The KFC Strategy Jeff Williams Principles of Management Columbia Southern University KFC has decided to go with a global strategy aimed at franchising, but this decision could hurt the company in their largest market, the United States. Franchising is when a company sells another organization, or franchisee, the rights to use a brand name in return for a lump sum payment. KFC has increasingly used this strategy to the point where less than 5% of all the stores are actually owned by the company (Jones & George, 2014). KFC’s decision to go with a global strategy has led to success in the global markets and a lack of success in the U.S. market. While the perception of KFC by U.S. consumers and the performance of the U.S. stores have fallen, KFC in other countries has been a huge success.
2.Exploratory research of the attribute selection The company’ view information was searched from DATAMONITOR 360 website and annual report of McDonald’s 2010. And a brief analysis about market strategies for fast food restaurant was also for the reference of attributes selection. With the attributes from several market strategies reports in McDonald’s as well as Fast Food Restaurant Industry and the SWOT analysis from the DATAMONITOR, eventually 7 attributes were selected, namely, expensive, various menu, high service speed, high calorie content, nutritional, convenient, and novelties for children. As the top competitors in Fast Food Restaurant industry, Burger King, Pizza Hut, Wendy’s and KFC were also selected into the BrandMap for competitive analysis.
Supplier Qualification How could the company improve supplier co-operation and what would you consider as a program for supplier relationship management. Thinking of the food business what could be done by the restaurant chain to qualify suppliers and create closer relations. Try to investigate and illustrate best practices e.g. from fast food chains. When the global economic crisis strikes the parts of world, there are only a few industries or sectors that remain impassive from its consequences.
These are the eating places, bars and taverns, and lodging places restaurants. The list is represented in the classes; full service, quick service, and fast casual. CMG faces major competition from Qdoba in the fast casual segment and Taco Bell in the quick service segment. CMG Business Operations The chains of restaurants are located all over the world with major concentration in America. It worthwhile to note that all the CMG restaurants are wholly company owned and few of them are on partnerships.
Dominos Pizza Principles of Marketing 23 February 2013 Abstract When it comes to expanding business overseas, the most important thing is the ability for the organization to identify the best location and also understand the options available. If an owner already has a familiarity with a country, the choice may be obvious. If, on the other hand, a business owner is looking at a country to increase its market share, expanding its brand value, diversification and tax advantages then there should be thorough research to identify which countries will provide the owners the best benefit. For example, some countries offer tax incentives only to companies that start or file articles of incorporation there. Others may offer advantages to nearly any company.
Porter five forces Whole Foods Inc: Whole Foods Market Inc operates within the industry for food and drug retailing. Food retailing is a large, intensely competitive industry. Their competitors include local, regional, national and large international supermarkets, natural food stores, warehouse membership clubs, small specialty stores and restaurants(Whole Foods Market 2011). We will limit the analysis to supermarkets that operate in the U.S market. Further we will limit the industry to Porters definition from 2008, that if the industry structure for different products share the same buyers,suppliers,barriers to entry and so forth they can be defined in the same industry.
Their intention was to become dominate in the market and become very successful. This is not only important to the organisation but because Germany provides a gateway to Eastern Europe Markets which is very beneficial. Wal –Mart was forced to purchase two weak chains which were interspar and wertkauf which also included other stores which were in various sizes. This made them at the bottom of the supply chain leaving the top five chains in the German food retailing market account for near enough 80percent of the overall sales. Other advantages are that large food retailers and the discount retailers learn to adapt and use the same strategies which have allowed it to be dominating in US market in international expansions.
Problem Identification Pizza Hut experienced the effects of Domino’s expansion in its company-owned stores. These stores controlled most of the large, densely populated metropolitan markets. By late 1985 , Pizza Hut senior management was convinced that Domino’s dominance of the fast growing delivery segment was the major threat to pizza Hut’s continued leadership of the overall pizza market. By 1986, Domino’s had begun to extend
We are going to present you two international firms which are McDonald’s and Quick. Both are in the restaurant industry and are positioned only in the fast-food sector. We’ve chosen those two companies because of the high reputation they have and the way they are implemented in our consumption patterns. Indeed, since their creation both companies have experienced a rapid development. We’ll try to explain what the key of their success was and how they managed their international expansion.
On top of that, to increase their organization, the company uses massive technologies to strengthen their restaurant’s operations. Conversely, with the relatively small scale of operations compare to their competitors, marked the weakness of the company. Another weakness of the company is the increase in expenses which affected their margins. To improve the company’s market position and minimize the weaknesses, the company should open new restaurants and expand internationally. Despite the weaknesses, the Cheesecake Factory still has the strong presence in the United States market due to their solid history and background.