Can they constitute good examples of corporate citizens in the US fast-food industry? It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. McDonalds has built a solid foundation in order to grow its business. 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. 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. However, McDs has continued to grow its presence in the other significant markets too. 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. KFC China tends to introduce more new products than its competitors (Jeon et al. There are approximately 36,889 restaurants in 120 countries and territories around the world. (Mintel, 2009m, p.1) creating competitive advantage for the company. KFC positions itself competitively by leveraging on franchising. It is essential to keep the customers engaged and retain them so that they do not switch brands. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. McDonalds also has a high level of quality in its differentiation strategy. The fast-food chain is popular for a number reasons. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds has added their menu to continue the tradition of good burgers and fries. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. KFC competes against McDonalds the most. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. In 1960, it opened branches in the UK, Jamaica, and Mexico. Customers 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. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. These efforts have helped the company maintain its position as the largest fast food chain in the world. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. Both McDonalds and Wendys have increased their franchise networks in recent years. Different positioning strategies of the products development were examined before the goods have been supplied to the market. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. It has more than 35,000 branches in more than 120 countries. KFC fried chicken tastes good because it is formulated to taste good. "McDonald's and KFC Corporate Responsibility." Over three million takeaways are discarded in the United Kingdom each day. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Through continual innovation & technology research and upgrade, McDonalds have transformed itself from a small bar-b-que restaurant to a fast food restaurant chain serving mainly burgers, chicken products, fries, beverages, desserts, salads, wraps and fruits for breakfast, lunch, dinner and even supper 24 hours a day, 7 days a week. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. 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. They use four steps of training for each employee. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. By John Dudovskiy. ), What Time Does Mcdonalds Serve Lunch? While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. Consequently, unlike McDonalds, it found no need for talking about it. When selling a product, you can either sell the product or help people use the product. 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. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. The idea is to give customers a more natural product. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. However, it is generally accepted that the two companies are not owned by the same entity. These critical aspects help in building the competitive advantage of an organisation. McDonalds is popular for its hamburgers. Such legal provisions have the impact of raising the cost of running the business of both organisations. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. The company has a strong financial position and Not only that McDonalds have a lot of branches in Malaysia. McDonalds competitors in the United States and the United Kingdom are also direct competitors. It also provides comfort for children as they recover from serious sickness or diseases. KFC operates in the fast-food industry just like McDonalds. It has quality centers around the globe which ensure that the high standards company has set are consistently met. 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. KFC got the most influence from McDonalds, the best competitor. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Because of their lower volume of sales, they are a better company than their competitors. 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. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. Many businesses use cross-selling to maximize sales. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Customer-focused approach brings advantages to KFC. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. What is better chicken or KFC? KFC also has a strong presence in China, which is a key growth market. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. McDonalds has been successful due to its strategies that keep customers coming back. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. Advertising is the most fundamental way KFC promote its products. McDonalds uses a mix of traditional and digital channels for advertising and promotions. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. 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). Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The QSR industry has grown and is populated by a very large number Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. Which company owns KFC? This plan is pivotal in helping to resolve various challenges that relate to supply chain management in business environments that are characterised by changing trends because of globalisation, intensive competition, and the need for securing and protecting the environment within which the organisations are established. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. I., 2000, Marketing Theory and Practice, lecture 6). 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. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Thirdly, is their ranking and sales volume. 4. IvyPanda. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. Web. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. It has also managed a large supply chain to ensure the availability of good quality raw material. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. (your Full Guide), Why Is Mcdonalds So Cheap? While these fast-food giants have a McDonalds and Burger King have been battling for market share in the intervening years. Since an organisation must balance all interests of the stakeholders, owners of the corporations become disadvantaged since high operational costs imply low returns on investments. 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. McDonalds food has dominance over the market with its cost effectiveness and availability. Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. The Latest Innovations That Are Driving The Vehicle Industry Forward. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. In 1973 KFC joint Malaysia. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. It first offers some background information on the organisations. One major source of competitive advantage for McD is its extensive global presence. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. McDonalds may have to reconsider its product quality as customers become more health-conscious. 2016, 740). KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. 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. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. Burger King and KFC are both competitors. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. 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. It is why McDs spends a significant sum on marketing every year. 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