Environmental Factors Of Kfc

Significant eatery networks, McDonald's noticeable among them, work outlets around the globe. Garments brands and styles cross seas and national limits effortlessly. This procedure has met resistance from individuals and gatherings, (for example, the global Moderate Sustenance development that promoters against society's inordinate liberality in fast food and ways of life) resolved to keep up conventional

Sociocultural factors influence and restrict consumption ideas, needs, desires and purchase behavior. People from different countries and different regions have different life patterns and different sociocultures. These differences directly influence the products that industries want to produce because people may even have different attitudes and value toward the same product due to different sociocultural factors. With the rapid development of modern society and the continuous improvement of living standards, the degree of attention paid to health has increased. “Franchise businesses continue to pay close attention to their customers' need for convenience, new flavors and, yes,

The segment of the general environment that ranks the highest between the global and socio-cultural considerations is the socio-cultural. The reason being that McDonald’s represents a very strong aspect of the American culture and a major part of the American culture is the food industry. The food industry, in terms of American food consists of a good old- fashioned hamburger, French Fries, and soda and McDonald’s mastered this concept of American food to perfection. On the other hand the global segment especially in

The first KFC was opened in Tiananmen Square, China 1987; it struggled as western food was unknown to the east. This was still a very conservative nation, not prepared for the “Fast Food” takeover. The restaurant did pretty well, but grew slowly. The Harvard business review, stated that “in 1992 the Chinese government granted foreign companies greater access to markets, KFC China’s managers gradually developed the blueprint that would transform the chain.” (Yums' China, 2017) Although they have done well for themselves they struggled, as growth was steady but slow and their customer base was shrinking. “In November 2016 Yum China Holdings, Inc. became a licensee of Yum brands in Mainland China; they have exclusive rights to KFC.” (Yums' China, 2017) Yum controls approximately 7,300 restaurants and more than 400,000 employees in more than 1, 100 cities. YUMS generated over $8bln in sales in 2015.

The fast food industry encompasses a wide variety of economic situations. To begin with, within in the industry a widely discussed topic is the idea of workers forming unions in order to fight for better working conditions. Advertising is also a prominent factor that guides the productivity of businesses of the fast food industry. Another guiding force for fast food chains is globalization of their businesses, without advertising and globalization of businesses fast food chains would not be as successful as they are. The success of businesses can be determined through the idea of elasticity and the income effect because if a business knows the demographic they are targeting the companies will likely know how responsive profits are to a change

The saturation of the US QSR industry has caused firms to look outside of US borders for growth opportunities. Europe has been a very attractive market for global expansion due to its large affluent population and that menu options do not have to be completely customized to the region. China and India are also attractive environments but require more modified product offerings to meet local demands. KFC has had to offer options such as burgers, ribs, or fish to meet local cultural demands in their overseas expansion.

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

I have chosen the company named by Mc Donald’s for my assignment topic as it is a worldwide and well-known fast food company covered in Asia and Europe countries .

Culture and Employee skills: Deep rooted quality consciousness and team spirit. Highly skilled staff and high morale. Good labor elation with effective policies leading to high level of empowerment.

The procedure begins with an online screening test to ensure that the candidate is fit for the business, and the actual work preview allows the candidate to personally experience the job and then decides to join KFC.

McDonald’s is one of the biggest companies in the world with restaurants in 119 countries and it has accomplished this extraordinary global presence through its effective management practices. McDonald’s uses a combination of Fredrik Taylor’s scientific management, Max Weber’s hierarchical structure, and Henri Fayol’s administrative principles to run its restaurants. McDonald’s has become a mechanistic organization by making its restaurant environment predictable. McDonald’s has developed set management structure and a predetermined set of procedures for running its restaurants. As a result, McDonald’s has come to resemble a machine where employees are like components of the big McDonald’s machine.

segment further distinguishes itself by adding the advantage of quality. On the other hand, the

Customers is an important justification of a company’s success. Considering the interest of customers and portraying a good image to its customers, it had come out with different variety of meals. For example, the KFC offers kid’s meal which gives children free

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.

The spinning off the restaurant divisions, in my opinion, is a success for PepsiCo. Although Yum! Brands has been a quite successful, thriving company with record setting growth and profitability, I would still support the decision today. PepsiCo had too many oars in the water with the beverage business, the snack business (Frito Lay) and the fast food restaurant business. It could not successfully manage all the diversity it had acquired. I commend the management team’s decision (led by, then President/CFO, Indra Nooyi and now Chairman/CEO) (Fox News 2012) to cut a highly potential part of its business off and to implement a strategy to focus on its main products and their distribution. This strategy has proved to be the right move for this organization. Below is a table which illustrates the fluctuations with the stock price from the first acquisition of Pizza Hut through October 31, 2014 (though the stock price posted on 11/3/2014). You can see that the acquisition years (in yellow) show a negative impact on the stock price, with two of the three being significant. You should also note that, in the year of divesture,