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Ppt of kfc case study
1. KFC
Case study of KFC
Source:www.icmrindia.org/casestudies/.../business%20ethics/BECG044.
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2. BACKGROUND OF KENTUCKY FRIED
CHICKENS(KFC)
• KFC is based in Louisville, Kentucky, and is the world’s most
popular chicken restaurant.
• Founded by Colonel Harland Sanders in the early 1930s by
cooking & serving food for hungry travellers. In 1952 Sanders
started franchising his chicken business & named it as
KENTUCKY FRIED CHICKEN.
• KFC is the world’s largest restaurant company in terms of
system restaurants, with more than 36,000 locations around the
world.
• KFC operates more than 5,200 restaurants in the U.S. and more
than 15,000 units around the world.
• 109 countries and territories around the world.
• Every day, more than 12million customers are served at KFC
restaurants.
3. KFC’S ENTRY IN INDIA
• KFC was the first fast food multinational to
enter INDIA, after the economic liberalization
policy of the Indian Govt. in early 1990s.
• KFC received permission to open 30 new
outlets across the country & Opened first fast
food outlet in Bangalore in June 1995 by
targeting upper middle class population.
• Pepsi Co planned to open 60KFC and Pizza
Hut outlets in next 7 years in the country.
4. ISSUES
• Understand the significance of cultural, economic,
regulatory and ecological issues while
establishing business in a foreign country.
• Appreciate the need for protecting animal rights
in developed and developing countries like India.
• Understand the importance of ethics in doing
business.
• Examine the reasons for protests of PETS( People
for Ethical Treatment of Animals)
• Identify solutions for KFC’s problems in India
5. PROBLEMS FOR KFC
• Protests by farmers led by the Karnataka Rajya
Ryote Sangha (KRRS) & the farmers leader
was Nanjundaswamy who used the term ‘junk
food’ against KFC
• Protests by cultural & Economic activists.
• Protests by PETA in the late 1990s.
• Support of celebrities in against of KFC.
6. SWOT ANALYSIS
STRENGTH WEAKNESSES
• Ranks highest among all chicken
restaurants for its convenience and • Presence of Multinational
menu variety. competitors in the market
• Oldest and finest in business. e.g.
• High goodwill does not have any core McDonalds(specialized
competitor in chicken serving.
• Large number of outlets at prime not in chicken serving but
locations . in burgers)
• Serves variety of items under singly • Imported raw material
menu .
rise their prime cost.
• Loyal customers.
• Faces numerous advantages of being
a multinational organization e.g.
economies of scale, government
incentives etc..
7. SWOT ANALYSIS
OPPORTUNITES THREATS
• Cheap and easy availability • Entrance of new competitors
of labour. into the market.
• Increase consumption of fast • High political instability
food has increased the Uncertainty.
market size.
• Consumer prefer “All under
one roof” in order to
increase their sales turnover
they can increase or add the
served items.
8. CONCLUSION
• Finally, we can understand from the case that
every business organization should understand the
importance of ethics by understanding the culture,
regulatory and ecological issues in different
countries.
• KFC should implement a farm level guideline &
audit program – a program which is industry
leading in the areas of poultry care and handling,
mainly for their suppliers in the broiler industry.
