...CASE ANALYSIS: Kentucky Fried Chicken and the Global Fast-Food BUS 478 D1.03 Professor Wosk By: Frank CHU 20005-6416 March 3, 2003 0 Individual Case – Kentucky Fried Chicken History and Introduction Kentucky Fried Chicken Corporation (KFC) is the world’s largest chicken restaurant chain. It operates more than 10,200 restaurants worldwide in more than 79 countries. After PepsiCo brought up KFC in 1986, KFC carried out significant changes in different areas including the new focus on product quality, the new product offerings and differentiation, and the control system. Recently, KFC is inevitably facing a lot of business problems such as losing market shares and dealing uncertainties with the international markets. This report will focus on the recent matters that KFC have and will organize into four sections. First it will analyze KFC’s external environments, then the internal. Later, it will discuss the company’s global environments and strategies. At the end, it will provide recommendations for the identified problems. External Analysis The external analysis will focus on Porter’s five forces. Risk of entry by potential competitors The threat of entry barrier of the chicken fast-food chain industry is moderate. On one side, the entry barrier is low because the entry capital investment is low. For example, Chick-fil-A enters the industry by opening many small units in the food courts of shopping malls. Instead of investing millions in building restaurant houses, those...
Words: 1950 - Pages: 8
...Management for Chicken Delight Ltd Date Of Submission: 23 April 2015 Lecturer: Mr. Narain Presented by: Ramdin Devesananda INTRODUCTION It is the beginning of a new era that the fast food industry has gradually breakthrough the Mauritius lifestyle. Due to the globalisation process, many fast food franchises are now available in Mauritius. Whether these fast foods have revolutionised Mauritius, today these products form part of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity. But in the fast and increasing competitive business environment of today, the right marketing approach is necessary to compete with competitors. The ability to develop effective marketing strategy which enable the firm to become more responsive and adaptable to the market will perhaps more than ever before, differentiate the winners from the losers The rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market share of chicken Delight Ltd. The answer lies in the fact that Chicken Delight Ltd franchise is in the fast food industry, selling fried chicken, chips and burgers, and its main and direct competitor is Kentucky Fried Chicken. Chicken Delight Ltd is relatively new on the Mauritian market and Kentucky Fried Chicken has already position itself in the mind of customers since it (KFC) was launched in Mauritius in the year 1983. Chapter 1: Chicken Delight Ltd ...
Words: 2429 - Pages: 10
...Kentucky Fried Chicken and the Global Fast-Food Industry Case Analysis 1.0 Source Problem The change in demographic trends in the past two decades has seen an overall increase in costs for KFC and other fast food chains. Due to immense price competition and saturation of the US market, KFC is unable to raise its prices to cover the increased costs. The slower US population growth rate, oversupply of fast food chains and the minuscule 1% growth in the US restaurant industry per year has resulted in KFC¡¦s focus on expansion of their international markets. 2.0 Secondary Problems 2.1 Short Term - New product introductions are slow. - Market research inefficiency. Eg. Germans were not accustomed to buying takeout or ordering over the counter. McDonalds performed better in this aspect. - Crispy strips and chicken sandwiches cannibalized the fried chicken sales. 2.2 Long Term - Differences between the PepsiCo and KFC corporate strategy and culture. - PepsiCo/KFC poor relationship with franchisees. - Increased competition from direct and indirect competitors. - Reduction in market share in the US market. - Risks involved in international operations: long distances made it difficult to control quality and service, increased transportation and other resource costs, and time, culture and language differences increased communication and operational problems. - Fast food sales grew at a slower rate (5%) in comparison to other sectors in the restaurant industry. - Shortage...
Words: 3507 - Pages: 15
...price and continue process its multiproduct and multimarket strategy. Based on ODI limited resources and current situation of poultry industry in United States, it should focus on large-sized chicken farms and price ODI lenses at a higher level for the sake of its profits and its future business plan. II. Introduction With the fact existed in poultry industry in late 1970s that most of the chickens in United States were owned by some large farms. Optical Distortion, Inc., a contact lens company, has developed a kind of contact lens applied on chickens considered to hold enormous market potential. However, it is hard for ODI to decide how to price its products and how to extend its business nationwide considering its own limited resources. III. Analysis and Problem Identifications * Consumer Needs and WTP There are various-sized customers: small farm, medium farm, and large farm. They all suffered the loss caused by pecking order and cannibalism, and now most of them adopt the method of debeaking to reduce the impact of peck order, however, debeaking has some defects itself, and no matter what choice farmers make, they would concern following aspects before making the decision: whether the product or service is cost effective; the trauma that would bring to chickens, since traditional depeaking method would cause damage to the chickens in some degrees; the convenience of product usage is important especially for large farm; the after-sale services means if the company...
Words: 1747 - Pages: 7
... * Put the specific establishment of the business. | | | Sir Kenneth Albert Anino | | Table of Contents | * Sum up the necessary subjects of the table of contents. | * Remove the sampling procedure from the Table of contents. | ii | ii | Sir Kenneth Albert Anino | | | | | | | | | PARTS OF THE PAPER | SUMMARY OF FINDINGS | ACTIONS TAKEN | PREFERENCE PAGE NUMBER | PANELIST/S | STATUS/REMARKS | | | | OLD | REVISED | | | List of FiguresList of Table List of Appendices | * Proper alignment of the content. | * Revised the proper alignment. | ivvvi | ivvvi | Ma’am Estherbelle Vinson | | Chapter I | | | | | | | Introduction | * Present facts/figures about the demand for chicken meat. | * Specified chicken industry performance and consumption is presented. | 1 | 1 | Ma’am Rean May GalangMa’am Josefa Carbon | | Background of the Study | * Cite the references. | * Indicate the references. | 1 | 1 | Sir Kenneth Albert AninoMa’am Estherbelle Vinson | | Objectives of the Study | * Present clearly the objectives. | * Well-ordered objectives are presented. | 3 | 3 | | | PARTS OF THE PAPER | SUMMARY OF FINDINGS | ACTIONS TAKEN | PREFERENCE PAGE NUMBER | PANELIST/S | STATUS/REMARKS | | | | OLD | REVISED | | | Scope and Limitations of the...
Words: 1129 - Pages: 5
...Buffalo Wild Wings: Situational Analysis Buffalo Wild Wings: Situational Analysis Background Buffalo Wild Wings (BWW) is a well-known restaurant chain in the U.S. that was founded in 1982 by Jim Disbrow and Scott Lowery (Whitfield, 2012). Located in 47 US states, BWW has more than 800 outlets, more than half of which are franchising (Stern, 2012). In 2010 the company opened its subsidiary in Canada. Total company’s assets have approximately $500 million (Stern, 2012). BWW restaurants specialize in chicken wings under unique sauces. The outlets also have sport bars with large menus including various salads, burgers and appetizers. For the visitors, in the restaurants big TV screens have been installed to allow everyone watch popular sports (Stern, 2012). Actually, Buffalo Wild Wings restaurants are known for their relaxing atmosphere where people come to spend free time and to eat with their families and friends. BWW restaurants work to satisfy their customers and their attitude to the clients is reflected in their mission (Buffalo Wild Wings Marketing Plan, n.d.): “WOW people every day”. BWW’s corporate everyday activities include four major steps to achieve their mission. The first step is guest-driven. To provide their guests with the great amount of satisfaction focusing on excellent service, food of the highest quality, enjoyable time the restaurant tries to “WOW their guests every day” (Buffalo Wild Wings Marketing Plan, n.d.). The second step to achieving the...
Words: 1280 - Pages: 6
...KFC IN INDIA PRESENTATION ON THE CASE STUDY OF KFC IN INDIA Daniel maina Hillary Omondi Senjuur Cheworei Rosa Okode Ratemo Oira Kiiru Maina , Aridi, Ochieng BACKGROUND OF KENTUCKY FRIED CHICKEN KFC KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant chain. Founded by Colonel Harland Sanders in the early 1930s by cooking & serving food for hungry travellers.In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN . KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. Yum! Brands is run by David Novak,Chairman & CEO . KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. 109 countries and territories around the world. Every day, more than 12 million customers are served at KFC restaurants. KFC Division is run by Cheryl Bachelder, President and Chief Concept Officer KFC’s Entry in INDIA KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. Ethical Issues in Business organizations Ethics are “the code of moral values and principles that rule the behavior of a person or group...
Words: 1074 - Pages: 5
...Week 4 Discussions Discussion 1 Production Economics The economic environment is likely to affect short run production for the next 12 months. It influences the use of resources in companies and the economy in general. The economic environment is influenced by the interaction and integration of other macroeconomic parts (William, 2012). As a result of this the economic environment dictates the pace of economic growth, inflation, and national income. This variable is the most likely to affect production in the short run since it changes frequently and rapidly. When there is an adverse change in the economic environment, production is halted since the cost of acquiring resources rises. The raw materials become expensive and thus organizations have to work under tight budget. The interest rates of borrowing increases, thus the burden has to be passed to the consumers. The sales will ultimately reduce since nobody want to spend on expensive products in a tough economy. Therefore, the firm has to cut its production to evade excessive supply over demand. Indeed for the next 12 months there may be a drastic change in production. There several strategies to be implemented in order for the managers to avoid this economic environment draw back. The managers should make orders of raw materials earlier and when their prices are at lowest. This will protect them from inflationary prices of the raw materials. Low cost of raw materials will reduce the price of the products; hence...
Words: 837 - Pages: 4
...Executive Summary The Chicken Rice Shop" (TCRS) is a chain of HALAL family restaurants operated by TCRS Restaurants Sdn Bhd, a company incorporated in Malaysia. This report provides an analysis and evaluation of current market and competition, product development, financial perspective and the future prospective of profitability of the company. The food service industry is experiencing a steady growth in demand amongst the consumers in Singapore. A microenvironment analysis shows that technological advancements have changed the industry in a drastic manner. Industry analysis using Michael Porter’s five forces shows that the strongest force that affects industry profitability is the threat of substitutes. The food service industry faces threats from a whole range of restaurants, fast food chains and locally owned food businesses. The market is segmented into the various age groups, each have to be catered for. Different marketing strategies can be implemented to tap into the different segments. The obstacle facing TRCS is the fast paced changing scene in the industry by consumers and industry players alike. Consumers changes tastes and habits very quickly. Industry players are investing heavily in reinventing themselves to have a bid on the market share. Competition in the industry are held high as there are many established players which are offering promotions which are competitively priced and strategic locations which are near the consumers. With different...
Words: 4371 - Pages: 18
...Key characteristics of the industry Companies in the F&B industry are defined by the Singapore Department of Statistics (2011) as “establishments engaged in the sale of prepared food and drinks for immediate consumption”, which consists of restaurants, fast food restaurants, food caterers and others (food courts, cafes, etc). This is consistent with The Chicken Rice Shop’s (TCRS) product offering consist of local food fare and has a “quick serve” restaurant concept (The Chicken Rice Shop 2010). Thus the identified industry for TCRS is the F&B (F&B) industry. More specifically, in the industry segment of Fast Food Outlets. Size of Food & Beverage Industry (as at 2010) % Growth from 2009 to 2010 Number of Establishments* 6,197 + 3.8% Number of Employment 91,264 + 1.9% Operating Receipts ($) 6,239,943 + 10.6% Total Operating Expenditure ($) 5,918,149 + 10.2% *Does not include unregistered establishments and establishments which provide both lodging and F&B services. (Singapore Department of Statistics 2010) Statistics for each industry segment 4000 2000 0 Establishments Operating Receipts Operating Expenditure 376 3257 2261 304 803 2320 711 2406 775 2259 591 2293 Fast Food Outlets Restaurants Food Caterers Others Employment Statistics for Each Industry Segment Employment 0 5793 13159 35150 37163 Others Food Caterers Restaurants Fast Food Outlet 5000 10000 15000 20000 25000 30000 35000 40000 Among the four industry segments, the only industry segment that has shown potential...
Words: 1457 - Pages: 6
... 15 b) Internal Factor Evaluation Matrix (IFE) 18 5. SWOT Analysis 19 6. SPACE Matrix 21 7. Grand Strategy Matrix 23 8. Internal-External Matrix (IE) 24 9. Quantitative Strategic Planning Matrix (QSPM) 25 10. Recommendations and Justifications 27 11. References 28 | 1.0 Case Abstract This report is a comprehensive strategic management case which overview of improving a Muslim restaurant with Islamic compliances like what been done by Radix Fried Chicken (RFC) under HPA Industries Sdn. Bhd. As we all know, RFC is a product of the Muslims. Moreover, RFC is not so very famous and known very familiar to Malaysian citizen. So, this case study hope can open the eyes of all Muslims to support the Muslim products and boycotting Israel products. This report may not be entirely credible and may not be very detailed. This is due to the fact that we have difficulty obtaining information and details on Radix Fried Chicken as the information we gather online is limited. Furthermore, certain parts of our report are written based on our observations, knowledge, understanding and analysis. The reports begin with the background of company, include the vision and mission statement; and so on. For this purpose, various concepts and frameworks of the strategic paradigm are applied such as external and internal evaluation; SWOT; Financial Ratios analysis; SPACE...
Words: 5155 - Pages: 21
...the consistently sales for the last few years, the bargaining power of buyer is medium-to-high for FarmFirst Chickens. The news of the avian virus is informed throughout the country by the Health Department. Caused by the announcement, the public reaction to consume chicken is decreasing. Due to the avian virus outbreak, the bargaining power of buyer is decline or low as the two major supermarket chain back off from the regular order. Attributable to the temporarily cancel order by the giant retailers, some of the smaller customers follow them. As for the result, the sales volume for FarmFirst Chickens will be half for at least the next 6 months. For the short term, if the avian virus can be preserved quickly, the bargaining power of the buyer can be recover to medium-to-high as the sales also can be improved from half of the losses . But if the avian virus keep in spreading for the long term, the sales of FarmFirst Chickens will continue to decrease as the bargaining power of buyer is low. ai. Threat of substitute products. As one of the major player in the chicken supplier’s industry, FarmFirst keep their product position at the equivalence with its competitors. Thanks to the equivalence position in the industry, threat of substitute products are low-to-medium. This is because consumers mainly use chickens in their nutrients. But in the recent time, some of the consumers substitute the product...
Words: 579 - Pages: 3
...pronounced in the Niger-Delta region. Poultry farming is a very lucrative business in Nigeria where both chickens (layers and broilers) are found particularly in the northern part of the country. The eggshells are usually thrown and allowed to liter the environment. A column study was used to test the ability of the eggshell granules in the removal of crude oil from oil polluted water from as high as 187 ppm to 1.5 ppm. Effects on water flow rate, and bed height were investigated. The result showed that as the bed height increased from 5 cm to 30 cm, the oil removal varies from 88 to 99% and the service time varies from 876 to 3702 s. The effect of flow rate on oil removal showed that the higher the flow rate, the lower the amount of oil removed.The pattern by which oil was removed from polluted water was based on an equation of a polynomial order of 5 degree.Bed depth service time was used to evaluate the values of the sorption capacity of the bed No and the bed depth service constant Ka. The values of No and Ka are 36.88mg/L and 0.000068 L/mg/sec respectively. The critical bed...
Words: 1768 - Pages: 8
...entails three ongoing processes: Analysis, Decision and Actions. In Analysis, the strategic goals (vision, mission and goals) along with internal and external environmental of the organization are analyzed. In decisions, the managers must take two important decisions regarding which industries to compete in and how to compete in the selected industry? And finally some actions should be taken because decisions are of little use unless they are acted on. At the heart of strategic management is a very important question: “How and why do some organizations outperform others?” So the managers have a challenge to decide on strategies that provide advantages that can be sustained over time. Mr. Robert Lamb defines strategic management as: an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment. IMPORTANCE OF STRATEGIC PLANNING TO A BUSINESS Strategic planning is critical to business success. Different from classic business planning, the strategic variety involves vision, mission and outside-of-the-box thinking...
Words: 6693 - Pages: 27
...is as follows. Two people, Michelle and James live alone in an isolated region. They each have the same resources available and they grow potatoes and raise chickens. If Michelle decides to use all her resources growing potatoes, she can grow about 200 pounds a year. If she devotes all her resources to raising chickens, she can raise 50 a year. If James devotes all his resources to growing potatoes, he can grow 80 pounds a year. If he devotes all his resources to raising chickens, he can raise 40 a year. Now we will answer a few specific questions about the scenario. What is Michelle’s opportunity of producing potatoes? The opportunity cost of producing potatoes, if all resources are used, is not raising any chickens. If Michelle used all resources to grow the potatoes, no resources would be left to raise chickens. What is Michelle’s opportunity cost of raising chickens? If Michelle decides to use all resources to raise chickens, her opportunity cost would be growing potatoes. If she uses all resources to raise chickens, nothing would be left over to grow potatoes. What is James’ opportunity cost of producing potatoes? His opportunity cost of producing potatoes would be not being able to raise any chickens. What is James’ opportunity cost of raising chickens? If James uses all his resources to raise chickens he would be forgoing producing any potatoes. CONCEPTS OF MICROECONOMICS Which person has an absolute advantage in which activity...
Words: 844 - Pages: 4
