On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. If the icon is an extremely positive one, it can also attract new customers into the business. The competitive strategies the restaurant follows are:-. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. 2 no.1, pp. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). In 1987, it was amongst the first western-based organisations that opened new business branches in China. The success of the organization has been its ability 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 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. 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. 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 sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Due to intense competition in the fast food industry, marketing has become more important than ever. Thus, the KFC maintains its competitive advantage from its inimitable resources. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. Excellent! This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. Originally in 1962, no military base in the United States had drive thrus at restaurants. This is IvyPanda's free database of academic paper samples. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. We utilize security vendors that protect and They have to establish mechanisms of enhancing corporate governance. Which company is the biggest competitor to KFC? Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). 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. Thirdly, is their ranking and sales volume. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. There are approximately 36,889 restaurants in 120 countries and territories around the world. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. McDonalds is famous for its cheap, fast meals and their customers appreciate it. They strive to produce high-quality products, services, and processes. Why is KFC the best fast food restaurant? Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. It also encompasses coordination and integration of flow of materials among organisations. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. Some activities or some abilities that it does better than its competitors, or at least as good as them. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. The company has a 60% share of the global fast-food hamburger market. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. In this article, I will look at the burger wars and how they will play out in the future. 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. Products enable a company to differentiate itself from competitors and gain competitive advantage. 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. Hence, McDonalds is still cheaper than KFC. 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. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. McDonalds is constantly updating its menu to keep its most loyal customers coming back. 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). In todays competitive world, Service Quality has become one of the most strategic tools for KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. 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 serves over 69 million customers each day. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. In 1960, it opened branches in the UK, Jamaica, and Mexico. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. They constitute a major supply chain issue at McDonalds and 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. The company has kept their marketing messages simple and consistent. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. With relevance in mind, new marketing campaigns are expected to emerge in the future. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. 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. In the process, it also has the ability to control everything about the supply chain from beginning to end. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. 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. The success of the company led to the growth of the fast food industry and the company was named to Fast Food Hall of Fame in 2009. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Please note! A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. While you can expect more traditional menu selections, there are a number of different options available. 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. 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. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. McDonalds has more locations than KFC. For take-away foods, they must wrap customers food. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. McDonald's and KFC Corporate Responsibility. 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. The joint venture that has been going on for over fifty years. Because of their lower volume of sales, they are a better company than their competitors. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. 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. 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 notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. The lifestyle around here has changed in so many ways from when our parents were children. (what To Know! Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. 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 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. Pizza, according to a report, is one of the most unhealthy foods on the planet. 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. Similar to McDonalds, the organisation also follows the franchising model of operation. 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. 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. Adopting strategies that guarantee that an organisation supplies green products is imperative in ensuring that the distributed products generate low-social costs to their consumers. In contrast, Wendys has superior products with higher prices. Monopolies can also reduce competition and stifle innovation. McDonalds has a competitive advantage because of its value chain. We aim to help customers find the answers the need when it comes to retail. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. 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. 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. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). It is why McDs spends a significant sum on marketing every year. 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. 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 an organisation that specialises in fried chickens. 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