2010 IV assessment decisions

4.0 Discussion of situational Analysis

3.3. M1. Analyse the importance of factors influencing the global economy and the impact of globalisation on the national economies of contrasting countries.

However, the MNC's egocentric tendencies are shown by KFC's product selection, worldwide marketing strategy, and marketing strategy in addition to others. KFC's product leadership has a significant shortcoming since it significantly relies on its proprietary chicken recipe and has struggled to meet the demands of its customers for a wider range of products than chicken. KFC had had serious issues in the 1980s and 1990s as a result of its small menu and failure to introduce new goods to the market rapidly. Figure 1 shows that KFC has a glaring product side deficiency according to Handoff (1957). Additionally, KFC anticipated that all nations should accept its goods and business model when it first began its global affairs. Due to the fact that the fast-food idea was less well-known in Germany than it was in the US, it had "better success in Asia and Latin America, wherever chicken was a typical dish," but "difficult penetrating into the German market". The success of its rival McDonald's, in contrast, was attributed to "a number of adjustments to its operational methods and menu to appeal to German preferences".

KFC’s opportunities:

These are various outside circumstances that a business might use in an effort to improve efficiency. KFC has a number of chances that it may take advantage of to raise its combined wealth. There is a significant untapped client market in Mexico, which reportedly has 91 million people, out across river. Due to its own close vicinity to the U.S. and lack of demand, KFC may profit from this. Transportation expenses are reduced because of how near the Mexican marketplace is to the US. It's also crucial to remember that, in comparison to European firms, very few American firms are active in the Mexican market. KFC may also take advantage of the demand for items to be distributed closer to its clients rather than just at malls. Demanding clients in need of soft beverages and snacks are typically seen in settings including schools, clinics, entertainment venues, and even heavy traffic. Along with guaranteeing that their customers get the meal when it's convenient for them, this helps the customers save time.
Threats:
According to the National Restaurant Association, there are already too many restaurants in the United States. Due to this, industry competitiveness has consistently increased (National Restaurant Association 2012). Additionally, several eateries have turned to selling replacement goods that are in high demand. For example, Jack in the Box introduced chicken or satay with rice, while McDonald's introduced the McChicken Sandwich. While Pizza Hut experimented with seasoned, roasting rack chicken, Domino's debuted chicken wings. Since they also bring with them brand names that are more appealing to consumers, these changes pose serious dangers to KFC. Consumer preferences have seen a significant shift in the last few years. This has encouraged businesses to continuously alter their corporate representations to reflect the tastes of their customers. Crucial facets of the merchandise may be overlooked in this pursuit. KFC has implemented a number of improvements that are specifically designed to cater to the demands of the consumer in an effort to fulfil their constantly shifting tastes. KFC has faced a variety of difficulties as it attempts to take advantage of the Mexican market, notably coping with a highly apathetic workforce.