Your task is to carry out a critical analysis and evaluation of strategy development in the global fastfood industry, using the information provided and other materials researched. You will be...

Strategic Management: KFC
Executive summary
KFC (Kentucky Fried Chicken) is known for its fast food products and meals across the world. The company hold wide network of restaurant chain for serving the customer worldwide. It has been identified that restaurants and food outlets of the company runs and operates in almost 80 countries of the world. KFC is an international business firms headquartered in Kentucky, United States (KFC. 2013). The high quality food products along with new and unique features serve to be the main unique selling proposition of the company. This belief and proposition has enabled the company to establish dominance and foothold in the fast food industry. The continuous expansion strategy of the KFC of entering and establishing foothold in the newly emerging markets also supplemented growth and development pace of the company.
The present scenario of having wide number of competitors and restaurants chains is posing threat to the existing dominance and market position of the KFC considerably. There is significant decline in the fast food market share of the company. The underlying business report aims at assessing opportunities and threats of the KFC in Hong Kong, China with the help of various strategic tools like Porter five force, value chain techniques, etc.
Table of Contents
4Section one:
41) Porter value chain techniques
62) Porter five force framework and SWOT
93) ‘Pressures for global integration of activities’ and the ‘pressures for local responsiveness’
11Section two:
111) Whittington’s ‘Evolutionary’ and ‘Systemic’ Schools of Thought
122) Applying two Schools of Thought to KFC
13Section three: Implications of cultural dimensions on international strategic managers at KFC and its evaluation
References………………………………………………………………………………………..14
Section one:
1) Porter value chain techniques
This is one of the most significant and useful technique employed by business organisations in ascertaining the level of interaction between business processes. It has been identified that business organisations consist of various processes like production, marketing, human resources, finance and personnel that interact with each other in order to conduct manufacturing and production process smoothly and efficiently. The sound and efficient interaction among the different processes allow the business organisations in gaining competitive edge and foothold in the market place.
Business processes are primarily divided into primary and secondary on the basis of their role in manufacturing products. More specifically, primary processes or activities are those necessary for business firms for carrying out production and manufacturing process. In other words, all the activities engaged in manufacturing, constructing and developing products are primary activities. In contrary to this, other activities facilitating and supporting primary activities are considered as secondary activities. The Porter vale chain techniques can be depicted as below:
(Source: Wenderoth 2009).
In this regard, KFC at Hong Kong, China employs value chain techniques in an integrated and comprehensive manner in order to deliver value added food services and products to the customers. This is so because Hong Kong, China is being identified and recognised as one of the fastest growing fast food industry around the world having 2,602 fast food outlets in 2011 (Chung 2013). The demand of fast food and other related products is growing at tremendous rate in Hong Kong. This trend of high demand of fast foods has been materialised and availed by many fast food companies in order to stimulate their growth and development pace. KFC is also no longer behind in the process and entered the growing fast food industry of Hong Kong in order to take advantage of the emerging opportunities.
The discussion of the Porter value chain technique at Hong Kong’s KFC food outlets is as below:
Primary activities:
Primary activities in Porter value chain technique comprises of five activities namely inbound logistics, operations, outbound logistics, marketing and customer service. All the above activities are included in the primary category as such activities are necessary for carrying out manufacturing and production process. In other words, the process of preparing fast food products cannot be undertaken in the absence of these primary activities.
Like, inbound logistics provides necessary inputs and raw materials in due time limits to prepare required food products. Operations are then concerned with the food processing equipments and tools for converting procured inputs into outputs. The final products are then delivered to the customer with the help of outbound logistics activities. For this, marketing function is performed in order to make the customer aware about the available products and services. Last, customer service is also included in the primary activities as manufacturing process cannot be said to have effectively accomplished in the absence of effective customer service. This is so because customer service plays crucial in attracting customers and providing them high level of satisfaction (Wheelen 2008).
Secondary activities
Secondary activities like firm infrastructure, procurement, technology development and HR management also assume to play significant role like those of primary activities. For instance, various suppliers are evaluated by the KFC strategic personnel before procuring raw materials from them in order to ensure hygiene and quality in the procurement function. Similarly, technology in terms of food processing equipments and tools are selected with the due care and attention for preserving nutritional value of food items. Furthermore, employees and staff members of the KFC also adopt human and soft approach in dealing with customer in order to provide a personalised service and memorable service experience.
2) Porter five force framework and SWOT
The process of strategy formulation and thinking is also assisted and facilitated by the five force framework developed by Michael Porter. The graphical presentation of the model is as below:
(Source: Westwood 2002).
The description of five elements of the model in context of KFC at Hong Kong is as follow:
Threat of new entrants
This element of the model takes into the account and evaluates the possibility of entrants of new players in the concerned industry. It has been identified that industry attractiveness encourages the entry of new players and vice-versa. Industry...