Professional Documents
Culture Documents
KFC - An Evaluation of KFC's Worldwide Strategy
KFC - An Evaluation of KFC's Worldwide Strategy
Saloni Sheth Siddhi Kanakia Anupi Chiniwala Jack Barrett Charlie ONeill Shuai Yuan Sren Brns-Poulsen
Agenda
Introduction Strategies used Worldwide Effectiveness Finger Lickin Good? Recommendations Conclusion
Introduction
Founded in 1952 in Kentucky, USA Grown to over 15,000 KFC outlets in 105 countries and territories around the world USA
Highly standardised menu Rapidly losing its market share (York, 2010)
Introduction to Strategies
International Less need for local adaptation Low market pressure Global Homogeneous products Competitive market Multinational Merging of local culture Highly decentralised Transnational Ideal Strategy for global markets Global scale efficiency Multinational flexibility
1. Strategies
Forces to global standardisation & cost reduction
HIGH GLOBAL Europe
Global
Europe
Multinational
Africa
Transnational
China
Transnational
India
3. We Recommend
COUNTRY Latin America Europe RISK Dynamic market growth Primary competitors have adapted to local tastes RECOMMENDATION Invest in a growing economy Set up more production units Provide resources to localise menus in separate markets
Africa
Limited recommendations
China
Low pricing should be maintained despite inflation Use self-service machines Delegate greater authority to local managers Introduce more vegetarian options
India
Conclusion
KFCs main success has been attributed to their international operations in emerging markets like China, Latin America and Africa, where they have attempted to customise their menu in accordance with local tastes and preferences. Overall recommendation for KFC: Localise their menu Provide healthier alternatives Ensure high quality by controlling suppliers Empower local managers
References
Bartlett, C. A., and Ghoshal, S., 1988. Organizing for worldwide effectiveness: The transnational solution. [journal]. Developing Transnational Strategies, chapter 3, pg. 194. BBC News., 2012. KFC restaurant shut in India after worm complaint. [online] Available at: <http://www.bbc.co.uk/news/world-asia-india-19893520> [Accessed 12 October 2012] Bell, D., and Shelman, L., 2011. KFC's radical approach to China. [journal] Harvard Business Review. 11 (2) pg. 137-142. Euromonitor International., 2012. Fast food in Venezuela. [online] Available at: <http://www.euromonitor.com/fast-food-in-venezuela/report> [Accessed 11 October 2012] Interbrand., 2012. Best Global Brands 2012. [online] Available at: <http://www.interbrand.com/en/bestglobal-brands/2012/Best-Global-Brands-2012-Brand-View.aspx> [Accessed 12 October 2012] NYT.,1994. KFC Tries for a Turnaround in Chile. [online] Available at: <http://www.nytimes.com/1994/12/27/business/kfc-tries-for-a-turnaround-inchile.html?pagewanted=all&src=pm> [Accessed 11 October 2012] Webber, H., 1998. Divide and Conquer: Target Your Customers Through Market Segmentation . Canada: John Wiley & Sons, Inc. York, E.B., 2010. KFC's Stunts Make Nightly News but Don't Stop Sales Slide . Advertising Age [online] Available at: <http://adage.com/article/news/fast-food-kfc-s-stunts-stop-sales-slide/143359/> [Accessed 11 October 2012]
Any Questions?