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. student. job in Hastings, MI. 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. 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. 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. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. Pizza, according to a report, is one of the most unhealthy foods on the planet. 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. This is where everything about the restaurant industry is taught. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. 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. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. You cannot copy content from our website. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. A large and varied product range is meant to cater to the taste and needs of various groups of customers. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. All of these have been successful for the company. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. KFC struggles to address issues that influence the sustainability of its supply chain. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. "McDonald's and KFC Corporate Responsibility." The human mouth craves those flavors and that is what makes you go back for more KFC.. However, it leads to added costs, which attract low profitability. In 1960, it opened branches in the UK, Jamaica, and Mexico. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. These three different strategies are cost leadership, differentiation, and focus. 1. KFC got the most influence from McDonalds, the best competitor. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. (2021) 'McDonald's and KFC Corporate Responsibility'. KFC is well-known for its fried chicken, which is made from their own Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. 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 the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). 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. 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. McDonalds has access to a number of raw materials suppliers, including chicken and meat. 49 no. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). However, Texas Chicken company was not listed in the rank in the analysis. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. McDonalds is famous for the consistency and quality of its products. This essay has been submitted by a student. Is KFC healthier than McDONALDS? McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. Which company is the biggest competitor to KFC? KFC positions itself competitively by leveraging on franchising. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. However, McDs has continued to grow its presence in the other significant markets too. KFC ranks second in terms of CEO Score, trailing only UPS. They offer hamburgers, french fries, breakfast menu items and many more. I., 2000, Marketing Theory and Practice, lecture 6). However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. Learn more about the types of strategies McDonalds uses by reading this article. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. 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. No plagiarism guarantee. Its focus on quality and customer service has resulted in strong brand equity. A strong supply chain is the backbone of a large and global business. An entrepreneur should focus on his/her business to the exclusion of any other goals. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. They understand that their customers have distinct needs, which sets them apart from their competitors. Similar to McDonalds, the organisation also follows the franchising model of operation. Web. 2021. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. It is both popular and successful as a fast food chain. For instance, both organisations are immensely concerned with their environmental impacts. The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. Talk Radio News is a team dedicated to consumers. They use four steps of training for each employee. The fast food industry is highly competitive. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. Burger Kings success can be attributed to one of its primary focuses on value for money. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Even though they are same but KFC meal is much more cheaper than Texas Chicken. It is an amazing service that is very much needed. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. If youre the first to try something new or to address the spotted need, youll get better results. Additionally, McDonalds customer service standards are among the highest in the fast food industry. 4. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDonalds has focused on all these things. 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. Creating customer loyalty is difficult in the 21st century. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. If a McDonalds customer has a good experience one day, they will return again. 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. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. 10-11. The success of the organization has been its ability The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. They are the leaders of the industry and provide training to their franchisees. It has also managed a large supply chain to ensure the availability of good quality raw material. KFC China tends to introduce more new products than its competitors (Jeon et al. 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. Through continual innovation & technology research and upgrade, McDonalds have transformed itself from a small bar-b-que restaurant to a fast food restaurant chain serving mainly burgers, chicken products, fries, beverages, desserts, salads, wraps and fruits for breakfast, lunch, dinner and even supper 24 hours a day, 7 days a week. 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 principles must be directly related to the concerns of people who consume the products. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Customer-focused approach brings advantages to KFC. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. McDonalds competitors in the United States and the United Kingdom are also direct competitors. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. These critical aspects help in building the competitive advantage of an organisation. 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. KFC and Taco Bell are both competitors on a number of levels. Brands and Dominos to secure that accolade. Otherwise, rising competition is leading to higher operational and marketing costs. IvyPanda. Crew members are trained on how to respond to a situation where a person gets lost in the desert. Wilhelm, R. 2011, McDonalds Formal Business Structure. Web. KFCs competitive advantage is its supply chain and distribution system. Need a custom Assessment sample written from scratch by August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. McDonalds is a favorite fast-food for most Americans. Richard and Maurice, Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. McDonalds is most popular for its diverse menu. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? However, apart from that it has some other sources of competitive advantage too. Brand equity is also a major source of advantage for a fast food brand. Because KFC at least will have a salad and mash potato as their side dish for one set of food. 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 then discusses the subject of sustainability in their chain supplies within the fast-food industry. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature 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. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). 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. I have always been a shopaholic. This figure escalated to $142 billion in 2006. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. McDonalds owns 82 of their locations and can rent them out to franchisees. 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