KFC Case Study

KFC Case Study Introduction

SWOT Analysis provides an organization with the opportunity to recognize its strengths, weaknesses, and internal as well as external threats. PESTEL analysis is a framework used to examine and analyze the macro environmental elements that affect the growth of a company.

KFC SWOT

KFC Analysis

As per the case study of KFC is considered to be the second largest food chain industry in the world with 18,875 outlets in 118 countries (Online.kfc.co.in, 2019). They have expanded their business in foreign countries like China, India, the United Kingdom, and Australia. They attract both the vegetarian and non-vegetarian people with a variety of veg and non-veg food items. Their secret recipes of chicken attract chicken lovers all over the world. Using eleven original and exotic herbs and spices distinguishes them from other rival companies. Based on the case study of KFC a copy of the recipe signed by colonel Sanders is kept safely inside a protected vault in the company’s headquarters at Louisville. KFC being a subsidiary brand of Yum! Brands, gets the opportunity to collaborate with brands like Taco Bell and Pizza Hut since Yum! Brands, one of the largest restaurant companies also owns these two brands. Their partnership strengthens them as they attract more people by offering combination dishes (Bhasin, 2019).

As per the case study of KFC they have several weaknesses as well. Just like any other fast food chains KFC is facing difficulty in selling their products that contain unsaturated fats and other unhealthy calories. In recent years KFC has made the headlines when many consumers raised their voice against their food quality. Conflict between KFC and other franchisees, lack of support staff and dishonest suppliers led to the closing of many outlets of KFC (Wu, and Cheng, 2019). Expensive lawsuits against them have put them into trouble. Competitors like McDonalds, Dunkin Donuts make it difficult for KFC to survive. KFC still have an opportunity to recover the loss by expanding their service in different territories and by they can add more food items that contain healthy ingredients like other rival companies.

KFC PESTLE

Analysis

As per the case study of KFC, the recent price hike of raw materials including poultry products and the high sales tax levied by the federal and state government have a great impact on this F & B industry. As per Long et al. (2018), nutritionists from all over the world have protested against KFC for serving unhealthy food. As per the case study of KFC, official website to keep in touch with customers and a software system to keep track of their profit and loss is beneficial. Based on the case study of KFC, they provide their customers with home delivery service and recent tie ups with food delivery apps like Zomato and Swiggy have helped them reach more people (Online.kfc.co.in, 2019).

As per the case study of KFC in 2016 no-epoch settlement with the US government had a great impact on the F & B industry. United States Food and Drug 1938, Food Safety and Inspection Services 1977,Poultry Product Inspection Act 1957 ensures that the company servers healthy food (hg.org, 2019). In the US organisations like Allfoodbusiness.com, Food Poisoning Prevention and Centre for Disease and Prevention provide the consumers with an opportunity to raise their voices against F & B industry. Strict laws have often put KFC in trouble. Health awareness programmes have also made people aware of harmful ingredients used by KFC. The lawsuits filed by PETA and other animal rights organisations for cruelty against animals has affected their growth (Bestlawyers.com, 2019).