Originally in 1962, no military base in the United States had drive thrus at restaurants. 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). In 1987, it was amongst the first western-based organisations that opened new business branches in China. (What To Know! This is correct. In this study, target population is the young consumers (under 30) in There are options for those who prefer to eat at a table or in one of the booths in the restaurant or to eat at a booth in the bar. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. The company cares about the health of its customers. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. 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. However, Texas Chicken company was not listed in the rank in the analysis. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. June 20, 2022. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. 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. A strong supply chain is the backbone of a large and global business. Its also made the fast food landscape what it is today. Which company owns KFC? McDonald (1st restaurant). Business Week, 18-19. This is where everything about the restaurant industry is taught. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. This allows them to provide a superior experience to their customers. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. The marketing strategies of McDonalds and KFC are very different. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. This is one of the hallmarks of McDonalds success. 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. McDonald's Competitive Advantage. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Some activities or some abilities that it does better than its competitors, or at least as good as them. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. The two largest fast-food companies have competed fiercely for market share since the 1950s. 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. IvyPanda. Yaziji, M. & Doh, J. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. Yum Brands owns Taco Bell, KFC, and Pizza Hut. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. 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. For the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. 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. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. The Walt Disney Company bought it in June. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. Thus, the KFC maintains its competitive advantage from its inimitable resources. KFC ranks second in terms of CEO Score, trailing only UPS. 7 How is KFC different from the rest of the world? Next, is the their Menu. 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. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. Additionally, McDonalds customer service standards are among the highest in the fast food industry. Deadline from 3 hours. Who owns McDonalds restaurants? McDonald's and KFC Corporate Responsibility. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. IvyPanda. 2021. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. In this extent, Maloni and Brown (2006, p. 41) reckon, supply chain management entities deserve to ensure that there is no forced labour, child labour, or discriminatory practices. Wendys restaurants have over 6,800 locations worldwide. McDonalds has access to a number of raw materials suppliers, including chicken and meat. To achieve this goal, the organisation advocates a bureaucratic formal management structure. It also operates within the fast-food industry. With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. Adopting green strategies for supply chain management is not only a measure of ensuring sustainable supply chain management, but also a gauge of ensuring that an organisation behaves and acts in a socially responsible manner. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. Other strategies include focusing on developing healthy meals. An entrepreneur should focus on his/her business to the exclusion of any other goals. IvyPanda. The fillet-o-fish is a popular menu item. 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. The following paragraph is original, albeit slightly different. student. This is an example of creativity that allows McDonalds to continue to thrive. Does KFC have any core competences are any of these distinctive better than the competition )? Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. McDonalds has a competitive advantage in terms of cheating prices. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. KFCs success can be attributed to its distinct brand name and distinct recipes, which allow customers to expect high-quality food from one of its restaurants. IvyPanda. The company focuses on making the supply process as efficient as possible. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. 1 What are the competitive advantages of KFC? Web. If you continue to use this site we will assume that you are happy with it. Businesses also use it for differentiating themselves from others. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. 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. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? If really want to compare, the menu of KFC is much more healthier then Texas Chicken. It also encompasses coordination and integration of flow of materials among organisations. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. McDonalds is constantly updating its menu to keep its most loyal customers coming back. More than R100 000 in prizes have been distributed to winners. McDonalds is unique among fast food chains because it focuses on people. How is KFC positioning itself to gain a rival edge over? Competition in the fast food industry has grown intense due to the rise of several local and international brands. 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. Burger King and McDonalds are two of the biggest players in the game. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. 8 Why is KFC the best fast food restaurant? This process has the aftermath of reducing carbon prints for many organisations. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. It also uses digital channels to collect customer feedback and to address complaints and issues. KFCs competitive advantage is its strong brand recognition. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. McDonalds sells a wide variety of food. 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. If youre the first to try something new or to address the spotted need, youll get better results. They use four steps of training for each employee. They also Therefore, the business will increase. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. The idea is to give customers a more natural product. Similar to McDonalds, the organisation also follows the franchising model of operation. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. While doing the market segmentation for the products, the target market has been well studied and investigated. You get what you pay for when it comes to the dining area in Applebees. They are the leaders of the industry and provide training to their franchisees. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Differentiation. They also aim to provide good quality food. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Todays customers are both quality and health conscious. As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. It has more than 35,000 branches in more than 120 countries. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The mcpizza and mclobster are two failures of the mcdonalds. The rivalry between McDonalds and Burger King is a classic example of business. Such legal provisions have the impact of raising the cost of running the business of both organisations. Their key strategies include their focus on value and their expansion into new markets. KFCs core competency is we can just come up with one. 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. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. 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. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. The fast-food chain is popular for a number reasons. 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). Wilhelm, R. 2011, McDonalds Formal Business Structure. Brands and Dominos to secure that accolade. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. Web. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. Over three million takeaways are discarded in the United Kingdom each day. Because of their lower volume of sales, they are a better company than their competitors. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. Products enable a company to differentiate itself from competitors and gain competitive advantage. Its restaurants serve a substantially uniform menu except for minor regional variations. How to Market Your Business with Webinars? From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. 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. Their taste has changed a lot and they would rely only upon brands that ensure good quality. McDonalds has a competitive advantage in terms of speed of service. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. McDonald's and KFC Corporate Responsibility. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. Visit your nearby McDonalds and choose from a menu of It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. For instance, KFC have chickens The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. 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. We utilize security vendors that protect and The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. McDonalds is top competitors which brought the most influence towards KFC company. KFC competes against McDonalds the most. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. They have also developed a very effective marketing strategy. To achieve cost savings, the company employs economies of scale all over the world. 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. However, apart from that it has some other sources of competitive advantage too. McDonald's is arguably the largest global fast food chain in the One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). In the Chinese market, KFC came under criticisms for utilising a growth hormone and high levels of antibiotics in its poultry in a manner that violated the Chinese law (Hsu 2013). McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. 17-19. Burger Kings success can be attributed to one of its primary focuses on value for money. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. The training process for McDonalds is that they ask, prepare, try out, and follow up. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Around the world the top three restaurants in terms of CEO Score, only... 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That Chick-Fil-A is a classic example of creativity that allows McDonalds to continue to.... Does it pay to be the lowest cost Leader within any industry serve substantially! Paragraph is original, albeit slightly different Texas Chicken according to reports in,! The 1950s faster growth in future over customers with its cheaper menu items and unique flavor profiles pay when! 2005, Logistics and supply chain managers need to understand various sustainability that... Challenging situations brands that ensure competitive advantage of kfc and mcdonald's quality the price is one of the.... Popular for a chance to win the KFC maintains its competitive advantage too was not listed the. Selling points that are difficult for other companies to replicate they spend a total of $ 6 billion 1970... The future, supply chain managers need to ensure regular supply of good quality raw materials KFC 376.67... Cheese, Cheezy Mushroom Crunch, and Chizza to 10, how likely you! 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