McDonalds has built a solid foundation in order to grow its business. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. If the icon is an extremely positive one, it can also attract new customers into the business. Web. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. 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. 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). Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, They are the leaders of the industry and provide training to their franchisees. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). The companys menu and infrastructure provide a high level of service. Wendys restaurants have over 6,800 locations worldwide. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. Which company is the biggest competitor to KFC? Quality, choice and nutrition are highly important to the modern customers who are health conscious people. 8 Why is KFC the best fast food restaurant? Therefore, the business will increase. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. 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. However, Texas Chicken company was not listed in the rank in the analysis. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. job in Hastings, MI. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. The fillet-o-fish is a popular menu item. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). They have to establish mechanisms of enhancing corporate governance. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. Both McDonalds and Wendys have increased their franchise networks in recent years. The two largest fast-food companies have competed fiercely for market share since the 1950s. 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. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. Not only that McDonalds have a lot of branches in Malaysia. 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. Creating customer loyalty is difficult in the 21st century. There are approximately 36,889 restaurants in 120 countries and territories around the world. The lifestyle around here has changed in so many ways from when our parents were children. Please note! Do you want fries with that? This is a question that has been asked for decades. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. 40 no.15, pp. 394-415. A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. 4. 2, pp. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. 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. 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. Consequently, unlike McDonalds, it found no need for talking about it. A large and varied product range is meant to cater to the taste and needs of various groups of customers. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. 2021. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). (2021) 'McDonald's and KFC Corporate Responsibility'. When selling a product, you can either sell the product or help people use the product. Web. 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. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. McDonalds strategy is to differentiate itself through efficiency and quality. Thirdly, is their ranking and sales volume. 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. KFC competes against McDonalds the most. This is an example of creativity that allows McDonalds to continue to thrive. 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. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. 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. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. 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. 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. By continuing, well assume you agree with our Cookies policy. It allows you to develop a clear and concise plan for how to best compete against them. Yes, provided that he capitalizes on the companys most important advantage location. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. There are several major international. This is one of the hallmarks of McDonalds success. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Kroc was certainly a businessman with a plan. Richard and Maurice, 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. 17-19. McDonalds has a competitive advantage because of its value chain. However, it leads to added costs, which attract low profitability. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. McDonalds Business Strategy and Competitive Advantage. IvyPanda. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. 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. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. The human mouth craves those flavors and that is what makes you go back for more KFC.. 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. Burger King, which competes with McDonalds, provides high-quality food and memorable service. The company cares about the health of its customers. But, Texas Chickens core dish of restaurant is only fried chicken. We use cookies to ensure that we give you the best experience on our website. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. 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. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. Differentiation. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. Other strategies include focusing on developing healthy meals. 127143. The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. McDonalds has a competitive advantage in terms of cheating prices. McDonalds is the leading and one of the most popular fast food brands of the world. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. KFC is a subsidiary of Yum! McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. 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. Save my name, email, and website in this browser for the next time I comment. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. There is no reason for them not to be a major competitor in the market. 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. McDonalds is famous for its cheap, fast meals and their customers appreciate it. No plagiarism guarantee. McDonalds has a long tradition of innovation. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Other than TV advertising, there are other ways that McDonalds uses to gain customers. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. Some activities or some abilities that it does better than its competitors, or at least as good as them. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. The Latest Innovations That Are Driving The Vehicle Industry Forward. In addition, they offer a seasonal and regional menu option. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. 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. IvyPanda. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. 3, pp. It also uses digital channels to collect customer feedback and to address complaints and issues. McDonalds has always tried to achieve higher customer satisfaction. McDonalds have much more branches then KFC around the world. McDonald's and KFC Corporate Responsibility. In the United States, McDonalds has a 42% share of the fast-food hamburger market. Can they constitute good examples of corporate citizens in the US fast-food industry? In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. KFC ranks second in terms of CEO Score, trailing only UPS. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. . To achieve this goal, the organisation advocates a bureaucratic formal management structure. 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. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Different organisations may choose to pursue different types of competitive advantages. They also They understand that their customers have distinct needs, which sets them apart from their competitors. for only $16.05 $11/page. 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). 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. 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. 573-580. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. It is both popular and successful as a fast food chain. 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. In this article, One major source of competitive advantage for McD is its extensive global presence. Similar to McDonalds, the organisation also follows the franchising model of operation. 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. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. 1. Web. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. Advertising is the most fundamental way KFC promote its products. This is correct. The restaurant will continue to strive for quality customer service. You should have an apostrophe before the apostrophe in the word system. A strong supply chain is the backbone of a large and global business. 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. 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 Burger King and KFC are both competitors. 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. 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. If you grow your own food, you can control quality better. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. This claim means that apart from the need to serve their own interest and the interest of the owners, McDonalds and KFC have to deploy the adopted supply chain management approaches to demonstrate their concern to the protection and preservation of the environment within which they are established. It has also managed a large supply chain to ensure the availability of good quality raw material. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. 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. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. 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. McDs is continuously evolving its menu to meet its customers needs and choices. 67-71. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds is famous for the consistency and quality of its products. McDonalds restaurants are mainly run through independent franchisees in more than 100 KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. Brands, Inc., based in Louisville, Kentucky. This situation has made the US a fast-food nation. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. View this and more full-time & part-time jobs in 48 no. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. 7 How is KFC different from the rest of the world? McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. 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. Between 2004 and 2007, Burger King%27s net income grew by 2860%. Business Week, 18-19. The company has kept their marketing messages simple and consistent. KFC and Taco Bell are both competitors on a number of levels. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. These include billboards, radio ads, and digital ads. 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. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. 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. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. It also encompasses coordination and integration of flow of materials among organisations. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. This is IvyPanda's free database of academic paper samples. I., 2000, Marketing Theory and Practice, lecture 6). KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. 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. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. Thus, it also experiences challenges that are similar to those that are experienced by 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. "McDonald's and KFC Corporate Responsibility." Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. 25 no. Yaziji, M. & Doh, J. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. McDonalds is ranked first in the world, while KFC is ranked fourth. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. Which company owns KFC? IvyPanda. Your privacy is extremely important to us. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. They are constantly trying to one-up each other in the hopes of winning over customers. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! 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. 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. McDonalds serves over 69 million customers each day. An important thing to realize is that the success of an icon is not limited to the business. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. 68 no. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Choose your writer among 300 professionals! This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. (And Everything Else! However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Cheeseman (2013, Para. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? You get what you pay for when it comes to the dining area in Applebees. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. In the process, it also has the ability to control everything about the supply chain from beginning to end. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Is KFC healthier than McDONALDS? The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. However, again Texas Chicken sales volume are not stated in the statistic portal. McDonalds food has dominance over the market with its cost effectiveness and availability. McDonalds is a big supporter of the Ronald McDonald Houses. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). The number of baby boomer customers of McDonalds is also large. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. 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. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. Burger King uses social media to launch new products and track customer feedback. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. 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. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. In this study, target population is the young consumers (under 30) in Because of their lower volume of sales, they are a better company than their competitors. "McDonald's and KFC Corporate Responsibility." While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. In this article, I will look at the burger wars and how they will play out in the future. 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. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. (Mintel, 2009m, p.1) creating competitive advantage for the company. McDonalds has been criticized for its advertising to children. McDonalds Corporation, also known as McDonalds, is an American multinational fast food restaurant chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, United States. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. In addition to their ability to outperform other fast food chains while competing, they may be able to attract new customers and potentially fend off new competitors. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). 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. Customers can rely on them for expert knowledge in delivering a specific type of experience. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. Customer-focused approach brings advantages to KFC. Thus, the KFC maintains its competitive advantage from its inimitable resources. Monopolies can also reduce competition and stifle innovation. While these fast-food giants have a Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. 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. McDonalds has a competitive advantage in terms of speed of service. Proficient in: Nutrition & Dieting, Corporation. In 1973 KFC joint Malaysia. Bakshi, R. & Fiksel, J. "McDonald's and KFC Corporate Responsibility." So far, McDonalds seems to be winning the battle. More than R100 000 in prizes have been distributed to winners. Its also made the fast food landscape what it is today. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). If you continue to use this site we will assume that you are happy with it. The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. professional specifically for you? The Company has established and enforces high quality standards and product specifications. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. 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. The advertising wars were unsustainable in their own right they were prohibitively expensive. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. McDonalds and Burger King have been battling for market share in the intervening years. 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). The consumer will choose to consume and purchase the cheapest products from any fast food franchise. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. It also operates within the fast-food industry. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). (What To Know! KFCs core competency is we can just come up with one. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. Subway, the worlds largest restaurant chain in terms of size, has seen sales fall since 2012. McDonalds (MCD), Burger King (BKW), Carls Jr., Papa Johns, and Pizza Hut are among the companies that must supply Shanghai restaurants, according to a government statement. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. According to Michael Porter, there are three different way to sustain a competitive advantage. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. 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 strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. KFCs core competency is we can just come up with one. McDonald's and KFC Corporate Responsibility. ), What Time Does Mcdonalds Serve Lunch? Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. If McDonalds wants to continue to grow, it must embrace change in the long run. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. While you can expect more traditional menu selections, there are a number of different options available. 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. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. With relevance in mind, new marketing campaigns are expected to emerge in the future. The marketing strategies of McDonalds and KFC are very different. McDonalds is top competitors which brought the most influence towards KFC company. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. 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. The company mainly operates its business through franchisees. 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. The success of the organization has been its ability McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. 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. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. KFC is well-known for its fried chicken, which is made from their own Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. 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. KFC is popular for its fried 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. Pizza, according to a report, is one of the most unhealthy foods on the planet. 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. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. KFC fried chicken tastes good because it is formulated to taste good. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. How to Market Your Business with Webinars? 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. This process has the aftermath of reducing carbon prints for many organisations. As a fast food brand, it is trusted by millions around the world. The total number of McDonalds restaurants globally rose to 37,241 in 2018. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. In 2017, its revenue from U.S. was more than 8 Billion dollars. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. June 20, 2022. McDonald's is arguably the largest global fast food chain in the McDonalds has added their menu to continue the tradition of good burgers and fries. (what To Know! McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. 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? However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. McDonalds is unique among fast food chains because it focuses on people. The company has a 60% share of the global fast-food hamburger market. 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. Different positioning strategies of the products development were examined before the goods have been supplied to the market. 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. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. McDonald's Competitive Advantage. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. 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. KFCs competitive advantage is its supply chain and distribution system. They want their food to be good in terms of quality and low on calories. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. 49 no. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. It is essential to keep the customers engaged and retain them so that they do not switch brands. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. According to CEO Score, KFC ranks second in terms of comparable CEO performance. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. Within the last four decades, Americans have become large consumers of fast foods. 17 no. 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. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. McDonalds competitors in the United States and the United Kingdom are also direct competitors. For take-away foods, they must wrap customers food. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. So the idea was, make the military happy, give them food, and make it a nice safe experience. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. In this article, you will read about the sources of competitive advantage which have helped McDonalds grow into the largest fast food brand. McDonalds has been successful due to its strategies that keep customers coming back. The product ranges originality factor ensures a fixed or even growing share of the market. Its focus on quality and customer service has resulted in strong brand equity. The franchisees own and operate more than 90% of McDonalds restaurants globally. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. However, McDs has continued to grow its presence in the other significant markets too. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. By John Dudovskiy. The fast food industry is highly competitive. They have also developed a very effective marketing strategy. 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. Sunner became McDonalds official supplier in September 2014. What is better chicken or KFC? KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. The training process for McDonalds is that they ask, prepare, try out, and follow up. This figure escalated to $142 billion in 2006. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). KFC also has a strong presence in China, which is a key growth market. After a pandemic, the fast-food industry will be unable to survive for at least a year. 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. Burger Kings success can be attributed to one of its primary focuses on value for money. An analysis of the competitive environment of McDonalds. McDonalds was always known for its great values! Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. 2 no.1, pp. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. Fast-food organisations are cheap. How is KFC positioning itself to gain a rival edge over? Visit your nearby McDonalds and choose from a menu of Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. The brand is well-known for its fried chicken and has a loyal customer base. As a result, they can become market share leaders in the industry. However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. They often result in excessive food wastes and accumulation of packaging waste. To achieve cost savings, the company employs economies of scale all over the world. For example, the Greenspace, a green organisation, criticises the corporation by claiming that Brazilian soy farming, which is deployed to feed chicken at McDonalds, constitutes a major threat to the sustainability of the Amazon rainforest. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. 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. Many businesses use cross-selling to maximize sales. 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. For example, McDonalds has a loyalty McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. In contrast, Wendys has superior products with higher prices. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. 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). 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). 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