NTRODUCTION

KFC is a world famous chain of fast food restaurant. It was found in 1952 by Colonel
Harland Sanders. KFC is also known as Kentucky Fried Chicken. KFC headquarters is
located in Louisville, Kentucky, in the United States. KFC sells chicken pieces, salad,
sandwich and wraps but there main food item is fried chicken. They have stores in 109
countries and KFC operates more than 5200 restaurants and 15000 units around the
world. They have selling more than 300 products. Every day they are serving more than
12million customer in the world. KFC is part of Yum! Brands, Inc., the world’s largest
restaurant company in terms of system restaurants, with more than 36,000 locations
around the world. The company is ranked 239 on the Fortune 500 List, with revenues in
excess of $11 billion in 2008. So this report is evaluating their strategies, development
and service by analytic methods for instance PESTLE, SWOT and Porters five forces
analysis.

KFC’S STRATEGIC PLANNING

KFC have perfect and many strategies planning for their growth. They introduce variety
menu, desert menu and buffet to restaurant. They are aiming particular foods for certain
area and they are trying to open small food count all over the area for their sales. They
open small food count around hospital, university, stadium, shopping mall and airports.

They are trying to focus on customer satisfaction. So they are more customers friendly
and faster so they can attract more customers in their sales. They are giving food which
is healthier than others and they are offering some sort of promotion so these sort
strategies are using for their growth

KFC-J, with its partner Mitsubisi, it is strongly placed to Japan, and growth can proceed.
It is necessary to observe of any new participants, but more attention should be turned
on KTTHK.

KTTHK – the various markets, but all – economic tigers with market segments to which
KFC would address more from the firm point of view (fashion) than price prospect (fast
food – not always the cheapest source of meal in foreign markets). Certain people in
these markets could be indignant potentially at a Japanese head (Ohkawara) the
American chain, entering into the market considering stories of the countries with Japan,
thus, from the political point of view having Mayer, proceed within a year, or two it
could be longer better from the point of view of public relation. Besides, as it was with
KFC so long with a good track record, despite its lacks he is still valuable manager to
keep. Mayer could find more politically convenient ways to inform requirement in
KTTHK to show results, probably to spend some time personally with Uestonom in these
countries and development of the strategic plan in a tandem so that Ueston felt that it is
connected with the new plan. Purchase of having management – in in critical in relation
to successful performance of strategy.

In addition, essential investigation of a site is important for Seoul, Bangkok, and

Island/kouluna HK, as the basic marketing of a fast food (a product, the price, the
PLACE, encouragement), requirement – high movement, fashionable trading area with a
considerable quantity of young buyers. Probably Mayer could go on some boy scouts of
a site w. All four of these city markets have a rich delivery of new repeated clients, in
addition to tourist dollars. The site is key for expansion KFC in these areas with certain
researches to and to young transport samples of workers of office/retail of students. The
reference to their tastes is less important than a site in “hot” area, as these markets – all
intention of emulation to the “American” culture.

I would like to see KFC, and all other establishments of fast food do the food
information accessible to clients. Advanced in years that I and my family traveled in
these Asian countries, we saw disgustingly obvious, fast deterioration of health of the
young people (excess weight, spots). Taiwan and Hong Kong especially are guided by
formation, thus, everyone in general considers these establishments as the filled
students who chew on fast food, studying their plentiful homework. Business
profitableness – good, responsible business and profitableness is better.

BUSINESS ENVIRONMENT OF KFC

MACRO ENVIRONMENT

Macro environment of KFC analyze by PESTEL analysis, which are political, economical,
social, technological, environmental and legal

PESTEL ANALYSIS
Political

The operations of KFC are affected by the government policies on the

regulations of fast food operation. Currently world countries government are controlling
the

marketing of fast food restaurant because of health concern such as

cardiovascular and cholesterol issue and obesity among the young and
children in the country. Governments also control the license given for open

the fast food restaurant and other business regulation need to follow such as

for a franchise business. Good relationship with government in giving

mutual benefits such as employment and tax is a must for the company to

succeed in any foreign market. KFC is caring about animal rights and they are issuing
labeled food product as government order.

Economic

Though for last 1 year there was economic slowdown all across the globe but the sales
of KFC and other fast food chains did not slow down to that extent

that of other sectors in. The GDP (Purchasing Power Parity) is estimated at

2.965 trillion U.S. dollars in the year 2010. The GDP- per Capita (PPP) was

2700 U.S. dollars as estimated in 2008. The GDP- real growth rate in 2007

was 8.7%. India has the third highest GDP in terms of purchasing power

parity just ahead Japan and behind U.S. and China. They are getting support from their
major suppliers so they can grow and withstand without any difficulty. They have perfect
strategy so they have good strength in growing market.

Socio cultural

There has also been a continuous increase in the consumption of fast food in

the world. The social trend toward fast good consumption is changing and UK

has seen an increase of 90% fast food consumption from the year 2002-

2007. This increase is far greater than the increase in the BRIC nations of

Brazil (20 per cent), Russia (50 per cent) and China (almost 60 per cent).

Thus this shows a positive trend for fast food industries in UK.
Technological:

The UK fast food Industry is heating up with a lot of foreign players

entering the Indian market. The technological knowhow and expertise will

also enter the Indian market with an increase in competition. With the lower

rates and increase technology the fast food counters are attracting youth by

giving them attractive deals. For e.g. KFC and Domino’s pizza. For a fast

food restaurant, technology does not give a very high impact on the

company and it is not a significant macro environment variables. However

KFC should be looking to competitors innovation and improve itself in term

of integrating technology in managing its operation. For example in

inventory system, supply chain management system to manage its supply,

easy payment and ordering systems for its customers and wireless internet

technology. Implementation of technology can make the management more

effective and cost saving in the long term. This will also make customer

happy if cost savings results in price reduction or promotional campaign

discount which will benefits them from time to time.

Environmental

As one of world largest consumer of beef, potatoes and chicken, KFC

always had been critics for world environmentalist. This is because high

consumption of beef causing the green house effect by methane gasses

coming from the cow’s ranch. Large-scale plantation has effect the

environment and lots of green forest opening for plantation activities.

Vegetarian environmentalist criticizes the fast-food giant for cruelty to

animals and slaughtering. In America, once KFC want to introduce whale

burger causing uproar because whales are endangered species. Before using

paper packaging, KFC once had been criticized for being insensitive to

pollution because of using ne based packaging for its food products. Imagine

millions of people purchase from fast food operator and how is the impact to

world environment by throwing away those hard to recycle packaging.

Our world is getting concern on environment issue and business operating

here should not just care for profit, but careful usage of world resources for

sustainable development and care for environment safety and health for our

future generation. Critics and concern from all public or activist should be

review and support if necessary to ensure we play our social responsibility

better.

Legal factor

As a certified fast food operator, there are many regulations and procedures

that KFC should follow. For example is the Halal certification that becomes

a concern to Muslim consumers. KFC should protect its integrity and

consumer confidence by ensuring all materials and process are as claimed or

must followed.

Other legal requirement that the business owner should follow as stipulated

in laws are such as operating hours, business registration, tax requirement,

labor and employment laws and quality & environment certification (such as
ISO) in which the outlet has been certified. The legal requirement is

important because the offenders will be fined or have their business

prohibited from operating which can be disastrous.