Kfc Market Anlaysis
1.0 INTRODUCTION
According to Michael Porter, in order to survive in a dynamic and competitive world, a firm must be able to gain competitive advantages over its competitors by understanding itself and the environmental changes. A firm with wealthy resources may not be able to sustain the competitive advantages if it does not have a well effective management. An effective management should be able to come out with different strategies to deal with different situation based on the remote and industry environment. This is because it enables a firm to sustain competitive advantages and gain market share even thought the industry is unattractive.
This report is regarding the internal and external analysis of KFC (Malaysia) Holding Bhd which includes their unique resources, core competencies, strategic issues and etc. This report will show us an in-depth view on current situation and issue of the fast food industry.
2.0 REMOTE ENVIRONMENT
The remote environment comprises factors that originate beyond and usually irrespective of, any single firm 's operating section: social, political, economic, technological and ecological factors. By using PESTEL framework, we would able to analysis many different factors in the fast food industries.
Political (Threat & Opportunity)
Based on the fast-food industry, some political constraints are placed on firm through fair-trade decision, tax programs, pollution, pricing policies and government policy. In Malaysia Budget 2010, Islamic Development Department of Malaysia (JAKIM) intensifies HALAL certification by collaborating with international institutions to obtain standards certification such as HACCP and GMP. These changes may restrict and affect some of fast food industry getting it licensed.
Furthermore, the service tax may replace to goods and services tax (GST) in Malaysia Budget 2010. The GST rate to be imposed will be lower than current services tax rates. As a result, some of the
According to Michael Porter, in order to survive in a dynamic and competitive world, a firm must be able to gain competitive advantages over its competitors by understanding itself and the environmental changes. A firm with wealthy resources may not be able to sustain the competitive advantages if it does not have a well effective management. An effective management should be able to come out with different strategies to deal with different situation based on the remote and industry environment. This is because it enables a firm to sustain competitive advantages and gain market share even thought the industry is unattractive.
This report is regarding the internal and external analysis of KFC (Malaysia) Holding Bhd which includes their unique resources, core competencies, strategic issues and etc. This report will show us an in-depth view on current situation and issue of the fast food industry.
2.0 REMOTE ENVIRONMENT
The remote environment comprises factors that originate beyond and usually irrespective of, any single firm 's operating section: social, political, economic, technological and ecological factors. By using PESTEL framework, we would able to analysis many different factors in the fast food industries.
Political (Threat & Opportunity)
Based on the fast-food industry, some political constraints are placed on firm through fair-trade decision, tax programs, pollution, pricing policies and government policy. In Malaysia Budget 2010, Islamic Development Department of Malaysia (JAKIM) intensifies HALAL certification by collaborating with international institutions to obtain standards certification such as HACCP and GMP. These changes may restrict and affect some of fast food industry getting it licensed.
Furthermore, the service tax may replace to goods and services tax (GST) in Malaysia Budget 2010. The GST rate to be imposed will be lower than current services tax rates. As a result, some of the
References: • PEARCE, J.A., and ROBINSON, R.B., 2009. Strategic Management: Formulation, Implementation & Control. 11th ed. McGraw Hill International Edition. • JOHNSON, G.., SCHOLES, K., and WHITTINGTON, R., 2008. Exploring Corporate Strategy. 8th ed. Prentice Hall. • DAVID, F.R., 2009. Strategic Management: Concepts and Cases. 12th ed. Pearson Prentice Hall. BIBLIOGRAPHY • KFC HOLDING (MALAYSIA) BHD., (2009) • QSR BRANDS BHD., (2009). Annual Report 2008 [online]. Malaysia. Available from:- http://www.qsrbrands.com/English/FlashSite/InvestorRelations/AnnualReport.asp [Accessed 30 October 2009]. • KFC HOLDING (MALAYSIA) BHD., (2009). Business Unit [online]. Malaysia. Available from:- http://www.kfcholdings.com.my/English/FlashSite/BusinessUnits/BizU_Poultry_Integration.asp [Accessed 30 October 2009]. • KFC HOLDING (MALAYSIA) BHD., (2009). Awards & Achievements [online]. Malaysia. Available from:- http://www.kfcholdings.com.my/English/Flashsite/AboutCompany/AwardAchievement.asp [Accessed 30 October 2009]. • KFC HOLDING (MALAYSIA) BHD., (2009). HALAL Policy [online]. Malaysia. Available from:- http://www.kfc.com.my/about-halal.html [Accessed 30 October 2009]. • KFC HOLDING (MALAYSIA) BHD., (2009). Quality Assurance [online]. Malaysia. Available from:- http://www.kfc.com.my/about-quality.html [Accessed 30 October 2009]. • BUSINESS TIMES, (2009). Malaysia Budget 2010 Highlights [online]. Malaysia. Available from:- http://www.btimes.com.my/Current_News/BTIMES/articles/20091023164903/Article/index_html [Accessed 1 November 2009]. • EXPATRIATE MALAYSIA, (2009). Fast Food Home Delivery in Malaysia [online]. Malaysia. Available from:- http://www.expat.com.my/Expatriate%20Malaysia%20-%20Fast%20Food%20Home%20Delivery.htm [Accessed 2 November 2009]. • ESSAY CLUB, (2008). KFC Marketing Research [online]. Available from:- http://www.essayclub.com/term-papers/Kfc-Marketing-Research/4501.html [Accessed 15 November 2009]