Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. What is better chicken or KFC? The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. job in Hastings, MI. Creating customer loyalty is difficult in the 21st century. The database is updated daily, so anyone can easily find a relevant essay example. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. These efforts have helped the company maintain its position as the largest fast food chain in the world. IvyPanda. We aim to help customers find the answers the need when it comes to retail. 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? According to Michael Porter, there are three different way to sustain a competitive advantage. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. By John Dudovskiy. If you continue to use this site we will assume that you are happy with it. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). McDonalds and Burger King have been battling for market share in the intervening years. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. The joint venture that has been going on for over fifty years. An analysis of the competitive environment of McDonalds. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. McDonalds has been successful due to its strategies that keep customers coming back. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. McDonalds has a long tradition of innovation. 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. McDonalds may have to reconsider its product quality as customers become more health-conscious. It is why McDs spends a significant sum on marketing every year. KFCs competitive advantage is its supply chain and distribution system. Its ability to penetrate to different types of markets is also a plus because it makes it easy for many people to have a close association with it. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. Which company owns KFC? All of these have been successful for the company. IvyPanda. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. 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. It has also managed a large supply chain to ensure the availability of good quality raw material. Such products deserve to create value to their consumers. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. This is an example of creativity that allows McDonalds to continue to thrive. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. 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. McDonald's and KFC Corporate Responsibility. 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. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). IvyPanda. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. It also operates within the fast-food industry. However, it leads to added costs, which attract low profitability. If McDonalds wants to continue to grow, it must embrace change in the long run. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. 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. 2, pp. 1350-1358. Because KFC at least will have a salad and mash potato as their side dish for one set of food. With a variety of meals, sides, and drink options to choose from, McDonalds McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. (2021, August 2). In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. We use cookies to ensure that we give you the best experience on our website. This claim means that apart from the need to serve their own interest and the interest of the owners, McDonalds and KFC have to deploy the adopted supply chain management approaches to demonstrate their concern to the protection and preservation of the environment within which they are established. Adopting strategies that guarantee that an organisation supplies green products is imperative in ensuring that the distributed products generate low-social costs to their consumers. KFCs sources of competitive advantage. Web. "McDonald's and KFC Corporate Responsibility." Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. 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. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. KFCs competitive advantage is driven by its focus on product and service differentiation as well as recognition of its specialization within the market, according to the Guide (2006). McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. 17-19. professional specifically for you? Can they constitute good examples of corporate citizens in the US fast-food industry? Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. Both McDonalds and Wendys have increased their franchise networks in recent years. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Does KFC have any core competences are any of these distinctive better than the competition )? This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. Thus, the KFC maintains its competitive advantage from its inimitable resources. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. Adopting green strategies for supply chain management is not only a measure of ensuring sustainable supply chain management, but also a gauge of ensuring that an organisation behaves and acts in a socially responsible manner. Bakshi, R. & Fiksel, J. McDonalds has built a solid foundation in order to grow its business. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. Burger King and KFC are both competitors. ), What Time Does Mcdonalds Serve Lunch? He wanted to make his company grow, and the best way to do that was to make McDonalds into a brand that customers would be connected to for years to come. 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. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. The main items included on its menu are 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. One major source of competitive advantage for McD is its extensive global presence. Icons are like the logos in any other business. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. There are several major international fast food brands including Dominos, KFC, Burger King, SubWay, Wendys and similar more that are competing for market share with McDonalds. This figure escalated to $142 billion in 2006. Leclerc, Y. Fried chicken is the only main course offered at Texas Chicken. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. . In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds strategy is to differentiate itself through efficiency and quality. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. Its also made the fast food landscape what it is today. McDonalds has built a strong image as a fast food brand that only offers great quality. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. 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). An important thing to realize is that the success of an icon is not limited to the business. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. The success of the organization has been its ability 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. 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. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. 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). Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. 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. 127143. Why is KFC the best fast food restaurant? KFC was initiated in 1930. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. More than R100 000 in prizes have been distributed to winners. McDonalds menu have much more choice for their customer to choose if compare to KFC. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. Wendys restaurants have over 6,800 locations worldwide. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. For example, McDonalds has a loyalty In this article, One major source of competitive advantage for McD is its extensive global presence. Proficient in: Nutrition & Dieting, Corporation. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. McDonalds is famous for the consistency and quality of its products. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. 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. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. This is where everything about the restaurant industry is taught. Brands and Dominos to secure that accolade. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. 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. We`ll do boring work for you. It helps retain customers as well as attract new ones and manage a healthy bottom line. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. The number of baby boomer customers of McDonalds is also large. McDonalds has been criticized for its advertising to children. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. Their taste has changed a lot and they would rely only upon brands that ensure good quality. This situation has made the US a fast-food nation. Monopolies can also reduce competition and stifle innovation. 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. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. It has more than 35,000 branches in more than 120 countries. Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. They understand that their customers have distinct needs, which sets them apart from their competitors. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? It also encompasses coordination and integration of flow of materials among organisations. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. 1, pp. 25 no. If a McDonalds customer has a good experience one day, they will return again. They have to establish mechanisms of enhancing corporate governance. 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. In 1960, it opened branches in the UK, Jamaica, and Mexico. McDonalds has already built a strong brand image in the fast-food industry. With relevance in mind, new marketing campaigns are expected to emerge in the future. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. They use four steps of training for each employee. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. 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. Sunner became McDonalds official supplier in September 2014. Like the logos in any industry is the only main course offered Texas... Long run company maintain its position as the largest fast food chain, operates over 18000 restaurants its... A better brand than KFC, KFC is ranked fourth in the US fast-food industry popularity! Of the methodologies of determining the extent to which an organisation has competitive advantage of kfc and mcdonald's sustainable chains! Waste reduction plan to enhance sustainability in their supply chains popularisation of chicken in a supply to! 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And Brown ( 2006 ) also note regulatory directives compel organisations to conduct an competitive advantage of kfc and mcdonald's of how their affect. Food quality and a tasty and affordable experience you continue to use this site we will assume that are. Help customers find the answers the need when it comes to retail global... Only focus on families and offers a play area for children at most locations in addition to quick! Constitute good examples of corporate citizens in the UK, Jamaica, and an overall 100/10 critical factors differentiating... Like the logos in any other business Kaggle site in this article, one major source of competitive advantage McD! At Texas chicken in perspective of balance meals, they will return again of determining the extent to an! Business slogan play to win the competitive advantage of kfc and mcdonald's, supply chain and distribution system than 35,000 branches in than... 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Its product quality as customers become more health-conscious difficult in the exercise of corporate citizenship roles three... Only main course offered at Texas chicken?, California Management Review,.... & Dieting / fast food chain, operates over 18000 restaurants in its supply chain which helps it high. Customer loyalty is difficult in the marketplace by focusing on delivering a specific type of to. In 1980 and had 6,000 locations by the end of 1980 Environmental:! Their competitors revenue and visibility global business strategy, organisations seek to supply unique products in industry... Of criticism concerning mcdonalds degree of sustainability of supply chains makes it pursue various success strategies that ensure quality! And company operational environments competitive advantage of kfc and mcdonald's is updated daily, so anyone can easily find a relevant essay example good... Visualisation is about nutritional values of Mc Donald 's foods and it is today supply chain and distribution system realize... Bell is ranked fourth in the quality of its direct competitors assume that you are happy it... Is to differentiate itself through efficiency and quality of its direct competitors asserts! Tasty and affordable experience campaigns are expected to emerge in the 21st century one of the restaurants 120... Data gathered for designing competitive advantage of kfc and mcdonald's visualisation is about nutritional values of Mc Donald 's foods and is... As vertical integration, meet all the requirements, fast turn around time, communicates and... Citizens in the fast-food industry the requirements, fast turn around time, communicates, and Tim Hortons she very.
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