Case Study – Kentucky Fried Chicken & the Global Fast-Food Industry in de Wit & Meyer

Sunderland Business School

SIM336 (Off Campus)

Strategic Management
- April

2013 -

Individual Assignment Case Study – Kentucky Fried Chicken & The Global Fast-Food Industry in De Wit & Meyer (2004:909-927)

Module Leader: John Dixon-Dawson Submission Date: 8th April 2013 Word Count: 3,000 words

University of Sunderland: Sunderland Business School

2

Introduction:
This individual assignment will be assessed by means of a 3,000 word report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic issues relating to the global fast-food industry. You will be required to apply the strategic concepts and analytical techniques studied in this module. All the learning outcomes below will be assessed: 1. 2. 3. Ability to analyse the complexity of organisations and their environments Demonstrate an understanding of the complexity of the relationships between an organisation and its environment Ability to evaluate existing models against practices of real organisations

The assignment will be marked and moderated by: Module Tutors Please note:
1. All work must adhere to the University regulations on ‘Cheating, Collusion and Plagiarism’ which are provided as an Appendix in your Programme handbook. See your Tutor for guidance on ‘Harvard Referencing Style’, avoiding ‘Plagiarism’, and using Turnitin. A hard copy, an electronic copy on CD or DVD Rom, and a Turnitin Report if possible on the assignment must be handed into your Local Study Centre on or before the appointed date under cover of the Sunderland Business School Feedback Sheet. Issue Date: 15th February 2013 Submission Date: 8th April 2013

2.

3. 4.

Task
Your task is to carry out a critical analysis and evaluation of strategy development in the global fastfood industry, using the information provided and other materials researched. You will be expected to select and apply appropriate theories, techniques and models studied during the module whilst having regard to the practical aspects of strategy development. Your assignment should be presented in a business report format and should be within the range 3,000 +/- 500 words (excluding executive summary, references and relevant appendices). The report should include a title page and executive summary and be fully and consistently referenced, using the Harvard Referencing style. You must also submit a CD or DVD Rom containing an electronic version of the report. This should be clearly labelled with your name, your course and the name of the case study. It is recommended that you research information additional to the case study to support your arguments. This may be obtained from a diverse range of sources and you are encouraged to research the issues in whichever way you deem appropriate.

Assessment Criteria
In the event of failing this individual assignment, normal referral / deferral procedures will apply. This assignment carries a weighting of 100%. The assessment will focus on the level of ANALYSIS carried out. That is, the application of THEORETICAL CONCEPTS studied in the module to the ‘practical’ case study presented. In other words, you should proceed beyond a DESCRIPTION of the company and its actions. You should be analysing ‘why’ rather than describing ‘what’. The assignment will be assessed and moderated by the module team in accordance with the marks allocated to each of the questions detailed below. 10% of the marks are set aside for the ‘report style’ criteria.
SIM336 (Off Campus) – Individual Report April 2013 2

University of Sunderland: Sunderland Business School

3

Academic Rigour  your ability to isolate the key strategic issues  the coherence and depth of the analysis of those issues  the ability to analyse the strategy context within which companies operate  the ability to critically review and evaluate strategic decisions made by companies Methodology  the use of relevant evidence, from material provided and personal research to support any statements made  the appropriateness of the methods used and theoretical models and frameworks applied  the breadth and depth of research undertaken Evaluation of data  the ability to make sound recommendations or conclusions arising from the analysis  the soundness of arguments put forward Format of Report  the summary of arguments  report layout and format  use of illustrative material and evidence to support arguments  the appropriateness of length  the quantity and accuracy of referencing

THE GLOBAL FAST-FOOD INDUSTRY - KENTUCKY FRIED CHICKEN
Fast food also known as Quick Service Restaurant (QSR) is the term given to food that can be prepared and served very quickly. The global fast food market grew by 3.1% in 2009 to reach a value of $201.1 billion. Americas accounts for 47.4% of the global fast food market value. The global fast food market is forecast to have a value of $239.7 billion by 2014, an increase of 19.2% since 2009. Kentucky Fried Chicken (KFC) Corporation, is a chain of fast food restaurants based in Kentucky, in the United States. The company primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, it also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare (http://www.kfc.co.uk/ ).

Instructions:
  ANSWER ALL THREE QUESTIONS You are expected to use the information in the case study ‘Kentucky Fried Chicken and the global fast-food industry’ by Jeffrey A. Krug cited in De Wit, B. and Meyer, R. (2004) Strategy: Process, Content, Context. An International Perspective: Thomson Learning, London, Third Edition, pp. 909-927, and your own understanding of the process of strategy, strategy content and strategy context. Your answer should be based on critical ‘internal’ and ‘external’ environmental analyses using appropriate analytical techniques.



SIM336 (Off Campus) – Individual Report

April 2013

3

University of Sunderland: Sunderland Business School

4

Question One:
Using the case study as the basis for your thinking, answer the following questions using your knowledge and further research in the context of KFC today: a) In the context of the process of strategic thinking and strategy formation, outline what SWOT and Porter’s Value Chain techniques are, and explain their practical relevance to strategic planners at Kentucky Fried Chicken (KFC) Corporation. (15 marks) b) Use Porter’s Five Forces framework to critically evaluate the opportunities and threats that faced KFC Corporation in 2013. (15 marks) c) Explain the ‘pressures for global integration of activities’ and the ‘pressures for local responsiveness’ facing KFC Corporation in the context of current developments in the global fast-food industry. (10 marks) (40 marks)

Question Two:
a) In the context of strategy development, explain your understanding of Whittington’s ‘Evolutionary’ and ‘Systemic’ Schools of Thought. (10 marks) b) Critically evaluate how you might apply these two Schools of Thought to KFC in 2013. Explain and explore which school of thought you prefer, and why? (15 marks) (25 marks)

Question Three:
“Hofstede’s (1993) theory of cultural dimensions implies that although not all the individuals within a country’s population will have exactly the same characteristics, the cultural dimensions will colour the institutional and administrative arrangements that are made within the country, and will set the norms for behaviour.” Hofstede, G. (1993) ‘Cultural constraints in management theories’, in De Wit, B. and Meyer, R. (2004) Strategy Process, Content, Context, 3rd Edition, Thomson, London; cited in SIM336 Module Workbook, Unit 7, page 203. Using your understanding of Whittington’s (2000) ‘Systemic School of Thought’, critically evaluate the implications of these cultural dimensions for international strategic managers at KFC in building productive relationships with the outside world. (25 marks)

Note: 10% of marks are allocated to report style Suggested Reading:
Textbooks: De Wit, B. and Meyer, R. (2004) – Strategy Process, Content, and Context: An International Perspective, 3rd Edition, Thomson Learning Hofstede, G. (1993) ‘Cultural constraints in management theories’, in De Wit, B. and Meyer, R. (2004) Strategy Process, Content, Context, 3rd Edition, Thomson, London; cited in SIM336 Module Workbook, Unit 7, page 203).
SIM336 (Off Campus) – Individual Report April 2013 4

University of Sunderland: Sunderland Business School

Johnson, G., Scholes, K. and Whittington, R. (2005) Exploring Corporate Strategy: Text and Cases, 7 Edition, Financial Times, Prentice Hall. Lynch, R. (2006) Corporate Strategy, Fourth Edition, Financial Times, Prentice Hall. Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) Strategy Safari, Financial Times, Prentice Hall Whittington, R. (2000) What is Strategy and does it matter? Thompson Learning.

5 th

Websites & PDF documents: http://www.kfc.co.uk/ - Kentucky Fried Chicken (KFC) Corporation. www.economist.com The Economist www.ft.com The Financial Times
Source; John Dixon-Dawson January 2013.

SIM336 (Off Campus) – Individual Report

April 2013

5