KFC
...rica. These changes lead to the strategic growth of KFC’s globalization and facing the environmental risk as well as opportunities associated with the international expansion, particularly looking at Mexico and Latin America. KFC’s return on investment has been excellent to date. Internationally their sales growth and market share has been very strong with a nett growth of over 600 units for 2003 under the Yum! Group. The majority of this growth has come from Greater China with over 280 company owned stores operated in 2003 and 300 projected to be opened in 2004. The United Kingdom comes in second with almost 100 company owned stores opened in 2003 and 100 additional stores planned for 2004. A number of analytical tools were used to analyze KFC’s current strategic position, for example SWOT- analysis, PEST- analyses, Value Chain, Ansoff Matrix, Porters 5 – Forces and Diamond models. These are attached as Appendix 1 – 6 respectively. The strengths of KFC include brand recognition, its secret recipe, leadership in global growth, and control of market share. KFC also benefits from being a subsidiary of Yum! Brands. This gives KFC a strong financial backbone and also allows for multi-branding, which is where two or more stores share the same building. Weaknesses of KFC are employee turnover, narrow product line, quality of product and speed of service. Opportunities that KFC sees are in global expansion, particularly in Latin America, product innovation and multi-branding. Multi-branding can save the company large amounts of money due to the high cost of real estate and offers the customer with more choices. Threats to KFC are the uncertainty or instability of foreign countries, loss of sales to rivals and the public perception of quick service restaurants (QSR’s). See appendix 1 (SWOT). The value chain for KFC seems to be fairly simple and some costs are being shared with other chains through, multi-branding. Compared to the industry, prices are average, but value has been a concern. See appendix 2 (Value Chain). KFC’s position is very strong compared to competitors. They are the sixth largest QSR according to sales in the world and are the number one chicken restaurant. Their market share of 46% by far exceeds their near...