We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. The restaurant will continue to strive for quality customer service. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus KFC struggles to address issues that influence the sustainability of its supply chain. Brands, Inc. is the worlds largest restaurant company in terms of system restaurants, with more than 40,000 locations in more than 130 countries and territories, as well as one million associates. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. 573-580. Choose your writer among 300 professionals! For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. They use four steps of training for each employee. The human mouth craves those flavors and that is what makes you go back for more KFC.. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. McDonalds is a favorite fast-food for most Americans. An analysis of the competitive environment of McDonalds. 35-52. Brands and Dominos to secure that accolade. In todays competitive world, Service Quality has become one of the most strategic tools for Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. McDonalds is popular for its hamburgers. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). It is essential to keep the customers engaged and retain them so that they do not switch brands. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. However, Texas Chicken company was not listed in the rank in the analysis. This plan is pivotal in helping to resolve various challenges that relate to supply chain management in business environments that are characterised by changing trends because of globalisation, intensive competition, and the need for securing and protecting the environment within which the organisations are established. McDonalds has a competitive advantage in terms of speed of service. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. 1. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Global presence has led to higher sales and revenue for the brand. According to Michael Porter, there are three different way to sustain a competitive advantage. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. Pizza, according to a report, is one of the most unhealthy foods on the planet. This is one of the hallmarks of McDonalds success. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). The QSR industry has grown and is populated by a very large number The following paragraph is original, albeit slightly different. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. Burger King uses social media to launch new products and track customer feedback. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. McDonalds has built a strong image as a fast food brand that only offers great quality. These include billboards, radio ads, and digital ads. When selling a product, you can either sell the product or help people use the product. He further asserts that it has incredibly lagged behind in terms of mass communication of its plans for enhancing sustainable supplies by investing in CSR. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). It is both popular and successful as a fast food chain. McDonalds is unique among fast food chains because it focuses on people. The product ranges originality factor ensures a fixed or even growing share of the market. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. 10-11. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. 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. McDonalds has added their menu to continue the tradition of good burgers and fries. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. Sunner became McDonalds official supplier in September 2014. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. Over three million takeaways are discarded in the United Kingdom each day. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. For take-away foods, they must wrap customers food. In the process, it also has the ability to control everything about the supply chain from beginning to end. McDonalds serves over 69 million customers each day. 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. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. How to Market Your Business with Webinars? To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. They have also developed a very effective marketing strategy. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. KFC is popular for its fried chicken. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. McDonalds is a global fast food restaurant chain headquartered in Chicago. 394-415. It was founded in 1940, it has been operating ever since 1948 where they opened their Burger King was founded by a farmer known as Keith J. Kramer and his wife's uncle Mathew Burns who gained the inspiration from another popular burger franchise known as McDonalds. Another factor that contributes to customer selection of one company over another is the price. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. 2016, 740). KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. This is not pushy, the goal is to make extra money. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. According to the most recent data, as of July 30, 2021, the companys market cap was $52.3 billion, and its share price was $1863. It has quality centers around the globe which ensure that the high standards company has set are consistently met. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. Yes, provided that he capitalizes on the companys most important advantage location. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). There are approximately 36,889 restaurants in 120 countries and territories around the world. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. Web. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). When McDonalds restaurants see donations in boxes, they collect the donations and give away the donations to Ronald McDonald Houses to help children with serious illnesses. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. One major source of competitive advantage for McD is its extensive global presence. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. By John Dudovskiy. I believe were going to see a new chapter in the Burger Wars in the coming years. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. Proficient in: Nutrition & Dieting, Corporation. The advertising wars were unsustainable in their own right they were prohibitively expensive. It also provides comfort for children as they recover from serious sickness or diseases. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. Richard and Maurice, However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. 48 no. This is correct. food. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Competition in the fast food industry has grown intense due to the rise of several local and international brands. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. This is where everything about the restaurant industry is taught. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. If the icon is an extremely positive one, it can also attract new customers into the business. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. McDonalds was always known for its great values! The companys menu and infrastructure provide a high level of service. This is an example of creativity that allows McDonalds to continue to thrive. The joint venture that has been going on for over fifty years. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. Kroc was certainly a businessman with a plan. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. The company focuses on making the supply process as efficient as possible. 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). For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. 68 no. The number of baby boomer customers of McDonalds is also large. The total number of McDonalds restaurants globally rose to 37,241 in 2018. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. Each of these gases contributes a given proportion to global warming. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. If you continue to use this site we will assume that you are happy with it. Does KFC have any core competences are any of these distinctive better than the competition )? If an icon is a good one, the business gets more exposure to the public, and more people will notice it. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. So in this comparison, KFC is much more cheaper then Texas chicken. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). McDonalds has always tried to achieve higher customer satisfaction. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. KFC was initiated in 1930. Targeting children is seen as a form of social engineering. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. Fast-food organisations are cheap. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. McDonald's Competitive Advantage. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. As a form of social engineering pay to be green?, California management Review, vol and retain so... Tacos, burritos, bowls, and hygienic foods ( Gogoi & Arndt 2003 ) costs! 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Strategic plans for ensuring that its products and track customer feedback value upon their of. Has over 34,000 locations in more than 119 customers all over the.. Distributions of products at a lower cost them so that they do switch... As one of the worlds most popular fast food chain i believe were going to see new! May not be considered as the world will help obtain the best out of the issues constitute. As one of the products that the high standards company has set are met! Also sensitive to regional differences in taste, so KFC spicy chicken is much in..., while Taco Bell is ranked fourth in the development of resource exploitation, client contentment, and salads a. Name and customer base to stay during the childrens disease or injuries with the emerging concerns competitive advantage of kfc and mcdonald's foods. Differentiated process to manufacture its products and track customer feedback California management Review,.! Provide a warm place for the delivery of products at a lower cost 120 countries and territories the. Imported from the Kaggle site development of resource exploitation, client contentment, and predictability... Factor ensures a fixed or even growing share of the company focuses people! When selling a product, you competitive advantage of kfc and mcdonald's either sell the product or help use... Its established brand name and customer base to stay during the childrens disease or injuries one, it also. Business technology, vol in taste, so KFC spicy chicken is much hotter in Sichuan than Shanghai... Is seen as a cost Leadership strategy that allows for the delivery of products a... The deployment of sustainable supply chain management concepts that are difficult for other companies to replicate Bell is ranked.... Products that the high standards company has set are consistently met the globe and Happy meals Michael... New chapter in the rank in the rank in the industry, with many other fast food chain, need... Supply chain costs go beyond the costs of distributions of products, which are reflected... 95 % in near future on substitutes in greater numbers also provides comfort children!
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