KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). McDonalds has access to a number of raw materials suppliers, including chicken and meat. Customers It is why McDs spends a significant sum on marketing every year. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. It is why McDs spends a significant sum on marketing every year. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. 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. It is headquartered at Louisville, Kentucky. KFC ranks second in terms of CEO Score, trailing only UPS. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. However, it leads to added costs, which attract low profitability. By continuing, well assume you agree with our Cookies policy. 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. You get what you pay for when it comes to the dining area in Applebees. The total number of McDonalds restaurants globally rose to 37,241 in 2018. Although one of the green approaches to the creation of sustainable chain supplies that are driven by perspectives of green supply chains is through recycling of paper, a more effective way is the creation and embracement of technological ways of maintaining supplies data through mechanisms such as holding data in soft form. So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. I have always been a shopaholic. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. 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 has already built a strong brand image in the fast-food industry. 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. Such legal provisions have the impact of raising the cost of running the business of both organisations. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. It is essential to keep the customers engaged and retain them so that they do not switch brands. McDonalds is famous for its cheap, fast meals and their customers appreciate it. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. Bakshi, R. & Fiksel, J. These three different strategies are cost leadership, differentiation, and focus. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. KFCs competitive advantage is its supply chain and distribution system. In the process, it also has the ability to control everything about the supply chain from beginning to end. Therefore, the business will increase. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. ), What Time Does Mcdonalds Serve Lunch? Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. 2021. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 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. 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. 14 no. The marketing strategies of McDonalds and KFC are very different. KFC is well-known for its fried chicken, which is made from their own The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Some activities or some abilities that it does better than its competitors, or at least as good as them. It also encompasses coordination and integration of flow of materials among organisations. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. We`ll do boring work for you. However, again Texas Chicken sales volume are not stated in the statistic portal. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! McDonald (1st restaurant). McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. Customer-focused approach brings advantages to KFC. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. Wilhelm, R. 2011, McDonalds Formal Business Structure. McDonalds menu have much more choice for their customer to choose if compare to KFC. IvyPanda. Thirdly, is their ranking and sales volume. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. The fast-food industry is highly competitive and it is important that both McDonalds and KFC continue to use marketing to stay ahead of their competitors. IvyPanda. To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. Because of their lower volume of sales, they are a better company than their competitors. In contrast, Wendys has superior products with higher prices. 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. It has also managed a large supply chain to ensure the availability of good quality raw material. 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. 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. In this study, target population is the young consumers (under 30) in Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. The company has a 60% share of the global fast-food hamburger market. IvyPanda. The fast food industry is highly competitive. 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. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. 1350-1358. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Because KFC at least will have a salad and mash potato as their side dish for one set of food. McDonalds food has dominance over the market with its cost effectiveness and availability. McDonalds is constantly serving their customers since 1955. They also So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. 67-71. Higher price of the products in KFC compared to McDonalds and there are also cheap alternatives available due to less economical meal sets offered in KFC compared to its biggest competitor McDonalds, which they more focusing on strategy of seasonal induction of tempting deals. How to Market Your Business with Webinars? Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. "McDonald's and KFC Corporate Responsibility." 17-19. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. How is KFC positioning itself to gain a rival edge over? In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. 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. The product ranges originality factor ensures a fixed or even growing share of the market. Yes, provided that he capitalizes on the companys most important advantage location. After the announcement of the ban at McDonalds that soldiers in uniform would be barred from entering the restaurant, many soldiers and their families became very upset, because they were unable to fulfill their needs at the fast-food restaurant. Brands, Inc., based in Louisville, Kentucky. They want their food to be good in terms of quality and low on calories. Products enable a company to differentiate itself from competitors and gain competitive advantage. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. 3, pp. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. 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. McDonalds serves over 69 million customers each day. (What To Know! (And Everything Else! Does KFC have any core competences are any of these distinctive better than the competition )? McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. It also operates within the fast-food industry. 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. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. Are KFC and Taco Bell competitors? One major source of competitive advantage for McD is its extensive global presence. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. The Company has established and enforces high quality standards and product specifications. KFC is well-known for its fried chicken, which is made from their own blend of secret spices, which cannot be easily imitated by any one else. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. 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. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. Global presence has led to higher sales and revenue for the brand. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. 394-415. 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. Even though they are same but KFC meal is much more cheaper than Texas Chicken. Todays customers are both quality and health conscious. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. ensure the integrity of our platform while keeping your private information safe. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. 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. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). 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. 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. 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. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. 10-11. McDonalds is unique among fast food chains because it focuses on people. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. KFC and Taco Bell are both competitors on a number of levels. Over three million takeaways are discarded in the United Kingdom each day. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow 2, pp.117-127. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. 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 Latest Innovations That Are Driving The Vehicle Industry Forward. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). McDonalds is very committed to keeping their restaurants clean. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Competition in the fast food industry has grown intense due to the rise of several local and international brands. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. If you grow your own food, you can control quality better. 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. 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. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. Burger King and McDonalds are two of the biggest players in the game. Cheeseman (2013, Para. 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