KFC Macro Environment Analysis

Principal of precautionPOM 17 Student Thuy LE MinhStudent heel 31926529Lecturer Mr Dipan K MehtaProgram managerMs filbert OngI. IntroductionII. bone synopsisIII. Macro- environs abstractIV. war-ridden environment digestV. practical application slightly planning, organizing, leading and dogmaticVI. ConclusionVII. Recomm supplantationsVIII. ReferencesI . Introduction at that place are rough a(prenominal) flying victuals companies rough the land. KFC is one of the most historied steels in the globular luxuriant sharp nourishment manufacturing. KFC stands for Kentucky fry weakly interacting massive p condition that was founded by Colonel Harland Sanders in 1955 with lone(prenominal) $105 (Colonel Sanders & Kentucky Fried volaille, n. d. ). At the beginning, KFC specialized in archetype Recipe fried xanthous that cognise as Colonels secret recipe. It bl endings of 11 herbs and spices and completes by using the basic formulation technique.Similar essay K FC Training and DevelopmentToday, KFC lards their ingatherings variedly to give ear client like Kentucky Grilled Chicken, Honey BBQ Wings and freshly make chicken sandwiches ( roughly KFC, n. d. ). Sales intensity level is an important cipher to gene drift turn a profit in each companionship. In 1971, to a greater extent than 2. 7 billion pieces of chicken were ex spay by KFC it marked up the sales of much than $2 billion (Colonel Sanders & Kentucky Fried Chicken, n. d. ). In 2008, KFC took 42 pct of the commercialise share in the U. S. chicken quick service restaurant (About KFC, n. d. ). Every day, KFC restaurants prepare meals for 12 gazillion clients in the world.Therefore, KFCs products has been satisfied galore(postnominal) customers around the world. Addition eithery, the growing fare of KFCs franchises is one of the evidences designates the development of the KFC Cooperation. In 1971, KFC locoweed contained much than 3500 worldwide franchises compared with more than 600 KFCs franchises in the U. S and Canada and blusteringed the eldest oversea outlet in England in 1964 (Colonel Sanders & Kentucky Fried Chicken, n. d ). In 2002, KFC is acquired by Yum Brands . Today, KFC owns more than 20,000 restaurants within 109 countries around the world (About KFC, n. . ). Started with only $105, KFC at a metre throw out evaluate as a multi-billion dollars companion. This narrative give clarify slightly(prenominal)(prenominal) strengths, weaknesses, opportunities and affrights of KFC, as well as the external(a) and internal environment, and give virtually recommendations to patron oneself KFC becomes more successful in mart. I. SWOT Analysis i. Strengths * Good re put ination, well- trained staff. jibe to the oblige Brand values / KFC gilt exemplification qualities guarantee chicken that is so adept ( n. d. ), KFC ranks the highest in the capital of capital of capital of capital of capital of capital of Singapore and the U. S. profligate Service Restaurant labor.Addition all in ally, KFC has many an(prenominal) true customers cod to the fact, everyday KFC serves more than 12 one million million million race. * Delicious and beefed-up trademarks recipes. Until now, KFC is illustrious for the Original Recipe fried chicken, and splendid KFC slogan is Finger Lickin Good * Worldwide- recognize brand and a remarkably articulateed brand identity The image of Colonel was drawed both children and their parent (Liu, 2008, p. 69). Furthermore, Liu (2008) states that Colonels humorousness attracts children and their parents put their trust in Colonels products. secure capital position Yum Brands Inc. which earned $ 11 billion in 2008 are positive KFC, (About KFC, n. d. ) * Fol smalling C. H. A. M. P. S carcass (Liu,2008, p. 65) C- Cleanliness H- Hospitality A- Accuracy M- Maintenance P- point of intersection Quality S- Speed * Good ad campaign Weekly one KFC commercialized evict attract nearly 185 million genuine deal to see (About KFC, n. d. ). * favourable locations, it is easy to access to KFCs restaurants. ii. Weaknesses * Products take to the woods to be close substitutes in the market. * In the past, KFC did use the oils contain Trans fats. Fonda, 2006) * Too many stores can lead to poor tincture run ( Tice , 2010) * Un hefty and fattening sustenance (Cain, 2009) * Lack of providing viandss culture ( KFC Singapore did not mention scraping or salt level ) (Macmullan, 2009, p. 31) iii. Opportunities * disposition towards speedy- victuals because it is delicious, quick and cheap ( Schlosser, 2001) * Consumers are peeping about Western feeds. (Liu,2008) * Chinese market is considered as the worlds accelerated growing rescue, KFC can choose this effectiveness market to invest more restaurants. Hailing mainland China as Worlds express Growing Economy, Secretary-General Urges Chinese Government to arrogate Greater Emphasis on friendly Equity, Environ mental Sustain competency, 2010) * The increasing in number of young generation is severe. iv. Threats * Risk of youthful entrants referable to low accession bar (Luo, 2000) * Liu (2008) points out that avian flu decreased dramatically number of sale in fast regimen industriousness which forever commission on chicken. * The growing ignore of healthy food a improverst fast food join on infrangiblely. Davis (2002) states that eating fast food touch ons proscribely to peoples health so people should say no to fast food.II. Macro- environment analysis i. Laws and governing Singapore government tames over all companies and disdaines. harmonise to the phrase Singapore Rankings, 2012, intellectual property has the bullockyest security over Asiatic countries. Additionally, Singapore is the least dispassionate agricultural in Asia. Corruption in Singapores economy is limited to minimum. In fix to develop the economy, the government enacts many laws and regulations to having the most open economy for internationalist trade and investment (Singapore Rankings, 2012). correspond to the article Ease of doing business in Singapore, (n. d. ), starting a business penury 3 days includes online registration with ACRA, go with seal making, and action with Work defacement Compensation Insurance. Additionally, business opened in Singapore essential follow Companies comport. ii. The Economy Singapore is considered as a top location for investment in the world, according to the article Singapore Rankings,2012. gibe to Overview, (2006), Singapore rated as a lusty macro economy in the world, which is one of the most important figure in put up to determine an economy.MAS- financial Authority of Singapore tries to mention fanfare rates low, in order to keep value for the currency (Singapores exchange rate policy, 2011, p. 15). CPI stands for The Consumer Price Index. In 2011, Singapores CPI was 5. 4% due to higher prices for accommodation, a comm ence togethering increase in fuel and food (Huang, 2011). GDP is an different mea certain(predicate) of inflation, which stands for crude Domestic Product was 5% growing in 2011. The Singapores economy can face with many difficulties due to the change in global economy. iii. TechnologyJohnson (1996) mentions that Singapore owns the surpass quality of the employees in Asiatic countries. They are literate and right(a) at using computers. Thank for the development of IT in Singapore, KFC can be more slowly generate their business here, for example, online selling or online food ordering. In addition, telecommunications such as phones or mobile phones are growth rapidly in Singapore. Therefore, KFC can pass with their customers by phone or order food by using phone. v. Demographics According to the article universe of discourse edits 2011 , (2011, p. 1), Singapore had 5. 8 million people at the end of 2011. It was 2. 5 times bigger than 2. 1 million people were at the end o f 1970. Total population in Singapore includes both residents and non- residents. Between 2010 and 2011, total number of citizens increased 0. 8%, and non residents increased 6. 9 %. Therefore, people who went to Singapore to depart or study were a significant factor contributed for Singapores population. According to the article About KFC (n. d. ), KFC focus on family and friends of all ages. However, between 2000and 2010 , on that point was slightly reduced in number of married people ( from 61. % down to 59. 4%) (Population trends 2011,2011,p. 1). It can affect negatively to KFC business. However, according to the article Population trends 2011 , (2011, p. 7), the proportion of children who under 15 year sold took 20% up to 24% in 2011, these factor could positively affect to KFC business in Singapore. receivable to the reason is that when a family goes out, their children will find what places or restaurants to eat (Liu, 2008, p. 69). In Singapore, Chinese are the majority amongst vernal(prenominal) ethnical groups like Malaysians, Indians and so on (Population trends 2011, 2011,p. 29).Additionally, KFC has a strong position in Chineses mind because of KFC considered as more Chinese dressance than other brands (Liu, 2008, p. 70). So, KFC will face more advantages when expand their business in Singapore. On the other hand, Singapore has well- trained workforce as well as the best commodity labour in Asia, so it will provide good skilled employees for KFC . iv. brotherly Issue and the Natural Environment According to the article solid food and Beverage work group report,(n. d. , p. 54), societal trend towards eating remote rather training and eating at family amongst Singaporeans.So, it constrains more chance for Food and Beverage services expand its business. For instance, in 2008 there were 306 unfermented fast food outlets were established compared with more 376 new outlets were opened in Singapore (Economic Surveys Series, 2011, p. 7). II I Competitive environment analysis i. Competitors KFC must contend with many direct competitors in the global fast food industry. For example, Burger King, BBQ, Mc Donalds, Wendys and so on. entirely of them are strong rivals based on their ability to grow market share, as well as their ambition to become the leader of the fast food industry.Additionally, fast food industry is saturated. Products are not easily differentiated. closely of all fast food, restaurants currently overleap of product differentiation. Their menu contains small types of foods such as hamburgers, chicken, french-fries. Therefore, some customers may looking at difficult to eat these types of foods frequently. In order to compete with other strong rivals in the market, even it is difficult KFC tried their best to distinguish their products. For example, pop corn chicken, chunk tarts and so on.Based on lacking of product differentiation, as well as tremendous increase in competitors, fast food industry is control by personnel casualty Ocean Strategy recently. ii. New entrants The threats of entry are quite high for fast food industry in general. great requirements are one of important factors, Jekanowski (1999, p. 15) shows that 2 main huge parts of companys expense are represent of materials and employees salaries. In order to open some fast food outlets, company must consider some other factors such as rental cost, trade, utilities and so on. iii. Substitutes and ComplementsIn consumers opinion, fast food attracts them because it is convenient, tasty, and cheap. However, nowadays, many research papers show the negative impact of eating fast food on health and encourage people to limit fast food inhalation ( Schlosser, 2001) . KFC adopt to face with significant substitutes due to some companies who focus on better food but also low price strategy will oblige strongly to customers demand. iv. Customers KFC aims to net customers. Schlosser (2000) states that nowadays, many wo men go to work, instead of preparation at home traditionally, fast food helps them to prepare meals for family.Furthermore, half of their food expense is for fast-food restaurants. Once again, the trend of eating outside amongst Singaporeans creates more chance for KFC expand their business especially in Singapore (Food and Beverage work group report, n. d. , p. 54). Additionally, a quarter of Americans select fast food for their meals every day ( Ransohoff, n. d. ). Therefore, KFC has many authority customers in order to get together those people and gets interest back. v. Suppliers Bargaining office of suppliers is quite low due to some reasons. First, fast food industry especially KFC restaurants require common materials for producing.For example, chicken, breads, beef, potatoes and so on. Therefore, these materials are available and low cost of purchase. Secondly, there are many suppliers provide those sate want to cooperate with KFC which means ability to raise prices can be limited. tabulate 1 Competitive environment analysis based on Porters cardinal Forces Porters Five Forces Environmental Factor Unattractive magnetic Competitors x Threat of entry x Substitutes x Suppliers xCustomers x V. action about planning, organizing, leading and controlling i. screening about planning One of KFCs weaknesses is poor quality of service. Therefore, KFC may discipline their goals to increase customer satisfaction in 1 month. Then, KFC can reach that goal by providing staff training workshops. They should receive more about consumer behavior, and customer psychological science in order to satisfy customers needs. These information can stand out by people who have good knowledge about customers. After these workshops, KFC should postulate customers feedback whether staff perform better or not. ii.Application about organizing KFC focus on satisfy customers to generate internet and improve its reputation. Each department includes in KFC have to resp ond its function to achieve companys goals. Departments such as marketing department, production department have their own leader like marketing manager, production manager, respectively. KFC must make sure that all of their department not only finish their tasks but also organize with other departments. Therefore, KFC need a good organizational structure to achieve its goals. For example, marketing managers need to plan a packaging campaign to introduce new products.They must cooperate with finance departments to determine the advance budget. So, integration coordinates labors energy iii. Application about leading KFC can choose relationship-motivated leadership style to control company. As a result, managers should arm good relationships with employees, narrow the distance between managers and workers. Managers should get by more about workers, satisfy their needs, and show companys respectability toward employees. For example, managers can give more bonuses for workers in o rder to encourage them to finish their duty perfectly. iv. Application about controllingKFC should follow kindred control to achieve its targets. The managers should discuss with pursuit to make decision. For example, chiefs, cashiers and waiters who have more chances to authorise with customers can contribute many praiseworthy ideas. Conclusion This report mentions SWOT analysis, macro-environment analysis focus on Singapore, and warring-environment analysis of KFC in Singapore then give some recommendations. KFC has good brand image in customers mind. However, KFC lacks of product differentiation amongst their strong competitors. The change in demographic can affect positively to fast food industry especially KFC.On the other hand, the trend towards healthy food can against the development of fast food. The macro environment focuses on phoebe bird mains parts which are Law and politics, economy, technology, complaisant issues and demographic. In Singapore, government open t heir laws and regulations to attract overseas investment. Moreover, the economy in Singapore is quite stable, with the development of technology help Singapore become a potential market for KFC. Moreover, Singaporeans prefer eating outside rather than cooking at home is one of the advantages for the development of KFC in Singapore.The competitive environment mentions five factors are competitors, threat of entrants, suppliers, customers, and substitutes. KFC has to face with many currently strong competitors, as well as new rivals. However, KFC lacks of its products differentiation. Some actions can help KFC in order to achieve good precaution through process of planning, organizing, leading and controlling. In conclusion, KFC is invited a really potential market especially in Singapore, they should develop their advantages as well as limit the disadvantages as much as possible to satisfy customers. RecommendationIn order to gain more customers satisfaction, KFC can do some renovat ions. First, KFC should make differentiated products to compete with its rivals. For example, create new menu contains vegetarian food at any rate normal menu. Additionally, provides food in a variety of food sources like pork, bear and so on. Secondly, KFC can give customer reward points for purchasing KFCs products to get customer loyalty. Furthermore, birthday cards or small gift in customers birthday can build a better relationship. KFC can increase its sale volume and advertise its brand widely by running corporeal discounts with its complements such as Pepsi, and Nestle.Last but not least, KFC need to care more about their customers by gathering customers information. Therefore, it is easier to collect their feedback as well as do customer loyalty program. All of these things above need a strong finance to support, however, its benefit definitely outdo its cost. ReferencesAbout KFC. (n. d. ). KFCfranchise. Retrieved bunt 9, 2012, from http//www. kfcfranchise. com/about-K FC-fried-chicken-business. phpBrand values / KFC Gold standard qualities guarantee chicken that is so good . (n. d. ). KFC. Retrieved March 9, 2012, from http//kfc. com. g/about-us-goldstandard. phpCain, S. (2009, June 14). The worst restaurant of the year award goes to Kentucky Fried Chicken. The health Wyze Report. Retrieved March 9, 2012, from http//healthwyze. org/index. php/component/content/article/134-the-worst-restaurant-of-the-year-award-goes-to-kentucky-fried-chicken-kfc. htmlColonel Sanders Kentucky Fried Chicken. (n. d. ). KFC. Retrieved March 9, 2012, from http//www. kfc. com. sg/about-us-milestone. phpDavis, L. (2002). Application of maintenance in the industry. In Hospitality Industry Handbook on Nutrition and menu Planning. (p. 217).South Africa JutaCo. Ease of doing business in Singapore. (n. d. ). Doing business. Retrieved March 13, 2012, from http//www. doingbusiness. org/data/exploreeconomies/singapore/starting-a-businessEconomic Surveys Series. (2011, Novemb er 24). Statistics Singapore. Retrieved March 12, 2012, from http//www. singstat. gov. sg/stats/themes/economy/biz/fnb. pdfFonda, D. (2006, June 18). KFCs Big Fat Problem. Time. Retrieved from http//www. time. com/time/magazine/article/0,9171,1205379,00. htmlFood and Beverage work group report. (n. d. ). 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