Saturday, November 9, 2019
Free Essays on KFCs Strategies
1- What did each of KFCââ¬â¢s three different corporate parents ââ¬â Heublein, R.J. Reynolds and Pepsi Co ââ¬â do to contribute to or hinder KFCââ¬â¢s growth and success? Conflicts appeared as a result of Hubleinââ¬â¢s little experience in the fast restaurant market. As a result, there was low quality control, poor service and shortage on new restaurant openings. R.J Reynolds was also new to the business, so it decided to take a hands-off approach in management. Pepsi on the other hand had some experience in the industry. It interfered with KFCââ¬â¢s management and replaced it with its own. 2- What are the chief economic and business characteristics of the global fast food industry? The fast food industry is extremely large and it reported $320 billion in sales in 1997 for approximately 500,000 restaurants in the US. The market growth rate is 5.2% annually. It is considered as mature. The industry consists of numerous organizations and companies, ranging from McDonaldââ¬â¢s to Checkers, and it is not limited to the United States. We can divide the industry into 6 groups of restaurants and chains: ÃË Sandwich chains ÃË Dinner houses ÃË Griller Buffet ÃË Family restaurants ÃË Pizza ÃË Chicken 3- What does a five-forces analysis of fast-food competition tell us about the overall strength/intensity of competitive pressures in this business? The rivalry among competing sellers: figuring the following: ÃË Product line and services: efforts are made to extend the product offerings, sometimes beyond the traditional, for example when McDonaldââ¬â¢s offered chicken burgers. Services are also considered as a competitive edge. ÃË Pricing and promotions: pricing is critical for buyers and many chains use promotions especially when the offerings exceed demands. ÃË Location and store format: is important likewise any business and has a direct effect on clients. The potential entry of new competitors: which is difficult s... Free Essays on KFC's Strategies Free Essays on KFC's Strategies 1- What did each of KFCââ¬â¢s three different corporate parents ââ¬â Heublein, R.J. Reynolds and Pepsi Co ââ¬â do to contribute to or hinder KFCââ¬â¢s growth and success? Conflicts appeared as a result of Hubleinââ¬â¢s little experience in the fast restaurant market. As a result, there was low quality control, poor service and shortage on new restaurant openings. R.J Reynolds was also new to the business, so it decided to take a hands-off approach in management. Pepsi on the other hand had some experience in the industry. It interfered with KFCââ¬â¢s management and replaced it with its own. 2- What are the chief economic and business characteristics of the global fast food industry? The fast food industry is extremely large and it reported $320 billion in sales in 1997 for approximately 500,000 restaurants in the US. The market growth rate is 5.2% annually. It is considered as mature. The industry consists of numerous organizations and companies, ranging from McDonaldââ¬â¢s to Checkers, and it is not limited to the United States. We can divide the industry into 6 groups of restaurants and chains: ÃË Sandwich chains ÃË Dinner houses ÃË Griller Buffet ÃË Family restaurants ÃË Pizza ÃË Chicken 3- What does a five-forces analysis of fast-food competition tell us about the overall strength/intensity of competitive pressures in this business? The rivalry among competing sellers: figuring the following: ÃË Product line and services: efforts are made to extend the product offerings, sometimes beyond the traditional, for example when McDonaldââ¬â¢s offered chicken burgers. Services are also considered as a competitive edge. ÃË Pricing and promotions: pricing is critical for buyers and many chains use promotions especially when the offerings exceed demands. ÃË Location and store format: is important likewise any business and has a direct effect on clients. The potential entry of new competitors: which is difficult s...
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