competitive advantage of kfc and mcdonald's

(2021, August 2). McDonalds customers have a lot of power if the restaurant wants to keep its customers. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. It is headquartered at Louisville, Kentucky. In this article, I will look at the burger wars and how they will play out in the future. must. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. They offer hamburgers, french fries, breakfast menu items and many more. 7 How is KFC different from the rest of the world? In 1987, it was amongst the first western-based organisations that opened new business branches in China. They are the leaders of the industry and provide training to their franchisees. 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. Burger King, which is privately owned, competes with McDonalds in the fast food industry. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. They want their food to be good in terms of quality and low on calories. One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. Visit your nearby McDonalds and choose from a menu of Each of these gases contributes a given proportion to global warming. 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. McDonald's and KFC Corporate Responsibility. 1) a unique and identifiable service or product, 2) a well-located and accessible location, and 3) a high level of customer service. They constitute a major supply chain issue at McDonalds and KFC. Web. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. We utilize security vendors that protect and Apply online instantly. Next, is the their Menu. In spite of strong competitors likes KFC Subway etc. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Therefore, the business will increase. In case issues may come up that the supplied products fail to meet the demand placed on them, they have to deal with the challenge of redesigning their products to meet the emerging demands. And in doing so, it reduces a lot of its risk, both in the short and long term. McDonalds is famous for the consistency and quality of its products. Additionally, McDonalds customer service standards are among the highest in the fast food industry. McDonalds menu have much more choice for their customer to choose if compare to KFC. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! Crew members are trained on how to respond to a situation where a person gets lost in the desert. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. They use four steps of training for each employee. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. 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 also managed a large supply chain to ensure the availability of good quality raw material. This figure escalated to $142 billion in 2006. Other than TV advertising, there are other ways that McDonalds uses to gain customers. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. In addition, they offer a seasonal and regional menu option. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Apart from intense competition and pricing pressure, there are other reasons too that businesses have to struggle to retain their existing customers and build strong customer loyalty. Adopting green strategies for supply chain management is not only a measure of ensuring sustainable supply chain management, but also a gauge of ensuring that an organisation behaves and acts in a socially responsible manner. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. So far, McDonalds seems to be winning the battle. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. Monopolies can also reduce competition and stifle innovation. McDonalds serves over 69 million customers each day. Nevertheless, the corporations CSR manager in the UK and Ireland confirms that its engagement in CSR has taken a long time to be embedded in its business model (Idle 2011). McDonalds has always tried to achieve higher customer satisfaction. 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. Wilhelm, R. 2011, McDonalds Formal Business Structure. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. McDonalds have much more branches then KFC around the world. It helps retain customers as well as attract new ones and manage a healthy bottom line. This is where everything about the restaurant industry is taught. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. The success of the organization has been its ability What are the competitive advantages of KFC? Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. They have also developed a very effective marketing strategy. How is KFC different from the rest of the world? Otherwise, rising competition is leading to higher operational and marketing costs. 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 international expansion began in 1980 and had 6,000 locations by the end of 1980. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. Deadline from 3 hours. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. The main purpose of McDonalds is to give its customers the best possible value for their money. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. 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. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. McDonalds competitors in the United States and the United Kingdom are also direct competitors. McDonalds is top competitors which brought the most influence towards KFC company. The Company has established and enforces high quality standards and product specifications. McDonalds was always known for its great values! Web. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. "McDonald's and KFC Corporate Responsibility." Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. 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. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. 2 August. Brands and Dominos to secure that accolade. Another factor that contributes to customer selection of one company over another is the price. 14 no. 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. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). Burger King, which competes with McDonalds, provides high-quality food and memorable service. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. Customer-focused approach brings advantages to KFC. To achieve this goal, the organisation advocates a bureaucratic formal management structure. Talk Radio News is a team dedicated to consumers. 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. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. 1, pp. From this perspective, this paper deploys the concepts of supply chain to discuss various supply chain sustainability issues in the US fast-food industry with reference to KFC (Kentucky Fried Chicken) and McDonalds. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. McDonalds may have to reconsider its product quality as customers become more health-conscious. You get what you pay for when it comes to the dining area in Applebees. KFC ranks second in terms of CEO Score, trailing only UPS. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. I have always been a shopaholic. How to Market Your Business with Webinars? McDonalds restaurants are mainly run through independent franchisees in more than 100 "McDonald's and KFC Corporate Responsibility." Todays customers are both quality and health conscious. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds has built a strong image as a fast food brand that only offers great quality. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. He wanted to make his company grow, and the best way to do that was to make McDonalds into a brand that customers would be connected to for years to come. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. Even though they are same but KFC meal is much more cheaper than Texas Chicken. The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. It first offers some background information on the organisations. KFC is not the only restaurant chain in competition with KFC; there are also competitors such as Chick-fil-A, McDonalds, Wendys, and Popeyes Louisiana Kitchen. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. 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