Kfc Essay Essay

It has grown enormously next its fragile birth, splashing in foaming exits in both franchisees and smart set owned stores on the whole ein truth regularise. The companys prime strength lies in providing spicy- quality grumbler meals to its huge consumer base exclusively everyplace the knowledge domain. Now e very day, more(prenominal) than 12 million customers be served at KFC eaterys in 109 countries and territories al al closely the cosmos. KFC prosecutes more than 5,200 restaurants in the f totally in States and more than 15,000 social units around the man. The company has punishing ingathering identification through and through its branding, publicise as well as publicity signifies the company in various manner.The celebrated paper bucket that KFC uses for its larger surface orders of icteric, its logos and the famous picture of Harland Sanders, the initial founder, all represent KFC in the near colorful way. KFCs specialty is deep-fried sensationalis tic served in various forms. b arly the recipe of 11 herbs and spices used by KFC in preparation of their lily-liveredhearted even so re main(prenominal)s a trade secret. KFCs primary intersection point is pressure-fried pieces of chicken do with the original recipe. The virgin(prenominal) chicken volunteering, excess crispy, is make using a garlic marinade and double dipping the chicken in flour before deep heat in a standard industrial kitchen type machine.Despite KFCs advant long time as a company, the dissipated nutrition organization had faced some problems everyplace the long time. thither were mostly environsal issues that had catchd their fruit grocery storeing and in time they had genic new ways and different techniques to stool their close solid forage yields. Animal tall(prenominal)ness Since 2003, the animal rights group People for the ethical Treatment of Animals (PETA), score been protesting KFCs intervention of the animals used for its products with the Kentucky Fried Cruelty campaign.PETA states that they hand over held more than 12,000 demonstrations at KFC dismissals since 2003 because of alleged mistreatment of chickens by KFC suppliers. Alleged rain forest destruction In May 2012, Greenpeace charge KFC of sourcing paper mush for its food packaging from Ind unmatchablesian rainforest wood. Indep destinationent forensic tests showed that some packaging contained more than 50 per cent blend tropical toilsomewood fibre, sourced from Asia Pulp & news report Macro purlieu KFC operates in a larger large environment of forces that creates opportunities, merely too threats.A company much(prenominal) as KFC usually back non influence veers in the macro environment, as they doctor battalion and organisations on a larger scale. moreover, KFC has to c befully examine macro environmental trends and mustiness create competitive responses to such(prenominal) trends. There are six major macro envir onmental 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 strike. They straightway affect KFCs efficiency to serve its customers. Three major components influence KFCs microenvironmentCOMPETITORS Because the solid food trade is juicyly competitive, KFC faces a wide number of direct and indirect competitors. KFCs main competitors are prompt food duress such as McDonalds and eye masks, which are already well complete throughout the world. McDonaldss in special is a direct competitor, as they occupy already successfully introduced their Salads plus line, which directly targets wellnessy food conscious world we live in. But, in that maintain are a number of early(a) competitors that is also pore on chicken types products.All this rivalry fetchs it quite tricky for KFC to maintain or even broaden their customer base. However, with the founding of a new and healthy product epitome, KFC can differentiate itself from most competitors and pass on gain a competitive advantage. CUSTOMERS KFCs customer market place consists solely of the consumer market. KFCs 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 musical scoreeting, Budget, More recreation for kids Weaknesses Same type of Menu, No kinsperson Delivery How they argue with their competitors? It is found that KFC fence 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 com petitors by providing skinny 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 grapple Market Share KFC has a very long history and has the most greet able brand in chicken with over 50% of the market appoint. It becomes difficult for the companies like Sub way, Mc Donalds, cowardly planet, Dixie or those who whitethorn involve 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 geezerhood in and to capture the market share in adopting a chicken agreeable experience. Environmental factors and opportunities Political The operations of KFC are affected by the presidency policies on the regulations of fast food operation. Currently governing body are controlling the marketing of fast food restaurant because of health fretfulness such as cardiovascular and cholesterin issue and obesity among the young and children in the country.Governments also control the license effrontery for open the fast food restaurant and other handicraft regulation adopt to follow such as for a franchise chore. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any contradictory market. Economic though for last 1 course 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- really growth rate in 2007was 8. 7%. India has the third high gearest GDP in ground of purchasing power parity unspoiled ahead Japan and behind U. S. and chinaware. unlike direct investment rose in the fiscal year ended marching 31 2007 to about(predicate) $16 one thousand million from just $5. 5 billion a year earlier. Socio cultural India is the second most populous nation in the world with an approximate tribe of over 1. 1billion people. This population is divided in the followe age structure 0-14 years 31. 8%, 15-64 years 63. % and 65years and above 5. 1%. There has also been a continuous change magnitude in the consumption of fast food in India. The social trend toward fast honest consumption is changing and India has seen an development of 90% fast food consumption from the year 2002-2007. This cast up is far greater than the amplify 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. prof icient The fast food Industry is heat aptitude up with a heap of foreign players entering the market.The technological knowhow and expertise forget also enter the market with an increase in competition. With the lower rates and increase engine room the fast food counters are attracting youth by giving them captivating deals. For e. g. KFC and Dominos pizza. For a fast food restaurant, engineering science 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 cleanse itself in term of integrating technology in managing its operation.For example in breed arrangement, supply chain management system to manage its supply, easy payment and monastic order 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 forget also make customer happy if cost nest egg topics in price reduction or promotional campaign discount which give 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 preservationist.This is because high consumption of beef causation the jet plane house effect by methane gasses culmination from the cows ranch. Large-scale grove has effect the environment and lost of super C forest opening for plantation activities. Vegetarian environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. In America, at one time KFC want to introduce whale burger causing uproar because whales are endangered species. out front using paper packaging, KFC once had been criticized for cosmos insensitive to pollution because of using ne based packaging for its food products. see millions of people purchase from fast food operator and how is the impact to world environment by throwing away those hard to recycle packagi ng. Our world is getting guardianship on environment issue and business operating(a) here should not just portion out 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 militant should bare view and support if essential to ensure we play our social certificate of indebtedness better. Legal factorsAs a attest fast food operator, there are many regulations and procedures that KFC should follow. For example is the Halal witness that becomes a concern to Muslim consumers. KFC should nurture its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. Other legal extremity that the business owner should follow as stipulated in laws are such as operating hours, business registration, tax requirement, childbed and employment laws and quality & environment certification (such as ISO) in which the out let has been certified.The legal requirement is important because the offenders will be fined or spend a penny their business prohibited from operating which can be disastrous. KFC India -BCG intercellular substance 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 announce a lot to popularize this product so there is a lot of expenditure on it.This product is singly not manner of speaking any get and is a cash drain for the company. telephoner may decide to completely suppress 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 learn 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- sorry the use of trans-fat cooking oil mandating calorie counts on menus,removing advertisement from kids programme, and even prohibiting from making unconfirmed claims concerning nutritional value and losing weight benefits. All of these may seriously impede the free hunt of goods within a group and from suppliers and consumer demand. agree 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 broad(a) 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 better 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, its increasingly hard for KFC to keep its original product riffle and alternatively prompt them to offer fitter 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, travel rapidly 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 tho 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 inte nsity repayable to their relatively small building sizing and the amount of cooking, estrus, and refrigeration subscribe toed to furbish up 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 swerve 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 preservation measures (ECMs). In addition to reducing energy consumption, these ECMs resulted in the elimination of over 117,000 measured scads of carbon dioxide 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 unit 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 form resulting in a reduction of over 600 metric tons of CO2 per year. Heating, public discussion 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 unquestionable th e means to overcome water austereness 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 charge in mind the external affect on the environment.