McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. 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. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. The company has kept their marketing messages simple and consistent. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. The fast-food industry is highly competitive and it is important that both McDonalds and KFC continue to use marketing to stay ahead of their competitors. KFC was initiated in 1930. 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. 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. Texas Chicken has over 1,700 locations in 23 countries worldwide. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. It also uses digital channels to collect customer feedback and to address complaints and issues. 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. 394-415. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. Several brands like Starbucks have become famous by focusing exclusively on customer service. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDs is continuously evolving its menu to meet its customers needs and choices. McDonalds restaurants are mainly run through independent franchisees in more than 100 McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. KFCs competitive advantage is its strong brand recognition. Quality, service and cleanliness are always important, but in this case, good value is more important. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). 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. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. McDonalds is very committed to keeping their restaurants clean. 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. McDonald's and KFC Corporate Responsibility. 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. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. Hence, McDonalds is still cheaper than KFC. However, if compare with Texas Chicken, KFC have a better innovating menu, because the core dish of Texas Chicken is just focus on fried chicken. The restaurant will continue to strive for quality customer service. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. Each of these gases contributes a given proportion to global warming. McDonalds is popular for its hamburgers. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. Talk Radio News is a team dedicated to consumers. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. 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). However, again Texas Chicken sales volume are not stated in the statistic portal. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 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. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. In contrast, Wendys has superior products with higher prices. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. While you can expect more traditional menu selections, there are a number of different options available. Differentiation. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. The company has a 60% share of the global fast-food hamburger market. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. The company focuses on making the supply process as efficient as possible. In 2017, its revenue from U.S. was more than 8 Billion dollars. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. This is correct. 67-71. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. 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. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. The main items on its menu include 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. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. We utilize security vendors that protect and McDonalds has been criticized for its advertising to children. Is KFC healthier than McDONALDS? However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. The fast-food chain is popular for a number reasons. We`ll do boring work for you. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. 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. 14 no. McDonald (1st restaurant). Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. 1 What are the competitive advantages of KFC? KFC struggles to address issues that influence the sustainability of its supply chain. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. 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. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Bakshi, R. & Fiksel, J. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. Between 2004 and 2007, Burger King%27s net income grew by 2860%. Such legal provisions have the impact of raising the cost of running the business of both organisations. However, it leads to added costs, which attract low profitability. 2 no.1, pp. You cannot copy content from our website. While doing the market segmentation for the products, the target market has been well studied and investigated. It is headquartered at Louisville, Kentucky. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? Would you like to have an original essay? They use four steps of training for each employee. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. 2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? 10-11. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). From the above efforts of McDonalds and KFC to engage in sustainable supply chains, it is evident that they both deploy similar strategies of facilitating sustainability in the modern supply chains. You get what you pay for when it comes to the dining area in Applebees. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. KFC is popular for its fried chicken. 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. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature Businesses also use it for differentiating themselves from others. The human mouth craves those flavors and that is what makes you go back for more KFC.. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. 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. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. So in this comparison, KFC is much more cheaper then Texas chicken. However, it is generally accepted that the two companies are not owned by the same entity. 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. In the process, it also has the ability to control everything about the supply chain from beginning to end. 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. McDonalds is most popular for its diverse menu. 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). Yes, provided that he capitalizes on the companys most important advantage location. By continuing, well assume you agree with our Cookies policy. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. 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. KFCs competitive advantage is its supply chain and distribution system. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. Different organisations may choose to pursue different types of competitive advantages. 1350-1358. Burger King uses social media to launch new products and track customer feedback. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. It has achieved strong global growth and is largely managed by franchisees. 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. According to Michael Porter, there are three different way to sustain a competitive advantage. This process has the aftermath of reducing carbon prints for many organisations. Competition in the fast food industry has grown intense due to the rise of several local and international brands. . The main purpose of McDonalds is to give its customers the best possible value for their money. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. You are free to use it for research and reference purposes in order to write your own paper; however, you This is IvyPanda's free database of academic paper samples. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. cory booker eye condition, how to make your whole eye black without contacts, danielle smith husband restaurant,

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