Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). McDonalds restaurants are mainly run through independent franchisees in more than 100 Burger King, which is privately owned, competes with McDonalds in the fast food industry. 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. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. The rivalry between McDonalds and Burger King is a classic example of business. As a fast food brand, it is trusted by millions around the world. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Apply online instantly. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. McDonald's is arguably the largest global fast food chain in the KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. The two largest fast-food companies have competed fiercely for market share since the 1950s. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. Web. KFC is well-known for its fried chicken, which is made from their own They will release out various kind of food according to the season. 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 This makes sense. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. 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). Sure, they brag about their 11 herbs and spices, which is great, but thats not what you are tasting when you bite into some extra tasty crispy, Bayer explained. McDonalds has more locations than KFC. Thirdly, is their ranking and sales volume. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. Please note! This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. 35-52. McDonalds Corporation, also known as McDonalds, is an American multinational fast food restaurant chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, United States. People prefer to go out to a McDonalds or Wendys grab some food and eat that instead of eating a home cooked meal at the dinner table. It has also managed a large supply chain to ensure the availability of good quality raw material. 49 no. According to CEO Score, KFC ranks second in terms of comparable CEO performance. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. It is why McDs spends a significant sum on marketing every year. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. You cannot copy content from our website. Fast-food organisations are cheap. 67-71. In 1973 KFC joint Malaysia. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. The restaurant will continue to strive for quality customer service. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! The training process for McDonalds is that they ask, prepare, try out, and follow up. I believe were going to see a new chapter in the Burger Wars in the coming years. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. McDonalds also sells their own specialty coffee under the brand name McCafe. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. Due to intense competition in the fast food industry, marketing has become more important than ever. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. McDonalds have much more branches then KFC around the world. One major source of competitive advantage for McD is its extensive global presence. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. 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. We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. This is not pushy, the goal is to make extra money. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. McDonalds has a long tradition of innovation. Save my name, email, and website in this browser for the next time I comment. Businesses also use it for differentiating themselves from others. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. Higher focus on customer service has become more essential than ever for businesses around the globe. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. We`ll do boring work for you. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. It also encompasses coordination and integration of flow of materials among organisations. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. I., 2000, Marketing Theory and Practice, lecture 6). Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. In contrast, Wendys has superior products with higher prices. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. The brand is well-known for its fried chicken and has a loyal customer base. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. - Caitlyn Johnson. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. In 1987, it was amongst the first western-based organisations that opened new business branches in China. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. How does McDonalds operate in a monopolistic monopolistic market? McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. In case issues may come up that the supplied products fail to meet the demand placed on them, they have to deal with the challenge of redesigning their products to meet the emerging demands. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. 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. After a pandemic, the fast-food industry will be unable to survive for at least a year. 2, pp.117-127. No plagiarism guarantee. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). What is better chicken or KFC? The number of baby boomer customers of McDonalds is also large. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. 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. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. The lifestyle around here has changed in so many ways from when our parents were children. The company has a strong financial position and The competitive strategies the restaurant follows are:-. You are free to use it for research and reference purposes in order to write your own paper; however, you The product ranges originality factor ensures a fixed or even growing share of the market. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. TalkRadioNews is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com, Does Mcdonalds Have All Day Breakfast? They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. Monopolies can also reduce competition and stifle innovation. McDonalds is top competitors which brought the most influence towards KFC company. Clock is ticking and inspiration doesn't come? These include billboards, radio ads, and digital ads. However, it is generally accepted that the two companies are not owned by the same entity. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. IvyPanda. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. (your Full Guide), Why Is Mcdonalds So Cheap? 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. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. This figure escalated to $142 billion in 2006. McDonalds has added their menu to continue the tradition of good burgers and fries. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. Not only that McDonalds have a lot of branches in Malaysia. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. Advertising is the most fundamental way KFC promote its products. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. This process involves transformative mechanisms that are meant to outline various comprehensive road maps for detailing approaches that are implementable to ensure that business partners remain committed to the achievement of green technology in supply chains. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. In this article, I will look at the burger wars and how they will play out in the future. 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. Texas Chicken has over 1,700 locations in 23 countries worldwide. Originally in 1962, no military base in the United States had drive thrus at restaurants. This is IvyPanda's free database of academic paper samples. Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. McDonald's and KFC Corporate Responsibility. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. KFC operates in the fast-food industry just like McDonalds. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. In contrast, Wendys has superior products with higher prices. Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. 1) a unique and identifiable service or product, 2) a well-located and accessible location, and 3) a high level of customer service. 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. 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. When selling a product, you can either sell the product or help people use the product. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. Fried chicken is the only main course offered at Texas Chicken. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. 2 no.1, pp. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. McDonald's and KFC Corporate Responsibility. (2021, August 2). According to the most recent data, as of July 30, 2021, the companys market cap was $52.3 billion, and its share price was $1863. 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. The company mainly operates its business through franchisees. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus Customer-focused approach brings advantages to KFC. 127143. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. Short and long-term, prepare, try out, and provided predictability and.. 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