MGT XXXXXXXXXXStrategic Management XXXXXXXXXXSemester 2 2020 XXXXXXXXXXPage 1 of 2 MGT 201 Strategic Management Assessment 2: Individual Assignment 2 — 30% Due date: Week 9, 5:00pm Friday, 4 September...

KFC
KFC
KFC
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Contents
Introduction    3
Driving forces in the business in which KFC Australia is competing    3
Driving Forces    3
Strategic actions KFC Australia must consider taking to combat some negative impacts of driving forces    6
Five generic competitive strategies    8
Conclusion    10
References    11
Introduction
KFC is an American multinational fast food business popular for its chicken. The association was established in 1952 moreover presently has around 40,000 outlets in approximately 130 countries/regions. KFC ranks second only to McDonald's among the world's leading fast-food chains. KFC is a subsidiary of Yum Brand. The association follows a franchise business that led to a broad expansion of a business. The association serves 12 million consumers worldwide daily. In 2012, the revenue of this business reached 14 billion U.S. dollars.
Driving forces in the business in which KFC Australia is competing
Driving Forces
Globalization of Fast Food business
i. Fast food Business is the labor-intensive market that requires workers in all business locations, which does not provide them with the opportunity to cut expenses with very cheap labor in other nations (Dr. M. Vanishree and Dr. L. Shanthi, 2012).
ii. Even if major operations enable restaurants to have finances of scale in purchasing throwaway items made for specific chains (for example boxes and cups for food preparation)
Opportunity for lasting growth
i. Fast food business has been established in several countries in the world. KFC ranks 121st, Burger King only ranks 57th. A lot of other sellers compete in different markets around the world, and most sellers finish locally.
ii. Although a lot of globalized companies hope that as the global population develops and the based for fast food raises, the business will continue to develop into innovative markets and together with other countries
Fast Food & differentiation of product
i. A lot of fast-food businesses have a wide variety of menus: Jack's boxed tortillas and rice bowls, as well as traditional hamburgers. Through this differentiated approach, it provides customers with more choices, which will make them, look back rather than going to another place.
ii. This is very significant for a lot of restaurants close to restaurants. Differentiated preferences of buyers are the reasons why buyers will come back instead of changing restaurants
iii. In addition to providing different foods, the food business is standard
Forces with minor effects
i. Technological changes
ii. New technologies can enhance productivity or decrease costs
iii. Consumer base
iv. Broad client base, however, a few of them are others
v. Goods Innovation
vi. Changes in products and add-ons on the market are very common, but food innovations are rare
Changing Societal Concerns moreover lifestyles
i. •As many Australians are becoming more alert of their well being, traditional greasy moreover high-fat foods of fast food business are changing their products, and most of the places offer vegetarian burgers as well as low-fat food.
ii. Well being-conscious consumer also chooses to eat at home (Neal and Sonsino, 2012).
iii. In contrast, a lot of people’s lifestyles have become busy that they don’t have time to eat or even prepare meals for their children.
Uncertainty and business risk
i. There is no agreement with the customer, so no predictable income can be obtained
ii. Though the health of the food business has been good in the past some years
iii. In the past ten years, KFC's income has been growing every year, they have no foreseeable reason to continue
CSR is the driving force for a business to be recognized locally and internationally in the community. This is one of KFC's key strategies to maintain its competitive advantage. Due to the nature and background of current issues, the definition of corporate social responsibility is often complicated (Neal and Sonsino, 2012). However, the basic competition is whether corporate social responsibility is just "green cleaning", that is, companies that only claim to have environmental qualifications moreover other social contribution, as continuing to make excessive damage for example social expenses, that is, " Business as usual". Among researchers studying multinational corporations (MNEs), corporate social responsibility (CSR) has aroused increasing academic interest. In ideal...