation.

For example in inventory system, supply chain management system to manage its supply, easy payment and ordering systems for its customers and wireless internet technology. Implementation of technology can make the management more effective and cost saving in the long term. This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time. Environmental: As one of world largest consumer of beef, potatoes and chicken, KFC always had been critics for world environmentalist.

This is because high consumption of beef causing the green house effect by methane gasses coming from the cow’s ranch. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. In America, once KFC want to introduce whale burger causing uproar because whales are endangered species. Before using paper packaging, KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products.

Imagine millions of people purchase from fast food operator and how is the impact to world environment by throwing away those hard to recycle packaging. Our world is getting concern on environment issue and business operating here should not just care for profit, but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. Critics and concern from all public or activist should bare view and support if necessary to ensure we play our social responsibility better. Legal factors:

As a certified fast food operator, there are many regulations and procedures that KFC should follow. For example is the Halal certification that becomes a concern to Muslim consumers. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours, business registration, tax requirement, labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified.

The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. KFC India -BCG Matrix Boston Consultancy Group (BCG) Matrix Currently KFC have launched a new product in the market. They have also tried to come into the beverages market by launching its new brand of shakes called KRUSHERS. As it is a fairly new product it comes in the category of the Question Mark in the BCG Matrix. It has a low market share thus brings low revenue. KFC is advertising a lot to popularize this product so there is a lot of expenditure on it.

This product is individually not bringing any profits and is a cash drain for the company. Company may decide to completely remove this product from the market if it does not do well soon and start bringing in revenue. Business macro-environmental factors The company and all the other actors operate in a larger macro-environment of forces, including political, economic, cultural, technological, legal and ecological factors, which shape opportunities and pose threats to the company. Political and legal regulatory affect the strategic development of KFC Corporation, which made the US market more challenging.

Example- Forbidding the use of trans-fat cooking oil mandating calorie counts on menus,removing advertisement from kid’s programme, and even prohibiting from making unconfirmed claims concerning nutritional value and losing weight benefits. All of these may seriously impede the free flow of goods within a group and from suppliers and consumer demand. According to the Institute for the World Economy, the aggregation of financial crisis continues to result in negative result to the world economy and generate a strong downturn in the entire restaurant industry, which leads to the falling of US unit expansion from 3. % of 2006 to 2. 4% of 2007. On the other hand, fewer costs as compared with healthier food helped KFC and the entire fast food industry to grow rapidly. Moreover, KFC can increase profit margins with chicken which is lower in cost compared to other meat. With the ever-increasing impact of health consciousness, like obesity, among consumers, it’s increasingly hard for KFC to keep its original product mix and alternatively prompt them to offer healthier foods (threat). In contrast, under the slump chicken consumption in Europe and Asia market owing to the outbreak of avian flu, US market still shows an image of rising.

Furthermore, hurried and changing lifestyle of people along with convenient and tasty characters of foods, which offered numerous business opportunities for KFC Corporation. The innovation in technology offers further development possibilities to fast food industry. However, owing to equipment problems, KFC lost its Rotisserie Chicken market which had achieved a huge success in non-fried chicken area. Restaurants are known to have very high levels of energy intensity due to their relatively small building size and the amount of cooking, heating, and refrigeration needed to prepare and serve food to customers.

Due to these high levels of energy use, we continue to focus our efforts on reducing our energy intensity in both new and existing restaurants. In 2006 KFC established a goal to reduce energy usage in the U. S. company-owned restaurants by 12 percent from 2005 levels by the end of 2009. They achieved a 14% reduction through the application of numerous energy conservation measures (ECMs). In addition to reducing energy consumption, these ECMs resulted in the elimination of over 117,000 metric tons of CO2 per year from the atmosphere.

The KFC China division has also recognized the need to focus on energy conservation and has become actively involved in implementing ECMs over the past few years. Their efforts have resulted in the elimination of over 5300 metric tons of CO2 per year. Greenpeace, a conservational and environmental organization in 46 countries, has accused Cargill concerning the illegal exportation of soya to KFC for its chicken food supplied. Changing consumers’ perception about KFC is arisen among analyst and specialist and forthright.

In respect to the accusations has actively retrofit existing restaurants with more efficient lighting systems. During 2009, 190 restaurants in China had their interior linear fluorescent lamps upgraded to a more efficient version resulting in a reduction of over 600 metric tons of CO2 per year. Heating, Ventilation ;amp; Air Conditioning (HVAC): In 2006, Yum! made the commitment to standardize high efficiency air conditioning systems for all U. S. restaurants. Since then, over 1800 high-efficiency air conditioning units have been installed with slightly over 600 taking place in 2008 and 2009.

These 600 + installations have reduced our CO2 output by 10,500 metric tons per year. In China, the engineering team developed the means to overcome water hardness issues compromising the efficiency of certain heating devices used in our KFC kitchens. Their solution enabled the equipment to operate at peak efficiency which eliminated over 4200 metric tons of CO2 per year. In conclusion, KFC had used all its macro environment factors efficiently; it had improved its product in terms of packaging technology, its cooking methods and most important heath wise keeping in mind the external affect on the environment.

You may also be interested in the following: kfc marketing strategy

Kfc Essay Essay