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KFCCase study of KFCSource:www.icmrindia.org/casestudies/.../business%20ethics/BECG044.HTML
BACKGROUND OF KENTUCKY FRIED CHICKENS(KFC)• KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant.• Founded by Colonel Harland Sanders in the early 1930s by cooking & serving food for hungry travellers. In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN.• KFC is the world’s largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world.• KFC operates more than 5,200 restaurants in the U.S. and more than 15,000 units around the world.• 109 countries and territories around the world.• Every day, more than 12million customers are served at KFC restaurants.
KFC’S ENTRY IN INDIA• KFC was the first fast food multinational to enter INDIA, after the economic liberalization policy of the Indian Govt. in early 1990s.• KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population.• Pepsi Co planned to open 60KFC and Pizza Hut outlets in next 7 years in the country.
ISSUES• Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country.• Appreciate the need for protecting animal rights in developed and developing countries like India.• Understand the importance of ethics in doing business.• Examine the reasons for protests of PETS( People for Ethical Treatment of Animals)• Identify solutions for KFC’s problems in India
PROBLEMS FOR KFC• Protests by farmers led by the Karnataka Rajya Ryote Sangha (KRRS) & the farmers leader was Nanjundaswamy who used the term ‘junk food’ against KFC• Protests by cultural & Economic activists.• Protests by PETA in the late 1990s.• Support of celebrities in against of KFC.
SWOT ANALYSIS STRENGTH WEAKNESSES• Ranks highest among all chicken restaurants for its convenience and • Presence of Multinational menu variety. competitors in the market• Oldest and finest in business. e.g.• High goodwill does not have any core McDonalds(specialized competitor in chicken serving.• Large number of outlets at prime not in chicken serving but locations . in burgers)• Serves variety of items under singly • Imported raw material menu . rise their prime cost.• Loyal customers.• Faces numerous advantages of being a multinational organization e.g. economies of scale, government incentives etc..
SWOT ANALYSIS OPPORTUNITES THREATS• Cheap and easy availability • Entrance of new competitors of labour. into the market.• Increase consumption of fast • High political instability food has increased the Uncertainty. market size.• Consumer prefer “All under one roof” in order to increase their sales turnover they can increase or add the served items.
CONCLUSION• Finally, we can understand from the case that every business organization should understand the importance of ethics by understanding the culture, regulatory and ecological issues in different countries.• KFC should implement a farm level guideline & audit program – a program which is industry leading in the areas of poultry care and handling, mainly for their suppliers in the broiler industry.
PRESENTED BY : ANUPAMA.J ANUSHA APARNA ASHA.K K.ASHA R.