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limited products, though unique, KFC has been impacted by fierce competition from competitors like McDonald’s, Wendy’s and Burger King among others. A close analysis of the case study draws to the conclusion that there is need for KFC to diversify its products while attempting to retain its uniqueness in order to remain viable in the long run.
In the early 1950s, Harland Sanders embarked on a franchising strategy which saw KFC rapidly growing in America to become one of the most recognizable brands. Having been taken public and listed on the New York Stock Exchange, KFC grew a strong foothold in the United States which prompted it to venture into international markets. Thus, the major motive behind PepsiCo’s acquisition followed a strong belief that the restaurant industry complemented their business of soft drinks and snacks. It was believed that restaurants increased the number of outlets to sell soft drinks and this would also increase the organisation’s popularity. Given that KFC was an already established business entity in the market, PepsiCo sought to capitalise on this through an acquisition which would sort of transfer all the loyal customers from KFC to them.
PepsiCo believed that it could take advantage of the numerous synergies available for operating different businesses under one umbrella name. Management skills could be transferred among three businesses. The company had earlier own acquired Pizza Hut and Taco Bell which were leaders in pizza and Mexican categories which could create a synergy with the chicken brand. These synergies were hoped to create competitive advantage for PepsiCo since it would be operating different lucrative businesses which will help it gain more market shares.
It can be seen from the case study that the fast food industry is characterised by stiff competition from other rival competitors. Reynolds and Lancaster (1999) suggest that Porter’s Five Forces Model is an ideal business strategy that is used to analyse
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The importance of Hofstede’s beliefs of countries’ culture is included in the analysis. Furthermore, the Ritzer’s McDonaldisation thesis is integrated in this paper. The following are main questions that this essay addresses: What are the management issues concerning with culture?
According to the report the recession that started with a real estate crisis, bursting of housing bubble, unrealistic credit conditions and liquidity crisis in the United States, spread like a wild fire to almost all the economies in the world, converting national financial crunch of the United States into a global financial recession.
However, it entirely depends upon the research, consideration and evaluation of the marketing plan. It plays a significant role in aligning the marketing strategies developed by an organisation with its determined goals and objectives with a purpose to assist the organisation in the path of sustainable growth and development (Arizona Guide.Com, “How to Write a Marketing Plan”).
n restaurants in the international market. It was started in 1930s in Southern USA as a small franchisee business by Colonel Harland Sanders. Presently, it has 13,000 restaurants in all over world. The three most important success factors including service, quality and relaxing atmosphere make KFC to be a market leader.
Through this scheme, it is able to cut costs through operating economies in advertising and raw materials purchasing. Strategic locations where there is high traffic also propel its success by effectively reaping the cost advantages of scale economies. Other operational strategies included efficient store management to boost profitability as well as "ensuring short-term profits", "building local public relations," "maintaining employee morale," "developing customer goodwill," and "keeping tab on competing chains." KFC recognizes the importance of building an overall market image to succeed.
There is fun and entertainment for everyone. KFC considers each and every workers an asset for the company. The individualistic opinions of the workers are listened to, which contributes to workers’ satisfaction and motivation for work.
As far as KFC is concerned providing dynamic and positive customer experiences are the integral parts of the marketing objectives of the company. The company has designed its marketing strategies according to the marketing objectives. The organization always encourages and seeks for the satisfied customers to increase its repurchase.
Branding is one of the most effective tools for business units, which they implement to gain a sustainable position in the competitive global market. It enhances the reputation of a particular business, which further affects the