Fried chicken is Kentucky Fried Chicken's (KFC) signature dish.

The brand, which goes by the image of an elderly man with white facial hair, does, in fact, have a history
that is juicy on the inside and crispy on the surface.
The trip began in the 1930s when a man by the name of Harland Sanders persevered in the face of hards
hip and, by the time of his death in the 1980s, had amassed a fortune of several million dollars by foundi
ng KFC, the most well-known fast-food restaurant in the world.

External environmental factors can have a significant impact on the marketing activities of an
organization.

In general, managers can control the four Ps of the marketing mix. Managers can decide which products
to offer, what prices to charge for them, how to distribute them, and how to reach target audiences.

However, there are other forces at work in the marketing world. Forces over which marketers have
much less control. These forces make’s up a company's external marketing environment

These external environmental factors can be classified as micro and macro factors. The micro factors can
be attributed to the porter five forces whiles the macro can also be attributed with the PESTLE factors. In
all these, the organization has no or less control over these factors.

How the external environmental factors can influence the marketing activities of KFC.

The external micro environmental factors that influence the marketing activities of KFC can be analyzed
using Porter's Five Forces framework. These factors include the threat of new entrants, the threat of
substitutes, the bargaining power of customers, the bargaining power of suppliers, and competitive
rivalry.

1. Threat of New Entrants:

The fast-food industry, including KFC, has high treat of new fast foods entering the market. These treats
include the change in preferred taste, low startup capital, offering of similar food, and better dining
experiences which may attract customers away from KFC. KFC must continue to provide exceptional
customer service to help retain their customer base.

2. Threat of Substitutes:

The fast-food industry has numerous substitutes, including local restaurants and other fast-food chains.
The availability of these substitutes, low switching costs, and affordability make the threat of substitutes
high for KFC.

3. Bargaining Power of Customers:

Customers have a high bargaining power in the fast-food industry. They have a variety of options to
choose from, including KFC's competitors. Customers can easily switch to alternatives without incurring
significant costs. This high bargaining power of customers puts pressure on KFC to provide competitive
prices and quality products.

4. Bargaining Power of Suppliers:

KFC relies on suppliers for key raw materials like chicken, soft drinks, and potatoes. While there are
multiple suppliers to choose from, the basic nature of these raw materials and the lack of product
differentiation give suppliers relatively low bargaining power. However, there is a potential threat of
suppliers forward integrating and selling their own products.

5. Competitive Rivalry:

The fast-food industry is highly competitive, with KFC facing fierce rivalry from competitors like
McDonald's. The competition is not only based on product offerings but also on pricing and customer
attraction. The presence of similar products and low switching costs further intensify the competitive
rivalry.

By conducting the PESTLE analysis, we can identify these factors and understand how they influence
KFC's marketing activities.

1. Political stability: Political instability in a country can affect KFC's operations and marketing
activities. Unrest or conflicts can disrupt the supply chain and consumer behavior, leading to a
decline in sales. More so, peaceful political environment help grow businesses within due to
organizations been able formulate long term strategic plans for their business hence KFC.

2. Economic Factors:

- Economic conditions: The overall economic conditions of a country, such as GDP growth, inflation
rates, and consumer purchasing power, can impact KFC's marketing activities. During economic
downturns, consumers may cut back on discretionary spending, affecting KFC's sales

- Exchange rates: KFC operates globally, and fluctuations in exchange rates can impact its profitability.
Changes in exchange rates can affect the cost of raw materials and ingredients, which can influence
pricing strategies
3. Sociocultural Factors:

- Cultural preferences: KFC needs to adapt its menu and marketing strategies to cater to different
cultural preferences and tastes. For example, in India, KFC offers vegetarian options to appeal to the
large vegetarian population

- Health consciousness: Increasing health consciousness among consumers has led to a demand for
healthier food options. KFC needs to address this trend by offering healthier menu items and promoting
them in its marketing campaigns

4. Technological Factors:

- Digitalization: The advancement of technology has transformed the way businesses operate and
market their products. KFC can leverage technology to enhance its marketing activities, such as online
ordering platforms, mobile apps, and digital advertising

- Social media: KFC can utilize social media platforms to engage with customers, promote new products,
and gather feedback. Social media marketing can help KFC reach a wider audience and build brand
loyalty

5. Environmental Factors:

- Sustainability: Increasing environmental awareness has led to a demand for sustainable and eco-
friendly practices. KFC can incorporate sustainable initiatives, such as using biodegradable packaging and
reducing carbon emissions, in its marketing activities to appeal to environmentally conscious consumers

6. Legal Factors:

- Food safety regulations: KFC needs to comply with food safety regulations in each country it operates
in. Failure to meet these regulations can lead to legal issues and damage the brand's reputation

- Labor laws: KFC must adhere to labor laws and regulations, including minimum wage requirements and
working hour restrictions. Violations of labor laws can result in legal consequences and negative
publicity