4. McDonalds has always tried to achieve higher customer satisfaction. Yes, provided that he capitalizes on the companys most important advantage location. 2021. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). Richard and Maurice, August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. McDonalds strategy is to differentiate itself through efficiency and quality. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. McDonald's Competitive Advantage. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. 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. Would you like to have an original essay? If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. However, it is generally accepted that the two companies are not owned by the same entity. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. After a pandemic, the fast-food industry will be unable to survive for at least a year. 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. Please note! KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. They offer hamburgers, french fries, breakfast menu items and many more. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. McDonald's is arguably the largest global fast food chain in the McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. Which company owns KFC? McDonalds is popular for its hamburgers. The product ranges originality factor ensures a fixed or even growing share of the market. 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. But, Texas Chickens core dish of restaurant is only fried chicken. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. Each of these gases contributes a given proportion to global warming. 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. McDonalds owns 82 of their locations and can rent them out to franchisees. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. Visit your nearby McDonalds and choose from a menu of Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. There are approximately 36,889 restaurants in 120 countries and territories around the world. KFC operates in the fast-food industry just like McDonalds. "McDonald's and KFC Corporate Responsibility." This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Many businesses use cross-selling to maximize sales. Fried chicken is the only main course offered at Texas Chicken. Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). By John Dudovskiy. Why is KFC the best fast food restaurant? McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. This is correct. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. It is headquartered at Louisville, Kentucky. You should have an apostrophe before the apostrophe in the word system. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. 6, pp. KFC China tends to introduce more new products than its competitors (Jeon et al. KFC competes against McDonalds the most. 67-71. Nevertheless, the corporations CSR manager in the UK and Ireland confirms that its engagement in CSR has taken a long time to be embedded in its business model (Idle 2011). For take-away foods, they must wrap customers food. There is no reason for them not to be a major competitor in the market. These include billboards, radio ads, and digital ads. McDonalds has built a strong image as a fast food brand that only offers great quality. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. For instance, both organisations are immensely concerned with their environmental impacts. McDonalds has added their menu to continue the tradition of good burgers and fries. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. food. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. Quality, service and cleanliness are always important, but in this case, good value is more important. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. They understand that their customers have distinct needs, which sets them apart from their competitors. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. 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. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. The most preferred direction is the one that will ensure that supply chain approaches become cost effective to the extent of making an organisation experience competitive advantage. The Latest Innovations That Are Driving The Vehicle Industry Forward. Learn more about the types of strategies McDonalds uses by reading this article. We use cookies to ensure that we give you the best experience on our website. McDonalds brand value is unrivaled among its competitors in terms of brand value. The goal was to initiate a programme for phasing out the use of polystyrene food packaging to raise the number of recycled food boxes and containers. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. Businesses also use it for differentiating themselves from others. Yum Brands owns Taco Bell, KFC, and Pizza Hut. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. 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. 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). Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. 1. Customer-focused approach brings advantages to KFC. 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. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. While these fast-food giants have a 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. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. 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. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. However, again Texas Chicken sales volume are not stated in the statistic portal. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 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. Built a strong image as a fast food business for instance, both organisations are immensely with! 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