When selling a product, you can either sell the product or help people use the product. 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. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. IvyPanda. (What To Know! KFCs core competency is we can just come up with one. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. McDonalds is a big supporter of the Ronald McDonald Houses. 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. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. 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 First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? 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. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. (And Everything Else! Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. The total number of McDonalds restaurants globally rose to 37,241 in 2018. It has more than 35,000 branches in more than 120 countries. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. The rivalry between McDonalds and Burger King is a classic example of business. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. 35-52. KFC operates in the fast-food industry just like McDonalds. "McDonald's and KFC Corporate Responsibility." 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. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. One major source of competitive advantage for McD is its extensive global presence. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. 7 How is KFC different from the rest of the world? I., 2000, Marketing Theory and Practice, lecture 6). Hence, McDonalds is still cheaper than KFC. 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. McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. Differentiation. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? Choose your writer among 300 professionals! After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. Your privacy is extremely important to us. Web. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). From Happy Meals to Big Macs, McDonalds is a staple for the American diet. KFC positions itself competitively by leveraging on franchising. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. 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. The idea is to give customers a more natural product. 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. 2, pp.117-127. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. How is KFC different from the rest of the world? 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). However, apart from that it has some other sources of competitive advantage too. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. 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. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. It helps retain customers as well as attract new ones and manage a healthy bottom line. The franchisees own and operate more than 90% of McDonalds restaurants globally. In 1973 KFC joint Malaysia. 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. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. Originally in 1962, no military base in the United States had drive thrus at restaurants. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. - Caitlyn Johnson. In addition, they offer a seasonal and regional menu option. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. McDonalds serves over 69 million customers each day. 1350-1358. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. 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. McDonalds may have to reconsider its product quality as customers become more health-conscious. The database is updated daily, so anyone can easily find a relevant essay example. 40 no.15, pp. (waterproof Packaging, Outside + More). The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. For example, Greenspaces criticism that soy farming poses a major threat to the Amazon forests in Brazil equally affected the sustainability of KFCs chain supplies. In 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. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. 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. Global presence has led to higher sales and revenue for the brand. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. 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). Different organisations may choose to pursue different types of competitive advantages. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. 48 no. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. 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. KFC was initiated in 1930. Similar to McDonalds, the organisation also follows the franchising model of operation. Other strategies include focusing on developing healthy meals. 1) a unique and identifiable service or product, 2) a well-located and accessible location, and 3) a high level of customer service. McDonalds competitors in the United States and the United Kingdom are also direct competitors. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. Yum Brands owns Taco Bell, KFC, and Pizza Hut. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. (2021, August 2). The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. 127143. McDonalds sells a wide variety of food. Between 2004 and 2007, Burger King%27s net income grew by 2860%. Wendys restaurants have over 6,800 locations worldwide. Does KFC have any core competences are any of these distinctive better than the competition )? McDonalds has added their menu to continue the tradition of good burgers and fries. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. The restaurant will continue to strive for quality customer service. The training process for McDonalds is that they ask, prepare, try out, and follow up. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. The fast-food chain is popular for a number reasons. They offer hamburgers, french fries, breakfast menu items and many more. 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. 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. Richard and Maurice, What is better chicken or KFC? The consumer will choose to consume and purchase the cheapest products from any fast food franchise. The two largest fast-food companies have competed fiercely for market share since the 1950s. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. 68 no. However, McDs has continued to grow its presence in the other significant markets too. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. 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. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. 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. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. Targeting children is seen as a form of social engineering. They have also developed a very effective marketing strategy. IvyPanda. It also operates within the fast-food industry. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. 25 no. Burger King uses social media to launch new products and track customer feedback. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. 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. It is an amazing service that is very much needed. If you need this sample, insert an email and we'll deliver it to you. It has quality centers around the globe which ensure that the high standards company has set are consistently met. An important thing to realize is that the success of an icon is not limited to the business. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. While doing the market segmentation for the products, the target market has been well studied and investigated. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. Save my name, email, and website in this browser for the next time I comment. These critical aspects help in building the competitive advantage of an organisation. A strong supply chain is the backbone of a large and global business. McDonalds is very committed to keeping their restaurants clean. It is essential to keep the customers engaged and retain them so that they do not switch brands. 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 is currently the largest competitor in the industry, with many other fast food chains also competing for customers. So in this comparison, KFC is much more cheaper then Texas chicken. Sunner became McDonalds official supplier in September 2014. This is IvyPanda's free database of academic paper samples. If youre the first to try something new or to address the spotted need, youll get better results. for only $16.05 $11/page. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. McDonald's is arguably the largest global fast food chain in the McDonalds has a competitive advantage in terms of speed of service. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. As a fast food brand, it is trusted by millions around the world. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. 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. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. 1. There is no reason for them not to be a major competitor in the market. KFCs core competency is we can just come up with one. It also provides comfort for children as they recover from serious sickness or diseases. 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. 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). Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. 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. For take-away foods, they must wrap customers food. However, it is generally accepted that the two companies are not owned by the same 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? How does McDonalds operate in a monopolistic monopolistic market? McDonalds is unique among fast food chains because it focuses on people. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. 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. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. The fillet-o-fish is a popular menu item. (your Full Guide), Why Is Mcdonalds So Cheap? A large and varied product range is meant to cater to the taste and needs of various groups of customers. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. McDonalds food has dominance over the market with its cost effectiveness and availability. McDonalds is a favorite fast-food for most Americans. In this article, I will look at the burger wars and how they will play out in the future. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. The advertising wars were unsustainable in their own right they were prohibitively expensive. Would you like to have an original essay? To achieve cost savings, the company employs economies of scale all over the world. (adsbygoogle = window.adsbygoogle || []).push({}); vitag.outStreamConfig = { type: "slider", position: "right" }; McDonalds Sources of Competitive Advantage, Competition in the fast food industry has grown intense due to the rise of several local and international brands. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. Why is KFC the best fast food restaurant? 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. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. McDs is continuously evolving its menu to meet its customers needs and choices. McDonalds uses a mix of traditional and digital channels for advertising and promotions. McDonalds has a large selection of meals for both children and adults at a low cost. Otherwise, rising competition is leading to higher operational and marketing costs. 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. To achieve this goal, the organisation advocates a bureaucratic formal management structure. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. I have always been a shopaholic. 17 no. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Bakshi, R. & Fiksel, J. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). Several brands like Starbucks have become famous by focusing exclusively on customer service. However, Texas Chicken company was not listed in the rank in the analysis. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The company has a strong financial position and The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. Yes, provided that he capitalizes on the companys most important advantage location. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. Business Week, 18-19. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. It has achieved strong global growth and is largely managed by franchisees. job in Hastings, MI. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. The success of the organization has been its ability 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. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. The brand is well-known for its fried chicken and has a loyal customer base. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. 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. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. McDonald's Competitive Advantage. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. McDonald's and KFC Corporate Responsibility. 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. McDonalds Business Strategy and Competitive Advantage. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. McDonalds food has dominance over the market with its cost effectiveness and availability. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. The Walt Disney Company bought it in June. Which company owns KFC? KFC got the most influence from McDonalds, the best competitor. 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. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. The joint venture that has been going on for over fifty years. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. 49 no. McDonald is always successful in sustaining a good image in hearts of its customers. McDonalds has built a solid foundation in order to grow its business. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. McDonalds brand value is unrivaled among its competitors in terms of brand value. Thus, the KFC maintains its competitive advantage from its inimitable resources. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. Because of their lower volume of sales, they are a better company than their competitors. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. 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. For instance, both organisations are immensely concerned with their environmental impacts. "McDonald's and KFC Corporate Responsibility." KFC is well-known for its fried chicken, which is made from their own blend of secret spices, which cannot be easily imitated by any one else. McDonalds customers have a lot of power if the restaurant wants to keep its customers. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. You are free to use it for research and reference purposes in order to write your own paper; however, you 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. In todays competitive world, Service Quality has become one of the most strategic tools for They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Competition in the fast food industry has grown intense due to the rise of several local and international brands. Businesses also use it for differentiating themselves from others. Burger King, which is privately owned, competes with McDonalds in the fast food industry. You should have an apostrophe before the apostrophe in the word system. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). 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. Leclerc, Y. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Subway, the worlds largest restaurant chain in terms of size, has seen sales fall since 2012. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). 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. It also encompasses coordination and integration of flow of materials among organisations. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). In contrast, Wendys has superior products with higher prices. The following paragraph is original, albeit slightly different. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. 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. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. Web. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Is KFC healthier than McDONALDS? Each of these gases contributes a given proportion to global warming. 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. As a result, they can become market share leaders in the industry. This is one of the hallmarks of McDonalds success. Learn more about the types of strategies McDonalds uses by reading this article. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. They will release out various kind of food according to the season. Brands, Inc., based in Louisville, Kentucky. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. . 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonald (1st restaurant). If you continue to use this site we will assume that you are happy with it. They want their food to be good in terms of quality and low on calories. KFC is well-known for its fried chicken, which is made from their own 1. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. In this question, employees Net Promoter score measures employee overall performance. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. professional specifically for you? 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. With a variety of meals, sides, and drink options to choose from, McDonalds It is why McDs spends a significant sum on marketing every year. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). They understand that their customers have distinct needs, which sets them apart from their competitors. 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. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. 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. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. 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. While these fast-food giants have a McDonalds has been criticized for its advertising to children. McDonalds strategy is to differentiate itself through efficiency and quality. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. KFCs sources of competitive advantage. student. 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. 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. Brands and Dominos to secure that accolade. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. "McDonald's and KFC Corporate Responsibility." McDonalds has access to a number of raw materials suppliers, including chicken and meat. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. McDonalds is one of the largest fast food companies in the world. Yum Brands, a subsidiary of KFC, which generates more than half of its sales revenue from the Chinese markets, responded by saying that the scandal had longer effects than the company had thought (Hsu 2013). We`ll do boring work for you. Burger King and McDonalds are two of the biggest players in the game. The QSR industry has grown and is populated by a very large number There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. (2021) 'McDonald's and KFC Corporate Responsibility'. 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. The company focuses on making the supply process as efficient as possible. Meanwhile, McDonalds has provided more healthy meal and also vegetarian meals compare to KFC such as McVeggie, apple pie, and spinach pie but KFC and Texas Chicken only provide salads. Proficient in: Nutrition & Dieting, Corporation. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. 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 Within the last four decades, Americans have become large consumers of fast foods. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). KFC is popular for its fried chicken. They use four steps of training for each employee. In 1987, it was amongst the first western-based organisations that opened new business branches in China. 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. If McDonalds wants to continue to grow, it must embrace change in the long run. Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. Excellent! McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. In the Chinese market, KFC came under criticisms for utilising a growth hormone and high levels of antibiotics in its poultry in a manner that violated the Chinese law (Hsu 2013). The number of baby boomer customers of McDonalds is also large. KFCs competitive advantage is its strong brand recognition. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. Visit your nearby McDonalds and choose from a menu of Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. Fast-food organisations are cheap. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. This allows them to provide a superior experience to their customers. KFC and Taco Bell are both competitors on a number of levels. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. 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). KFC also has a strong presence in China, which is a key growth market. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. 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. We utilize security vendors that protect and 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). 1, pp. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. If you grow your own food, you can control quality better. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. These efforts have helped the company maintain its position as the largest fast food chain in the world. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Web. Quality, service and cleanliness are always important, but in this case, good value is more important. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. They constitute a major supply chain issue at McDonalds and KFC. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. 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. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. And in doing so, it reduces a lot of its risk, both in the short and long term. 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). 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. Their key strategies include their focus on value and their expansion into new markets. Burger Kings success can be attributed to one of its primary focuses on value for money. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). 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. They often result in excessive food wastes and accumulation of packaging waste. McDonalds owns 82 of their locations and can rent them out to franchisees. 394-415. McDonalds has a long tradition of innovation. McDonalds menu have much more choice for their customer to choose if compare to KFC. McDonalds and KFC managers remain susceptible to challenges of enhancing sustainability in their supply chains while doing their businesses in a modern globalised business arena. It is both popular and successful as a fast food chain. The company has kept their marketing messages simple and consistent. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. McDonalds is famous for the consistency and quality of its products. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. Advertising is the most fundamental way KFC promote its products. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. (2021, August 2). If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. Burger King, which competes with McDonalds, provides high-quality food and memorable service. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. However, apart from food, it has all focused on customer service. 67-71. 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). Wilhelm, R. 2011, McDonalds Formal Business Structure. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). In 2017, its revenue from U.S. was more than 8 Billion dollars. 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. McDonald's and KFC Corporate Responsibility. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. 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. Can they constitute good examples of corporate citizens in the US fast-food industry? A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. After a pandemic, the fast-food industry will be unable to survive for at least a year. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. 3, pp. This is where everything about the restaurant industry is taught. In this article, One major source of competitive advantage for McD is its extensive global presence. The companys menu and infrastructure provide a high level of service. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. Please note! This essay has been submitted by a student. No plagiarism guarantee. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. Due to intense competition in the fast food industry, marketing has become more important than ever. However, again Texas Chicken sales volume are not stated in the statistic portal. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. The principles must be directly related to the concerns of people who consume the products. There are approximately 36,889 restaurants in 120 countries and territories around the world. 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. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world. The lifestyle around here has changed in so many ways from when our parents were children. Need a custom Assessment sample written from scratch by McDonalds was always known for its great values! Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). From this perspective, this paper deploys the concepts of supply chain to discuss various supply chain sustainability issues in the US fast-food industry with reference to KFC (Kentucky Fried Chicken) and McDonalds. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. Deadline from 3 hours. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. An analysis of the competitive environment of McDonalds. Next, is the their Menu. 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. IvyPanda. Brand equity is also a major source of advantage for a fast food brand. 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. In contrast, Wendys has superior products with higher prices. Is famous for the brand has retained heavy focus on food quality, environment! 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