KFC in INDIA - Ethical

PRESENTATION ON THE CASE STUDY OF

Question 1 -Do you think in the light of fierce competition, it is justified for business organizations not to give importance to ethical values at the cost of making profits? Why or Why not?Questions For Discussion

BACKGROUND OF KENTUCKY FRIED CHICKEN

KFC is based in Louisville, Kentucky, and is the worlds most popular chicken restaurant chain.Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for hungry travellers.In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN. KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world.Yum! Brands is run by David Novak,Chairman & CEO .

KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world.109 countries and territories around the world.Every day, more than 12 million customers are served at KFC restaurants.KFC Division is run by Cheryl Bachelder,President and Chief Concept Officer

KFCs Entry in INDIAKFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s.

KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population.

PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.

Issues:

Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country Appreciate the need for protecting animal rights in developed and developing countries like India Understand the importance of ethics in doing business Examine the reasons for protests of PETA(People for Ethical Treatment of Animals ) Identify solutions for KFC's problems in India

Questions For Discussion Since its entry in India in 1995,KFC has been facing protests by cultural & Economic activists and farmers. What are the reasons for these protests?Question 2 -

Problems for KFCProtests by farmers led by the Karnataka Rajya Ryote Sangha(KRRS) & the farmers leader was Nanjundaswamy who used the term junk food against KFC.Protests by cultural & Economic activists.Protests by PETA in the late 1990s.Support of celebrities in against of KFC

SWOT ANALYSISSTRENGTHS

WEAKNESSES

NON ETHICAL BUSINESS PRACTICEPETA PROTESTKRRS PROTESTMSG FLAVOUR IN CHICKEN

OPPORTUNITYRETAIL BOOM IN INDIAINDIANS YOUTH ARE ADOPTING WESTERN CULTUREINDIAN ECONOMYCOSMOPOLITAN RAPID DEVELOPMENTTHREATSMSG CHICKEN FLAVOURPETA LIKE ORGANIZATIONSPOLITICAL PARTIES PROTESTING FOR JUNK FOODPROTEST SUPPORT FROM FAMOUS PERSONALITIES LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN ABRAHAM ETCUNDERSTAND THE CULTURE,REGULATORY& ECOLOGICAL ISSUES.UNDERSTAND THE IMPORTANCE OF ETHICS IN DOING BUSINESSEXAMINE THE REASONS FOR PROTESTS OF PETAIDENTIFY SOLUTIONS FOR KFCS PROBLEMS IN INDIA

CONCLUSIONKFC should implement a farm level guideline & audit program - a program which is industry-leading in the areas of poultry care and handling, mainly for their suppliers in the broiler industry.Finally, we can understand from the case that every business organization should understand the importance of ethics by understanding the culture, regulatory & ecological issues in different countries.

Answer 1No, in the light of cut throat competition, the co. should give importance to the ethics rather than the making profit.

Profit comes from customers.

Customers have ethics.

Customer is always right. As someone very rightly said, customers are always right and if at any point of time u feel that customer is wrong, and then you are wrong.

Answer 2Need for protecting animal rightsChicken they serve is full of chemicals (mono-sodium glutamate)It encourage farmers to shift production of crops to animal feedingLeaves poorer section of society with no affordable food.

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