Introduction-overview of the company(KFC)
| Pg- 2
Short elaboration of micro and macro environment and three factors that influence
| Current sales analysis
Environmental factors and opportunities
Business macro-environmental factors
Kentucky Fried Chicken Corporation based in Louisville, Kentucky, is one of the world’s most successful fast food organizations. It has operations throughout the world and has a vast history which has been put to present like no other fast food. It has grown enormously following its fragile birth, splashing in scintillating numbers in both franchisees and company owned stores all over. The company’s prime strength lies in providing high-quality chicken meals to its huge consumer base all over the world.
Now every day, more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world.
The company has strong product identification through its branding, advertising as well as packaging signifies the company in various manner. The famous paper bucket that KFC uses for its larger sized orders of chicken, its logos and the famous picture of Harland Sanders, the initial founder, all represent KFC in the most colorful way.
KFC's specialty is fried chicken served in various forms. However the recipe of 11 herbs and spices used by KFC in preparation of their chicken still remains a trade secret. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine.
Despite KFC’s success as a company, the fast food organization had faced many problems over the years. There were mostly environmental issues that had influenced their product marketing and in time they had inherited new ways and different techniques to cater their fast food products.
Since 2003, the animal rights group People for the Ethical Treatment of Animals (PETA), have been protesting KFC’s treatment of the animals used for its products with the Kentucky Fried Cruelty campaign. PETA states that they have held more than 12,000 demonstrations at KFC outlets since 2003 because of alleged mistreatment of chickens by KFC suppliers.
Alleged rainforest destruction
In May 2012, Greenpeace accused KFC of sourcing paper pulp for its food packaging from Indonesian rainforest wood. Independent forensic tests showed that some packaging contained more than 50 per cent mixed tropical hardwood fibre, sourced from Asia Pulp & Paper
KFC operates in a larger macro environment of forces that creates opportunities, but also threats. A company such as KFC usually cannot influence trends in the macro environment, as they affect people and organisations on a larger scale.
However, KFC has to carefully examine macro environmental trends and must create competitive responses to such trends. There are six major macro environmental forces KFC has to take into account.
The microenvironment consists of all forces that are close to KFC, and on which KFC has an impact. They directly affect KFC’s ability to serve its customers. Three major components influence KFC’s microenvironment:
Because the fast food market is highly competitive, KFC faces a wide number of direct and indirect competitors. KFC’s main competitors are fast food chains such as McDonald’s and Domino’s, which are already well established throughout the world. McDonalds’s in particular is a direct competitor, as they have already successfully introduced their Salads plus line, which directly targets ‘healthy food’ conscious world we live in. But, there are a number of other...
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