Analysis Of The Strategy Of KFC Compared To Other Fast-Food Brands
Introduction: The Strategy Of KFC Compared To Other Fast-Food Brands
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Strategic planning is the ongoing organizational process of using available resources and knowledge to document a business's intended direction. The research process is developed to prioritize efforts, effectively allocate resources, align shareholders and employees on the organization's goal, and ensure those goals are backed by data and sound reasoning. Every business has a plan and knows where it is heading in the future. Setting a plan with goals, targets, and a purpose that should be finalized before embarking on a business is the key feature of the research report which will further help in making this portfolio more effective. Taking time on an ongoing basis to review the company's past performance, and predict its future performance, gives it direction to follow is the highlight of the portfolio. Without strategic planning, it is very tough for every business to know the current state of the company and where the company targets to go in the upcoming future. A strategic plan is the highlight of the portfolio which allows a company to look after what is important, and how to get there, and also helps on focusing on avoiding the pitfalls. With context to strategic planning research also consider applied research as its non-systematic method of finding solutions to specific problems or issues. For the findings of the portfolio the research is done on the company KFC (Kentucky Fried Chicken) is a fully owned subsidiary company of PepsiCo. Inc, the company operates over 5000 units in the only US in which around 60% of which is franchised (KFC Corporation, 2021). The portfolio is made to achieve the objective by answering the questions related to strategy of KFC compared to other fast-food brands.
Figure 1 KFC Corporation
Question 1. What made you choose the research project?
The objective behind selecting this topic is to identify the strategic plan to achieve organizational goals effectively and efficiently. Having an apparent and focused plan is very significant for the victory of every company, and without a well-defined plan, the trade may fail in achieving its goals and objectives. Having emotion attached to the decision-making process is helping the business and team to be more alert, more productive, and most important more commercial (White, 2017). A thriving strategic plan provides proper direction and action plan, which further directs the organization on how will it achieve goals. For understanding the purpose and causes of strategic change in an organization applied research is considered. The main objective of selecting this topic is to understand the purpose and causes of strategic change in an organization with the impact of applied research in consideration. Applied research is very helpful in the industry in building awareness and developing solutions to all problems. It enables an association to recognize the strange requirements of target markets and this could also help in creating diverse business strategies which further allow them to gratify these needs and importance.
The main effect of applied research is that it helps the organization in improving workplace efficiency and organizational policies; applied research also helps in bridging skill gaps in the workplace. The research discusses the analysis of the strategy of KFC compared to other fast-food brands. KFC (Kentucky Fried Chicken) is an American corporation that is the major fast-food chicken operator and franchiser all over the world, its headquarters are in Louisville, Kentucky, on the global market, KFC has around more than 3700 units that are franchise-based. The company is driving its franchising and fully-owned operation; the company is also participating in joint ventures and is involved in investigating other substitute venues in direction of gaining market share in the fast-food market. KFC is also known for its second position in the restaurant chain market after McDonald's with 22,621 locations in over 150 countries. The research project includesprocessbusiness plan and to develop the knowledge about where it is heading in the future with the help of figure 2 it can be easily understandable.
Organization
Prioritize
Allocate
Process
Efforts
Resources
Align
Shareholders
Employees
Goals
Planning
Data and sound reasoning
Figure 2 Business plan
Question 2. How did you go about finalizing the choice of your methodology?
The research has considered One of the most commonly often used qualitative analysis methods which are thematic analysis.When implemented correctly, qualitative theme analysis is an extremely effective analytical tool that helps in analyzing significant patterns in other terms, it involves analyzing the data set's themes to find a consequence.The main essential thing to memorize is that since this process is guided by research questions, it is not obligatory to determine every potential theme in the data but rather to focus on the essential factors that are related to that question. The steps involve in the finalizing the methodology is explained through figure 2:
Figure 3 Finalizing The Methodology
The research has adopted a four-phase thematic breakdown process in the exploration of strategy operation barriers-
Familiarization- Searching for main themes in a company's data is the first step in thematic analysis. The business must now choose whom to employ, what and how to code, and which codes effectively reflect the content. then taking into account the company's attention and goals. Businesses must keep a reflection journal. The business may study the codes and themes that support the results as well as remark on the coding process in this reflexivity journal. The focus of this organization should be on data analysis and choosing the codes that best reflect the material.
Look for themes in the codes– The business now has to look for code themes or patterns. The transition from these scripts to themes is neither simple nor easy. To understand the data better, the company might need to assign different codes or themes. Following data analysis, the firm may release subthemes and subdivisions of themes that focus on an important or pertinent element (Vaismoradiet. al. 2016).
Review themes– The company can proceed and evaluate subjects once it has become aware of the themes and subthemes. At this point, make sure everything designated as a theme is either included in the data or matches it exactly. Considering that all themes have been correctly and completely coded, the company can proceed to the following phase even if any themes are lacking. This might need to split the themes if there is insufficient information under each one or if the topics are too wide so that the research could be more focused.
Finalize Themes– After researching and refining topics, naming and completing them, the analysis will begin to take shape. Moving on does not prohibit a corporation from revising or rethinking the subjects. Contrary to the earlier stage, selecting themes requires a detailed description. If the company encounters issues, it is important to examine whether the data and code represent the themes, and divide them into separate parts, if necessary. Making ensuring the theme's name accurately communicates its qualities is important. Additionally, to make sure that the themes connect with the relevant research questions. The company should keep in mind that the final research must meet the aims and objectives of the research.
Research writing - At this stage, the research is done and completed. Now that the company has examined the data it needs to write a research. Thematic analysis research includes starting, An approach, the results, and the outcomes.
Question 3. What are the limitations that you have encountered in deciding your research project methodology?
Before staring the research, the main point that was giving priority was the related to limitation test and analysing all possible outcomes. The limitation for the research were as follow:
Research : The main limitation of this research is the primary data collection, this collection process requires lots of time. The research is made on quantitative data. (yum! Brands, 2022).
Time limits: For conducting this research, the time limit was very less as this research talks about the strategy comparison of KFC with other fast-food company which required numerous data analysis and research as KFC is leading brand in fast-food market. the comparison between all the leading fast-food brands required lots of information which is collected on both primary and secondary basis, for which the time was very limited. For gathering accurate data the research has used secondary data.
Conflicts on Biased Views and Personal Issues : In case of this research there was biased feedback as the KFC is non-vegetarian fast-food brand which sells chicken as their chief product. People who are vegetarian are not a part of company’s target market, which limits the customer’s feedback. So, for gathering data the research has selected only those data which were related to non-vegetarian customers. Which was again very tough task as the competitor company of KFC deals in vegetarian food, which makes it difficult to select the market audience for data collection (Mondurailingamet. al. 2015).
Research design limitation : this includes the selection of target group from which the data is collected, in this case there was a very big target group as most people consumes fast-food now days.
Impact limitations : even though the research was creating a excellent stats and strong design, it also suffer from impact which were related to being regional focus, selecting large sample of population, secondary data collecting, and the most important time limitation.
Question 4. Have you had to rethink your topic? What adjustment have you made?
After selecting the topic for the research there were lots of questions were popping up, because the selected topic includes the comparison of KFC to the whole fast-food industry which was very tough to analyze. The main strategy of this report is to compare the strategy of KFC to other fast-food companies in the market. There were lots of confusion and question regarding the strategy used by KFC which were not easy to find, as there was no source for such information. For analyzing the strategy and collecting detailed information regarding the research has conducted a literature review in which the research uses the marketing strategy used by the company, analyzes various theories, and a sustainability report to consider this topic for research.
Literature review
Kentucky Fried Chicken (KFC) is dedicated to its expansion and is currently ranked 2nd in the top 10 global fast-food chains according to research by Forbes. The company has wanted to improve its marketing strategy and improve the level of engagement with customers (Anand and Yeung, 2018). Through the years KFC's marketing strategy has helped by the increasing worldwide appetite for food across over 145 countries which resulted in profit.. To reach an audience that encompasses both vegetarian and non-vegetarian groups, KFC employs demographic segmentation. There are four groups on which the company focuses or the target market of the company which is – kids, teenagers, budget-conscious clients like middle-class families, etc.
Marketing strategy
The marketing strategy of the company further incorporates two kinds of marketing channels which are
Personal channel – it includes communicating directly with the audience, like the salesperson contacting directly to the customer over the phone or in person (Rahul Arun, 2022).
Non-personal channel – it includes the media like online and offline channels like
Newspapers
Social Media
Webpages
Billboards
Magazines
Radio
Television
Posters
Promotion Campaigns
PR activities
Sustainability report
The industry in which the company is operating has several sustainability issues which include planet, citizens, and earnings (Uddin, 2020). The sustainability features linking the company to the planet related to the effects of KFC and its competitors on the surroundings. The factor that is distressing the planet is the emission of greenhouse gases for overcoming these factors the company can opt for using science-based target creativities to further appraise and diminish the GHGs. The other important factor that affects the planet is the extreme use of the normal resource. The production of raw materials which is used in the industry includes the huge capacity of natural assets for case company KFC uses meat and dairy farming products. For reducing the over-exploitation of natural resources, the company could commission to source all the palm oil from various suppliers who are sustainable (Uddin, 2020).The next factor sustainability factor is consider is the people, the main impact of these fast-food companies on people is increasing obesity. The food from which companies can create high calories leads to various diseases together with fatness. For facing these factors company could provide its customers with all the information regarding the nutrition of its products, and customers aware. The factor that represents sustainability is profits, these companies employ people from various places at a very low wage which represents a significant sustainability aspect because this impact the employees and their families. The other factor which affects the profits of these fast-food companies is investing in suppliers' developments which affects the business. Suppliers share a very important role in supporting every business operation, investing in their development and sustenance of relations is very long-term and is affected by serious factors which are probable to maintain potential operations.
Theories
Various strategic management theories are used by several businesses all across the world to achieve organizational goals and objectives. For evaluating the performance of the company's strategy management, the report considers various strategy theories. The KFC Corporation tends to match with the planned group theories. The strategic group theory states that while the business is considered a group, the participants of the industry tend to activate in the same method by employing similar strategies. The case company KFC is using strategic theory which helps the company to plan its future growth plans since it provides them with the opportunity to gain experience and exposure which is crucial to the fast food industry's growth (Omer, 2018).
Demand theory – The company is applying demand theory to focus on the demand of the market and needs and requirements which they need to cop-up with. The company is regularly focusing on the customer's demand for healthier food. By analyzing the demand for healthy food, the corporation has come up with foodstuff that is arranged oil and trans-fat-free, and the meal the company offers also includes green vegetables and a side salad in its menu (Omer, 2018).
Operation strategy theory– The operational strategies employed by the company are quite similar to its competitor's companies like Wendy's Burger, McDonald's, and Pizza Hut, all of which are leading brands in the fast-food market. KFC operates through a franchise business model in both local as well as international markets. Through this operating model, local businessmen are acquiring franchises and operating them with the facilities and equipment provided by the company. In return, the company is sharing part of its profits with the franchise owner through a royalty program(Hittet. al. 2016).
The marketing strategies theory - The marketing strategies applied by the company are as compared to its competitors in the same industry. The company focuses more on influencing the popular combo meal, the suitability of the fast food which the company is offering, and the good and happy environment which is shown in advertisements of the company (Genoveva and Siam, 2017). The marketing strategy of the company includes promoting its product via digital marketing strategy which is very popular nowadays, by advertising on television, on social media platforms like Facebook and Instagram, etc (Gascónet. al. 2017).
Competencies theory – The core competency of the company focuses on providing several benefits which are giving tough competition to its competitors to copy and offer such leverage for diverse goods. The interior competencies theory of KFC Corporation comprises of capabilities of the company to deliver an exclusive and unique recipe-based chicken which have a special and different taste in comparison to its competitors(Bird,2019). This recipe is further shared with all the franchises across the globe known to provide a similar taste at each outlet. The corporation has major proficiency in the supervision of various franchises and restaurants in the international market. The company also enjoys bargaining power with its supplier which further allows the corporation to receive provisions at the lowest costs which impacts growing profit margins on each product sold. The company also comprehends the economy of level with local, international, and regional operations, which is used in strengthening the cists improvement with the supplier but at present, the company has not been engaged in such activity (Randhir et. al. 2016).
Question 5. How did you go about the selection of your data sources?
The strategies, methodologies, and procedures used to collect data are all outlined in the research methodology which helps in selcting the data sources. To comprehend the area of study, one uses the segment's material. There are several ways to perform data research utilizing different data collection methods. The best strategy for this research is a "qualitative approach" of data collection (Adhabi and Anozie, 2017). It is one of the best methods for analyzing data using the researcher's knowledge.The act of gathering data and measuring variables using a specified measurement technique are both parts of the data collection process. The researcher will be able to efficiently gather data as a result. The secondary data collection approach is one of the techniques the study will use.The necessary information will be acquired from already-existing sources like annual reports & journals.The graph is showing frequency distribution of KFC compared with McDonald’s (Bororinget. al. 2017).
Figure 4 KFC
The report portrays the various advantages that are skilled by the competitors of the KFC Corporation and the disadvantage that the competitors face while operating in the same industry (Nguyen et. al. 2018). KFC is the world's 2nd largest fast-food chain and also the largest chicken restaurant based on its sales, it is a successful brand under its parent company Yum. KFC has around 75000+ workforce, serving fresh and delicious fried chicken to its customers in around 18000 restaurants all over the world in 120+ countries. KFC is currently ranked with a global ranking of 147. With consistent, good brand positioning, the business can increase consumer awareness (TOMA). Additionally, KFC's worldwide business model is addressing the underserved group that contributed to the development of its brand by offering the veg menu and localization plan. The graph below in figure 4 shows the number of KFC restaurants which are globally opened between the years 2010 to 2021 (Guinto and Alcantara, 2022).
The company has a dramatical increase in the number of restaurants from the year 2010 to 2021, in 2010 the number of restaurants was 16853, which further increased to 19986 in the year 2015, in the year 2018 the number of restaurants increased to 22621, and the according to a recent study of the year 2021 the company owned 26, 934 restaurants across the world(Anggraeniet. al. 2022).According to the report, the company has announced a budget of just 230,000 pounds to be used in social media, prints, and outdoor promotion activities.Fast food is an extremely competitive industry that is experiencing dramatic transformation. $102.7 billion was the total revenue earned by the worldwide fast-food industry in 2006, which represents a compound annual growth rate (CAGR) of 3.5% from 2002 to 2006. Comparatively, throughout a similar period, the US and EU markets increased with CAGRs of 3.7% and 3.3%, respectively, to reach values of $55.2 billion and $19.5 billion in 2006. Between 2002 and 2006, market consumption volumes climbed with a CAGR of 1.5%, totaling 80.3 billion transactions.By the end of 2011, the market is anticipated to have 86.4 billion transactions, indicating a CAGR of 1.5% from 2006 to 2011(Amoako et. al. 2021).
Competitors analysis
The main advantage for competitors is diversified operations all over the world; there are so many companies like McDonald's and Burger King which are also as popular as KFC (Sin,et. al. 2019). The main advantage of these two companies is that they also offer a vegetarian meal option which is the biggest drawback for KFC, and their vegetarian options are quite popular in comparison to KFC’s vegetarian options.
McDonald’s
The company like McDonald’s have an expansive and quick distributive network, these competitor's company has established a high level of customer service and also a wide range of packaging options and exciting offers on their meal purchases (Sun, 2022).
Burger king’s
One of the key advantages that a firm like Burger King enjoys is that it has been utilizing its market diversification as its franchise mix and international franchise network.
Question 6. Did you expect to find the results/findings?
As the research was conducted to find the strategy comparison of KFC and other fast-food companies the results are efficient which also helps in finding out various measures used by KFC Company(Song et. al. 2022).KFC makes use of Facebook as a means to inform its customers about the latest deals, products, and other offers. In addition, it responds to customer complaints via Facebook.The company promotes online ordering options via social media, by use of its Facebook page where the company uses numerous animated pictures which have received a lot of favourable feedback, and sometimes assisted KFC in establishing connections with the general public (Song et. al. 2022).The company's posts get a high level of interaction, with comments of more than 250,000 and comments of over 5000. The page's engagement rate typically around five percent, suggests an excellent level of conversation and engagement. The KFC team that runs its Facebook account responds to its customers very quickly. They encourage the customers to voice their displeasure with them at their locations.
KFC is a company with more resources than its competition and can spend more on advertising, compete with competitors by comparing prices, etc. The company, which runs KFC and also owns the entire range of brands allows for the combining of KFC with other brands, such as AW and Taco Bell, which results in higher sales throughout the day for the two stores summed. The principal flaw that comes out through this research, based on the analysis of the case is the working environment of the business and ineffective Human Resource management. As the story in the case, when KFC was bought from PepsiCo, Inc., the culture of the company was eliminated, and the workplace environment became very oppressive for KFC's workers (Eadesand Thornhill, 2017). Following the definition provided by businesses "achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personal techniques".
Question 7. Did you mention the research limitations and how they were addressed? What have you learned, and how do you intend to apply the learning from this exercise?
The report highlights the shortcomings of surveys, quantitative research qualitative, or experimental studies highlights the limitations that were encountered and how they affected the conclusions of the study. The report also provides suggestions on the ways researchers could overcome these limitations when conducting future research. Most importantly, it provides transparent, honest and objective research that is conducted on the main goals that the study aims to achieve. To identify and improve from the limitations improved effectiveness of writing, and it is accompanied by many learning opportunities that can be accessible through the following channels:
Find work-related restrictions: Begin with questions such as which limitations hindered the research? What effect had they on the conclusions? Answers to this question will offer an overview of the shortcomings that were encountered and the reasons why they are important to the research.
Decribing restraints: Provide an explanation of research limitations. Inform readers and researchers about the limitations encountered in research. Discussing why these challenges are crucial to the research. What did they do to affect the study? It is crucial to talk about the limitations of the study. Being aware about every study has these obstacles, as research cannot be flawless.
The study's limitations can be structured: Begin with a list of all the limitations that have been encountered, then come up with a method to present the limitations. Think about how long to include the section on limitations of the study paper. Creating a draft to determine how the limitations section can fit within the research paper.
Offering suggestions on how to overcome: limitations of future research by introducing what mistakes in research can be avoided by conducting further studies. In addition, one can explain the errors that are avoidable by considering the different perspectives future studies could adopt when conducting future studies.
Issues of data: Data understanding, searching of themes, reviewing, and thematic mapping are all part of the thematic method, further considered for procedural details and consistency considerations. The methodology for the research provides quite enough details for a customer or competitors to assess findings. In other words, the research shows every detail that a viewer wants to know about, how the company analyzed the data, and why. "What", "how", "why", "who", and "when" are helpful there (Vaismoradiet. al. 2016).
Recommendation and Conclusion
To grow the company the global strategy for marketing, KFC required a change in how new and younger customers saw the brand. It did not have confidence in its loyal customers who were content with the old-fashioned chip and fries. The fries must be replaced. The biggest challenge was coordinating the entire transition to the new mix of chips. It was necessary to do this so that the loyal followers who were against the change wouldn't be feeling like they lost something.Strategies that can be adopted by the company to run its business in the future could take the shape of funding research and development initiatives and facilities. Investing in facilities and projects that support the development of research is just one of the strategies the company could employ to run its business shortly. The business should invest money in R&D to increase its capabilities for the launch of new products and find innovative methods to develop these products to respond to changing demands of consumers (Shen et. al. 2017). Customers are looking for products that are nutritious and tasty. The business can invest in developing methods and strategies that provide the same delicious flavour to consumers while also being healthy for their health. Additionally, the business should offer a broad range of goods to customers across various markets. This can be accomplished by ensuring that it is in line with the latest market trends. In addition, the business should cease operating any businesses which are not profitable for them and are creating problems by reducing its capital reserves and profits (Pulekaet. al. 2018) In the case of fast food that is based on chicken that has been fried and fried chicken, the US market is quite overcrowded, and the company should diversify into other profitable areas.
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