Kentucky Fried Chicken and the Global Fast food Industry
... After severed decades development, KFC has gained strong brand name and much experience, facing with increasing international fast food industry, KFC had established aggressive international fast food to expansion abroad; until 1993, it has operated 9033 restaurants in 68 countries. ... ] So in the future, KFC’s will try to diversify away from fried chicken and strengthen its balance sheet, because in 1990, Hardee’s acquisition of Roy Rogers restaurants from Marriott Corporation, which can offer consumers a widened menu selection and did cut into KFC’s sales. ... Chapter Two: Analyse KFC’s global expansion in terms of: i) The method adopted to gain market access; ii) The tension between the company’s global expansion and key regional issues. ... 2 The choice of entry mode What is the best means of achieving global expansion? ... The Tension between the Company’s Global Expansion and Key Regional Issues 2.1 Pressures for Global Strategic Co-ordination and local responsiveness A firm has to grasp a way of capturing the pressures on a given business-pressures that make strategic co-ordination and global integration of activities critical, as well as the pressures hat make being sensitive to the diverse demands of various national markets and achieving local responsiveness critical. ... ) We can use the following criteria for evaluating the pressures for global co-ordination and integration, as well as local responsiveness. ... 2 Analyse Tension Between KFC’s Global Expansion and Key Regional Issues During the global expansion, KFC has to consider some key regional issues; these issues often play important roles in the company’s global expansion. ... Baker, 1996, prentice Hall) In the next section, I will mainly focus on those issues to analyse the tensions between KFC’s global expansion and regional areas. ... Those demographic and societal trends contributed to increased demand for food prepared away from home. ... The combination of higher numbers of dual-career families and rising incomes meant that fewer families had time to prepare food at home. According to Standard & Poor’s Industry Surveys, Americans spent 55% of their food dollars at restaurants in 1995, up from 34% in 1970. ... 2 Social and cultural factors Social and cultural factors play important roles in global expansion. ... In most of Asian people’s mind, KFC is still a substitution and foreign food, they prefer to cook domestic foods if they have free time. ... Different countries have different diet and favourite foods, for example, western people like to eat beef, but Asian people like to eat chicken and pork. Even though they like the same food, they may like different tastes. For example, Chinese people like to eat hot and salted chicken, but America people like to eat fried and toasted chicken. ... in Chinese market, it provides rice and pepper salted chicken wings, which doesn’t supply in USA. ... From those agreements and contacts, KFC can avoid many problems when it has global expansion. ... In fast food service area, KFC has high reputation in new product development, facing with different demands and requirements from different regional areas, it invests a lot of money in R&D in order to provide high quality products. ... Chapter Three: Critically compare and contrast KFC and McDonalds in relation to: i) Ethics ii) Global expansion iii) The competitive business environment 1. ... The basic wage for hourly paid staff is even lower than the one in domestic food industry. ... Compare and Contrast KFC and McDonald’s Global Expansion Most of KFC’s international expansion was through franchises, though some restaurants were licensed to operators or jointly operated with a local partner. ... 4 Other areas In other operating areas, McDonald’s operate not only in fast food industry, but also in real estates industry, hospitals, building road industry and so on, but fast food industry is placed on the most important role.