Analyzing other companies who provide the same products or who can meet the same needs in various ways is one way to look at other companies. Which company owns KFC? 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. They have to establish mechanisms of enhancing corporate governance. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. 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. How is KFC different from the rest of the world? The success of the organization has been its ability KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. In this effort, the organisation remains sure that it will cut on the waste load that is exerted on the communities in its effort to become a good corporate citizen. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. 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. Similar to McDonalds, the organisation also follows the franchising model of operation. We aim to help customers find the answers the need when it comes to retail. KFCs sources of competitive advantage. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. This is an example of creativity that allows McDonalds to continue to thrive. Other strategies include focusing on developing healthy meals. 8 Why is KFC the best fast food restaurant? With relevance in mind, new marketing campaigns are expected to emerge in the future. 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. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. 7 How is KFC different from the rest of the world? Apart from its global network of franchisees, McDs has also managed a large network of suppliers. The idea is to give customers a more natural product. To achieve this goal, the organisation advocates a bureaucratic formal management structure. IvyPanda. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. 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. 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. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Fried chicken is the only main course offered at Texas Chicken. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. Brands and Dominos to secure that accolade. In contrast, Wendys has superior products with higher prices. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. Web. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. In todays competitive world, Service Quality has become one of the most strategic tools for They are constantly trying to one-up each other in the hopes of winning over customers. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. McDonalds was always known for its great values! If a McDonalds customer has a good experience one day, they will return again. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. In the United States, McDonalds has a 42% share of the fast-food hamburger market. Such products deserve to create value to their consumers. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. Your privacy is extremely important to us. Quality, service and cleanliness are always important, but in this case, good value is more important. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. McDonalds has a competitive advantage because of its value chain. (what To Know! 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. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. So the idea was, make the military happy, give them food, and make it a nice safe experience. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. Do you want fries with that? This is a question that has been asked for decades. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. It allows you to develop a clear and concise plan for how to best compete against them. This allows them to provide a superior experience to their customers. 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. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. The mcpizza and mclobster are two failures of the mcdonalds. 3, pp. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. McDonalds has already built a strong brand image in the fast-food industry. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. McDonalds has focused on all these things. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, They also 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. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. 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). KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. Originally in 1962, no military base in the United States had drive thrus at restaurants. If McDonalds wants to continue to grow, it must embrace change in the long run. . The competitive strategies the restaurant follows are:-. They will release out various kind of food according to the season. The companys menu and infrastructure provide a high level of service. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. Every employee is trained in working tirelessly to keep a clean environment for all guests. 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. It has more than 35,000 branches in more than 120 countries. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. Through continual innovation & technology research and upgrade, McDonalds have transformed itself from a small bar-b-que restaurant to a fast food restaurant chain serving mainly burgers, chicken products, fries, beverages, desserts, salads, wraps and fruits for breakfast, lunch, dinner and even supper 24 hours a day, 7 days a week. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. 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. KFC ranks second in terms of CEO Score, trailing only UPS. The main purpose of McDonalds is to give its customers the best possible value for their money. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. 2021. McDonalds is most popular for its diverse menu. 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. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Learn more about the types of strategies McDonalds uses by reading this article. 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. The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. 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. KFC was initiated in 1930. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. Burger King and McDonalds are two of the biggest players in the game. In addition, they offer a seasonal and regional menu option. But, Texas Chickens core dish of restaurant is only fried chicken. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. Additionally, McDonalds customer service standards are among the highest in the fast food industry. 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. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. It first offers some background information on the organisations. 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. McDonalds is very committed to keeping their restaurants clean. 17-19. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. 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. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. 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. Save my name, email, and website in this browser for the next time I comment. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Wilhelm, R. 2011, McDonalds Formal Business Structure. This is not pushy, the goal is to make extra money. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. 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. You can also be considered direct competitors of McDonalds is to provide a high level service... A custom Assessment on McDonalds and KFC provide a high level of service make it a nice safe.! 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