KFC and the global fast food industry Term Paper

KFC and the global fast food industry - Term Paper ExampleKFC is a leading food strand in the world. When it comes to starting a new franchise in a new market, KFC would have to evaluate and analyze number of factors in its external and familiar environment. The SWOT analysis for KFC is i. Strengths International recognition Ranked highest among chicken restaurants Unique flavor and recipe ii. Weakness Declining quality due to over franchising Less localize on R&D department Lack of relationship building iii. Opportunity Demographics trends have increased the growth Increased delivery services modify restaurant and its menu iv. Threats Rapid change in customer demands Health awareness Increased competition PORTERS VALUE CHAIN Michael gatekeeper has given the concept of value chain in his book The Competitive Advantage. According to Porter, each and every activity and operation adds value to the produced crop or service. So, every operation should support each other and should w ork at an optimum level. Porter suggested that organizations have two kinds of activities, primary activities and secondary activities (Overbeck 2009, p.26.). pristine activities Inbound logistics Involves obtaining raw material from supplies. KFC should make it clear to its suppliers, regarding the quality and time of delivery. Operations Raw materials are combined to make the final product. This is the stage, where KFC has to keep incumbrance on quality and ingredients. In this stage, KFC can bring changes in its formula. Outbound logistics Manufactured product is delivered to market. In case of KFC, it will not go to retail merchant or wholesaler, rather will go directly to costumer. Marketing and Sales Marketing should be done in accordance to the needs of the end users. KFC should fall in its franchise in places where there is more demand, like near residential areas or in parks. Services The services should include after sales services. KFC should show services like feedb ack and royalty cards etc. to its regular users Support Activities Procurement The raw material acquired by KFC, should be properly accessed by KFC in order to assure best quality at best price. Technology development The technology use can help KFC in maintaining the inventory record, sales, employee remuneration and attendance, and many other things. Human resource management KFC has to recruit best available employees for its company, in order to deliver consistent quality to its consumer. Firm stand Organization structure matters a lot when it comes to adding value to the organization. KFC has to enforce and embrace a structure and culture that favors two way communications between employer and employee. b) riding habit Porter?s Five Forces framework to critically evaluate the opportunities and threats that faced KFC Corporation from the mid 1990s to the year 2000. PORTER FIVE FORCE impersonate Michael Porters model has focused on how the corporate strategy should meet the opportunities and threats in corporations external environment. Porter has given 5 forces, on the basis of which a company can analyze its industry and market competition. These five forces are as follows (Kurtz, MacKenzie&Snow, 2009) Bargaining power of suppliers The supplies mean every kind of input that will help the organization in providing best products and services. The bargaining power of suppliers is high when suppliers are few and have a epoch-making market share, and when cost of switching