Kentucky Fried Chicken and the Global Fast-Food Chain Industry

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Kentucky Fried Chicken and Global Fast-Food Industry
Executive Summary
This case study will show a brief history of KFC (Kentucky Fried Chicken) and how it became successful. It includes a brief history of how it ended on the road and now known as one of the most famous fast-food chain around the world. Its SWOT Analysis (strengths, weaknesses, opportunities and threats) will show how they became famous and the things that they need to improve for their weaknesses and the opportunities that they need to grab and threats that they will encounter. We will also show a Porter’s analysis and Hofstede’s analysis of cultural scopes. We will also use the Whittington’s systemic school of thought to assess cultural scopes for international managers that are based on their branches around the world. Introduction

Colonel Harland Sanders is the founder of KFC (Kentucky Fried Chicken) in 1952. KFC is one of the most famous fast-food chains in around the world. Colonel Sanders spent his time studying on fried chicken technologies. He invented unique cooking technology and eleven secret spices that were chosen by the customers. Until now, every fast-food chain of KFC is using the secret recipe for their famous chicken. Colonel Sanders’s business started when he runs a Corbin gas station at the age of 40 in Kentucky. To be able to increase his income he came up with the idea of making snack supplies for travellers. In 1935, Colonel Sanders’s was granted by the governor of Kentucky Laffon Ruby because of his great contribution in the catering industry of Kentucky. The problem before with the process of cooking in KFC is that customers need to wait for 30 minutes and it is a long time of waiting. The problem was solved when Colonel Sanders go to see a pressure cooker show. What he did is he bought a pressure cooker home and does all the relevant techniques the way he cooks chicken and it was the most delicious chicken that he ever tasted, and until now all the fast-food chains are using a pressure cooker to cook their fried chicken. In the 1950’s he was forced to sell his Sanders Café because of the new expressway that needs to build. At the age of 66, he made a decision to sell his chicken on the road by using his Ford cars carrying all of the 11 spices of his chicken recipe and together with his assistant he began to cook on the road and sell his famous chicken. In 1952, the first KFC restaurant was built at Salt Lake City and within five years the number of branches multiplied to 400 restaurants in United States and Canada begun to franchise a KFC restaurant. Today, almost 11,000 restaurants are built around the world. Anywhere we go, we can always find a KFC store and it became famous because of the secret spices in their fried chicken (Colonel Sanders History, n.d.). SWOT Analysis

The SWOT Analysis will help the company to point out their strengths as one of the leading global brands and widely known because of their secret recipe on their fried chicken. It will help them to figure out their weaknesses to improve their products and services to stand the competition in the market. The opportunities that they can grab to increase their sales and to meet their customers demand. Threats will show them what they are facing in the future, they can think of proposed plan or strategy to counterfeit the coming threats in the fast-food industry and to their products (Ansari, 2008). Strengths

* They still dominated the chicken industry with sales worldwide of $14.7 billion in 2010 and they have 11,798 stores outside United States (Chancey, 2012). * KFC customers are loyal because of the unique taste of their chicken * Strong brand recipes

* Second largest fast-food chain in the world
* Franchising around the world gives profit to the company * They hold 50% shares in the fast-food industry because of brand recognition * Profit increases by $1 billion each year
* Can compete with excellent and fast customer service...
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