2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. McDonalds owns 82 of their locations and can rent them out to franchisees. Advertising is the most fundamental way KFC promote its products. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. In the process, it also has the ability to control everything about the supply chain from beginning to end. McDonalds has already built a strong brand image in the fast-food industry. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. Please note! We`ll do boring work for you. Bakshi, R. & Fiksel, J. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. 1 What are the competitive advantages of KFC? (2021) 'McDonald's and KFC Corporate Responsibility'. McDonalds is the leading and one of the most popular fast food brands of the world. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. Do you want fries with that? This is a question that has been asked for decades. They want their food to be good in terms of quality and low on calories. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Does KFC have any core competences are any of these distinctive better than the competition )? KFC competes against McDonalds the most. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. ensure the integrity of our platform while keeping your private information safe. KFCs sources of competitive advantage. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. 2016, 740). McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. professional specifically for you? Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. The database is updated daily, so anyone can easily find a relevant essay example. The number of baby boomer customers of McDonalds is also large. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. McDonald's is arguably the largest global fast food chain in the Their taste has changed a lot and they would rely only upon brands that ensure good quality. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. These efforts have helped the company maintain its position as the largest fast food chain in the world. 68 no. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. Brands, Inc., based in Louisville, Kentucky. However, it is generally accepted that the two companies are not owned by the same entity. KFC struggles to address issues that influence the sustainability of its supply chain. Within the last four decades, Americans have become large consumers of fast foods. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. KFC is an organisation that specialises in fried chickens. Your privacy is extremely important to us. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. KFC is well-known for its fried chicken, which is made from their own According to CEO Score, KFC ranks second in terms of comparable CEO performance. The company focuses on making the supply process as efficient as possible. If you continue to use this site we will assume that you are happy with it. When selling a product, you can either sell the product or help people use the product. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. They also Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. Products enable a company to differentiate itself from competitors and gain competitive advantage. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. The company has a strong financial position and The quality assurance process involves ongoing product reviews as well as on-site supplier visits. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. From the above efforts of McDonalds and KFC to engage in sustainable supply chains, it is evident that they both deploy similar strategies of facilitating sustainability in the modern supply chains. Customer-focused approach brings advantages to KFC. With a variety of meals, sides, and drink options to choose from, McDonalds Web. They constitute a major supply chain issue at McDonalds and KFC. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Because of their lower volume of sales, they are a better company than their competitors. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds has more locations than KFC. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. He further asserts that it has incredibly lagged behind in terms of mass communication of its plans for enhancing sustainable supplies by investing in CSR. In addition, they offer a seasonal and regional menu option. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. McDonalds has built a strong image as a fast food brand that only offers great quality. While these fast-food giants have a However, Texas Chicken company was not listed in the rank in the analysis. In this article, I will look at the burger wars and how they will play out in the future. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Kroc was certainly a businessman with a plan. McDonalds has a competitive advantage because of its value chain. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. If you need this sample, insert an email and we'll deliver it to you. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. From this perspective, this paper deploys the concepts of supply chain to discuss various supply chain sustainability issues in the US fast-food industry with reference to KFC (Kentucky Fried Chicken) and McDonalds. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. While doing the market segmentation for the products, the target market has been well studied and investigated. This is correct. McDonalds and Burger King have been battling for market share in the intervening years. They are the leaders of the industry and provide training to their franchisees. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. This is where everything about the restaurant industry is taught. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. McDonalds has a competitive advantage in terms of speed of service. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. How to Market Your Business with Webinars? She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. They offer hamburgers, french fries, breakfast menu items and many more. KFCs competitive advantage is its strong brand recognition. Need a custom Assessment sample written from scratch by The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. The goal was to initiate a programme for phasing out the use of polystyrene food packaging to raise the number of recycled food boxes and containers. They will release out various kind of food according to the season. It has achieved strong global growth and is largely managed by franchisees. Several brands like Starbucks have become famous by focusing exclusively on customer service. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. A strong supply chain is the backbone of a large and global business. Fast-food organisations are cheap. Many businesses use cross-selling to maximize sales. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. I remember the old ad from the 1980s where the slogan was Im lovin it! I remember my parents used to laugh at the Whats on Your McNugget slogan. However, apart from food, it has all focused on customer service. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Why is KFC the best fast food restaurant? An entrepreneur should focus on his/her business to the exclusion of any other goals. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). Its focus on quality and customer service has resulted in strong brand equity. The idea is to give customers a more natural product. 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