Kentucky Fried Chicken Case Study

Introduction

KFC (Kentucky Fried Chicken) is one of the few brands in America that can boast about having a posh, 60 years history of success and innovation. KFC is a well identified restaurant all around the world. The KFC was first started in the 1930s at Corbin (Kentucky, USA) by Harland David Sanders. He was born in Indiana, USA in 1890. When he was young man he had many jobs, for example Boat driver, soldier, salesman and bus conductor. Finally in 1930 Sanders started his own business with a petrol station in Kentucky. Firstly he started selling snacks and refreshments and then he decided to try his fried chicken to the customers with his new 11 types of secret ingredients.

In 1969 KFC was first time introduced to the public; in addition it was finally bought by Pepsi co in 1986. Today the KFC have more than 14800 outlets in more than 100 countries (more than 5300 outlets in the USA). They sell food such as chicken sandwich (chicken burger), fried chicken, chicken pies, crispy chicken strips, potato wedges and grilled chicken.

External influences on KFC

PEST Analysis on KFC

PEST analysis is a type of survey used by multiple organisations. Sometimes known as PESTLE analysis or STEP analysis. PEST stands for,

• Political

• Economic

• Social-Cultural

• Technological

• Legislative

• Ecological

PESTLE analysis helps to identify the external problems in an organisation.

*Political

• Recently United States and Europe government are trying to limit the business of junk food, because of obesity and other health issues.

• KFC is also being pressurised in China, because they are destroying their culture.

• Restriction by the government for providing licence for franchises.

*Economical

• According to the international market, KFC have to deal with International values of business such as regarding tax, because every organisation has different law for tax and for KFC franchise it should pay some percentage of its income to KFC’s head office in United Kingdom.

• In international market a countries economic will affect the product sale, unstable economy and low income will affect the sales.

*Social

• In developing countries such as Brazil, India, China, Sri lanka, Malaysia and etc, because of their economy growth more people of the country are economically able to consume