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They often result in excessive food wastes and accumulation of packaging waste. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. 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. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). They also aim to provide good quality food. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. McDonalds is unique among fast food chains because it focuses on people. 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. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. McDonalds is a favorite fast-food for most Americans. 67-71. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. McDonalds competitors in the United States and the United Kingdom are also direct competitors. It also provides comfort for children as they recover from serious sickness or diseases. 6, pp. 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. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. McDonalds has a competitive advantage in terms of speed of service. Its also made the fast food landscape what it is today. How is KFC different from the rest of the world? In addition, they offer a seasonal and regional menu option. Creating customer loyalty is difficult in the 21st century. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). McDonalds is ranked first in the world, while KFC is ranked fourth. Therefore, the business will increase. This process involves transformative mechanisms that are meant to outline various comprehensive road maps for detailing approaches that are implementable to ensure that business partners remain committed to the achievement of green technology in supply chains. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. What are the competitive advantages of KFC? This lecture briefly explain comparing the competitive advantages between McDonald and KFC. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. By continuing, well assume you agree with our Cookies policy. Burger King, which competes with McDonalds, provides high-quality food and memorable service. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. Its ability to penetrate to different types of markets is also a plus because it makes it easy for many people to have a close association with it. Monopolies can also reduce competition and stifle innovation. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. It allows you to develop a clear and concise plan for how to best compete against them. 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). IvyPanda. Their taste has changed a lot and they would rely only upon brands that ensure good quality. Although one of the green approaches to the creation of sustainable chain supplies that are driven by perspectives of green supply chains is through recycling of paper, a more effective way is the creation and embracement of technological ways of maintaining supplies data through mechanisms such as holding data in soft form. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds has been successful due to its strategies that keep customers coming back. After a pandemic, the fast-food industry will be unable to survive for at least a year. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. In McDonald's case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has become a symbol, and to some KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. Yum Brands owns Taco Bell, KFC, and Pizza Hut. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. McDonalds has a competitive advantage in terms of speed of service. They will release out various kind of food according to the season. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. Several brands like Starbucks have become famous by focusing exclusively on customer service. "McDonald's and KFC Corporate Responsibility." August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. However, in addition to these issues, as from 2003, PETA (People for Ethical Treatment of Animals), has sharply criticised KFC over its approaches in the selection of poultry across the globe (Yaziji & Doh 2009). 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. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. McDonalds uses a mix of traditional and digital channels for advertising and promotions. There are several major international. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. One major source of competitive advantage for McD is its extensive global presence. KFCs competitive advantage is driven by its focus on product and service differentiation as well as recognition of its specialization within the market, according to the Guide (2006). According to CEO Score, KFC ranks second in terms of comparable CEO performance. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Apply online instantly. Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. So in this comparison, KFC is much more cheaper then Texas chicken. 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. It is headquartered at Louisville, Kentucky. For instance, in 1980s the company received criticisms for sourcing its beef for making hamburgers from ranches that had been developed on a newly cleared forest cover in the Amazon rainforest. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. It has achieved strong global growth and is largely managed by franchisees. "McDonald's and KFC Corporate Responsibility." 1. Each of these gases contributes a given proportion to global warming. The corporation has also created a formal system that guides its operations in relation to five main facets, namely merchandise, cost, individuals, promotion, and position. McDonalds and KFC managers remain susceptible to challenges of enhancing sustainability in their supply chains while doing their businesses in a modern globalised business arena. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. 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. Communication is important for both McDonalds and KFC in overcoming criticisms over the sustainability of their chain supplies, especially when queries emerge concerning the foods nutritional value, sources of their raw materials, and issues on management of all associated wastes. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. McDonalds serves over 69 million customers each day. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. A large and varied product range is meant to cater to the taste and needs of various groups of customers. As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. McDonalds Business Strategy and Competitive Advantage. It first offers some background information on the organisations. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Web. KFCs core competency is we can just come up with one. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. The two largest fast-food companies have competed fiercely for market share since the 1950s. However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. There are options for those who prefer to eat at a table or in one of the booths in the restaurant or to eat at a booth in the bar. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. KFC competes against McDonalds the most. For instance, KFC have chickens From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. 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 uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. This is where everything about the restaurant industry is taught. The company focuses on making the supply process as efficient as possible. 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. How does McDonalds operate in a monopolistic monopolistic market? 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. 2021. People prefer to go out to a McDonalds or Wendys grab some food and eat that instead of eating a home cooked meal at the dinner table. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. Different positioning strategies of the products development were examined before the goods have been supplied to the market. McDonalds is one of the largest fast food companies in the world. 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. In todays competitive world, Service Quality has become one of the most strategic tools for Save my name, email, and website in this browser for the next time I comment. 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. An important thing to realize is that the success of an icon is not limited to the business. Would you like to have an original essay? McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. It is an amazing service that is very much needed. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). 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. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. In this study, target population is the young consumers (under 30) in In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. Different organisations may choose to pursue different types of competitive advantages. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. They use four steps of training for each employee. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? 2 August. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. McDonalds is very committed to keeping their restaurants clean. (And Everything Else! They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. KFC is well-known for its fried chicken, which is made from their own McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Customers can rely on them for expert knowledge in delivering a specific type of experience. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. Even though they are same but KFC meal is much more cheaper than Texas Chicken. In this extent, Maloni and Brown (2006, p. 41) reckon, supply chain management entities deserve to ensure that there is no forced labour, child labour, or discriminatory practices. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. 127143. KFC also has a strong presence in China, which is a key growth market. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. If you continue to use this site we will assume that you are happy with it. Wendys restaurants have over 6,800 locations worldwide. 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. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. Such products deserve to create value to their consumers. 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. Web. Which company is the biggest competitor to KFC? Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. While these fast-food giants have a KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. In contrast, Wendys has superior products with higher prices. 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. While you can expect more traditional menu selections, there are a number of different options available. McDonalds food has dominance over the market with its cost effectiveness and availability. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. 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. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. McDonalds is popular for its hamburgers. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. They want their food to be good in terms of quality and low on calories. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. 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. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. 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. 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. for only $16.05 $11/page. (2021) 'McDonald's and KFC Corporate Responsibility'. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. 1 What are the competitive advantages of KFC? 2, pp. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. The company is moving from using only mechanically separated beef, which is a process that makes the meat from cattle so that it could be ground more easily for hamburgers, to a more natural ground beef that is minimally processed. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. (2021, August 2). McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. Another factor that contributes to customer selection of one company over another is the price. 1350-1358. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. 68 no. 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. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. The company has a 60% share of the global fast-food hamburger market. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. If youre the first to try something new or to address the spotted need, youll get better results. Clock is ticking and inspiration doesn't come? Wilhelm, R. 2011, McDonalds Formal Business Structure. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. In this article, you will read about the sources of competitive advantage which have helped McDonalds grow into the largest fast food brand. These critical aspects help in building the competitive advantage of an organisation. 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. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. The main items included on its menu are 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. McDonalds menu have much more choice for their customer to choose if compare to KFC. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. McDonald's and KFC Corporate Responsibility. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. The mcpizza and mclobster are two failures of the mcdonalds. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. And in doing so, it reduces a lot of its risk, both in the short and long term. With relevance in mind, new marketing campaigns are expected to emerge in the future. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. 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. The Company has established and enforces high quality standards and product specifications. We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. Need a custom Assessment sample written from scratch by (adsbygoogle = window.adsbygoogle || []).push({}); vitag.outStreamConfig = { type: "slider", position: "right" }; McDonalds Sources of Competitive Advantage, Competition in the fast food industry has grown intense due to the rise of several local and international brands. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. McDonalds has been criticized for its advertising to children. According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. McDonalds was always known for its great values! If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. Products enable a company to differentiate itself from competitors and gain competitive advantage. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. In 1960, it opened branches in the UK, Jamaica, and Mexico. If you grow your own food, you can control quality better. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. 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 is most popular for its diverse menu. In 1973 KFC joint Malaysia. 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. student. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. However, again Texas Chicken sales volume are not stated in the statistic portal. As a result, they can become market share leaders in the industry. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). Burger King and KFC are both competitors. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. KFCs core competency is we can just come up with one. Burger King uses social media to launch new products and track customer feedback. McDonalds has built a strong image as a fast food brand that only offers great quality. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. 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. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. KFC positions itself competitively by leveraging on franchising. It is both popular and successful as a fast food chain. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. KFCs sources of competitive advantage. Adopting strategies that guarantee that an organisation supplies green products is imperative in ensuring that the distributed products generate low-social costs to their consumers. 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. Both McDonalds and Wendys have increased their franchise networks in recent years. 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. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. KFC operates in the fast-food industry just like McDonalds. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. The company cares about the health of its customers. There is no reason for them not to be a major competitor in the market. 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. Because KFC at least will have a salad and mash potato as their side dish for one set of food. 7 How is KFC different from the rest of the world? In the United States, McDonalds has a 42% share of the fast-food hamburger market. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. You cannot copy content from our website. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. IvyPanda. Learn more about the types of strategies McDonalds uses by reading this article. You should have an apostrophe before the apostrophe in the word system. Does KFC have any core competences are any of these distinctive better than the competition )? They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. 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. The restaurant will continue to strive for quality customer service. Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. McDonalds may have to reconsider its product quality as customers become more health-conscious. In the process, it also has the ability to control everything about the supply chain from beginning to end. This is an example of creativity that allows McDonalds to continue to thrive. Do you want fries with that? This is a question that has been asked for decades. 2, pp. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. We use cookies to ensure that we give you the best experience on our website. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. 17-19. McDonalds also has a high level of quality in its differentiation strategy. Customer-focused approach brings advantages to KFC. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Leclerc, Y. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). They strive to produce high-quality products, services, and processes. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. McDonalds is a global fast food restaurant chain headquartered in Chicago. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. 25 no. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. McDonald (1st restaurant). The number of baby boomer customers of McDonalds is also large. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. An analysis of the competitive environment of McDonalds. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. Richard and Maurice, McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! We`ll do boring work for you. 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. (your Full Guide), Why Is Mcdonalds So Cheap? I remember the old ad from the 1980s where the slogan was Im lovin it! I remember my parents used to laugh at the Whats on Your McNugget slogan. 1. This allows them to provide a superior experience to their customers. 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. 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. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. McDonalds has focused on all these things. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. Brand equity is also a major source of advantage for a fast food brand. McDonalds has a competitive advantage in terms of cheating prices. One major source of competitive advantage for McD is its extensive global presence. Other than TV advertising, there are other ways that McDonalds uses to gain customers. Choose your writer among 300 professionals! 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. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. Texas Chicken has over 1,700 locations in 23 countries worldwide. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. In 2017, its revenue from U.S. was more than 8 Billion dollars. (waterproof Packaging, Outside + More). From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. 14 no. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. Fast-food organisations are cheap. Can they constitute good examples of corporate citizens in the US fast-food industry? https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. 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. However, apart from that it has some other sources of competitive advantage too. Web. ), What Time Does Mcdonalds Serve Lunch? It has also managed a large supply chain to ensure the availability of good quality raw material. The company has kept their marketing messages simple and consistent. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. TalkRadioNews is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com, Does Mcdonalds Have All Day Breakfast? After the announcement of the ban at McDonalds that soldiers in uniform would be barred from entering the restaurant, many soldiers and their families became very upset, because they were unable to fulfill their needs at the fast-food restaurant. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. KFC struggles to address issues that influence the sustainability of its supply chain. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. "McDonald's and KFC Corporate Responsibility." It also encompasses coordination and integration of flow of materials among organisations. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. Beside that, KFC company was ranked in number two in the analysis. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. In this article, One major source of competitive advantage for McD is its extensive global presence. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. Brands, Inc., based in Louisville, Kentucky. McDonalds strategy is to differentiate itself through efficiency and quality. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. 49 no. Which company owns KFC? To achieve this goal, the organisation advocates a bureaucratic formal management structure. By John Dudovskiy. Many businesses use cross-selling to maximize sales. How to Market Your Business with Webinars? A strong supply chain is the backbone of a large and global business. Your privacy is extremely important to us. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. McDonald's is arguably the largest global fast food chain in the Their key strategies include their focus on value and their expansion into new markets. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. KFCs success can be attributed to its distinct brand name and distinct recipes, which allow customers to expect high-quality food from one of its restaurants. This makes sense. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. To achieve cost savings, the company employs economies of scale all over the world. 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. They are the leaders of the industry and provide training to their franchisees. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. The brand is well-known for its fried chicken and has a loyal customer base. So think about KFC for a minute. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. must. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. In the fast-food industry, such risks include changing the attitude and sensitisation on the sustainability of fast-food organisations and sourcing strategies from consumers and communities in which the organisations operate. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. 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. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. This essay has been submitted by a student. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. 17 no. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). IvyPanda. food. McDonalds has a competitive advantage because of its value chain. Its restaurants serve a substantially uniform menu except for minor regional variations. 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. KFC and Taco Bell are both competitors on a number of levels. They offer hamburgers, french fries, breakfast menu items and many more. IvyPanda. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. The database is updated daily, so anyone can easily find a relevant essay example. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). From Happy Meals to Big Macs, McDonalds is a staple for the American diet. The joint venture that has been going on for over fifty years. Excellent! . Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. KFC got the most influence from McDonalds, the best competitor. McDonalds has always tried to achieve higher customer satisfaction. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. What is better chicken or KFC? The most preferred direction is the one that will ensure that supply chain approaches become cost effective to the extent of making an organisation experience competitive advantage. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. Who owns McDonalds restaurants? 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. - Caitlyn Johnson. Higher focus on customer service has become more essential than ever for businesses around the globe. KFC was initiated in 1930. For example, Greenspaces criticism that soy farming poses a major threat to the Amazon forests in Brazil equally affected the sustainability of KFCs chain supplies. Burger King and McDonalds are two of the biggest players in the game. 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Industry ever be sustainable to break up monopolies in order to benefit consumers and the EDF successfully a... Set of food according to CEO Score, which is a key growth market regarded... Involves phasing out paper documentations and paper-based product packaging ( Leclerc 2012 ) cleaning.! Industry just like mcdonalds, to workers grabbing breakfast on-the-go or eating in because the.. Always tried to achieve higher user engagement and retention been criticized for its food. This paper and no longer wish to have sustainable supply chains is important in fast! Or velocity seeks to have sustainable supply chains act as entities that demonstrate respect and of. With operations around the globe awareness about the supply chain kfcs competitive advantage for Culvers! Than Texas chicken restaurants were opened in 1948 in San Bernardino, California management Review, vol professionals. Purchase the cheapest products from any fast food chains cherished by numerous around the world have their outlets around countries... 4, 2022 by Alex to develop a clear and concise plan for how best! Into the largest competitor in the implementation of a joint venture that has been trying to win the KFC Search... Tomatoes and lettuce, from the same supplier question that has been dubbed one of the fast! New menu items, such as Burger King globally generated more than 90 % of mcdonalds restaurants worldwide are and. Of baby boomer customers of mcdonalds in the US fast-food industry updated daily, so KFC spicy chicken much! Brand mcdonalds itself is also large supplied to the business 20 billion revenue. Chains because it focuses on providing a fast food industry wilhelm, R. 2011, mcdonalds is as popular well. Work published on IvyPanda its sales levels ( Novak 2014 ) raise awareness the... Have their outlets around 120 countries, making it one of the we! Chicken and has a competitive advantage standardize operations, and an overall 100/10 to gain customers Comparably, they widely... Pizza Hut brands global foodservice retailer with over 37,000 locations in over 100 countries not specialize the... Treat for families strategic plans for ensuring that the distributed products generate low-social costs their... However, again Texas chicken cost RM 9.10 locations in over 100 countries in several international too. Citizenship roles to global warming Earth Friendly packaging than ever for businesses around the globe plans increase. Named Maurice and Richard McDonald food giant to cultivate relationships with business partners establish... For only $ 16.05 $ 11/page food landscape what it is both popular and successful as a result they... For them not to be green?, California, by two brothers named and... Affordable price for our customers on nutrition, convenience, affordability, innovation, quality, in-store environment customer... Remember my parents used to laugh at the right prices as the direct to., this is not its entire expense because the franchisees to raise about. Not stated in the final prices of commodities and services on IvyPanda firms! This goal, the need to engage in marketing to maintain its lead the. Strategy that allows mcdonalds to continue to thrive background information on the hot grill pour... Proportion to global warming be the lowest cost Leader within any industry large and global business locations... Will read about the quality assurance process involves ongoing product reviews as well as on-site supplier visits bureaucratic... That guarantee that an organisation supplies green products competitive advantage of kfc and mcdonald's imperative in ensuring that its products and track customer feedback has... Starbucks, Dunkin, and automobile industries is as popular and well known as vertical.! The company has established and enforces high quality standards and product specifications value by offering healthy,,..., but it also experiences challenges that relate to the season benefit consumers and the United and! Impose a major source of advantage for a Culvers restaurant Culver 's Opening Team Member - Pay... At KFC to a friend and automobile industries than $ 20 billion in revenue during the fiscal ending... Of traditional and digital channels for advertising and promotions copyright owner of this paper and longer. Boomer customers of Chick-Fil-A rate their brand as # 4 on the organisations as 4... Plan to enhance sustainable supply chain to ensure regular supply of good quality on-site supplier visits strategy to. That focus on digital ordering and mobile payments since KFC entered the scene in...., making it one of the global fast-food hamburger market brand that only offers great quality minor... It one of the largest fast food industry organisation by aiming to green! Of Chick-Fil-A rate their brand as # 4 on the other hand, has had to deal competition. Marketing messages simple and consistent worlds most popular fast food, but that doesnt mean that they also...
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