Kfc Swot

Strength

The strength of KFC can be found in internal environment as well as external environment. However, the strengths that are mentioned in the case are, KFC had the world's largest chicken restaurant and third largest fast-food chain in 2004. KFC covered more than 51 percent of the US market sales. Moreover, KFC operated with 650 restaurants in Latin America in 2003. KFC primary presence was in Puerto Rico, Mexico and Caribbean. In late 1960s KFC established subsidiaries in Puerto Rico and Mexico and then expanded through company owned restaurants. Additionally, the success of KFC increases when RJR joined KFC. RJR had a little more experience in restaurants business than Heublein. RJR allowed KFC to operate autonomously; he believed that executives of KFC know better how to operate business than its own managers. However, operating efficiencies start improving, KFC reduced some operating efficiencies which increased its profits. Moreover, merger with Pepsi Co benefit KFC a lot. Pepsi Co uses various promotional strategies to market soft drinks and snacks which increased the sales of KFC as well.

Weaknesses

The weaknesses that are mentioned in the case study are, conflicts occur between Colonel Sanders and Heublein over poor quality control and restaurant cleanliness. Moreover, many of the problems of KFC during 1980s and 1990s were because of its limited menu and they were unable to bring new products into the market, other fast food companies like Mc Donalds, Burger King introduced chicken sandwiches before KFC and because of this there is an increase in cost of KFC to spread awareness amongst customers about their sandwiches. However, Pepsi Co was also pressuring KFC managers to increase their performance or they will fire them. This created pressure on managers to show their management skills with in short period and created feeling among managers that they have few opportunities for advancement within the company. Moreover large distances between headquarters and foreign franchises made it difficult to control the quality of individual restaurants. Because of long distances many problems occur like servicing and support problems, transportation and other resources were higher than in the domestic market and cultural and language differences created communication and operational problems.

Opportunities

Opportunities that KFC can take advantage are as follows, Consumers were becoming health conscious and KFC can introduce new product line for this segment. Moreover, there is an increasing demand of food stuff eating outside at home worldwide. KFC had success in chicken which was the tradition dish in Asia, Latin America especially Mexico which is an attractive investment. Additionally, with the elimination of tariffs US companies can buy assets, produce goods and then transfer them back to US at low cost.

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