Kfc Case Study

711 Words2 Pages
bulb-icon

Recommended: Reasons for kfc success in china

4.Culture difference
Until June 2010, KFC has over 3,000 outlets in China, whereas McDonald’s operates 1,100, or only one third as many (Ministryoftofu.com 2011), one of the key reasons behind such difference is the local food cultural differences which is different from the US style fast food and KFC has been adapting their products to the local needs. Kentucky Fried Chicken entered the Chinese from the beginning with the focus on the special nature of the Chinese market; they are caring about the Chinese culture and consumer habits through in-depth research and investigation, recognizing China’s market and Western European and American markets with unique features. KFC continue to meet consumer demand in the Chinese people and added a lot …show more content…

The whole supply chain in China is unsophisticated and aboriginal. Despite of the highest population in the world, its whole food supply chain is still relying on small food processors which are inefficient and lack of technology for mass production. It also reflects there are very few large end users to support the building-up of large food processing plants (Wang 2011). Though the management of McDonald 's China supply logistics has taken a step forward with the entry of The Havi Group, McDonald 's main US distribution manager and Havi has established the wholly foreign-owned Husi Food Co. Ltd. to function as the consolidator and distributor of virtually all of McDonald 's inputs in China, still the full takeover by Havi Group is not yet achieved (Chinaadopttalk.com 2008), as a result the local small and inefficient supply chain will be difficult for McDonald China in managing the supply side. In the case of McDonald’s China, it needs to locate its position is closer to individual customers and nearest supply outlets in order to control the transportation cost, attract as many customers as it can and also reduce the response time to the changing customer demand in term of changes in the volume of production required and the transportation costs incurred(Chinaabout.net

Show More
Related

  • Chick-Fil-A Case Study

    471 Words  | 1 Pages

    TQM is a company’s complete “culture of quality” approach which focuses on long-term success. It strives for continuous improvement, in all aspects of an organization, as a process and not as a short-term goal. TQM’s involves everyone in the organization to transform the organization into a forward-thinking entity by influencing attitudes, practices, structures, and systems of the entire organization (Business Dictionary, 2014). TQM was crafted by William Edwards Deming, a statistician who specialized in statistical process control after World War II. Deming outlined 14 points of TQM where all people of an organization can constantly search for ways to improve the process, product, and service. Deming developed the

    Read More

  • Situational Analysis - Chick-fil-a

    1670 Words  | 4 Pages

    The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.

    Read More

  • Inauthentic Chinese Food

    1265 Words  | 3 Pages

    People can eat American fast food in China, India, and Thailand and so on. The most popular of American fast food is McDonald’s. In China, McDonald’s dishes integrate Chinese and Western cuisine, especially in diet structures. To be more specific, the beverage size of McDonald’s is different between the United States and China. A medium sized drink in the U.S is equal the large size in China (Margot Peppers). Then, the McDonald’s of China serves rice and soup as lunch. McDonald’s does not have this diet structure in the United States. The reason why Chinese McDonald’s has this style of food because American fast food has to adapt foreign atmosphere. It has to change the diet structure in order to the requirement of the local ethic group. That is a similar situation when Chinese immigrants open restaurants in the United

    Read More

  • Fast Food Chains Case Study

    1883 Words  | 4 Pages

    Fast food chains, the main problem responsible for multiple health problems around the world has still not changed any of their ingredients or additives to make a positive change. Fast food meals have been linked to multiple health problems. Such health problems like heart diseases, which is the leading cause of death of men and woman in the United States. Fast food has also been linked to obesity, due to the high amount of fat and carbohydrates found in their meals. An equivalent aspect is the additives added to fast food like trans-fat and sodium, which are both linked to leading to multiple health problems. Yet fast food chains have not done anything in regards to all of this health problems. Fast food chains are still harming the public

    Read More

  • Krispy Kreme Case Study

    1002 Words  | 3 Pages

    Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.

    Read More

  • Mcdonalds Case Study

    1950 Words  | 4 Pages

    In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.

    Read More

  • Kraft Foods Case Study

    1273 Words  | 3 Pages

    The purpose of this project is to show how financially stable the Kraft Foods Group is and demonstrates what its strengths and weaknesses are. The reader can expect to find out what Kraft Food Group is and about their financial history for the last five years. This business participates in the consumer packaged food and beverage industry. The markets that Kraft Food Group sell to are the United States and Canada. Some brands that are included in this company are Kraft, Maxwell House, Oscar Mayer, Planers, Kool-Aid, Velveeta, Capri Sun, and Philadelphia to name just a few. This company was started in 1903 by James Lewis Kraft. Mr. Kraft used a wagon and horse and started selling cheese to businesses in Chicago, Illinois. In 1909,

    Read More

  • Mcdonalds Case Analysis

    1425 Words  | 3 Pages

    OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.

    Read More

  • Mcdonald's Case Study

    1423 Words  | 3 Pages

    McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).

    Read More

  • Kraft Foods Case Study

    3268 Words  | 7 Pages

    Success of the plan In Kraft’s Food Corporation the planning analyst and the other business departments work together in close communication. This aids in the development of a system that allows business activities to align with the corporate goals and targets. The company is also building its performance around successful people by assuring that the plan is tied with the system that involves the use of practically tested strategies. Shared decisions of all the departments including finance and production departments help adding value to the business by improving its competitive place in the market.

    Read More

  • Mcdonald's Restaurants Influence on Hong Kong Culture

    2087 Words  | 5 Pages

    The McDonald's Corporation is one of the world’s largest chain fast food restaurant, which is headquartered in the United States. It has expanded its business in 119 countries, including Hong Kong. The company mainly provides fast food such as hamburgers, french fries, chickens and soft drinks. McDonald’s started its business in Hong Kong in 1975. Now, the company already has 218 branches in Hong Kong. Our group would like to analyze how McDonald's Restaurants (HK) Ltd(McDonald's) maintained its sustainability of business in the past 38 years since it had already influenced lifestyle of most Hong Kong people and become part of the local culture of Hong Kong.

    Read More

  • Analysis of the Fast Food Industry

    4302 Words  | 9 Pages

    Fast food outlets actually have been existed from millennia in China, India and ancient Europe. In the past, many people cannot afford to have a kitchen and this becomes the main reason they buy their food in fast food outlets (Reverse Your Age, 2013). The perception of fast food started to change in twentieth century. The first company that change the culture and perception of fast food was McDonald’s, followed by their future competitors such as KFC, Burger King, Wendy’s, Taco Bell, Pizza Hut and Subway. As they get a good appreciation from the customers followed by the impact of the globalisation, almost all of the fast food companies have been expanded their restaurant chain in many nations (Wojtek, 2013). Nowadays, with our busy life schedule and the increasing trend where women entering workforce promote an opportunity for the fast food industry to grow bigger. We can see the significant growth from the fast food industry as the industry itself has been generated over $160 billion in 2012 compared to their revenue in 1970 which only around $6 billion (Franchise Help, n.d.). With this significant growth, it does not mean that every company in this industry are successful. Some company has to closed some of their stores due to the lack of environmental research and preparation in entering a new country which commonly lead to the poor selling rate. The deeper explanation and points that is mention below will be also represent as the industry current state.

    Read More

  • The Success of KFC

    1242 Words  | 3 Pages

    Kentucky Fried Chicken (KFC) is a very well known restaurant in the world. It is rated at number 60 as the world most well known brand by BusinessWeek (McDonalds at number 9 and Nescafe, 23).

    Read More

  • Case Study: Burger King

    1868 Words  | 4 Pages

    Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.

    Read More

  • The Success of KFC China

    1044 Words  | 3 Pages

    The first innovative strategy of KFC China is localizing the menu. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to implement for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating. “One of the lessons I take away from this case is that to do China, you have to do China”, says Shelman. KFC localizes their offerings and adapts their existing products to appeal to the Chinese customers’ needs. The menu features Chinese local food like egg and vegetables soup. Examples of innovative products are the Dragon Twister (chicken roll of old Beijing) and the glass jelly milk tea (Zhou...

    Read More

More about Kfc Case Study

Open Document