Kentucky Fried Chicken Corporation Essay Example | Topics and Well Written Essays - 3000 words

Kentucky Fried Chicken Corporation - Essay Example Thus, it is in line with this that KFC should understand further everything about its strategy development. It should understand the necessary things it needs to know as product of its strategy process. Finally, it should be able to define and understand the specific contexts in which its strategy should be embedded. Global operation is one of the modern trends applied in modern operations strategy (Waters, 2006). This is the reason why Kentucky Fried Chicken Corporation (KFC) had become so aggressive with its global expansion strategy. This strategy enabled KFC to become the world’s largest chicken restaurant chain and in general the third largest food chain in the world (Krug, 2004). In fact, it is known to have around 14,000 restaurants in more than 100 countries including China, Japan, Canada, Great Britain, Australia, South Africa, Malaysia, Mexico, Indonesia, South Korea and Philippines. Franchise and joint ventures are integrated with the whole business system of KFC in order to allow local business people to handle since they know better the external and internal environments of their respective markets. This paper tries to understand more about the strategic operation of KFC Corporation by incorporating various analytical concepts in strategic development and management. The entire analysis is placed in the context of international fast food industry. ... This paper tries to understand more about the strategic operation of KFC Corporation by incorporating various analytical concepts in strategic development and management. The entire analysis is placed in the context of international fast food industry. SWOT and Porter’s value chain SWOT technique SWOT stands for strength, weaknesses, opportunity and threats in which it is a simple management technique which draws information together prior to decision-making process (Murdock et al., 2003). A SWOT analysis is composed of understanding both internal and external factors within an organization prior to knowing its major advantages and disadvantages. It is a non-complex way of identifying specific details in the business operation in order to understand the extent in which an organisation holds its competitive advantage or knowing the necessary steps to be taken further for improvement of the operation. This technique is very relevant in the case of KFC especially among its strate gic planners because they will be given opportunity to outline the internal and external factors affecting the whole operation of the business. Shown in figure 1 below are internal and external factors within the present environment of KFC. This is a good evaluative technique prior to formulating effective strategies because the strategic planners in this case seek to understand both the internal and external factors affecting the business environment of KFC. Figure 1. SWOT Analysis KFC (Internal and external factors) Internal factors Strengths Weaknesses Product offering Brand image/good-tasting and highly accepted recipes Many substitute products in the market Competitive advantage High market share Not culturally