Business Project of KFC

Company Introduction 

Business Project of KFC: KFC is an American fast food chain that is primarily known for serving fried chicken. The chain’s headquarters are located in Louisville, Kentucky, and its name is an abbreviation for “Kentucky Fried Chicken.” The chain of restaurants got its name from the high quality of the chicken that was offered at the locations that were located in the state of Kentucky.

The name of the restaurant chain originates from the state of Kentucky, which is well-known for its fried chicken and which is featured on the menus of the establishments that make up the chain. It had 22,621 locations in 150 countries all over the world as of the end of December 2019. Although it is the second largest restaurant chain in the world, it is only second to McDonald’s in terms of the revenue that is generated from its locations around the world. Yum! This restaurant chain is owned by Brands, the same company that owns Pizza Hut and Taco Bell, despite the fact that it operates under a different name and is managed independently.

The problem that the organisation is presently putting a lot of effort into trying to solve is the primary topic of discussion in this report’s discussion section. In the year 2022, KFC is experiencing difficulties as a result of a misleading issue involving chicken farming in the United States, which has also had an impact on other parties.

Please review the following report, which analyses the company’s current challenges. This inquiry seeks to understand how the situation is affecting the company’s stakeholders. The company also analyses secondary data to ensure success. Before concluding, some solutions to the company’s problems are suggested. This report section is not the least important.

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Challenges faced by KFC in the year 2022

KFC has been accused of portraying chicken farming in a “misleading” manner following the visit of activists to a farm that was recently featured in a film that was recently created by an influencer on YouTube. The film in question featured the farm.

YouTube Niko Omilana travels to a farm that is operated by the meat company Moy Park for the purpose of filming the documentary “Behind the Bucket,” which was released in December of 2015. KFC receives its chicken from Moy Park, which is widely regarded as one of the most successful poultry producers in Europe.

The Joe website’s Twitter account, which covers news and entertainment, has been used by more than one million people to watch the movie.

The film shows birds living in a shed, where they are given enrichment in the form of perches and fresh straw to cover the floor. The birds are also given the opportunity to fly free.

Investigators working undercover for the vegan food company VFC visited the farm in February and reported finding severe overcrowding, a very limited supply of fresh straw, and birds that were either sick, lame, or had passed away while they were there.

It would appear that the floor of the farm, which has the capacity to house 380,000 birds, is covered in animal faces, and the footage that was published by VFC shows that there is very little, if any, fresh straw present. The farm has the potential to house 380,000 birds. In addition to this, it appears to show birds that are injured, sick, or lame, as well as dead birds that have been thrown to the ground. In addition, containers that were seen on camera were used to store the bodies of dead chickens.

The picture that was provided by the VFC appears to show a container that is completely full of the lifeless bodies of chickens. This picture is being provided to you at no cost by VFC as a service.

The farm footage obtained by VFC was analyzed by Professor Andrew Knight of the Centre for Animal Welfare at the University of Winchester. He came to the conclusion that the birds appeared to be kept at “very high stocking density, within a vast shed, with little to no environmental enrichment.” Following his examination of the footage from the farm, Professor Knight arrived at this verdict.

Because of the “severe crowding and barren environment” in which they were kept, the birds, according to him, had “very little room to move and to exercise highly motivated natural behaviors, such as foraging and exploring.” This was because of the conditions in which they were kept. He placed the blame on the confined space that the birds were kept in.

Paul Roger, a veterinarian and one of the founding members of the Animal Welfare Science, Ethics and Law Veterinary Association, stated that the birds in the VFC footage displayed “behavioral signs of stress such as feather pecking and topical skin infection.”

Aim of the Report

The impact that the stakeholders are experiencing as a result of this issue, the purpose of this report is to provide an analysis of the problem that IBM is dealing with at the present time and the impact that the stakeholders are experiencing as a result of this issue. This discussion will focus on analyzing the challenges associated with chicken farming at the company, and then appropriate recommendations will be presented afterward.

Research on stakeholders

Relationship between business and internal stakeholders of KFC’s 

Internal stakeholders include their employees, managers, and owners. Employees are extremely important stakeholders in the company because they are the ones who actually provide the service to KFC customers. The company would be unable to function effectively if its employees were not properly trained. Managers are responsible for resolving customer complaints and ensuring that their employees work to a high standard and provide customers with satisfactory service.

The owners are typically in charge of the business side of things, as well as ensuring that the company complies with all applicable rules and regulations. Furthermore, they provide solutions for the company if it is not making any profits while also funding the money for stock.

Relationship between business and external stakeholders

Many people and organizations outside of KFC are important to the company. Customers, sellers, community members, society at large, and even the state all fall under this umbrella. People who are not currently employed by the company but who will be impacted by its decisions and actions are considered external stakeholders.

Workers who are not customers are not external stakeholders because they are not directly affected by the company’s decisions and actions. The word-of-mouth advertising and online reviews that customers provide for KFC can do the company a world of good or harm. Even one negative review can do permanent damage to a business’s standing, prompting the rest of the community to start looking elsewhere.

The term “supplier” refers to any individual or company that provides goods or services to KFC. The cost and logistics of transporting these items are taken care of by the suppliers. KFC cannot provide its own customers with consistently high-quality products or services if the company’s relationship with its suppliers is negative. The government can affect KFC’s business model and the economy as a whole through legislative action, changes in government spending and taxation, or both.

How they communicate with internal stakeholders

KFC’s internal stakeholders mostly communicate verbally and nonverbally. Verbal communication involves words. Most of these messages are orders that staff must follow. In addition to words, nonverbal communication includes posture, facial expressions, gestures, and tone. Nonverbal communication boosts KFC sales, customer satisfaction, and business negotiations.

KFC owners can better understand customers and employees by focusing on nonverbal communication. This is significant because customers and employees often hesitate to voice their concerns. This hinders communication. Non-verbal communication strategies improve sales, customer satisfaction, and business negotiations.

How they communicate with external stakeholders

Email, text message, and voice calls are the three modes of communication that are utilized the most frequently by KFC in its dealings with the external parties that are of interest to it. These modes of communication allow for the rapid transmission of information to a large audience in a short amount of time because they eliminate the need for face-to-face contact or verbal communication, both of which require time and effort on the part of the communicator.

One of its many advantages is the significant amount of time that can be saved as a result of the fact that it can be carried out in any location. They use both verbal and non-verbal modes of communication with customers so that they can have effective interactions with them.

Analysis by Model

Porter Five Forces

Threat of New Entrants

The threat posed by new entrants is described as follows in KFC’s Porter Five Forces Analysis:

Due to the high costs of marketing, product development, and differentiation, the fast food industry, which KFC operates in, has high barriers to entry. Customers have shown a lot of loyalty to the current market leaders, and the brands themselves are widely recognized. Customers know what to expect from any company in the industry because they all follow the same set of standard operating procedures and preparation methods.

Their supply chains are also highly developed, making replication elsewhere very challenging. Given these factors, it’s safe to say that the industry has high entry barriers. This is especially true for new entrants who don’t have a significantly different product offering. Fast food chains Kentucky Fried Chicken McDonald’s and Popeyes all got their starts. Since the emergence of the latter two rivals, KFC has seen significant declines in market share. This is because they were able to differentiate themselves from the competition and provide themselves with a solid foundation from which to tackle the aforementioned difficulties. Therefore, new entrant competition is judged to be mild at best.

Threat of substitute

According to Porter’s Five Forces analysis, KFC faces the following competitive pressures from alternative products:

Any business with similar offerings to KFC would be considered a competitor.

Price, ease of switching, and availability of alternatives are all quantifiable indicators of this. Alternatives could be found at local restaurants that serve fast food, such as those that specialize in fried chicken. They shouldn’t put too much of a financial strain on you. Due to KFC’s place in the food service industry, the effort required to switch to a different quick-service restaurant is minimal.

KFC also faces competition from McDonald’s, Wendy’s, Subway, etc., which are all similarly sized fast food chains in the countries and regions where it operates. Fast food chains are fine to use as examples, but any local eatery will do. When these considerations are applied, it’s easy to see that KFC is in danger from its rival eateries.

Bargaining power of customer

Customers have sway in negotiations because, as shown in KFC’s Porter Five Forces Analysis, they are the chain’s primary source of revenue. Consumers’ ability to haggle depends on a number of factors, including the size and stability of the customer base and the switching costs involved. Customers in the food industry, as was previously mentioned, have many options to choose from and will not incur any additional costs as a result of making the switch.

There’s a lot of competition in the fast food industry, from McDonald’s and Subway to Domino’s and Pizza Hut. This directory lists both national chains and independent eateries. With so many competitors in the same market, KFC will have little room to charge what it sees fit for its products and services. Buyers, no matter how many there are, typically act on impulse rather than consensus. While there are some B2B bulk transactions, consumers make up the vast majority of buyers.

Due to these factors, customers are in a strong negotiating position.

Bargaining power of supplier

Porter’s Five Forces Analysis of the Influence of KFC’s Suppliers Perspective:

KFC uses soft drinks in their food as well, in addition to chicken and potatoes. Orders for raw materials are always placed in bulk rather than in small increments, and these orders are placed according to a predetermined timetable. This indicates that many suppliers are willing to comply with the conditions imposed by the companies in order to supply the necessary raw materials. This is the case because the terms imposed by the companies are generally more favorable to bulk suppliers.

These components are, without a doubt, extremely fundamental, which leaves very little room for the development of innovative new products. As a KFC customer, you have access to a variety of reliable service providers from which to choose. In addition to this, this leaves the suppliers with very little leverage in the negotiation process. In spite of this, KFC’s suppliers continue to be a risk due to their practise of vertical integration and their ability to resell KFC’s products.

Competition of Rivalry

What follows is what we learn about how major competitors affect KFC based on the company’s own Porter Five Forces Analysis:

The fast food industry is currently one of the most competitive markets. KFC’s rivals in the fast food industry are fierce, with McDonald’s aiming to corner the world market. Fries, soft drinks, starters, etc., all of which contribute significantly to the bottom lines at both M.C. Donald’s and KFC, are virtually identical, while some products, like the flagship dishes, are distinct. As a result, companies are always thinking of new ways to set themselves apart from rivals in the market. This fierce competition has resulted in price competition, as was mentioned before. As a result, customers face low switching costs when making a decision.

PEST Analysis

Political factors KFC

KFC did not always abbreviate their name to KFC; however, when the term “fried chicken” became linked to unfavorable connotations, the company decided that a change was necessary for the image of the brand. KFC is now known as Kentucky Fried Chicken.

KFC is one of the few fast food restaurants that actually has the word “unhealthy” in its name. This is in contrast to other fast food restaurants like McDonald’s and Burger King, for example, where customers can order healthier burger options. Without completely rebranding the company, Kentucky Fried Chicken made the astute decision to drop the word “fried” from its name. It’s all in the customer’s head; KFC is still selling its high-calorie chicken, but without the word, people may “forget” that they’re buying fried food. KFC has made the decision to modify their menu in this particular way.

KFC has been thrust into the center of the nation’s political stage over the course of the last few years. KFC made fun of the McDonald’s mascot on its official Twitter page while also making fun of a tweet by President Donald Trump in which he brags about having a “bigger and more powerful” nuclear button than North Korea. In the tweet, Trump says that he has “bigger and more powerful” buttons than North Korea.

The tone of KFC’s advertisement, which appeared to be mocking, did not go over well with anyone, but especially with those who support Trump. The original Kentucky Fried Chicken recipe has evolved into a recognizable symbol of American culture. Some people found the tweet to be humorous, while others thought it was in poor taste.

In the month of May, KFC was successful in achieving a political victory. During a hearing, Representative Steve Cohen (Democrat of Tennessee) attempted to make fun of Attorney General William Barr by bringing in a large bucket of KFC. Cohen’s comment was intended to be derogatory towards Barr, and he did so by referring to her as a “chicken.”

The KFC logo was prominently displayed in the photographs that were made public and distributed to the media. This publicity stunt did not appear to have been authorized by KFC, and there is a possibility that it could have been detrimental to the company’s image.

Economic Factor KFC

Yum! Brands, the company that also owns Pizza Hut and Taco Bell, as well as a number of other similar fast food chains, is the proprietor of Kentucky Fried Chicken (KFC). They are each having trouble breaking into the Chinese market for various reasons. A good number of them are seeing their profits decrease while at the same time being unable to grow.

Because of the significant challenge posed by consumers’ strong association of KFC with fried chicken, the company decided to change its name to KFC in order to get rid of the unfavorable connotation. Those who are concerned about their health will steer clear of foods that are high in calories and fat content. Unfortunately, the vast majority of KFC’s menu is dedicated to fried chicken in one form or another, so the restaurant doesn’t offer these customers very many other options to choose from.

KFC, to its credit, is attempting to develop vegan versions of some of the items on its menu in order to improve the quality of service it provides to vegan and vegetarian patrons. KFC has just recently begun conducting experiments in which fried chicken sandwiches are served on doughnuts rather than buns.

In addition, they have developed two options for vegan fried “chicken” that are essentially boneless wings and vegan nuggets. These options are available. Both of these dishes are prepared by frying. As soon as the new KFC offerings were made available to the public, crowds of people rushed to the restaurant in order to sample them. There is no way to dispute the fact that these experiments resulted in positive social and financial outcomes for the company.

Social Factor KFC

Consumers have a negative perception of the names of fast food companies due to the social problems that are prevalent in the industry. The unstable working conditions that low-wage workers in the food service industry are forced to endure are upsetting to a lot of people. They are concerned about the way animals are treated while being raised for food, as many of these animals are given injections of hormones, confined to tiny cages for the entirety of their lives, and made to gain an unhealthy amount of weight.

Animal rights organizations such as PETA have spoken out against the cruel treatment of animals and have urged consumers to boycott businesses that engage in animal testing. These organizations have also called for a consumer boycott of animal testing businesses.

The high-calorie fare presents a significant challenge in addition to the accumulation of extra weight. Because its menu contains many items that contribute to the problem, KFC is frequently held responsible for the obesity epidemic that is sweeping the Western world. KFC is able to attract customers who might not have otherwise considered the fast food restaurant because it offers vegan options, which are also available at other KFC locations.

Technology Factor KFC

KFC, in contrast to the majority of other fast food chains, provides its employees with technologically advanced tools. They are of the opinion that if they make the working conditions of the employees more favorable, this will result in better service being provided to the clients. Given the widespread technological literacy of today’s youth, this is an inevitable next step in the evolution of things. They are more receptive to new technologies in the workplace and abler to make use of them, such as voice-activated tests for people who are being considered for employment.

A KFC restaurant in Australia has begun using social media to better communicate with its staff members and keep them informed. It is strongly encouraged that employees have conversations with one another, question one another, and share their thoughts on the platform with one another.

KFC is not only bringing cutting-edge technology into the workplace, but the company also provides delivery services, self-service kiosks, and other innovations to simplify the process of placing an order. Customers can now place their orders for food before even making it to the cash register, which simplifies the ordering process as well as the entire transaction for the customers. Since the implementation of the “click-and-collect” feature, nearly all of the KFC restaurants in Australia have reported a 20% increase in profits. This indicates that the feature has been beneficial to the businesses.

Recommendations

KFC has prepared for their company’s growth by developing and implementing a wide variety of expansion planning strategies in order to accommodate their growth. They not only provide the restaurant with a variety menu and a dessert menu, but they also provide the restaurant with a buffet.

They are concentrating on specific foods for a specific region, and they are making an effort to open a number of small food counts throughout the region in an effort to increase the volume of sales that they generate. They set up small food stands in a variety of locations including airports, shopping malls, universities, and hospitals as well as stadiums and other public gathering places.

They are making an effort to focus all of their energy on ensuring that the needs of their customers are met to the best of their ability. Because of this, they are less complicated and take less time to complete, which enables them to attract a greater number of customers and, as a result, increases their sales. They provide food that is healthier than that which their competitors provide, and in addition to that, they provide some form of promotion; as a result, these business practices contribute to the expansion of the company.

It is recommended that KFC put more weight into its franchising strategy combines with multidomestic strategy, instead of only 18.5% of its total weight, in order to avoid the potential threats that are associated with conducting business in Mexico. KFC is now in a position to modify its menu in order to cater to the preferences of its customers in Mexico as a direct result of the implementation of these strategies, which has led to an improvement in the local responsiveness of the company.

For instance, dishes prepared in the Mexican style include a combination of finely chopped meats; consequently, KFC might want to think about introducing fried chicken that is finely chopped in order to appeal to a wider audience. In addition, the high costs and risks associated with operating a business in Mexico can be distributed among a variety of different parties to reduce their overall impact.

In spite of this, the strategy for franchises needs to revolve around winning the trust of Mexican managers. Before deciding whether or not to open a new restaurant as a direct result of this, it would be prudent for KFC to investigate each strategy in light of the particulars of the new location. This would be the case whether or not the company decided to open a new restaurant. KFC could then evaluate the benefits and drawbacks of opening a new restaurant as a result of this information.

KFC has arrived at the pinnacle of the factor that has been indispensable to the company’s ongoing success in the business world. They have developed the equity of their brand, which instills customers with the confidence that the food that KFC provides is of a high quality and will not disappoint them. They are the second largest fast food restaurant in the world in terms of sales, and their income was approximately one billion in each year, which indicates that KFC has strong cash flow.

In terms of sales, they are the second largest fast food restaurant in the world. According to total annual sales, they are the second largest quick-service restaurant in the entire world. Based on the number of sales. Because it operates in so many nations around the world, KFC has been able to amass a significant amount of commercial success on a global scale (china, Middle East, Thailand, Japan and Korea).

Even after this incident, the company should continue to adhere to the following standards, and they should maintain at least some degree of transparency in order to make it easier for customers to trust them. Because of this, they have risen to the top of the chicken restaurants’ rankings in terms of both the convenience of their service and the diversity of the dishes they offer.

Standard 1

Making plans and preparing for the worst to reduce the number of potential threats to the animals’ welfare, daily management and care of the birds and eggs are planned, and backup plans are developed in case of unexpected events.

Standard 2

The second standard requires the maintenance and design of sheds, facilities, and equipment. The sheds, facilities, and equipment, as well as their upkeep and operation, are all designed to cause as little stress or interference to the birds as possible.

Standard 3

Bird handling and training proficiency every employee in charge of managing and operating the facilities and equipment, as well as caring for and handling the birds and eggs, is knowledgeable and has received training.

Standard 4

For general bird management Bird care and husbandry activities are carried out on a daily basis in an effort to reduce the amount of stress or injury that birds experience.

Standard 5

The fifth standard is humane destruction. In order to reduce potential risks to the welfare of birds and chicks, humane destruction procedures are carried out in a timely manner, with an emphasis on efficiency and effectiveness.

Standard 6

Egg administration the egg management produces healthy chicks with the least amount of risk to their welfare.

Standard 7

Administration of chicks at the hatchery to minimize risks to the eggs’ and chicks’ welfare, effective management and husbandry procedures are in place throughout the entire process, from hatching to placement.

Standard 8

Bird pickup and transportation is the eighth standard. In preparation for transport, birds are selected, assembled, and loaded, and then moved in a way that poses the fewest threats to their well-being as possible.

Standard 9

Transport of chicks in accordance with Standard Chicks are prepared and selected for transport before being transported, and they are transported in a way that minimizes risks to their welfare.

Standard 10

Processing Birds are handled and slaughtered in ways that ensure their well-being. Furthermore, delivery and processing are being planned in order to reduce the amount of time birds are held in containers prior to slaughter.

Conclusion of Business Project of KFC

According to the findings of the research, KFC is the best fast food restaurant in the world, and the company is expanding at a rapid rate because it has good strategy planning to use in the extremely competitive business world. They do this in order to attract customers by offering a diverse selection of menu options and also by releasing new fast food products as part of their strategic planning.

They do this in order to compete with other restaurants that offer similar services. This is done in an effort to entice prospective buyers. KFC makes use of technology in order to expand their operations, which is one of the reasons why the company has a positive outlook regarding the future of their business.