McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Such legal provisions have the impact of raising the cost of running the business of both organisations. In spite of strong competitors likes KFC Subway etc. Burger King, which competes with McDonalds, provides high-quality food and memorable service. It is essential to keep the customers engaged and retain them so that they do not switch brands. 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. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. Many businesses use cross-selling to maximize sales. To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. For instance, in 1980s the company received criticisms for sourcing its beef for making hamburgers from ranches that had been developed on a newly cleared forest cover in the Amazon rainforest. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. The number of baby boomer customers of McDonalds is also large. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. McDonald is always successful in sustaining a good image in hearts of its customers. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. I have always been a shopaholic. 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. For example, McDonalds has a loyalty You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. KFC fried chicken tastes good because it is formulated to taste good. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. McDonalds was always known for its great values! McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. McDonalds has a competitive advantage in terms of speed of service. (What To Know! If an icon is a good one, the business gets more exposure to the public, and more people will notice it. In contrast, Wendys has superior products with higher prices. 6, pp. "McDonald's and KFC Corporate Responsibility." McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. Originally in 1962, no military base in the United States had drive thrus at restaurants. KFCs sources of competitive advantage. 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. Its focus on quality and customer service has resulted in strong brand equity. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. A large and varied product range is meant to cater to the taste and needs of various groups of customers. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. The marketing strategies of McDonalds and KFC are very different. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. 40 no.15, pp. It has quality centers around the globe which ensure that the high standards company has set are consistently met. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. 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 is one of the largest fast food companies in the world. One major source of competitive advantage for McD is its extensive global presence. 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. 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). The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. McDonalds focuses on the development of business models, which pay attention to employee concerns. 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. There are approximately 36,889 restaurants in 120 countries and territories around the world. 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. McDonald (1st restaurant). 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. 17 no. 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. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. (2021, August 2). Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. 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 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. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. Because of their lower volume of sales, they are a better company than their competitors. They also aim to provide good quality food. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. Next, is the their Menu. McDonalds food has dominance over the market with its cost effectiveness and availability. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. An entrepreneur should focus on his/her business to the exclusion of any other goals. Within the last four decades, Americans have become large consumers of fast foods. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. 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. 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. Icons are like the logos in any other business. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. The companys menu and infrastructure provide a high level of service. The KFC mission or vision statement is as follows: To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers. KFCs major competitors include Wendys, Subway, McDonalds, and Burger King. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. View this and more full-time & part-time jobs in South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. McDonalds is constantly serving their customers since 1955. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). IvyPanda. However, it leads to added costs, which attract low profitability. McDonalds serves over 69 million customers each day. It is why McDs spends a significant sum on marketing every year. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. Web. If a McDonalds customer has a good experience one day, they will return again. 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? 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. Visit your nearby McDonalds and choose from a menu of Different positioning strategies of the products development were examined before the goods have been supplied to the market. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. KFC struggles to address issues that influence the sustainability of its supply chain. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. This is correct. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. Consequently, unlike McDonalds, it found no need for talking about it. The fast-food chain is popular for a number reasons. Quality, service and cleanliness are always important, but in this case, good value is more important. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. Targeting children is seen as a form of social engineering. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. For instance, both organisations are immensely concerned with their environmental impacts. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. KFC is a subsidiary of Yum! Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. Which company owns KFC? Yaziji, M. & Doh, J. They use four steps of training for each employee. The database is updated daily, so anyone can easily find a relevant essay example. 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. And in doing so, it reduces a lot of its risk, both in the short and long term. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. The company has a strong financial position and KFC is an organisation that specialises in fried chickens. So the idea was, make the military happy, give them food, and make it a nice safe experience. 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competitive advantage of kfc and mcdonald's