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QAB020C407 Business Organisations in a Global Economy

University: University of Roehampton London

  • Unit No: N/A
  • Level: High school
  • Pages: 9 / Words 2264
  • Paper Type: Assignment
  • Course Code:

    QAB020C407

  • Downloads: 366
Organization Selected : KFC company
Question :

Answer some questions that are required to be answered to accomplish the task.

  • Describe the details of the selected company.
  • Justification of allocated business surroundings.
  • The implication of an accurate analytical practice.
  • Utilisation and application of correct information and illustration.
Answer :

INTRODUCTION

Business environment is made up of many components that includes many internal and external elements. It is important for every organization to keep in their mind those factors, so they can be aware about the business environment.

This report will cover KFC company which is famous in the all around the world. KFC is an multinational company, this a food restaurant that serves fast food products, and they are famous and specialist for the fired chicken. KFC is a 2nd largest Cain in worldwide after the McDonald's, and they are having more than 22600 locations globally in the 130 plus country. It will cover the information about the company which will include the size, location and current oppression of the company. This report will discuss the allocation business environment which will include PESTEL. This report will provide application of the appropriate analytical approaches and it will add demand supply schema for the analysis. In the end of this report will provide recommendation for the company and where they can expand their business to be successful in their business.

MAIN BODY

Business Information

KFC is leading brand that has global presence, because they are selling fried chicken and different recopies which is attracting lots of customers to eat their food. Basically they are selling fast food, and they are having huge demand in the market. KFC is a multinational company and their headquarter is in the US, Where most of the people eat food from the KFC restaurant. They are having varieties of the dishes and their taste is different from the others. KFC was the one of the first American company who expand their business global, and they get success in their business (Deasy and et.al., VMware Inc, 2016).

KFC is having restaurant in the worldwide, and they have location of the shops more than the 135 country. This company is second largest restaurantt in the world after the McDonald and the world’s most popular chicken brand. KFC’s menu has evolved from its legendary Original Recipe pressure fried chicken (“11 herbs and spices”) and side dishes to include grilled chicken, chicken strips, chicken sandwiches, hot wings, and desserts (Bah and Fang., 2015).

KFC is looking to expand their business in the Greece country. According to the marketing team of the KFC , people of the Greece country like to eat fast food and most of the people are non-vegetarian and this can create huge opportunity to invest their money and business in this country which will help their company to gain profitability, and they can give competition to the McDonald. This can be good decision from the KFC because they are having huge potability to be success in this country, and they will expand their business.

Discussion on the allocated business environment

PESTEL analysis of KFC

Political factor

The laws which the county enforces, specially with the business related, such as the contract law and company law, as they rule what the KFC Greece company is an is not accepted to do. In some the counties where it is important for them to disallow alcohol or have some premises (PESTEL Analysis of KFC. 2019). While there are some government systems which have incompetent number of the red strip which disapprove the business of the KFC Greece company. The trade obstruction that the host nation has would defend KFC Greece company; however, trade obstruction that nations with potential trade partners would damage companies by preventing possible exports. A high level of tax would demotivate companies like KFC Greece from increasing their profits. The risk of military incursion by hostile countries may cause divestment from project. Whether, a company’s intellectual property is secure. For example, a country that has no argumentation for IP security would mean that businessman may find it too risky to spend in KFC Greece

Economic

Yum ! Brand own just similar restaurant like KFC Greece which also include the Pizza hut and Taco Bell. All the brand are troubled in the Greece market and there are almost who cannot seems like they are growing and some are on the profit decrement. Portion of the problem for this company is the association with the fried chicken. Once's this company have tries to seprate from by the abbreviating the name. The health-conscious people are not interested to gain their wet , calorie-dense foods (Belás and et.al., 2015). And since most of KFC Greece menu consider some form of fried chicken, these customers don’t have too much options. KFC Greece has established their business in some countries where the employment rates are very high such as china and India, In these countries KFC Greece is focusing more to expand their business because both the country have high population and labor rates are also high, it means that the employees in this both county are ready to work in low wages and workers in the both country are hard-working and better than the others.

Social

KFC Greece is struggling from the social issue because people are declining their food because it is unhealthy for them and it is creating many problem related to their health .(Benmamoun and et.al., 2016). it is important for the company to look for the health of the people and provide better food to the society. People in Greece are careful about their health, so they are avoiding eating fast food which is affecting profitability of the KFC Greece and restaurant who are providing healthy food are taking advantage of this habit. They started selling green food which is attracting people .

Technological

KFC Greece has location in the Australia where they are introducing new technology for the employees of the company through the social media.. Technology plays important role in the company's growth. KFC Greece also start their online application in which customers can order their food from the nearest location. This help company to give their business growth, and they able to make profit from the online delivery of their food. Their apps are available on the play store and android users can download and order from their home,

Environmental

A complex Past with this company paper provider has affected the individual sentiment of the brand. The paper institutions are linked to the Di- forestation, which impact on the Planet's health, It also contributes to the risk of wildlife and kindred species who are already on the threshold of extinction.

Again, an increasing number of health-conscious individuals opt to turn away from KFC Greece due to reasons like this. The restaurant needs to adopt more environmentally friendly practices reducing waste and consumption.

Legal factor

This company has expanded their business in all around the world, and they have to pay all the taxes and legal authority to the government. If they fail to pay their taxes then government can shut down their shops in their country (Erasmus, Strydom and Rudansky-Kloppers., 2016). It is important the company to follow the rules of the government according to the country and pay all the taxes because they have to pay and run their business according to the governmental rules other wise government have rights to shut down their business in their country.

There are lot of case filed against the KFC Greece company in all around the world because of their low quality food, which is affecting the health of the customers and that have invited the lo9t's of negative publicity of the company. Many of the company have branded this company because of their low quality food , this is making people seek and creating problem for their health. It is essential for the KFC company to maintain their quality and look to use the high quality food products.

Application of an appropriate analytical approach

Porter's 5 forces

Competitive Rivalry

Fast food industry of Greece is very wide and facing intense competition. Goody’s Burger House is the leading fast food firm in Greece that is well established brand and generating huge profit. other competitors in this industry try to overtake this company with the sachems to attract the customers (Hillary., 2017). KFC needs to provide such offers to consumers that can gain their attention and for that in Greece it is offering membership cars to end users. KFC Greece company also introduce their membership cards for the kids and they are not online give discount in the KFC company but kids can also use this cards on the Zoo Melaka, subway etc. this help this company to gain competitive advantage in the global market.

Threats of new entrant

This is the sector that needs large investments. New entrants can not enter into this industry so easily because companies will have to invest in marketing, research, product development etc. in order to gain profit. Greece is the big country where many leading fast food brand are already available hence chances of gaining success of new entrant is very low. Consumers like to buy items that have taste and excellent services. Hence KFC needs not to worry with new entrant in Greece fast food industry because they can not affect performance of business unit.

Bargaining power of supplier

KFC needs to buy items such as soft drinks, chicken etc. from suppliers (Kljucnikov and et.al., 2016). As demand of fast food is very high hence there are many suppliers available those which are providing great quality materials. KFC Greece ensures to make contact with right supplier and one is providing poor quality material then switch of supplier is the best idea. Hence suppliers have low power. As KFC has high power in Greece that help firm in gaining success and sustaining in Greece to great extent.

Bargaining power of the customers

Buyer of this company6 are customers who used to come in their restaurant's on the daily basis. They customers also have arrayed to go for the same other choices such as Subway, McDonald, Pizza Hut etc. Therefore, KFC Greece company do not rise their prices in the menu, it remains same every day (Komljenovic, Loiselle and Kumral., 2017). If they will rise their prices then, customers will go to the other restaurant s who also provide same services, and they are competitors of the KFC.

Threats of Substitutes

Goody’s Burger House is the leading fast food firm that is offering same quality material and services to wide range of consumers in Greece. KFC always ensures to provide luxurious services to consumers hence it gives WIFI facilities and rest other services to them. This aids business in attracting more customers and sustaining in market for longer duration. Substitute products are very strong but still they have moderate power to influence business performance of KFC Greece.

Use and application of appropriate data and example

World wide shares of the KFC

According to the above Data KFC has and 9 percent shares in the worldwide, and they are getting competition from the subway and McDonald's food company. We can see that subway also have 9 5 % of shares in the all over the world so it is important of the KFC company to make new strategies otherwise subways can overtake them anytime (Prajogo., 2016). It will take time to the KFC to give competition to the McDonald because they have strong reputation in the market and most of the shares own by the KFC. According to this chard McDonald' shave 19 percent shares, 9% KFC, 9 % subway, 1 % Panera Bread, 2 % Burger King and 57 % shares other companies.

KFC growth in China

KFC company open their first restaurant in 1987 (Lee., 2017). In 2000 this company has open fast food china with the 400 outlets. From 2000 they started from 400 and in 2003 they reaches to 950 and after the 2003 they expand their business in china more, and they reach to the 1,736 in the 2006 with the time the demand of their food incensing every year on the other side other brand was losing their business and KFC was giving them a strong competition in the market. Till the 2009 this company open 2,728 outlet in the china which was huge number according to the demand of the fast food in this country. Recently they are having more then 4500 outlet in the whole china this is an big achievement for any company.

CONCLUSION

As per the above report has been analyzed the KFC company which is famous in the all around the world. This report has been covered the information about the company which has included the size, location and current oppression of the company and also has been provided complete in for mentioned the company . It has been discussed the allocation business environment which has included PESTEL analysis and also explained that how this factors affect the company. This report has been provided application of the appropriate analytical approaches and it also has been add porter's 5 forces and concluded all the 5 forces. In the end of this report has been provided recommendation for the company and where they can expand their business to be successful in their business.

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