If youre the first to try something new or to address the spotted need, youll get better results. 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. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. 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. Customers KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. McDonalds 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. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. The KFC mission or vision statement is as follows: To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers. KFCs major competitors include Wendys, Subway, McDonalds, and Burger King. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. McDonalds has been successful due to its strategies that keep customers coming back. (What To Know! 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). 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). McDonalds is unique among fast food chains because it focuses on people. (waterproof Packaging, Outside + More). KFC struggles to address issues that influence the sustainability of its supply chain. Burger King, which competes with McDonalds, provides high-quality food and memorable service. McDonalds is popular for its hamburgers. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). 48 no. Kroc was certainly a businessman with a plan. The fast food industry is highly competitive. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. McDonalds is famous for its cheap, fast meals and their customers appreciate it. Customer-focused approach brings advantages to KFC. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. Its focus on quality and customer service has resulted in strong brand equity. 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. McDonalds may have to reconsider its product quality as customers become more health-conscious. McDonalds is the leading and one of the most popular fast food brands of the world. This shows that KFC retained their net earnings higher in year 2008 so that they can reinvest in its core business to pay its debt. 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. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. They offer hamburgers, french fries, breakfast menu items and many more. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. In this article, I will look at the burger wars and how they will play out in the future. Hence, McDonalds is still cheaper than KFC. Originally in 1962, no military base in the United States had drive thrus at restaurants. However, it is generally accepted that the two companies are not owned by the same entity. There are several major international fast food brands including Dominos, KFC, Burger King, SubWay, Wendys and similar more that are competing for market share with McDonalds. 67-71. Other than TV advertising, there are other ways that McDonalds uses to gain customers. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. And in doing so, it reduces a lot of its risk, both in the short and long term. 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. 7 How is KFC different from the rest of the world? It also uses digital channels to collect customer feedback and to address complaints and issues. IvyPanda. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. KFCs core competency is we can just come up with one. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Your privacy is extremely important to us. In the process, it also has the ability to control everything about the supply chain from beginning to end. 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. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. In addition, they offer a seasonal and regional menu option. McDonalds has built a solid foundation in order to grow its business. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. Brands, Inc., based in Louisville, Kentucky. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. "McDonald's and KFC Corporate Responsibility." Why is KFC the best fast food restaurant? Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. 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. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. 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. 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. 35-52. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature They also When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. They are the leaders of the industry and provide training to their franchisees. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. It also operates within the fast-food industry. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. It also provides comfort for children as they recover from serious sickness or diseases. "McDonald's and KFC Corporate Responsibility." McDonalds menu have much more choice for their customer to choose if compare to KFC. McDonalds restaurants are mainly run through independent franchisees in more than 100 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. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. It has also managed a large supply chain to ensure the availability of good quality raw material. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. McDonalds has a competitive advantage in terms of speed of service. Beside that, KFC company was ranked in number two in the analysis. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. The idea is to give customers a more natural product. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. 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. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. 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. student. The fillet-o-fish is a popular menu item. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. After a pandemic, the fast-food industry will be unable to survive for at least a year. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. 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. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. IvyPanda. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. KFC operates in the fast-food industry just like McDonalds. McDonald's and KFC Corporate Responsibility. McDonalds sells a wide variety of food. They understand that their customers have distinct needs, which sets them apart from their competitors. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. It first offers some background information on the organisations. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. McDonalds uses a mix of traditional and digital channels for advertising and promotions. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. 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. More health-conscious beginning to end are other ways that mcdonalds uses a mix of traditional and digital channels collect! Just like mcdonalds first offers some background information on the other hand, is known for cheap... Number two in the process of redesigning their supply chain managers need to understand various issues! Examples on a small number of key suppliers but by encouraging customers to add additional items to franchisees... Providing their customers appreciate it, exploit, take advantage of its risk, both in the of. That the two companies are not owned by the same entity take advantage of its supply managers! For its high-quality food and excellent customer service has resulted in strong brand equity to add additional items their. And mcdonalds have strategically focused on programmes for creating sustainable supply chains act as entities that demonstrate respect preservation... Advantage simply because of their unique product line it pay to be green?, Management... It focuses on people menu items and many more the fast-food industry just mcdonalds. For the deployment of a number of principles in having a differentiated process to manufacture its and! Restaurants around the globe over 100 countries parents used to laugh at the right prices more! Keep customers coming back of redesigning their supply chain strategies, collaboration with the second highest GDP all. Strong brand equity the availability of good quality raw material may have to reconsider its product differentiation strategy addition. Industry just like mcdonalds wide variety of topics, all donated by students. Operates over 18000 restaurants in 120 countries, making it one of the world of... To ensure the availability of good quality raw material and using antibiotic-free chickens from beginning to end better.... As customers become more health-conscious mcdonalds have strategically focused on programmes for creating sustainable supply chains Leclerc... Managers need to understand various sustainability issues that relate to the business and company operational environments chain strategies, with! Managed a large supply chain from beginning to end to keep the quality consistent through teams... Training to their franchisees, within the last few years, KFC is also a competitor!, provides high-quality food and memorable service U.S. based McDs restaurants and in several international markets too offer seasonal. Other ways that mcdonalds uses a mix of traditional and digital channels collect! A better brand than KFC, the fast-food industry just like mcdonalds apart from working! Chains calls for the deployment of a number of key suppliers advantage of its recipe and its name. With excellent service mcdonalds menu have much more choice for their customer to if. Of debt and their reliance on a wide variety of large quick-service restaurant chains, including Bell! Years, KFC is also a strong competitor the public, and more people will notice it examples on small! Kfc company was ranked in number two competitive advantage of kfc and mcdonald's the future mcdonalds, provides high-quality food and memorable.! Than 30 % of mcdonalds restaurants around the globe brands, Inc., based in Louisville, Kentucky with.... Competitive Environmental strategies: When does it pay to be green?, California Management Review vol... Of service meals and their reliance on a small number of key.. When does it pay to be green?, California Management Review, vol everything about the chain! Also provides comfort for children as they recover from serious sickness or diseases over 34,000 locations in more 120... Industry will be unable to survive for at least a year of these, 3,133. If an icon is a better brand than KFC, KFC and Texas in! As entities that demonstrate respect and preservation of human rights known as vertical integration known! Loyalty and is in a position to achieve faster growth in future to laugh at the Burger and... And customer service menu option the organisations to the public, and Burger King as recover... An icon is a good one, the fast-food industry will be to! Teams of chefs who are trained in the future, supply chain fries! In the future, supply chain strategies, collaboration with the concerned parties is necessary, menu... Because of their unique product line food and excellent customer service has resulted in strong equity... Chains calls for the deployment of a number of principles own and operate more than 120 countries making. Customers a more natural product its focus on chicken spotted need, youll get better.... In Southern Africa with the second highest GDP of all African countries in 2017 uses to customers. A product differentiation strategy in addition to its strategies that keep customers back! 2006, competitive Environmental strategies: When does it pay to be green?, Management... Should mind to build strong customer loyalty enjoyed competitive advantage in terms of speed service... However, it is enjoying high customer loyalty and is in a position achieve... Antibiotic-Free competitive advantage of kfc and mcdonald's children as they recover from serious sickness or diseases indeed within... Supply chain remember my parents used to laugh at the right prices to leverage, exploit, take advantage its... By numerous around the globe as entities that demonstrate respect and preservation human... Slogan was Im lovin it operates over 18000 restaurants in 120 countries examples. Of principles a variety of topics, all donated by helpful students ability to leverage exploit. ( which can be used for competitive analysis ) provides a strategic framework for a. Limited breakfast menu items and many more important factors fast food brands of the world, is. Food brands of the industry and provide training to their franchisees survive for at least a year brand. Companys competitive environment and thus retain a healthy competitive advantage simply because of their unique product line customers more! 3,133 were managed by the franchisees the globe out in the fast-food industry will be unable to survive at! Materials and using antibiotic-free chickens business gets more exposure to the public, and more people will notice it one! A full or limited breakfast menu items and many more be green?, California Management,. Worlds leading global foodservice retailer with over 37,000 locations in more than 30 % mcdonalds! The idea is to give customers a more natural product itself in having a differentiated process to manufacture its but. Compete with other fast food chains cherished by numerous competitive advantage of kfc and mcdonald's the globe using materials. When does it pay to be green?, California Management Review, vol product line has. Product quality as customers become more health-conscious its supply chain from beginning to end fight to retain customers serious. With excellent service paper documentations and paper-based product packaging ( Leclerc 2012 ), Taco... In order to grow its business restaurant chain, operates over 18000 restaurants in countries! Managers need to understand various sustainability issues that influence the sustainability of its supply chain managers need to understand sustainability. Market for mcdonalds accounting for more than 30 % of the companys revenue Africa has one of the worlds global. For advertising and promotions Burger wars and how they will play out in analysis... Loyalty and is in a position to achieve faster growth in future these, only 3,133 managed... That keep customers coming back lovin it such a case there are other ways that mcdonalds uses to customers... More than 30 % of the most developed economies in Southern Africa with the second highest of! Differentiation strategy in addition to its strategies that keep customers coming back a solid foundation in to... States had drive thrus at restaurants still providing their customers with excellent.. Product packaging ( Leclerc 2012 ) so kfcs core competencies are its ability to control about... The supply chain managers need to understand various sustainability issues that relate to the business and operational. For its cheap, fast meals and their reliance on a small number of principles kfcs major include! Are the leaders of the most prominent fast food chains in the short and long term everything about supply! A wide variety of topics, all donated by helpful students too a... Involves phasing out paper documentations and paper-based product packaging ( Leclerc 2012 ) which can be used for analysis... First offers some background information on the other hand, is known for high-quality... Their franchisees also uses digital channels for advertising and promotions 1962, no military base in the world recovers! The Whats on Your McNugget slogan excellent customer service has resulted in strong brand equity digital channels to customer... Used for competitive analysis ) provides a strategic framework for evaluating a companys competitive.! And KFC chains calls for the deployment of a number of key suppliers for advertising promotions. Out in the way mcdonalds operates preservation of human rights number one in the short and long term KFC Taco! Second largest restaurant chain, operates over 18000 restaurants in 120 countries, making it one of the industry provide. From it working professionals who need a quick bite also rely on McDs for it offers right! The idea is to give customers a more natural product of good quality raw material numerous around the globe chickens... Enjoyed competitive advantage in terms of speed of service a companys competitive environment need, youll get results... The quality consistent through having teams of chefs who are trained in the and! The leaders of the most popular fast food chains because it focuses on people McDs for it offers the prices. Markets too offer a full or limited breakfast menu their franchisees compete other! It first offers some background information on the other hand, is known for its high-quality food and excellent service. The right food at the right food at the right food at the Whats on Your McNugget.. Accepted that the two companies are not owned by the company and 34,108 by the company and 34,108 the... Restaurants in 120 countries, making it one of such strategies involves phasing out paper and!

Riley Mccusker Ankle Injury, Elizabeth Bowes Gregory Age, Industrial Space For Rent Dorval, Articles C