It is of critical importance that we develop a strong understanding of KFC’s current position and of the market in which it competes. The more comprehensive and well-founded our situational analysis is, the stronger our strategic marketing plan will be.
I. The character and attractiveness of the U.S. food service and fast-food industries in 1994
The fast-food industry is considered a subsection of the food service industry, or rather a submarket within a broader market. This broader industry, the US food service industry, is in what is known as the maturity stage.
Typically, the maturity stage exemplifies the following characteristics:
• Sales continue but at slower pace.
• Competition leads to decreased market share or prices.
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III. The critical issues faced in 1994
In 1994, KFC Brand Development President Kyle Craig and KFC-USA were faced with several critical issues regarding the growth and development of KFC. Craig expressed that his main concern for KFC was the company’s ability to handle change in the future. However, there were many issues present that affected various aspects of KFC’s corporation, competition and customer.
There were numerous critical issues that involved the KFC corporation. One of these issues was the growth of international operations and declining domestic restaurant construction. The expansion of free-standing restaurants was seen as particularly difficult due to the availability of sites and the cost of construction. Another issue affecting the corporation was that of store refurbishment. Due to the age of many KFC restaurants, the expenditure of significant financial resources was required to refurbish and update these older restaurants. Refurbishments were also required to accommodate consumer demand for faster service that included drive through and dine-in options.
At the beginning of 1994, Craig noted that limited menu options and significant service problems presented considerable concerns for the business. The limited menu options would owe largely to changing consumer demands and the inability for KFC to stay current and focused. However, the service problems, which partly stem from the outdated systems and facilities in place
Fast food has turned into a genuine fundamental of our everyday life and made a religion of establishments that reaches out to the millions of Americans across the country. The Fast Food industry in a few eyes has been one of the sharpest developments this world has seen. It has been driven by our stomachs and our wallets for 40 to 50 years it's as yet developing to this date. The man who make-believe it can be known as the best representative, this nation has ever observed. The Fast Food Industry is big to the point that it has influenced our wellbeing, changed our way of life, and misshaped our territory as far back as the very first moment.
The fast food industry has played a role in America’s economy. Fast food restaurants are the leaders in so many different things. They lead in marketing and jobs employed. “The tremendous success of the fast food industry has encouraged other
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
Eric Schlossers book Fast Food Nation is not only an expose of the fast food industry but also shows how the fast food industry has shaped and defined society in America and other nations as the fast food culture spreads globally. He connects the social order of society to the kind of food it eats and the way it eats that food, and relates fast food to other social processes and institutions. His facts are based on years of research and study, and are presented in and easy to follow narrative. Schlosser is so thorough and convincing in his argument, it's impossible to
Working in the fast food industry is a differing experience from person to person. The fast food industry is fast paced, customer oriented, and extremely stressful. In an interview with someone who has never worked in a fast food restaurant, Wade says “[t]he main difference between my job, and that of fast food, is that I have a greater amount of freedom, and higher rate of pay.”
This book discusses the fast-food industry and seeks to describe the impact of the industry on the U.S. economy and society. Also, it talks about the guys who has been investigating the fast food industry for many years. From his broad research, he has uncovered an abundance of little-known, frequently unsettling truths about the fast food industry.
With the fast pace of Americans, they do not have to travel far to find a fast food restaurants. While families are working double shift jobs and less time to cook and take care of other family duties. The speed of fast food can provide convenience 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 world economy has become fast-paced, and this has forced people to transform their lifestyle in order to adapt to the changing pace. Family structures have evolved drastically with modern mothers having outside careers rather than being housewives. Granted such mothers get out of work worn out with little strength to prepare a proper meal for the family. They often opt for an easier way of preparing a meal for their families. This is the foundation for the thriving of the fast food industry. A number of nations have been transformed to fast food nation with American society being on the lead followed by Britain. American hosts the largest fast food industry in the world with outlets in over 200 foreign nations. With conveniences around
Budget development should consider future changes that might influence the operation (Payne-Palacio & Theis, 2015, P.473). Not only budgeting, managers make decisions regarding service, product and performance evaluation in order to provide high-quality service. The active communication within customers and departments, training program and implementation of technology innovation is aimed to ensure the quality of service and product. A good menu design makes the operation more efficient and effective by considering the work process and sanitation in advance. This could help ensure the quality of the
If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.
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.
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.
Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis
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