McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. Do you want fries with that? This is a question that has been asked for decades. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. The company focuses on making the supply process as efficient as possible. 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). It has achieved strong global growth and is largely managed by franchisees. It is both popular and successful as a fast food chain. McDonalds is a favorite fast-food for most Americans. McDonalds has always tried to achieve higher customer satisfaction. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. So in this comparison, KFC is much more cheaper then Texas chicken. Burger King and McDonalds are two of the biggest players in the game. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. 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. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. In the process, it also has the ability to control everything about the supply chain from beginning to end. In contrast, Wendys has superior products with higher prices. They understand that their customers have distinct needs, which sets them apart from their competitors. (2021) 'McDonald's and KFC Corporate Responsibility'. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. McDonalds have much more branches then KFC around the world. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. We`ll do boring work for you. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. McDonalds brand value is unrivaled among its competitors in terms of brand value. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. Hence, McDonalds is still cheaper than KFC. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. "McDonald's and KFC Corporate Responsibility." 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. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. McDonalds serves over 69 million customers each day. Please note! If you need this sample, insert an email and we'll deliver it to you. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). 14 no. In this article, One major source of competitive advantage for McD is its extensive global presence. Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. McDonalds is famous for the consistency and quality of its products. 8 Why is KFC the best fast food restaurant? They want their food to be good in terms of quality and low on calories. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. McDonalds has a long tradition of innovation. 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. 2, pp.117-127. Are KFC and Taco Bell competitors? McDonalds is top competitors which brought the most influence towards KFC company. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. for only $16.05 $11/page. McDonalds menu have much more choice for their customer to choose if compare to KFC. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. The franchisees own and operate more than 90% of McDonalds restaurants globally. 573-580. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. It also uses digital channels to collect customer feedback and to address complaints and issues. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. Clock is ticking and inspiration doesn't come? United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. 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. 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. Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. Each of these gases contributes a given proportion to global warming. 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. It also operates within the fast-food industry. 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. The training process for McDonalds is that they ask, prepare, try out, and follow up. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. You cannot copy content from our website. (waterproof Packaging, Outside + More). The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. Excellent! KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. Not only that McDonalds have a lot of branches in Malaysia. They use four steps of training for each employee. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds has more locations than KFC. Next, is the their Menu. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. KFC is well-known for its fried chicken, which is made from their own From the above efforts of McDonalds and KFC to engage in sustainable supply chains, it is evident that they both deploy similar strategies of facilitating sustainability in the modern supply chains. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. IvyPanda. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. This is where everything about the restaurant industry is taught. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. Apply online instantly. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. 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. Would you like to have an original essay? Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. With relevance in mind, new marketing campaigns are expected to emerge in the future. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. How to Market Your Business with Webinars? Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). KFC is a subsidiary of Yum! The fillet-o-fish is a popular menu item. 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. KFC ranks second in terms of CEO Score, trailing only UPS. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. McDonalds is a big supporter of the Ronald McDonald Houses. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. No plagiarism guarantee. KFCs sources of competitive advantage. Such legal provisions have the impact of raising the cost of running the business of both organisations. The mcpizza and mclobster are two failures of the mcdonalds. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. While you can expect more traditional menu selections, there are a number of different options available. 2021. Your privacy is extremely important to us. 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. The two largest fast-food companies have competed fiercely for market share since the 1950s. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. KFCs core competency is we can just come up with one. 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. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. McDonald's and KFC Corporate Responsibility. In addition to their ability to outperform other fast food chains while competing, they may be able to attract new customers and potentially fend off new competitors. Different organisations may choose to pursue different types of competitive advantages. It has quality centers around the globe which ensure that the high standards company has set are consistently met. I have always been a shopaholic. KFCs core competency is we can just come up with one. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). Otherwise, rising competition is leading to higher operational and marketing costs. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. 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? 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. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The companys menu and infrastructure provide a high level of service. 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. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. Brands and Dominos to secure that accolade. McDonald (1st restaurant). Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. 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. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. 2, pp. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. KFC operates in the fast-food industry just like McDonalds. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. Todays customers are both quality and health conscious. In 1960, it opened branches in the UK, Jamaica, and Mexico. It has more than 35,000 branches in more than 120 countries. Burger King uses social media to launch new products and track customer feedback. McDonalds food has dominance over the market with its cost effectiveness and availability. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. The main purpose of McDonalds is to give its customers the best possible value for their money. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. The total number of McDonalds restaurants globally rose to 37,241 in 2018. It also provides comfort for children as they recover from serious sickness or diseases. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. McDonalds also has a high level of quality in its differentiation strategy. 17-19. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. They often result in excessive food wastes and accumulation of packaging waste. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. It is why McDs spends a significant sum on marketing every year. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? 67-71. The fast food industry is highly competitive. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. KFC is an organisation that specialises in fried chickens. However, it is generally accepted that the two companies are not owned by the same entity. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. Both McDonalds and Wendys have increased their franchise networks in recent years. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). They will release out various kind of food according to the season. With a variety of meals, sides, and drink options to choose from, McDonalds When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. How is KFC different from the rest of the world? McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Similar to McDonalds, the organisation also follows the franchising model of operation. McDs is continuously evolving its menu to meet its customers needs and choices. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. Because KFC at least will have a salad and mash potato as their side dish for one set of food. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. student. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. 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. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. This figure escalated to $142 billion in 2006. When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. The success of the organization has been its ability Bakshi, R. & Fiksel, J. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. For instance, both organisations are immensely concerned with their environmental impacts. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. professional specifically for you? McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. McDonald's and KFC Corporate Responsibility. 2 August. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. Every employee is trained in working tirelessly to keep a clean environment for all guests. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. 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. Therefore, the business will increase. While doing the market segmentation for the products, the target market has been well studied and investigated. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. Need a custom Assessment sample written from scratch by IvyPanda. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). This essay has been submitted by a student. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). Brand equity is also a major source of advantage for a fast food brand. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. 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. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world.
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competitive advantage of kfc and mcdonald's
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McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. Do you want fries with that? This is a question that has been asked for decades. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. The company focuses on making the supply process as efficient as possible. 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). It has achieved strong global growth and is largely managed by franchisees. It is both popular and successful as a fast food chain. McDonalds is a favorite fast-food for most Americans. McDonalds has always tried to achieve higher customer satisfaction. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. So in this comparison, KFC is much more cheaper then Texas chicken. Burger King and McDonalds are two of the biggest players in the game. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. 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. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. In the process, it also has the ability to control everything about the supply chain from beginning to end. In contrast, Wendys has superior products with higher prices. They understand that their customers have distinct needs, which sets them apart from their competitors. (2021) 'McDonald's and KFC Corporate Responsibility'. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. McDonalds have much more branches then KFC around the world. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. We`ll do boring work for you. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. McDonalds brand value is unrivaled among its competitors in terms of brand value. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. Hence, McDonalds is still cheaper than KFC. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. "McDonald's and KFC Corporate Responsibility." 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. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. McDonalds serves over 69 million customers each day. Please note! If you need this sample, insert an email and we'll deliver it to you. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). 14 no. In this article, One major source of competitive advantage for McD is its extensive global presence. Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. McDonalds is famous for the consistency and quality of its products. 8 Why is KFC the best fast food restaurant? They want their food to be good in terms of quality and low on calories. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. McDonalds has a long tradition of innovation. 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. 2, pp.117-127. Are KFC and Taco Bell competitors? McDonalds is top competitors which brought the most influence towards KFC company. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. for only $16.05 $11/page. McDonalds menu have much more choice for their customer to choose if compare to KFC. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. The franchisees own and operate more than 90% of McDonalds restaurants globally. 573-580. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. It also uses digital channels to collect customer feedback and to address complaints and issues. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. Clock is ticking and inspiration doesn't come? United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. 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. 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. Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. Each of these gases contributes a given proportion to global warming. 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. It also operates within the fast-food industry. 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. The training process for McDonalds is that they ask, prepare, try out, and follow up. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. You cannot copy content from our website. (waterproof Packaging, Outside + More). The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. Excellent! KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. Not only that McDonalds have a lot of branches in Malaysia. They use four steps of training for each employee. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds has more locations than KFC. Next, is the their Menu. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. KFC is well-known for its fried chicken, which is made from their own From the above efforts of McDonalds and KFC to engage in sustainable supply chains, it is evident that they both deploy similar strategies of facilitating sustainability in the modern supply chains. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. IvyPanda. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. This is where everything about the restaurant industry is taught. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. Apply online instantly. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. 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. Would you like to have an original essay? Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. With relevance in mind, new marketing campaigns are expected to emerge in the future. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. How to Market Your Business with Webinars? Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). KFC is a subsidiary of Yum! The fillet-o-fish is a popular menu item. 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. KFC ranks second in terms of CEO Score, trailing only UPS. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. McDonalds is a big supporter of the Ronald McDonald Houses. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. No plagiarism guarantee. KFCs sources of competitive advantage. Such legal provisions have the impact of raising the cost of running the business of both organisations. The mcpizza and mclobster are two failures of the mcdonalds. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. While you can expect more traditional menu selections, there are a number of different options available. 2021. Your privacy is extremely important to us. 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. The two largest fast-food companies have competed fiercely for market share since the 1950s. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. KFCs core competency is we can just come up with one. 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. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. McDonald's and KFC Corporate Responsibility. In addition to their ability to outperform other fast food chains while competing, they may be able to attract new customers and potentially fend off new competitors. Different organisations may choose to pursue different types of competitive advantages. It has quality centers around the globe which ensure that the high standards company has set are consistently met. I have always been a shopaholic. KFCs core competency is we can just come up with one. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). Otherwise, rising competition is leading to higher operational and marketing costs. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. 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? 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. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The companys menu and infrastructure provide a high level of service. 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. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. Brands and Dominos to secure that accolade. McDonald (1st restaurant). Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. 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. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. 2, pp. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. KFC operates in the fast-food industry just like McDonalds. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. Todays customers are both quality and health conscious. In 1960, it opened branches in the UK, Jamaica, and Mexico. It has more than 35,000 branches in more than 120 countries. Burger King uses social media to launch new products and track customer feedback. McDonalds food has dominance over the market with its cost effectiveness and availability. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. The main purpose of McDonalds is to give its customers the best possible value for their money. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. The total number of McDonalds restaurants globally rose to 37,241 in 2018. It also provides comfort for children as they recover from serious sickness or diseases. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. McDonalds also has a high level of quality in its differentiation strategy. 17-19. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. They often result in excessive food wastes and accumulation of packaging waste. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. It is why McDs spends a significant sum on marketing every year. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? 67-71. The fast food industry is highly competitive. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. KFC is an organisation that specialises in fried chickens. However, it is generally accepted that the two companies are not owned by the same entity. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. Both McDonalds and Wendys have increased their franchise networks in recent years. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). They will release out various kind of food according to the season. With a variety of meals, sides, and drink options to choose from, McDonalds When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. How is KFC different from the rest of the world? McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Similar to McDonalds, the organisation also follows the franchising model of operation. McDs is continuously evolving its menu to meet its customers needs and choices. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. Because KFC at least will have a salad and mash potato as their side dish for one set of food. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. student. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. 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. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. This figure escalated to $142 billion in 2006. When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. The success of the organization has been its ability Bakshi, R. & Fiksel, J. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. For instance, both organisations are immensely concerned with their environmental impacts. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. professional specifically for you? McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. McDonald's and KFC Corporate Responsibility. 2 August. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. Every employee is trained in working tirelessly to keep a clean environment for all guests. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. 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. Therefore, the business will increase. While doing the market segmentation for the products, the target market has been well studied and investigated. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. Need a custom Assessment sample written from scratch by IvyPanda. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). This essay has been submitted by a student. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). Brand equity is also a major source of advantage for a fast food brand. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. 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. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world.
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