Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. (2021, August 2). Fried chicken is the only main course offered at Texas Chicken. Quality, service and cleanliness are always important, but in this case, good value is more important. McDonald's and KFC Corporate Responsibility. We`ll do boring work for you. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. The fillet-o-fish is a popular menu item. No plagiarism guarantee. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. Nevertheless, the corporations CSR manager in the UK and Ireland confirms that its engagement in CSR has taken a long time to be embedded in its business model (Idle 2011). If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. McDonalds has a competitive advantage in terms of speed of service. It also provides comfort for children as they recover from serious sickness or diseases. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. "McDonald's and KFC Corporate Responsibility." These critical aspects help in building the competitive advantage of an organisation. Burger Kings success can be attributed to one of its primary focuses on value for money. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. Many businesses use cross-selling to maximize sales. For instance, KFC have chickens So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. McDonalds have much more branches then KFC around the world. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. With a variety of meals, sides, and drink options to choose from, McDonalds As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. Products enable a company to differentiate itself from competitors and gain competitive advantage. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. KFC is popular for its fried chicken. "McDonald's and KFC Corporate Responsibility." 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. More than R100 000 in prizes have been distributed to winners. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. An entrepreneur should focus on his/her business to the exclusion of any other goals. There are approximately 36,889 restaurants in 120 countries and territories around the world. McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. In this extent, Maloni and Brown (2006, p. 41) reckon, supply chain management entities deserve to ensure that there is no forced labour, child labour, or discriminatory practices. Burger King, which competes with McDonalds, provides high-quality food and memorable service. If you grow your own food, you can control quality better. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. 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. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. The database is updated daily, so anyone can easily find a relevant essay example. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. 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. McDonalds is top competitors which brought the most influence towards KFC company. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). 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. 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. 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. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. 4. However, it leads to added costs, which attract low profitability. I believe were going to see a new chapter in the Burger Wars in the coming years. All of these have been successful for the company. 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 has a competitive advantage in terms of cheating prices. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. They have also developed a very effective marketing strategy. It is why McDs spends a significant sum on marketing every year. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. By John Dudovskiy. Customer-focused approach brings advantages to KFC. 1350-1358. One major source of competitive advantage for McD is its extensive global presence. McDonalds is constantly serving their customers since 1955. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. 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. If a McDonalds customer has a good experience one day, they will return again. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). I., 2000, Marketing Theory and Practice, lecture 6). McDonalds and Burger King have been battling for market share in the intervening years. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. An analysis of the competitive environment of McDonalds. Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. 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. McDonalds menu have much more choice for their customer to choose if compare to KFC. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Monopolies can also reduce competition and stifle innovation. Proficient in: Nutrition & Dieting, Corporation. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. Other strategies include focusing on developing healthy meals. 127143. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. So far, McDonalds seems to be winning the battle. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. The success of the organization has been its ability student. How does McDonalds operate in a monopolistic monopolistic market? 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. 2, pp. The KFC mission or vision statement is as follows: To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers. KFCs major competitors include Wendys, Subway, McDonalds, and Burger King. McDs is continuously evolving its menu to meet its customers needs and choices. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. 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. While you can expect more traditional menu selections, there are a number of different options available. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus 3, pp. Thirdly, is their ranking and sales volume. 1. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. In 1973 KFC joint Malaysia. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. It first offers some background information on the organisations. It is why McDs spends a significant sum on marketing every year. McDonalds is popular for its hamburgers. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. McDonalds is constantly updating its menu to keep its most loyal customers coming back. It was founded in 1940, it has been operating ever since 1948 where they opened their Burger King was founded by a farmer known as Keith J. Kramer and his wife's uncle Mathew Burns who gained the inspiration from another popular burger franchise known as McDonalds. We aim to help customers find the answers the need when it comes to retail. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. 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. 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? It is essential to keep the customers engaged and retain them so that they do not switch brands. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. 2 August. Burger King and McDonalds are two of the biggest players in the game. must. However, it is generally accepted that the two companies are not owned by the same entity. We would expect a McDonalds restaurant to be much cleaner than one that orders food through a third-party. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Do you want fries with that? This is a question that has been asked for decades. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. There is no reason for them not to be a major competitor in the market. Kroc was certainly a businessman with a plan. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. McDonalds food has dominance over the market with its cost effectiveness and availability. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. Please note! Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. The company has a strong financial position and Higher focus on customer service has become more essential than ever for businesses around the globe. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. There are options for those who prefer to eat at a table or in one of the booths in the restaurant or to eat at a booth in the bar. 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. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. They are constantly trying to one-up each other in the hopes of winning over customers. KFC was initiated in 1930. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. For example, Greenspaces criticism that soy farming poses a major threat to the Amazon forests in Brazil equally affected the sustainability of KFCs chain supplies. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. ensure the integrity of our platform while keeping your private information safe. The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. To achieve cost savings, the company employs economies of scale all over the world. 1 What are the competitive advantages of KFC? 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. They strive to produce high-quality products, services, and processes. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. Additionally, McDonalds customer service standards are among the highest in the fast food industry. 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. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Global presence has led to higher sales and revenue for the brand. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. June 20, 2022. However, if compare with Texas Chicken, KFC have a better innovating menu, because the core dish of Texas Chicken is just focus on fried chicken. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. McDonalds uses a mix of traditional and digital channels for advertising and promotions. Who owns McDonalds restaurants? The company has kept their marketing messages simple and consistent. Your privacy is extremely important to us. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. Its focus on quality and customer service has resulted in strong brand equity. IvyPanda. With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. The lifestyle around here has changed in so many ways from when our parents were children. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds competitors in the United States and the United Kingdom are also direct competitors. (what To Know! The corporation has also created a formal system that guides its operations in relation to five main facets, namely merchandise, cost, individuals, promotion, and position. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. 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, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. Texas Chicken has over 1,700 locations in 23 countries worldwide. According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. Next, is the their Menu. McDonalds owns 82 of their locations and can rent them out to franchisees. 2 no.1, pp. They offer hamburgers, french fries, breakfast menu items and many more. McDonalds food has dominance over the market with its cost effectiveness and availability. 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. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Its also made the fast food landscape what it is today. In todays competitive world, Service Quality has become one of the most strategic tools for 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. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. McDonalds strategy is to differentiate itself through efficiency and quality. Differentiation. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. 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. They understand that their customers have distinct needs, which sets them apart from their competitors. Visit your nearby McDonalds and choose from a menu of While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. You get what you pay for when it comes to the dining area in Applebees. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. This is IvyPanda's free database of academic paper samples. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. 10-11. Meanwhile, McDonalds has provided more healthy meal and also vegetarian meals compare to KFC such as McVeggie, apple pie, and spinach pie but KFC and Texas Chicken only provide salads. This shows that KFC retained their net earnings higher in year 2008 so that they can reinvest in its core business to pay its debt. McDonalds is a favorite fast-food for most Americans. This figure escalated to $142 billion in 2006. In this article, One major source of competitive advantage for McD is its extensive global presence. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). We utilize security vendors that protect and Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. (2021, August 2). Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. However, apart from that it has some other sources of competitive advantage too. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. KFC competes against McDonalds the most. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? Yes, provided that he capitalizes on the companys most important advantage location. Customers These include billboards, radio ads, and digital ads. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. McDonalds sells a wide variety of food. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. This makes sense. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). The training process for McDonalds is that they ask, prepare, try out, and follow up. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. McDonalds has access to a number of raw materials suppliers, including chicken and meat. 1. 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