...Case Study 1 KFC in India – Ethical Issues 1. Since its entry into India in 1995, KFC has been facing protests by cultural and economic activists and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. No tolerance for ‘cruel multinationals’ was the main reason for the protests made by cultural and economic activists and farmers. Due to the economic liberalization policy of the Indian government during the early 1900’s, foreign fast food companies were granted permission to enter India. From the cultural and economic activists and farmers perspective there were numerous disadvantages with the opening of these fast food chains, in particular KFC. The main fear for nationalists and cultural activists was the disturbance to the Indian culture and the effect of globalisation. Though KFC had implemented traditional Indian dishes such as ‘tandoori chicken’ and ensured that it was more nutritious, this does not enquire that the majority of those who visit KFC will not go for other junk-food alternatives. With a low rate of obesity, hypertension, heart disease and cancer, India now faced a threat to these illnesses caused by high sodium and cholesterol through the consumption of meat, fried, and processed foods. From an economic viewpoint, the opening of more KFC chains initially stimulated employment and infrastructure opportunities as well as providing the Indian economy (FDI) with many benefits. This also gave a chance for...
Words: 1163 - Pages: 5
... Introduction As we all know Kentucky Fried Chicken (KFC) is among of the popular fast food restaurant with their delicious secret recipe fried chicken and that was named Yum!Brand before Kentucky Fried Chicken and was started in Louisville. The idea of opening this restaurant was in 1930 and the founder of Kentucky Fried Chicken is Colonel Harland Sanders in 1952. The company has become a well known chicken chain restaurant with their trademarked slogan “its finger lickin’ good” and currently this company is expanding their business by doing some ethical social responsibilities like the KFC Colonel’s Scholars Program for years. Plus the program offered $20 000 to the high school and they are planning to open a university or college of KFC. In this report includes the discussion of the dilemmas that Kentucky Fried Chicken (KFC) facing together with theories, how the company manages their strategies to overcome the dilemmas and some of the recommendations solution towards the dilemmas. So far as I know, there are two main dilemmas that the company is facing which related to health of the customers which are chicken abuse and the exceed amount of oil used for cooking that affect various stakeholders. Main ethical dilemmas in Kentucky Fried Chicken Environmental scanning involved in KFC There are a lot of dilemmas that many organizations are...
Words: 1470 - Pages: 6
...Kentucky Fried Chicken (KFC) Corporation is the world's most widespread chicken restaurant chain offering services to more than 12 million customers in 109countries all around the world. Background of the Ethical Issue Recently KFC faced accusation from non government organizations like PETA and Greenpeace regarding unethical practices from KFC’s supply chain such as Pilgrim’s Pride and Cargill. KFC was accused of ill-treatment towards its chicken by PETA and Greenpeace blamed KFC for its role in the destruction of the Amazon rainforest. This case study discusses these ethical issues in detail and concludes with suggestions and recommendations from the case study team, on how similar issues could be avoided or tackled. PETA Perspective Every year more than 1 billion chickens are killed from the chicken farms, meant for KFC. The improper breeding of birds combined with improper working conditions of workers and lack of ethically efficient operation processes led to improper practices in KFC’s supplier’s poultry farms. As a result KFC was accused of animal abuse by PETA, on the supplier’s farm. The People for Treatment of Animals (PETA), an animal right protection organisation, accused KFC for its unethical treatment (behaviour) towards the chicken in KFC’s supplier factory farms. Pilgrim’s Pride (PP) is one of KFC’s award-winning supply operations and the second largest processor of chickens in the United States. PETA’s investigations in Pilgrim’s Pride poultry farm...
Words: 1530 - Pages: 7
...Introduction Kentucky Fried Chicken is one of the well-known fast food restaurants in the world. Kentucky Fried Chicken (KFC) Corporation, based in Louisville, Kentucky, is the world's most widespread chicken restaurant chain offering services to more than 12 million customers in 109 countries all around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC was founded by Harland Sanders (Sanders) in the early 1930s. He started cooking and serving food for hungry travelers who stopped by his service station in Corbin, Kentucky, US. KFC has been a brand and operating segment, of Yum Brands since 1997 when that company was acquired from PepsiCo as Tricon Global Restaurants Inc. Background of the Ethical Issue : Recently KFC faced accusation from non government organizations like PETA and Greenpeace regarding unethical practices from KFC’s supply chain such as Pilgrim’s Pride and Cargill.KFC was accused of ill-treatment towards its chicken by PETA and Greenpeace blamed KFC for its role in the destruction of the Amazon rainforest. This case study discusses these ethical issues in detail and concludes with suggestions and recommendations from the case study team, on how similar issues could be avoided or tackled. Objectives Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country. Which are: Appreciate the need for protecting animal rights in...
Words: 275 - Pages: 2
...Case Study – KFC Japan INTRODUCTION Kentucky Fried Chicken (KFC) was set up by Harland Sanders. In the first decades of the enterprise there were no management systems or strategic controls. However, it worked fine in the beginning, mainly because for launching new franchises an entrepreneurial spark was fundamental. Nevertheless, the company grew and after suffering declines in sales and profits the implementation of strategic planning, which was introduced by Michael Miles in late 1975, seemed to be an adequate measure to solve the problems. By 1979, the various programs of the strategic planning progress were beginning to show results. Anyhow, some foreign subsidiaries resisted and didn’t want to adopt these measurements. PROBLEM STATEMENT One of the main problems KFC was facing, was that foreign subsidiaries were not willing to adapt standards – like strategic planning - imposed by the headquarter. Especially KFC-J has been strongly resisting the implementation of administrative operational controls and systems. Should the headquarters be prepared to accept operational variations? Moreover, it had to be clarified what was an appropriate level of performance expectations for overseas units. Even though it was obvious that KFC had to maintain its drive for aggressive growth, there was incertitude about how to ensure the continuance of such growth. Additionally, there was the issue of how to expand into new markets and countries successfully. KFC had very limited...
Words: 2074 - Pages: 9
...Fried Chicken (KFC) is a quick service restaurant chain headquartered in Louisville, Kentucky and was founded by Colonel Harland D. Sanders in 1939. KFC restaurants across the world offer fried and non-fried chicken products such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products marketed under a variety of names. KFC restaurants also offer a variety of side items suited to local preferences and tastes. An American icon, it is the world’s largest fried chicken chain and the second largest restaurant chain after McDonald’s as measured by sales, with over seventeen thousand outlets in over a hundred countries as of December 2011. KFC has entered numerous countries, including developing countries such as India, China and Thailand. In this paper, I will specifically discuss ethical issues surrounding KFC’s operations in India, and steps that the company can take to combat these issues. Foreign fast food companies were allowed to enter India during the early 1990s due to the economic liberalization policy of the Indian Government. KFC was among the first quick service multinationals to enter India. On receiving permission to open thirty new outlets across the country, KFC opened its first fast-food outlet in Bangalore in 1995. Bangalore was chosen as the launch pad as it had a substantial upper middle class population, with an emerging trend of families eating out. It was considered India’s fastest growing metropolis in the 1990’s. However, KFC got embroiled...
Words: 1168 - Pages: 5
...of organization: KFC Chicken meat production is the largest sub segment of South African agriculture. It contributes almost 18% to agriculture's gross income which contributes to the economy growth and development of the nation. Chicken meat is the most important protein source in the diet of the majority of South Africans, including the poor. Chicken meat is the cheapest source (in terms of R/kg) of meat in South Africa, however, since 2013 chicken meat prices in South Africa increased by 13 percent and in the past year by more than eight percent, as increased import tariffs of chicken meat, coupled with anti-dumping duties, escalated local prices. KFC is known to be a favorite of meat lovers it specializes in fried chicken, and this segmentation is the main success factor of KFC. KFC’s key objectives include: * To increase their market share in the fast food industry * To improve annual profit margin in order to maintain company growth * To increase shareholders dividends and franchise KFC’s strategies KFC’s main success strategy lies in their super secret blends of eleven herbs and spices that are used to differentiate their chicken from other organization offering similar services. In addition, their marketing and advertising strategy that portrays the product as an ultra-unique, one-of-a-kind thing, with no exact equal in the entire world to a target audience gives them competitive advantage over others. Other key success factors of KFC include: Cleanliness...
Words: 2294 - Pages: 10
...faster, clearer and more effective (Lubbers & Koorevaar, 2000). . Course Concepts Identified Though Global Communications and the situations involved present multiple problems one sees the potential for possible solutions. The course concepts in the following synopses include communication issues, ethical dilemmas such as integrity, social responsibility and the quality of life. All of the above listed items will show a need for improvement in the globally communicative world that one lives in. As new creations, such as the internet are continually being created, modified and converged with other products, they are enabling new modes of interaction. Even more global communications has hit the world in a strategic and effective manner. Global markets now offer the ability to produce cheaper products, access to consumers in foreign countries, new sources of finance and income, new sources of technology and access to a world of people with know-how. (Stevens, Miller & Michalski, 2000). The issue now is how far will its affect take many of the institutes today, what can one reap from this and how will it enhance ones capabilities. For example, the prominent issues in need of a solution is that of government monopolies that still control a huge share of the world air waves and telecommunication flows (Turner & Cunningham, 2002). Another limitation is the...
Words: 5525 - Pages: 23
...cultural differences global players also face other competitive challenges concerning market segmentation in these distinguished categories. In order to have a better analysis structure we decided to use the STEP Analysis by Stonehouse, which uses four main categories: social cultural demographic effects, technological and infrastructural effects, economical and financial effects, political and legal effects. Within each category we will distinguish between the four main segments of the fast industry. Social, Cultural and Demographic An overall phenomenon, we can see in all segments of fast food industry, is a general openness to international products especially in the Asian market. There are also differences regarding the target groups in the different markets, e.g. KFC, which was positioned for the middleclass in Australia whereas attracting blue collar in the U.S. The first and the biggest category is the burger segment with McDonalds and Burger King as main players of the market. One of the main problems competitors are facing in this segment are health concerns by the customers like mad cow disease, overweight, cholesterol or diabetes especially in western countries. Another challenge for the burger industry is the religious and ethical background. Very good examples for this are the lamburger in India and the abolishment of pork in Muslim countries. In our opinion the main effect influencing the business strategy concerning standardization or adaption are the different taste preferences in various...
Words: 1140 - Pages: 5
...[pic] Introduction Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world started in the early 1930's by Kernel Sanders in the Southern USA as a small franchise operation. Colonel Sanders has become a well known personality throughout thousands of KFC restaurants World wide. Quality, service and cleanliness (QSC)represents the most critical success factors to KFC's global success. Food, Fun & Festivity, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a YUM on the face. At KFC we proudly say: KFC has more than 11,000 restaurants in more than 80 countries and territories around the World. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public relations and goodwill ambassador) and Heublein management over quality control issues and restaurant KFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC build the relation of Quality Service and clealiness for Customer KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600 units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC) “We Do Chicken Right” ...
Words: 3990 - Pages: 16
...I. ISSUES In 1996, KFC remained the world’s largest chicken restaurant chain and third largest fast food chain. It held over 50 percent of the U.S market in terms of sales and ended 1995 with over 9000 restaurants worldwide. KFC opened 234 new restaurants in 1995 and operated in the 68 countries. One of the first fast food chains to international during the late 1960’s, KFC had developed one of the world’s most recognizable brands. Despite of the KFC’s past success in the U.S market, much of the KFC’s growth was driven by its international operations, which accounted for 94 percent of all KFC restaurants built in 1994 and for 100 percent of the increase in 1995. Domestically the restaurant count dropped by seven restaurants because of unit closures, intense competition among the largest fast food competitors resulted in a number of obstacles to further expansion in the U.S market. Expansion of free standing restaurants was particularly difficult. Fewer sites were available for new construction and those sites, because of their increase cost, were driving profit margins down. However the most critical or major issue of this case in the future will be their ability to handle changes. Their system is older, in terms of facilities and product form, and their attitudes still don’t reflect the realities of their changing business environment. One on the great challenges at KFC is that there is a lot that needs fixing and the...
Words: 3635 - Pages: 15
...Introduction of Kentucky Fried Chicken (KFC) Corporation 2 1.2 Objective of Ethical Audit Report. 2 2.0 Identification of KFC's Ethical Dilemmas 2 2.1 Trans fats 3 2.2 Animal cruelty 3 2.3 Environmental concerns 4 2.4 Wages and working condition 4 3.0 Ranking and evaluation of KFC's responses to its Ethical Dilemmas 6 3.1 Ranking of KFC's Ethical Dilemmas 6 3.2 Major Ethical Theories 7 3.2.1 Teleology 7 3.2.2 Deontology 8 3.2.3 Virtue Ethics 8 3.2.4 Marketing Ethics 9 3.3 Evaluation of KFC's Responses to its Ethical Dilemmas. 9 3.3.1 Trans Fats 9 3.3.2 Animal cruelty 10 4.0 Evaluation of KFC Best Practices 11 4.1 KFC Colonel's Scholar Program 11 4.2 World Hunger Relief, from Hunger to Hope 11 5.0 Recommendation 12 List of Reference 14 APPENDICES 16 Ethical Audit Report on KFC 1.0 Introduction 1.1 Introduction of Kentucky Fried Chicken (KFC) Corporation Kentucky Fried Chicken (KFC) Corporation is the world's most popular chicken restaurant chain, offering services to more than 12 million customers in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC began with Colonel Harland Sanders in 1952. Although Sanders died in 1980, Sanders remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. KFC has been serving customers delicious,...
Words: 3804 - Pages: 16
...foodservice industry in Vietnam. Chained players are likely to record a better performance than independent over the past few years. The main reason for this is that more people pay attention to service quality and food safety standards while chained operations are perceived in Vietnamese eyes as delivering better standards in this regard. Major cities such as Ho Chi Minh City and Hanoi will remain the centre of the fast food industry. KFC entered the Vietnamese in 12/1997 in Ho Chi Minh City. KFC is commonly known in Vietnam under the special name “Ga ran KFC” — a fast food restaurant chain serving the meals made from chicken, hamburgers and the most famous meal is fried chicken sandwiches, chicken pot pies, crispy chicken strips, wraps and salads. KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of restaurant system, with more than 36,000 locations around the world. To this day, among big competitive brands, KFC is the market leader in Vietnam with over 140 restaurants throughout Vietnam. KFC was one of the first international players to enter the Vietnamese fast food category. The brand’s main competitive advantages were its long-standing presence, affordable price and customized dishes based on Vietnamese preferences. The company possessed an effective and nationwide outlet network, with all outlets being...
Words: 6633 - Pages: 27
...planning and decision making on an enterprise-wide basis, Therefore it allows each department to share information and communicate which greatly benefit for a more productive and effective business flow. ERP is one of the newest Information Technology System which is implemented on all KFC Restaurants around the world which is used to analyze and integrates all of business processes. Enhancing the customer relationship is one of the main features coming under the core objectives of every ERP system, the newest web-based system enables quick generation of inventory, sales and revenue report which is very effective for every QSR Restaurants including KFC. There are various modules in ERP system including Finance, Human Resource Management, Manufacturing, Project Management etc. KFC is a major quick serving restaurant (QSR) with stores located in 109 countries and territories around the world and serves over 12 million customers every day generating nearly $10 billion a year, Founded by Col. Harland Sanders and based in Louisville, Kentucky USA, it is now the world’s most popular chicken restaurant fast food chain specialized in Original Recipe, Hot and Crispy Chicken and freshly made chicken sandwiches. KFC is part of Yum! Brands, Inc., the world’s largest restaurant company in terms of system restaurants with more than 36, 000 locations around the world which implement ERP system on their everyday business transactions. Basis for Success KFC’s success is owed much to the vision and...
Words: 4927 - Pages: 20
...Task 01 KFC SRI LANKA [pic] KFC has a long tradition of great food, a warm culture and some of the best hospitality among catering teams the world over. IT’S A FACT – Each year KFC serves over 1.7 million people in Sri Lanka 1.1 COMPANY PROFILE a) Company- KFC Sri Lanka b) History - KFC, Sri Lanka was launched in 1995 and since then opened 18 outlets island wide. Cargills has successfully infused an International brand with Sri Lankan tastes by developing a host of new dishes to suit local palates - like the Buriyani and Kotthu - along with the signature KFC meals. c) Products- Burgers Fried chicken Wraps French fries Soft drinks Salads Desserts Breakfast Specialties- Lunch Dinner Coffee Drinks d) Services- 08 Services e) Services names – Takes Reservations Walk-Ins Welcome Good For Groups Good For Kids Take Out Delivery Catering Outdoor Seating 1.2 Marketing Environmental frame work The marketing firm operates within a complex & dynamic external environment. It is the task of the marketing-oriented organization to link the resources of the organization to the requirements of customers. This is done within the framework of opportunities & threats in the external environment. ...
Words: 3118 - Pages: 13
