mcdonalds vs kfc
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TRANSCRIPT
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McDonald’s versus
KFCBy: Mohammadreza Fallah, Yawei He, Kanat Kairatov, Archie Nelson
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History
KFC(Kentucky Fried Chicken):• Founded in 1930• By Colonel Harland Sanders in Kentucky • Franchises restuarant• A brand of Yum! Brands (original PepsiCo)
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History
McDonald’s:
• Founded in 1940
• By Dick and Mac
MacDonald in California
• Target market is children
and young people
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Worldwide Market Share in the fast food industry
McDonald’s
KFC
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Comparison
90
120
How many countries they entered into?
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Comparison Restaurant numbers worldwide
11,000
31,000
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Comparison
$11.2bn
$40.6bn
Company’s market value
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Strengths Weakness
Opportunities Threats
Internal
external
posi
tive
negative
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SWOT Analysis
Common Strengths:
• Fast
• Good location
• Good services
• Good environment
• Globalization
• Brand
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SWOT Analysis
• Strengths of McDonald’s :
• Higher income and more capital
McDonald’s Yum!
(KFC, Pizza Hut and Taco Bell)
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SWOT Analysis
• High-quality raw material (SQI)
• Standard products
• Welcomed by children
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SWOT Analysis
Strengths of KFC:• Localization• Various products• Large products portfolio & long product
life cycle• Larger target market 6-65
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SWOT Analysis
Weaknesses
KFC McDonald’s
Unhealthy Unhealthy
Poor food quality Changeless on menu worldwide
Lack of focus on R&D
(research & development)
Product failure
Slow speed of growth Taste of food is not good
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The taste of hamburgers
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SWOT Analysis
Opportunities:
• International markets:
Developing countries
• Small middle size cities
• Order online or by telephone
• New products
• Business alliance
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SWOT Analysis
Key Threats : Competition
• Restaurants are increasingly advertising low cost burgers on their menus …If you're not in a hurry, which one would you choose? (for example The Wilmslow Arms opposite my university halls offers a great burger for five pounds)
• Burger King is increasingly competing with both McDonald's and KFC with a market share of 9%.
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SWOT Analysis
Key Threats: Change of consumers’ lifestyle:
• Social changes - Government, consumer groups encouraging balanced meals, 5 a day fruit and vegetables
• Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity
• The film “Super-size Me” highlighted the dangers that excessive fast food consumption can have on a persons health
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Solutions
For McDonald’s:Improve the taste of foodEnlarge the narrow product portfolioIncrease target market
For KFC:Improve the quality of foodIncrease the restaurant numbers
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Reference• KFC (2012) History [Online]< http://www.kfc.co.uk/about-kfc/kfc-history >, [Date accessed
25/04/2012]
• McDonald’s (2012) History[Online] <http://www.mcdonalds.co.uk/ukhome/Aboutus/Development.html >, [Date accessed 25/04/2012]
• Markets.ft (2012) markets data of McDonald’s [Online] < http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=MCD:NYQ >, [Date accessed 27/04/2012]
• Markets.ft (2012) markets data of KFC [Online] < http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=YUM:NYQ >, [Date accessed 27/04/2012]
• Yahoo (2012) Consumers reports of burgers [Online] < http://shopping.yahoo.com/articles/yshoppingarticles/428/best-burgers/ >, [Date accessed 27/04/2012]
• Newscn (2005) KFC dressing contains “”Tonyred 1 [Online] < http://newscn.biz/Export/News6482.pdf >, [Date accessed 25/04/2012]
• MSN (2012) McDonald's meets expectations as profit jumps [Online] < http://www.msnbc.msn.com/id/47114485/ns/business-us_business/ >, [Date accessed 25/04/2012]
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