Forces in the Context of KFC - Research Paper Example

There are various economic forces that have a significant impact on the business operations of KFC. This organization is greatly affected by global and national economic factors such as inflation and interest rates, cost of labor, stages of business cycle, unemployment rates and growth rates of economy. The recession factor has affected the overall income of KFC and this has resulted into making employees jobless, and some employees were hired for few hours (Ohme, Birinyi and Gupta, 2010). This was majorly due to cutting down of budget by the company.

Economic forces restrict customers to spend lavishly in such fast food outlets. Government procedures and policies to certain extent provide the required guidelines for smooth functioning of business operations of an organization. There are certain political forces that affect operations of KFC and these forces encompass some legal factors (KFC, 2014). The stability of political environment, position of government in relation to market ethics, government view on religion and culture, policies of government with respect to economy, and taxation policy on incentives and tax rates are the major forces that outlines the political environment (Ohme, Birinyi and Gupta, 2010).

It can be stated that these forces can have an adverse affect or prove to be beneficial for the company. There are some regulatory and legal forces which need to be taken into consideration by the organization in order to achieve their desired goals and objectives. KFC need to maintain the regulations and rules in relation to hygiene factors such as proper training of employees regarding personal hygiene, safety and food, proper usage of utensils and hygienic work environment (Ohme, Birinyi and Gupta, 2010).

It even comprise of the legal environment within which a firm operates such as in United States, there has been a legislation passed related to minimum wages and more recycle requirement. Technological forces can be considered as the major drivers in context of globalization. These forces help to increase efficiency levels of production and even some of these forces can be treated as technological developments. In KFC, technology is the most vital component as this facilitates customer satisfaction at its food outlets (Ohme, Birinyi and Gupta, 2010).

The organization has been able to incorporate the latest technology into the system.