Texas Chicken has over 1,700 locations in 23 countries worldwide. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. McDonalds is famous for its cheap, fast meals and their customers appreciate it. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. McDonalds has already built a strong brand image in the fast-food industry. We utilize security vendors that protect and Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. And in doing so, it reduces a lot of its risk, both in the short and long term. A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. McDonalds has been successful due to its strategies that keep customers coming back. (what To Know! McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. Fast-food organisations are cheap. IvyPanda. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. student. 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. An important thing to realize is that the success of an icon is not limited to the business. So think about KFC for a minute. The main items on its menu include hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. 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. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. McDonald's Competitive Advantage. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). It has more than 35,000 branches in more than 120 countries. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? More than R100 000 in prizes have been distributed to winners. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. Beside that, KFC company was ranked in number two in the analysis. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. Fried chicken is the only main course offered at Texas Chicken. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. 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. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. Business Week, 18-19. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. McDonalds is very committed to keeping their restaurants clean. 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. According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. This figure escalated to $142 billion in 2006. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. One major source of competitive advantage for McD is its extensive global presence. McDonalds uses a mix of traditional and digital channels for advertising and promotions. It is why McDs spends a significant sum on marketing every year. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. I believe were going to see a new chapter in the Burger Wars in the coming years. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. We`ll do boring work for you. Advertising is the most fundamental way KFC promote its products. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. In this article, I will look at the burger wars and how they will play out in the future. Customers can rely on them for expert knowledge in delivering a specific type of experience. 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). 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Several brands like Starbucks have become famous by focusing exclusively on customer service. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. Such products deserve to create value to their consumers. McDonalds strategy is to differentiate itself through efficiency and quality. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. 25 no. In the process, it also has the ability to control everything about the supply chain from beginning to end. 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. . 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. 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. This process has the aftermath of reducing carbon prints for many organisations. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. (2021) 'McDonald's and KFC Corporate Responsibility'. KFC operates in the fast-food industry just like McDonalds. 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. 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). 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. KFC competes against McDonalds the most. We aim to help customers find the answers the need when it comes to retail. This is correct. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. KFC is an organisation that specialises in fried chickens. Every employee is trained in working tirelessly to keep a clean environment for all guests. The company focuses on making the supply process as efficient as possible. McDonalds has focused on all these things. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Each of these gases contributes a given proportion to global warming. Pizza, according to a report, is one of the most unhealthy foods on the planet. This shows that KFC retained their net earnings higher in year 2008 so that they can reinvest in its core business to pay its debt. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. 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. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Do you want fries with that? This is a question that has been asked for decades. 2 August. Your privacy is extremely important to us. 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. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. There are several major international. The total number of McDonalds restaurants globally rose to 37,241 in 2018. McDonalds have much more branches then KFC around the world. McDonalds is top competitors which brought the most influence towards KFC company. The joint venture that has been going on for over fifty years. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). 48 no. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. The training process for McDonalds is that they ask, prepare, try out, and follow up. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. When McDonalds restaurants see donations in boxes, they collect the donations and give away the donations to Ronald McDonald Houses to help children with serious illnesses. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. Additionally, McDonalds customer service standards are among the highest in the fast food industry. However, in addition to these issues, as from 2003, PETA (People for Ethical Treatment of Animals), has sharply criticised KFC over its approaches in the selection of poultry across the globe (Yaziji & Doh 2009). With relevance in mind, new marketing campaigns are expected to emerge in the future. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. It is headquartered at Louisville, Kentucky. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). 35-52. If you grow your own food, you can control quality better. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. McDonalds customers have a lot of power if the restaurant wants to keep its customers. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 17-19. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. They have to establish mechanisms of enhancing corporate governance. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. Todays customers are both quality and health conscious. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Icons are like the logos in any other business. They often result in excessive food wastes and accumulation of packaging waste. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. 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. 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). Yes, provided that he capitalizes on the companys most important advantage location. It has achieved strong global growth and is largely managed by franchisees. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. Sure, they brag about their 11 herbs and spices, which is great, but thats not what you are tasting when you bite into some extra tasty crispy, Bayer explained. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. They constitute a major supply chain issue at McDonalds and KFC. However, McDs has continued to grow its presence in the other significant markets too. As a result, they can become market share leaders in the industry. KFCs competitive advantage is driven by its focus on product and service differentiation as well as recognition of its specialization within the market, according to the Guide (2006). Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. McDonalds has been criticized for its advertising to children. It helps retain customers as well as attract new ones and manage a healthy bottom line. 2, pp. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. 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. Brands, Inc. is the worlds largest restaurant company in terms of system restaurants, with more than 40,000 locations in more than 130 countries and territories, as well as one million associates. Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. The Walt Disney Company bought it in June. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. 1. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. Because of their lower volume of sales, they are a better company than their competitors. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. For instance, both organisations are immensely concerned with their environmental impacts. Its also made the fast food landscape what it is today. They want their food to be good in terms of quality and low on calories. 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. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. KFCs sources of competitive advantage. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature 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. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. Apart from intense competition and pricing pressure, there are other reasons too that businesses have to struggle to retain their existing customers and build strong customer loyalty. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. According to the most recent data, as of July 30, 2021, the companys market cap was $52.3 billion, and its share price was $1863. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. While these fast-food giants have a The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). 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. Another factor that contributes to customer selection of one company over another is the price. 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