Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. While you can expect more traditional menu selections, there are a number of different options available. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. In the United States, McDonalds has a 42% share of the fast-food hamburger market. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. KFC operates in the fast-food industry just like McDonalds. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. McDonalds owns 82 of their locations and can rent them out to franchisees. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. So far, McDonalds seems to be winning the battle. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). The idea is to give customers a more natural product. By John Dudovskiy. Advertising is the most fundamental way KFC promote its products. And in doing so, it reduces a lot of its risk, both in the short and long term. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. Richard and Maurice, An organisation can also protect shareholders from losing their investments by ensuring that risks that lead to a reduction of competitive advantage are proactively mitigated. Business Week, 18-19. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. The Walt Disney Company bought it in June. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. This process has the aftermath of reducing carbon prints for many organisations. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. In spite of strong competitors likes KFC Subway etc. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. The product ranges originality factor ensures a fixed or even growing share of the market. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. Need a custom Assessment sample written from scratch by It has more than 35,000 branches in more than 120 countries. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). The QSR industry has grown and is populated by a very large number Clock is ticking and inspiration doesn't come? 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. McDonalds competitors in the United States and the United Kingdom are also direct competitors. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. The main items on its menu include hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. The goal was to initiate a programme for phasing out the use of polystyrene food packaging to raise the number of recycled food boxes and containers. However, apart from that it has some other sources of competitive advantage too. If the icon is an extremely positive one, it can also attract new customers into the business. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Competition in the fast food industry has grown intense due to the rise of several local and international brands. McDonalds is constantly serving their customers since 1955. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. "McDonald's and KFC Corporate Responsibility." McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. Can they constitute good examples of corporate citizens in the US fast-food industry? This allows them to provide a superior experience to their customers. View this and more full-time & part-time jobs in McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. IvyPanda. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. McDonalds focuses on the development of business models, which pay attention to employee concerns. Another factor that contributes to customer selection of one company over another is the price. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. This immense success of McDonalds is attributed to a number of factors such as its incredible emphasis on engagement of consumers, appropriate leaderships that fits the business of the organisation, and exceptional investments of the organisational resources in brand management. June 20, 2022. Which company owns KFC? For the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). Yum Brands, a subsidiary of KFC, which generates more than half of its sales revenue from the Chinese markets, responded by saying that the scandal had longer effects than the company had thought (Hsu 2013). Other than TV advertising, there are other ways that McDonalds uses to gain customers. The company has a strong financial position and KFC struggles to address issues that influence the sustainability of its supply chain. Hence, McDonalds is still cheaper than KFC. KFC also has a strong presence in China, which is a key growth market. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. McDonald's is arguably the largest global fast food chain in the The companys menu and infrastructure provide a high level of service. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. 2, pp. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world. Icons are like the logos in any other business. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Its restaurants serve a substantially uniform menu except for minor regional variations. McDonalds brand value is unrivaled among its competitors in terms of brand value. When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. This is where everything about the restaurant industry is taught. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. McDonalds and KFC pay incredible focus on CSR in their derivation of strategies for ensuring sustainable supply chains, especially following the heavy emphasis from green movements across the globe for an organisation to produce and distribute green products in the effort to curb environmental degradation. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. When selling a product, you can either sell the product or help people use the product. These include billboards, radio ads, and digital ads. The lifestyle around here has changed in so many ways from when our parents were children. This is one of the hallmarks of McDonalds success. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. McDonalds (MCD), Burger King (BKW), Carls Jr., Papa Johns, and Pizza Hut are among the companies that must supply Shanghai restaurants, according to a government statement. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. The database is updated daily, so anyone can easily find a relevant essay example. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. In 1987, it was amongst the first western-based organisations that opened new business branches in China. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. McDonalds has a competitive advantage in terms of speed of service. Is KFC healthier than McDONALDS? Each of these gases contributes a given proportion to global warming. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. 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