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OPERATING ENVIRONMENT AND STARTEGY
Description of the Company’s Competition, competitive response/
Strategy and Industry
Competition occurs when two or more organizations act independently to supply their
products to the same group of consumers.
There are two bases on which firms can compete:
Price - where firms are selling identical or very similar products, they must
compete on price with each firm trying to undercut the others. Successful price
competition depends on cost leadership – the ability to supply the product at a
lower cost than any other competitor.
Differentiation - non-price competition depends on making a product different
from those of competitors and by giving it distinctive qualities that are valued by
the target market. These might include branding, styling, special features or
higher levels of customer service. Such factors can allow a premium price to be
charged while still offering target customers competitive value-for-money.
Direct Competition is where two or more businesses sell the same goods and services;
they usually compete in the same market. When businesses compete, they try to find
ways to get you to choose them. Buyers get to choose where to spend their money; this is
known as competition in the marketplace. Because there are so many firms selling
identical products then the price of these products will be highly similar. This
competition helps to drive down the profit that such firms can make.
Indirect competition exists when different firms make or sell items which although not in
head to head competition still compete for the same dollar in the customers pocket.
Businesses are strongly affected by competition in various ways:
a). the price they charge is limited by the extent of the competition.
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b). the range of services and the nature of the product sold is influenced by the level of
competition.
c). Businesses will go over and beyond to suit their customer’s needs so that they may not
lose their sale or create a dissatisfied customer.
d) Competition helps organizations to be more creative and empathic
Some of Kentucky Fried Chicken’s main competitors are Burger king, Wendy’s,
Popeye’s, Chester Fries, Island Grill, Tastee, and other Restaurants.
Based on the KFC operations in Montego Bay, the main competitors include Burger
King, Wendy’s and Island grill. For KFC to remain “a cut above the rest”, they must
maintain or improve the quality of their products and services. It is also crucial to KFC
to maintain the secret taste that is tagged to their chicken.
KFC has a wide target market for their original chicken flavor, however they realized
that within that wide target market are sub-markets where individuals like to have a more
spicier meal and as such they implemented the “hot n spicy” flavor chicken; then the Bar
– B- Q flavor was added to the chicken. Even though Burger King who is KFC’s main
competitors in Montego Bay offers a wide range of Burger sandwiches, KFC made a
great move by captured even more of the market with their improved Zinger sandwich in
Hot and Spicy and Bar-B-Q flavor, therefore placing more pressure on their competitors.
To stay above their competitors they offer re-fill of drink to their customers once they
dine.
Some of KFC’s competitors hardly do any form of advertising or promotion, however
their main competitor Burger King goes head and head with them in making different
offers to their customers. Example; when a Kids’ meal is purchased both companies
offer toys in return making it even harder on parents to choose where to shop. They are
both similar in their drive-thru services, and they both have the same procedure in
ordering and collecting the meal.
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However KFC always have an advantage in that they are easily chosen over other
competitors especially when catering for a large group in that they have many packages
including a 21 piece meal, with 2 liter Pepsi, they also provide cups and plates to make it
much easier for a party of any other function.
KFC do quite a few promotions and sponsorship; these are evident in the Junior School
Challenge quiz, the Talent Show “On the Verge,” and the Digicel Rising Star just to
name a few. Their main competitors Burger King are also sponsors of competitions as
well.
Their location also speaks out to how much KFC looks out for their customers in that
they are always in an area that has a wide parking space and adequate seating for diners,
unlike their main competitor located on Saint James Street.
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1) The management of KFC provides Equal Employee Opportunity to each member of staff.
( ) Agree ( ) Disagree
2) Who are your main competitors?
( ) Burger King ( ) Chester Fries ( ) Island Grill
Others______________.
3) Are you comfortable with the location of the business?
Yes ( ) No ( )
4) Are you satisfied with the time a consumer is taken to be served?
( ) Yes ( ) No
If No; Why? _________________________________________________________.
5) Why do you think the customers keep coming back to shop at KFC?
( ) The taste of the food
( ) The quality of the service
( ) The price of the food
( ) The variety in option to choose from
( ) Other ________________________________.
6) How do you know when a customer is satisfied?
( ) They keep coming back
( ) They provide feedback to members of staff
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( ) Others, please state ___________________________.
7) Do you think KFC is the number one fast food restaurant in the industry?
( ) Yes ( ) No
8) Which flavor do you think consumers prefer or purchase more regularly?
( ) Regular/ Original
( ) Hot n Spicy
( ) Bar-B-Q
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The diagram above illustrates that of the ten participants 50% agree that Kentucky Fried Chicken
gives Equal Employee Opportunity to Staff; the remaining 50% disagrees.
Figure 1.1: Pie Chart showing EEO at KFC
Agree
Disagree
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Figure 3.1: Pie Chart showing preference of business
location
Yes
The bar graph above shows that of the ten participants, five (5) indicated that Burger King is the
KFC’s main competitor, three (3) indicated that Island grill is the main competitor, while the
remaining two (2) participants believe that Chinese Restaurants are KFC’s main competitor.
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The Pie Chart above shows that of the ten participants, One hundred percent of the participants
agree that KFC is at a very good location.
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All the participants indicated that they are comfortable with the time customers are served,
taking into consideration the volume of customers they have on a daily basis and the different
requests and personalities that they deal with daily.
Figure 4.1: Pie Chart showing time consumers are
served.
Yes
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The graph above shows that of the ten participants four (4) believes that customer returns to
shop because of the delicious food, three (3) indicated that customers return because of the
Service they received, (2) indicated that they return to shop because of the price of the goods,
and the remaining participants indicate that they return to shop because of the variety in option
to choose from.
Figure 5.1: Reason why customers shop again.
0
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5
Respondents
N o . o d
P a r t i c i p a n t s
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The diagram above shows that 70% of the participants indicate that they know when a customer
is satisfied because they keep coming back. The remaining 30% indicate that they provide
feedback to members of staff when they are satisfied.
Figure 6.1 : How do you know customers are satisfied
70%
30%
They keep coming back
They provide feedback to
members of staff
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All participants indicated that Kentucky Fried Chicken is the number one Fast food restaurant in
the Industry.
Figure 7.1: Position in the Food Industry
Yes
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The diagram above shows that of the ten participants four (4) employees indicated that
customers prefer the original flavor chicken, three (3) employees indicate that the customer
prefer Hot and Spicy flavor, while the remaining three employees indicated that customers
prefer the Bar-B-Q Flavor Chicken.
0
1
2
3
4
5
6
7
8
910
No. of
Participants
1
Respondents
Figure 8.1: Shows prefered flavoured Chicken
Regular / Original
Hot and Spicy
Bar -B -Q
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RECOMMENDATIONS
It is recommended that Kentucky Fried Chicken improve their Kids meal by making fruit juice
and kiddies snack with crispy and Bar-B-Q Pop corn meal. This will provide also provide an
option for the kids to suite there taste buds. An added recommendation to all target groups is
sweet and sour chicken. This will allow more competition for competitors with similar products.
It is also recommended that KFC on Howard Cooke Boulevard start to provide reusable food
containers that will provide additional competition as their Chinese competitors have such
resources in place.
Provide lunch special for students, this will challenge their competitor Jerky’s which is currently
offering students’ lunch special. I recommend a two (2) piece meal with 1 biscuit and medium
drink free.
It is also recommended that they do periodic customer service training, and better
compensation packages, such as bonus and travelling allowance. Based on information gathered
from the questionnaire it is recommended that KFC at Howard Cooke Boulevard provide Equal
Employee Opportunity to each staff member.
Kentucky is moving towards an online application; however it would be best to have both the
manual and technological applicants as not all persons have access to internet use.
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EXECUTIVE SUMMARY
An overview of Kentucky Fried Chicken St. James reveals that there are certain strategies and
principles that are unique to the fast food restaurant and some things that need implementing.
In acquiring the information on KFC, research was done through questionnaires, observation
and face-face contact with employees and customers. Up on information gathered, KFC is
known for its tasty, crunchy and spicy meals, which is also suited for family and group
orientations. These products are at its highest quality due to its cohesive and well trained staff.
This is as a result on its training procedures where the company hires professionals who will
train staffs quarterly to ensure maximum quality of work.
Due to their flexible working hours, KFC is able to cater to their customers throughout the day
and night with added hours on holidays. KFC also look forward in promoting their products
providing sponsorship for various programs in and around Montego Bay are especially the
sporting activities for youngsters. It is with deep concern and empathy that KFC saw it fitting to
improve their seating for customer and wider parking availability for customers, but most
importantly be in a location that is easily accessible its customer.
It is also evident that children have little option on the menu for their meals. It was observed
that on entering the Restaurant a plaque was displayed on the wall of the Employee of the
month. This shows that management recognizes the hard work of the employees and the need
to appreciate them. Based on one and one encounter with the cashiers, it was evident that the
lower level staff is not satisfied with the amount being paid and the benefits that are almost a
non-existence to them at their level. Also KFC does not provide good compensation packages to
its employees; this also is the main reason for the increase in staff turnover.
Training and Recruiting is of great importance to KFC; as such applicant cultural background and
geographical location is taken into consideration when screening the applicants to be selected
for the job. Being Socially Responsible, KFC ensures that whatever they produce is of such
quality that it will be of benefit to the customers and the society in general. They are socially
responsible in that they ensure that their products will not harm their customers when
purchased. Being socially responsible also takes into consideration sponsorship, promoting and
charitable donations, by doing this they develop and maintain good customer relationship.
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CONCLUSION
In concluding, Kentucky Fried Chicken is known for tasty, crunchy and spicy meals. It is with
these positive qualities that they have managed to remain the top Restaurant in the Fast food
industry. It can also be concluded that KFC has performed good training to its staff but needs to
provide better compensation benefits to its staff members. To remain
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