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. However, again Texas Chicken sales volume are not stated in the statistic portal. 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. By John Dudovskiy. 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. 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. The advertising wars were unsustainable in their own right they were prohibitively expensive. Burger King and KFC are both competitors. Yes, provided that he capitalizes on the companys most important advantage location. The fillet-o-fish is a popular menu item. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. The database is updated daily, so anyone can easily find a relevant essay example. 25 no. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. McDonalds has access to a number of raw materials suppliers, including chicken and meat. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. 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. McDonald's and KFC Corporate Responsibility. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. They are constantly trying to one-up each other in the hopes of winning over customers. 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. McDonalds serves over 69 million customers each day. To achieve this goal, the organisation advocates a bureaucratic formal management structure. 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. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. Other than TV advertising, there are other ways that McDonalds uses to gain customers. McDonalds has a long tradition of innovation. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? 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. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). It is an amazing service that is very much needed. It was founded in 1940, it has been operating ever since 1948 where they opened their Burger King was founded by a farmer known as Keith J. Kramer and his wife's uncle Mathew Burns who gained the inspiration from another popular burger franchise known as McDonalds. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. "McDonald's and KFC Corporate Responsibility." 6, pp. It first offers some background information on the organisations. You cannot copy content from our website. McDonalds has more locations than KFC. KFCs competitive advantage is its supply chain and distribution system. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. However, it leads to added costs, which attract low profitability. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. Consequently, unlike McDonalds, it found no need for talking about it. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. Need a custom Assessment sample written from scratch by The company has a 60% share of the global fast-food hamburger market. job in Hastings, MI. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. These include billboards, radio ads, and digital ads. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. KFC is well-known for its fried chicken, which is made from their own The following paragraph is original, albeit slightly different. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. 127143. Competition in the fast food industry has grown intense due to the rise of several local and international brands. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. The product ranges originality factor ensures a fixed or even growing share of the market. KFC got the most influence from McDonalds, the best competitor. In addition, they offer a seasonal and regional menu option. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). (2021, August 2). Deadline from 3 hours. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. Todays customers are both quality and health conscious. But, Texas Chickens core dish of restaurant is only fried chicken. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. 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. It also provides comfort for children as they recover from serious sickness or diseases. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. The company cares about the health of its customers. The joint venture that has been going on for over fifty years. 48 no. However, apart from food, it has all focused on customer service. 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. More than R100 000 in prizes have been distributed to winners. One major source of competitive advantage for McD is its extensive global presence. You are free to use it for research and reference purposes in order to write your own paper; however, you There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. It is headquartered at Louisville, Kentucky. 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. It has quality centers around the globe which ensure that the high standards company has set are consistently met. They also aim to provide good quality food. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. 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. 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. As a fast food brand, it is trusted by millions around the world. If you continue to use this site we will assume that you are happy with it. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. So far, McDonalds seems to be winning the battle. How is KFC positioning itself to gain a rival edge over? McDs is continuously evolving its menu to meet its customers needs and choices. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. It has also managed a large supply chain to ensure the availability of good quality raw material. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The success of the organization has been its ability The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? Burger Kings success can be attributed to one of its primary focuses on value for money. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. 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. McDonalds has built a strong image as a fast food brand that only offers great quality. Otherwise, rising competition is leading to higher operational and marketing costs. 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. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. There are several major international. You should have an apostrophe before the apostrophe in the word system. 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. They are the leaders of the industry and provide training to their franchisees. And in doing so, it reduces a lot of its risk, both in the short and long term. In 1973 KFC joint Malaysia. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. Leclerc, Y. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. It is essential to keep the customers engaged and retain them so that they do not switch brands. Several brands like Starbucks have become famous by focusing exclusively on customer service. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). Web. The total number of McDonalds restaurants globally rose to 37,241 in 2018. 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). 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. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. 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. IvyPanda. However, it is generally accepted that the two companies are not owned by the same entity. This is not pushy, the goal is to make extra money. Other strategies include focusing on developing healthy meals. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. The Company has established and enforces high quality standards and product specifications. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Save my name, email, and website in this browser for the next time I comment. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. 2016, 740). In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. The main purpose of McDonalds is to give its customers the best possible value for their money. According to Michael Porter, there are three different way to sustain a competitive advantage. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. student. McDonalds is very committed to keeping their restaurants clean. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). For competitive analysis ) provides a strategic framework for evaluating a companys competitive environment than that, price., Cheezy Mushroom Crunch, and McDonalds slogan lettuce, from the company has plan... 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