...Fried Chicken (KFC) is a quick service restaurant chain headquartered in Louisville, Kentucky and was founded by Colonel Harland D. Sanders in 1939. KFC restaurants across the world offer fried and non-fried chicken products such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products marketed under a variety of names. KFC restaurants also offer a variety of side items suited to local preferences and tastes. An American icon, it is the world’s largest fried chicken chain and the second largest restaurant chain after McDonald’s as measured by sales, with over seventeen thousand outlets in over a hundred countries as of December 2011. KFC has entered numerous countries, including developing countries such as India, China and Thailand. In this paper, I will specifically discuss ethical issues surrounding KFC’s operations in India, and steps that the company can take to combat these issues. Foreign fast food companies were allowed to enter India during the early 1990s due to the economic liberalization policy of the Indian Government. KFC was among the first quick service multinationals to enter India. On receiving permission to open thirty new outlets across the country, KFC opened its first fast-food outlet in Bangalore in 1995. Bangalore was chosen as the launch pad as it had a substantial upper middle class population, with an emerging trend of families eating out. It was considered India’s fastest growing metropolis in the 1990’s. However, KFC got embroiled...
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...The Business ethic of KFC and McDonald TABLE OF CONTENTS The Business ethic of KFC and McDonald 1 Executive Summary 3 1 Introduction 3 2 Comparation of KFC and McDonald’s practices 4 3 Application of 4 relevant ethical theories 6 3.1 The utilitarian approach 6 3.2 The rights ethical approach 7 3.3 The Justice ethical approach 7 3.4 The virtue approach 8 Conclusion 8 References 9 Executive Summary A company has its responsibilities to its consumers, its suppliers, its employees , its shareholders as well as the local community and society in general .This article I choose KFC and McDonald’s which both are Food and Beverage industry to analyse the business ethics base on ethical theories . Business ethics means the application of ethical standards to the business behaviors . Business ethics has become an increasingly important part of this global conscience .(Freyne, 2009 ;Gilmartin, 2008) 1 Introduction Kentucky Fried Chicken ,as know as KFC, is the famous American chain fast food restaurant which was founded in 1952 by Colonel Harland Sanders .And He is also the logo of KFC . KFC is affiliated with Yum brands now and formed a strategic alliance with Pepsi , (some exceptions, such...
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...Marketing ethics To judge a marketing activity is ethical or not, there are few areas to check. The marketing mix, known as four Ps, consists of product, price, promotion and place. For the product side, all the substantial risks of the products should be disclosed. In the points of price, it should not be too high. In the area of promotion, misleading or deceptive advertising should be avoided. In terms of place, coercion in the marketing channel should not be used. In the following essay, KFC is chosen to illustrate the topic of marketing ethics. KFC’s marketing activity Kentucky Fried Chicken (KFC) is a famous fast-food shop, which sells chicken-related food mainly. It is a multinational company. It has branch stores over the world including United Kingdom, China, Thailand, Kuwait, Spain and Pakistan. It sold over 800,000,000 chickens a year. (Smith, 2010) It succeeds in gaining such a large market share because most of the people love fried food. However, KFC provides unhealthy, even harmful foods to customers. Almost all the products contain chicken and much oil. They are not just producing junk food, but also selling toxic food to the consumers. They use oil which contains Tran’s fatty acids, which has harmful effect on human beings. It uses this kind of oil because it can raise its profits by reducing the costs. Moreover, in order to ensure adequate supply of chickens, they inject hormone into the chickens. It shortens the growing period of chickens. Each chicken...
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...Executive Summary This assignment is about the ethical aspects of the two organizations chosen by me which are McDonald and KFC. I have done some research about the definition of business ethics, the history of these both organization, evaluate and analyst the ethical and unethical business practices of one company compared to the other company within the same industry and also applied 4 relevant ethical theories to these both organizations and also how they use it. Table of Contents Executive Summary 1 Definition of Business Ethics 3 1.0 Introduction 4 1.1 KFC’s History 4 1.2 McDonald’s History 5 2.0 Evaluation and Comparison of Business Practices in the Ethical Aspects between McDonalds and KFC 6 2.1 Prices 6 2.2 Food Packaging and Environmental Recycle 7 2.3 Public Relationship 8 2.4 Working Condition 9 3.0 Application of 4 Relevant Ethical Theories is Analysis which is: 10 3.1 Communitarianism 10 3.2 Justice 11 3.3 Ethics of Care 12 3.4 Rights Theory 13 Conclusion 14 List of Referencing 15 Bibliography 15 Definition of Business Ethics Business ethics is the applied ethics discipline that addresses the moral features of commercial activity. In practice, however, a dizzying array of projects is pursued under its rubric. Programs of legal compliance, empirical studies into the moral beliefs and attitudes of business people, a panoply of best-practices claims, arguments for mandatory...
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...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...
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...KFC in India Case Study Question 1: Since its entry in to India in1995, KFC has been facing protest by cultural and economic activist and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. There are many reasons for the protest KFC has been facing since its entry into India. Firstly, the KFC does not concern about animal rights, the chickens served by KFC are being given hormones, antibiotics and arsenic to fatten them. Secondly, the activists said that junk food like KFC would create many diseases like obesity and heart attack, and that the chicken served by KFC was full of chemicals. Thirdly, foreign fast food chain would deplete India’s livestock, which would affect the agriculture and environment. In addition, KFC would encourage Indian farmers to shift from growing basic crops to animals feed and meat causing the poorer section of society couldn’t afford for the food. Furthermore, the economist also said that fast food joint like KFC would create more trash in the cities. In my opinion, I agree with the reasons given by the protestors of KFC. This is because KFC could pose threats to Indian people and society. Chicken served by KFC is full of chemicals such as hormones and antibiotics; in addition, the consumption of fast food like KFC could bring many diseases. Unlike tradition food in India, which is more nutritious, resulted in Indian people has relatively low disease. Therefore, I think India is one of the...
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...Case Study 1 KFC in India – Ethical Issues 1. Since its entry into India in 1995, KFC has been facing protests by cultural and economic activists and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. No tolerance for ‘cruel multinationals’ was the main reason for the protests made by cultural and economic activists and farmers. Due to the economic liberalization policy of the Indian government during the early 1900’s, foreign fast food companies were granted permission to enter India. From the cultural and economic activists and farmers perspective there were numerous disadvantages with the opening of these fast food chains, in particular KFC. The main fear for nationalists and cultural activists was the disturbance to the Indian culture and the effect of globalisation. Though KFC had implemented traditional Indian dishes such as ‘tandoori chicken’ and ensured that it was more nutritious, this does not enquire that the majority of those who visit KFC will not go for other junk-food alternatives. With a low rate of obesity, hypertension, heart disease and cancer, India now faced a threat to these illnesses caused by high sodium and cholesterol through the consumption of meat, fried, and processed foods. From an economic viewpoint, the opening of more KFC chains initially stimulated employment and infrastructure opportunities as well as providing the Indian economy (FDI) with many benefits. This also gave a chance for...
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...Strategy recommendation for how KFC should incorporate the reality of the Internet and social media into its business plan Yum! Brands is a global company that operates in 41 different countries and territories with approximately 41,000 restaurants. The company was formed in 1997 as a spin-off of PepsiCo and has become a leader in international retail development, opening an average of five restaurants per day outside the U.S. Yum! Currently owns 3 different concepts: KFC, Taco Bell and Pizza Hut. Colonel Harland Sanders is the founder of Kentucky Fried Chicken and is proven to be a great American success story. He began frying chicken in the early 1930’s at a travelers’ service station in Corbin, KY and after perfecting his 11 herbs and spices and frying technique that is still used today, the Colonel began franchising in 1955. 10 years later there were over 600 restaurants in the U.S. and Canada. The Benefits of using social media and the internet The benefits in using social media and the internet for any business is to increase exposure, gain traffic and connect with people. A business needs to create strategies that link the customer experience with the technologies and systems required to deliver the right content at the right time. (Hisaka, 2012, para. 1) KFC has to stay relevant to its customers and followers because it’s a brand that everyone knows and has been around since the 1950’s. Interacting with customers and asking for their opinion allows...
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...Bachelor of Business Management (Hons) in General Management BUSINESS ETHICS ASSIGNMENT NAME: MOHAMED HASRIQ BIN ALI STUDENT ID: SCM 016703 LECTURE: MRS MALATHI Table of content NO | TOPICS | PAGE | 1 | Table of content | 2 | 2 | Background | 3 | 3 | Dilemmas | 4 | 4 | Strategies of the company | 5 | 5 | Recommended solution | 6 | 6 | Executive summary | 6 | 7 | Referencing | 7 | Introduction As we all know Kentucky Fried Chicken (KFC) is among of the popular fast food restaurant with their delicious secret recipe fried chicken and that was named Yum!Brand before Kentucky Fried Chicken and was started in Louisville. The idea of opening this restaurant was in 1930 and the founder of Kentucky Fried Chicken is Colonel Harland Sanders in 1952. The company has become a well known chicken chain restaurant with their trademarked slogan “its finger lickin’ good” and currently this company is expanding their business by doing some ethical social responsibilities like the KFC Colonel’s Scholars Program for years. Plus the program offered $20 000 to the high school and they are planning to open a university or college of KFC. In this report includes the discussion of the dilemmas that Kentucky Fried Chicken (KFC) facing together with theories, how the company manages their strategies to overcome the dilemmas and some of the recommendations solution...
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...is about how ethically correct KFC and McDonald’s are in their business practices. They both are from the same industry which is food and beverage but still are two different companies. Basically Business ethics focuses on identifying the moral standards of right and wrong as they apply to behaviour within and across business institutions. In this report we evaluate and compare their business practices according to ethical aspects. Later on we discuss the 4 ethical theories for each of the company which are individualism, utilitarian, virtue ethics and Kantian theory and apply them to show how ethical the business practices of each company compared to the other company. We justify our report by giving authentic facts and figures for each company. Finally in the end giving a conclusion on the discussion done for both the companies. TABLE OF CONTENTS: * Background of the companies * Comparison between business practices according to ethical aspects * Constructive and commercial ethical aspects of both companies * Discussing and applying the ethical theories according to the practices of the companies * Conclusion * References A BRIEF DISCRIPTION ON THE BACKGROUND INFORMATION ABOUT KFC AND MCDONALD’S’: First we talk about KFC; it is one of the world's most popular fast food restaurant chains in the world founded by Colonel Harland Sanders in 1930. Every day, more than 12 million customers are served at KFC restaurants in 109 countries and...
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...company and to avoid the bad influence for public before make any decision. Kentucky Fried Chicken (KFC) is a well known fast food brand in the world; it was founded by Colonel Harland Sanders in 1952. (KFC.com) KFC is a chain restaurant in the world to selling fried chicken to customers; it has more than 11,000 branches in more than 80 nations over the world. The products of KFC selling are fried chicken, nudges, sandwiches, desserts, salads and so on. In addition, KFC not only selling the food also selling the service to customer to attract them comes to having meal at there. Kentucky Fried Chicken is one of the well-known fast food restaurants in the world. It operates in 74 countries and territories throughout the world. KFC began with Colonel Harland Sanders. He 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. KFC has more than 11,000 branches in more than 80 nations and territories all over the world. KFC now regarded as the most chicken restaurant chain. 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 is a successful restaurant chain – just the thought of that juicy tender chicken strip...
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...FRANCHISES AND SPECIAL FORMS OF BUSINESS 40 Seoul, South Korea This is a KFC restaurant in Seoul, South Korea. International franchising of American brands to foreign countries—and foreign countries’ brands to the United States—exploded in the late twentieth century. Franchising on a global scale continues unabated in the twenty-first century. CHAPTER OBJECTIVES After studying this chapter, you should be able to: 1. Define franchise and describe the various forms of franchises. 2. Describe the rights and duties of the parties to a franchise agreement. 3. Identify the contract tort liability of franchisors and franchisees. 4. Define licensing and describe how trademarks and intellectual property are licensed. 5. Describe how international franchising, joint ventures, and strategic alliances are used in global commerce. CHAPTER CONTENTS ISBN 0-558-40229-1 INTRODUCTION TO FRANCHISES AND SPECIAL FORMS OF BUSINESS FRANCHISE FRANCHISE AGREEMENT International Law • International Franchising LIABILITY OF FRANCHISOR AND FRANCHISEE Contemporary Environment • FTC Franchise Notice Case 40.1 • Martin v. McDonald’s Corporation 629 Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues , Seventh Edition, by Henry R. Cheeseman. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc. 630 PART VIII BUSINESS ORGANIZATIONS AND ETHICS LICENSING JOINT VENTURE STRATEGIC ALLIANCE Contemporary Environment • Franchisor...
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...Course Project Part 1 GM545 Business Econcomics (Fall Session A 2010) November 9, 2010 Ethical Issues in Business Ethics is an everyday occurrence in the corporate world as well as one's personal life. Business ethics is the same as normal ethics. In both cases, ethics is knowing what is right or wrong, and/or learning what is right or wrong in the environment in which one is involved. An ethical issue may not have a concrete answer; therefore a person's decision may depend on that person's situation. This may happen because "ethics is a broad and murky area and the workplace is full of ethical dilemmas and issues" (Orinsi, 1999). Therefore, employees feeling the pressure to perform may resort to unethical decisions in order to meet the goals that they feel are unreasonable. This can happen at any level of management (Orinsi, 1999). I work in a industry full of healthful living and fitness plans, one of the most recent corporate ethical dilemas I believe is reasonable to discuss, centers around Susan G. Komen (SGK) for the Cure and chosing cause-marketing partner, Kentucy Fried Chicken (KFC). Questions have been raised by various media, including The Washington Post and The Huffington Post (one specifically about pesticides and their link to corn, chickens and cancer) to which Andrea Rader' SGK's director of commnications, responded with dollar amounts of SGK's contributions to research and education. (Stengel, 2010) In the majority of its responses to the media...
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...Communication Values and Ethics TARES TEST: FIVE PRINCIPLES FOR ETHICAL PERSUASIONS Persuasion is defined as methods used to influence attitudes, raise awareness, educate or influence behaviors’. While ethics (moral philosophy) is a subject that primarily is not concerned with increased profits or increased visibility. It is, rather, concerned with what one ought to do—or ought not to do. Thus, it’s easy to persuade others but it will be tough when once involve by the ethics. Ethical persuasion is the practice of influential communication that respects the dependence of the audience by presenting truthful and relevant information. It enables audiences to make voluntary, informed, rational and reflective choices. Sherry Baker and David Martinson propose a five-part to test how ethical a persuasion should be, including methods for guiding ethical persuasion have been identified and to check and determine the ethical worthiness of the message. TARES is an acronym for Truthfulness, Authenticity, Respect, Equity and Social Relevance. Truthfulness pertains to the message of the persuader where the persuader should tell the truth and nothing more than a truth, a fact with reliable sources and should not be fall into deception. Second is authenticity which means that living in reality makes our life worth living. It compromises the integrity and personal virtue that requires the persuader should act decently, sincerity and genuineness is love the persuadees and sincerely...
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...s Global Communications Joy Daniels, MMBPL500 Foundations in Problem Based Learning September 20, 2010 Louise Stelma Global Communications Global communication is the process of exchanging and receiving information on a world-wide scale. Until recent times it was difficult to communicate with other countries, with factors such as time, distance, and language barriers being major restrictions. However, the evolution of technology communication has become increasingly easier, faster, clearer and more effective (Lubbers & Koorevaar, 2000). . Course Concepts Identified Though Global Communications and the situations involved present multiple problems one sees the potential for possible solutions. The course concepts in the following synopses include communication issues, ethical dilemmas such as integrity, social responsibility and the quality of life. All of the above listed items will show a need for improvement in the globally communicative world that one lives in. As new creations, such as the internet are continually being created, modified and converged with other products, they are enabling new modes of interaction. Even more global communications has hit the world in a strategic and effective manner. Global markets now offer the ability to produce cheaper products, access to consumers in foreign countries, new sources of finance and income, new sources of technology and access to a world of people with know-how. (Stevens, Miller & Michalski...
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