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 food
• High political instability
food has increased the Uncertainty.
• 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.