Assignment KFC
Executive summary
Kentucky Fried Chicken Corporation (now KFC) is a well-established multinational company which forms part of Yum! Brands, Inc regrouping other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver.
KFC is one of the largest chains of fast food restaurants which started since the early 1930s by Colonel Harland D Saunders in Louisville, Kentucky in the USA and comprises of 14,000 restaurants (franchised and company owned restaurants) in more than 100 countries offering a premium experience of value added chicken meals and other fast food “Finger Lickin’ Good”. The uniqueness of its business rests firmly on the Colonel’s secret recipe (a blend of 11 herbs and spices) which is locked in a vault in Kentucky known by only a handful of people creating the distinctive taste of KFC. It has been able to establish as having renowned international reputation and continues to dominate the chicken segment.
KFC’s early experience operating abroad put it in a strong position to take advantage of the growing trend towards global expansion. Its ultimate goal is to further its expansion strategy in new emerging markets (such as China, India and Latin American countries particularly Brazil which form part of the BRICS) where its nearest competitors are well established and gain quicker acceptance of its concept. Hence, KFC needs to devise a competitive marketing strategy in the international market to maintain its market leadership in the global fast-food industry which is forecasted to have a value of $239.7 billion by 2014 – an increase of 19.2% since 2009.
As pointed out by Jean Jacques Rousseau (1712-1778): French Philosopher “Follow the course opposite to custom and you will almost always do well”. However, KFC strategic planners need also to devise relevant strategy development to monitor the environment by evaluating opportunities and threats, consider both pressures for local responsiveness and for global integration of activities,
Kentucky Fried Chicken Corporation (now KFC) is a well-established multinational company which forms part of Yum! Brands, Inc regrouping other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver.
KFC is one of the largest chains of fast food restaurants which started since the early 1930s by Colonel Harland D Saunders in Louisville, Kentucky in the USA and comprises of 14,000 restaurants (franchised and company owned restaurants) in more than 100 countries offering a premium experience of value added chicken meals and other fast food “Finger Lickin’ Good”. The uniqueness of its business rests firmly on the Colonel’s secret recipe (a blend of 11 herbs and spices) which is locked in a vault in Kentucky known by only a handful of people creating the distinctive taste of KFC. It has been able to establish as having renowned international reputation and continues to dominate the chicken segment.
KFC’s early experience operating abroad put it in a strong position to take advantage of the growing trend towards global expansion. Its ultimate goal is to further its expansion strategy in new emerging markets (such as China, India and Latin American countries particularly Brazil which form part of the BRICS) where its nearest competitors are well established and gain quicker acceptance of its concept. Hence, KFC needs to devise a competitive marketing strategy in the international market to maintain its market leadership in the global fast-food industry which is forecasted to have a value of $239.7 billion by 2014 – an increase of 19.2% since 2009.
As pointed out by Jean Jacques Rousseau (1712-1778): French Philosopher “Follow the course opposite to custom and you will almost always do well”. However, KFC strategic planners need also to devise relevant strategy development to monitor the environment by evaluating opportunities and threats, consider both pressures for local responsiveness and for global integration of activities,
Bibliography: Reference 1 - De wit, B. and Meyer R. (2010, P 8): “Strategy Process, Content, Context, 4th Edition”, Cengage Learning EMEA Reference 2 - (http://tutor2u.net/business/strategy/SWOT_analysis.htm) downloaded on 23.02.11 at 8.00 AM Reference 3 - De wit, B. and Meyer R. (2010, P 926, Exhibit 5): “Strategy Process, Content, Context, 4th Edition”, Cengage Learning EMEA Reference 4 - De wit, B Reference 9 - De wit, B. and Meyer R. (2010, P 45): “Strategy Process, Content, Context, 4th Edition”, Cengage Learning EMEA Reference 10 - De wit, B Appendix 3 – Supporting elements to the SWOT Analysis and SWOT Analysis diagram Appendix 4 - The generic value chain (Porter, 1985) Appendix 9 - Stacey’s integrated model of decision-making control (1996) Appendix 10 – Customer’s Comments Card