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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. 2016, 740). What is better chicken or KFC? We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. 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. 10-11. These efforts have helped the company maintain its position as the largest fast food chain in the world. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. For example, the Greenspace, a green organisation, criticises the corporation by claiming that Brazilian soy farming, which is deployed to feed chicken at McDonalds, constitutes a major threat to the sustainability of the Amazon rainforest. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. 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). McDonalds is most popular for its diverse menu. 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). In this article, I will look at the burger wars and how they will play out in the future. 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). Fast-food organisations are cheap. McDonalds customers have a lot of power if the restaurant wants to keep its customers. Advertising is the most fundamental way KFC promote its products. 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). KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Originally in 1962, no military base in the United States had drive thrus at restaurants. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. McDonalds has been criticized for its advertising to children. Over three million takeaways are discarded in the United Kingdom each day. job in Hastings, MI. So the idea was, make the military happy, give them food, and make it a nice safe experience. Kroc was certainly a businessman with a plan. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Hence, McDonalds is still cheaper than KFC. Because KFC at least will have a salad and mash potato as their side dish for one set of food. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. McDonald's and KFC Corporate Responsibility. However, apart from that it has some other sources of competitive advantage too. 3, pp. This immense success of McDonalds is attributed to a number of factors such as its incredible emphasis on engagement of consumers, appropriate leaderships that fits the business of the organisation, and exceptional investments of the organisational resources in brand management. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. 2, pp.117-127. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. 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. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. 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. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! While these fast-food giants have a Sunner became McDonalds official supplier in September 2014. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. KFC ranks second in terms of CEO Score, trailing only UPS. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. 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. 2021. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. A strong supply chain is the backbone of a large and global business. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. The total number of McDonalds restaurants globally rose to 37,241 in 2018. Learn more about the types of strategies McDonalds uses by reading this article. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. KFC is an organisation that specialises in fried chickens. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). Yaziji, M. & Doh, J. Customers can rely on them for expert knowledge in delivering a specific type of experience. The database is updated daily, so anyone can easily find a relevant essay example. 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. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. (2021, August 2). The two largest fast-food companies have competed fiercely for market share since the 1950s. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. McDonalds is famous for the consistency and quality of its products. Burger King, which is privately owned, competes with McDonalds in the fast food industry. The product ranges originality factor ensures a fixed or even growing share of the market. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. So far, McDonalds seems to be winning the battle. For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. An organisation can also protect shareholders from losing their investments by ensuring that risks that lead to a reduction of competitive advantage are proactively mitigated. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. All of these have been successful for the company. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. They constitute a major supply chain issue at McDonalds and KFC. You get what you pay for when it comes to the dining area in Applebees. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. McDonalds is popular for its hamburgers. The fast food industry is highly competitive. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. McDonalds has a long tradition of innovation. 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. 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 is where everything about the restaurant industry is taught. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. McDonalds is ranked first in the world, while KFC is ranked fourth. It is essential to keep the customers engaged and retain them so that they do not switch brands. 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. 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. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. It also provides comfort for children as they recover from serious sickness or diseases. (your Full Guide), Why Is Mcdonalds So Cheap? The franchisees own and operate more than 90% of McDonalds restaurants globally. Business Week, 18-19. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. McDonalds also sells their own specialty coffee under the brand name McCafe. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. While these fast-food giants have a ensure the integrity of our platform while keeping your private information safe. McDonalds (MCD), Burger King (BKW), Carls Jr., Papa Johns, and Pizza Hut are among the companies that must supply Shanghai restaurants, according to a government statement. It has more than 35,000 branches in more than 120 countries. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. Some activities or some abilities that it does better than its competitors, or at least as good as them. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. With a variety of meals, sides, and drink options to choose from, McDonalds By continuing, well assume you agree with our Cookies policy. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. 8 Why is KFC the best fast food restaurant? 1350-1358. A large and varied product range is meant to cater to the taste and needs of various groups of customers. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. This is an example of creativity that allows McDonalds to continue to thrive. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. 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). Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. 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. "McDonald's and KFC Corporate Responsibility." Wilhelm, R. 2011, McDonalds Formal Business Structure. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. McDonalds competitors in the United States and the United Kingdom are also direct competitors. 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. 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). Leclerc, Y. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. An important thing to realize is that the success of an icon is not limited to the business. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. 2 no.1, pp. - Caitlyn Johnson. Its also made the fast food landscape what it is today. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. Even though they are same but KFC meal is much more cheaper than Texas Chicken. The training process for McDonalds is that they ask, prepare, try out, and follow up. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. 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. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. The main items included on its menu are 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. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. However, again Texas Chicken sales volume are not stated in the statistic portal. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. 17 no. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. Customer-focused approach brings advantages to KFC. 7 How is KFC different from the rest of the world? Communication is important for both McDonalds and KFC in overcoming criticisms over the sustainability of their chain supplies, especially when queries emerge concerning the foods nutritional value, sources of their raw materials, and issues on management of all associated wastes. 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. 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