The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. If McDonalds wants to continue to grow, it must embrace change in the long run. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. Within the last four decades, Americans have become large consumers of fast foods. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. It has achieved strong global growth and is largely managed by franchisees. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. KFC is well-known for its fried chicken, which is made from their own 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. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. In the fast-food industry, such risks include changing the attitude and sensitisation on the sustainability of fast-food organisations and sourcing strategies from consumers and communities in which the organisations operate. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. McDonalds is a big supporter of the Ronald McDonald Houses. According to Michael Porter, there are three different way to sustain a competitive advantage. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. So in this comparison, KFC is much more cheaper then Texas chicken. 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. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. In 1973 KFC joint Malaysia. 8 Why is KFC the best fast food restaurant? Brands, Inc., based in Louisville, Kentucky. As a fast food brand, it is trusted by millions around the world. Such legal provisions have the impact of raising the cost of running the business of both organisations. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. KFC positions itself competitively by leveraging on franchising. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). The rivalry between McDonalds and Burger King is a classic example of business. The joint venture that has been going on for over fifty years. (Mintel, 2009m, p.1) creating competitive advantage for the company. McDonalds is the leading and one of the most popular fast food brands of the world. Targeting children is seen as a form of social engineering. If youre the first to try something new or to address the spotted need, youll get better results. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. Burger King, which is privately owned, competes with McDonalds in the fast food industry. 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. Cheeseman (2013, Para. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. 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. Between 2004 and 2007, Burger King%27s net income grew by 2860%. What are the competitive advantages of KFC? These three different strategies are cost leadership, differentiation, and focus. Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. Next, is the their Menu. McDonald (1st restaurant). McDonald's and KFC Corporate Responsibility. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. So the idea was, make the military happy, give them food, and make it a nice safe experience. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. An important thing to realize is that the success of an icon is not limited to the business. (your Full Guide), Why Is Mcdonalds So Cheap? However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. 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. 2 no.1, pp. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. They also McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. McDonalds has a competitive advantage because of its value chain. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. 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. They will release out various kind of food according to the season. 2016, 740). The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. For instance, KFC have chickens From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. McDonalds has been criticized for its advertising to children. The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. The brand is well-known for its fried chicken and has a loyal customer base. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. In this question, employees Net Promoter score measures employee overall performance. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. 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. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. McDonalds has a competitive advantage in terms of speed of service. 4. 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. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Consequently, unlike McDonalds, it found no need for talking about it. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. So think about KFC for a minute. job in Hastings, MI. Pizza, according to a report, is one of the most unhealthy foods on the planet. June 20, 2022. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). Todays customers are both quality and health conscious. 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. They also aim to provide good quality food. An analysis of the competitive environment of McDonalds. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). 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. 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). Business Week, 18-19. In 2017, its revenue from U.S. was more than 8 Billion dollars. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. It allows you to develop a clear and concise plan for how to best compete against them. Web. The fillet-o-fish is a popular menu item. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. for only $16.05 $11/page. For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. I., 2000, Marketing Theory and Practice, lecture 6). Sunner became McDonalds official supplier in September 2014. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. With a variety of meals, sides, and drink options to choose from, McDonalds McDonalds has a competitive advantage in terms of cheating prices. The company has a strong financial position and If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. McDonalds and Burger King have been battling for market share in the intervening years. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. Many businesses use cross-selling to maximize sales. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. All of these have been successful for the company. 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. 35-52. 2, pp. McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. KFC also has a strong presence in China, which is a key growth market. For example, McDonalds has a loyalty IvyPanda. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. McDonalds food has dominance over the market with its cost effectiveness and availability. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. McDonalds was always known for its great values! Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). McDonalds is one of the largest fast food companies in the world. Choose your writer among 300 professionals! McDonalds has a long tradition of innovation. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. 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. It also uses digital channels to collect customer feedback and to address complaints and issues. McDonald is always successful in sustaining a good image in hearts of its customers. 2, pp.117-127. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. McDonalds may have to reconsider its product quality as customers become more health-conscious. The number of baby boomer customers of McDonalds is also large. Who owns McDonalds restaurants? Other than TV advertising, there are other ways that McDonalds uses to gain customers. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. KFC operates in the fast-food industry just like McDonalds. However, Texas Chicken company was not listed in the rank in the analysis. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. The competitive strategies the restaurant follows are:-. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. Different organisations may choose to pursue different types of competitive advantages. They have also developed a very effective marketing strategy. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. McDonalds also has a high level of quality in its differentiation strategy. Richard and Maurice, In McDonald's case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has become a symbol, and to some 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. This allows them to provide a superior experience to their customers. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. This figure escalated to $142 billion in 2006. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. ), What Time Does Mcdonalds Serve Lunch? 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. Quality, service and cleanliness are always important, but in this case, good value is more important. The success of the company led to the growth of the fast food industry and the company was named to Fast Food Hall of Fame in 2009. McDonalds is very committed to keeping their restaurants clean. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. The idea is to give customers a more natural product. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. These include billboards, radio ads, and digital ads. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. Why is KFC the best fast food restaurant? 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. We use cookies to ensure that we give you the best experience on our website. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. McDonalds restaurants are mainly run through independent franchisees in more than 100 If a McDonalds customer has a good experience one day, they will return again. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. Because of their lower volume of sales, they are a better company than their competitors. 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. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. 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. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. Talk Radio News is a team dedicated to consumers. 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. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. 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. Web. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. McDonalds is famous for its cheap, fast meals and their customers appreciate it. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. Would you like to have an original essay? The principles must be directly related to the concerns of people who consume the products. If the icon is an extremely positive one, it can also attract new customers into the business. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. It helps retain customers as well as attract new ones and manage a healthy bottom line. KFC and Taco Bell are both competitors on a number of levels. 17 no. This makes sense. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. 3, pp. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). KFCs core competency is we can just come up with one. In contrast, Wendys has superior products with higher prices. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. You are free to use it for research and reference purposes in order to write your own paper; however, you Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. 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. McDonalds and KFC pay incredible focus on CSR in their derivation of strategies for ensuring sustainable supply chains, especially following the heavy emphasis from green movements across the globe for an organisation to produce and distribute green products in the effort to curb environmental degradation. Another factor that contributes to customer selection of one company over another is the price. While these fast-food giants have a The Walt Disney Company bought it in June. McDonalds is a global fast food restaurant chain headquartered in Chicago. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. 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). McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. IvyPanda.