Strategic Management for KFC
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SWOT Analysis of KFC
Strengths
One of the major strengths of KFC is its association with the Pepsi Co. and other strong parent companies such as Yum Brands. This has given the KFC good branding across the world. Being one of the market leaders with international presence in more than 120 countries, KFC draws its strength from dominating the chicken food market with more than 50 percent of the global market share. The company has at least 18,000 outlets spread across the world, thus enjoying internal recognition and dominance. The KFC’ secret recipe has also served to its advantage. Together with its trade mark, the company’s secret recipe popularly referred to as “11 spices and herbs” that was signed by Sanders (the founder) has made KFC remain supreme in the global fast food market. Also, the company enjoys strong loyalty with its franchises and employees across the world. KFC has always ensured that their staff are highly motivated, hence committed to the success of the company.
Weaknesses
Despite enjoying enormous strengths, KFC has its own areas of weaknesses that should be addressed going forward. Primarily, the consumers have become concerned about the health issues associated with fast foods, where KFC dominates the global market. Fast foods are associated with unhygienic calories and excess fats, which are not recommended. Additionally, the inflexible pricing system of the KFC has made its products unaffordable to low and medium-income groups. While the KFC has succeeded in franchising its operations, it has experienced conflicting issues with its franchisees including poor between the franchises and Pepsi Co. Though the company has substantial efforts introducing vegetable dietary, the menu list is still limiting to some potential consumers. Moreover, the inability of the KFC to penetrate into all potential foreign markets also remains a major weakness.
Opportunities
There are numerous growth opportunities that KFC can take advantage of. Emerging markets in Australia, South America, and Africa presents enormous expansion paths worth considering. The increase in the population of medium income families in the U.S. and the rest of the world would result in higher demand for the fast foods given the improvement in the purchasing powers of the consumers. Further, the increased participation of women in the labor market is leading to high demand for fast food products. On the other hand, the rising health conscious population would drive the industry to consider introducing healthier diets such as vegetable foods. Besides trapping the young generation of consumers, modern distribution channels are making it easier for fast food companies to penetrate the global market.
Threat
The success of KFC is threatened by the stiff competition arising from large number of competitors in the fast food market. A part from the McDonald, there are hundreds of well-established companies that currently operate the fast food industry; thus increasing competition for KFC. The changing customer demands and eating habit to more health conscious is further threatening the future of this sector. Additionally, unfavorable economic factors such as inflation have increased the costs of raw materials, thus forcing companies in this industry to either raise their prices or record low profit margins. Also, KFC progress has been threatened by legal suits by environmental protection and animal activist groups.

PESTLE ANALYSIS
Political Factors
Like other business enterprises, KFC’s operations have adversely been affected by political factors. Since the political class is responsible for the formulation of economic and business regulatory policies, it is important recognizing that regulations such as GM Food labeling, animal rights, health and safety guidelines directly affects the operations of KFC. While expanding to foreign markets, political good will is essential. Such good will from the political class across Europe has created favorable environments for KFC’s expansion.

Economic Factors
From the economic point of view, unfavorable economic conditions such as high rate of inflation have had adverse effects on the prices of essential raw materials used by KFC. On a positive note, the devaluation of other currencies such as the peso has favored the success and expansion of the KFC’s operations. Also, the growth in income of the potential customers across the world has resulted in increased demand for the KFC products. Additionally, the company has high revenue streams arising from franchising its businesses and operations across the world.
Social Factors
The changes in the consumer demands from fast foods to healthier diets have impacted on the growth prospects of KFC. With health concerns being raised over the consumption of unhealthy fatty fast foods, the demand is fast changing to vegetable diets. However, the increased involvement of women in formal employment sectors is presenting another window of opportunity for the fast food industries like KFC. To be competitive and strengthen its brand image, KFC has been actively involved in countless corporate social responsibilities across the world mainly through donations, partnerships, and sponsorship deals. Also, KFC has been accused of racial stereotyping of its clients and staff, something that has not gone so well with the image of the company both locally and internationally. For instance, in Australia, one of commercial adverts sponsored by the KFC was pulled down for racisms reasons of the featuring Australian cricket player.
Technological Factors
The success of the KFC has been made possible by the emergence of more distribution companies and technologies that have played major role in improving the penetration ability of the KFC. Also, KFC uses payment and ordering apps that make it possible for the customers to place their orders using their mobile phones and at the same time pay for the orders using the same technology. It is the applications of the modern technologies that have made KFC to excel in its expansions plans across the world.
Environmental Factors
It is important noting that KFC uses packing materials that are made of forest products. They buy these materials from the paper company that has accused of causing danger to the environment through deforestation. Should KFC continue using these tree-made packing materials, our environment will suffer from pollution, bio-degradation, thus affecting the living standards of the general human population. Further, with the rising demand for fast food products, it is feared that more and more trees will have to be cut down. This would potentially lead to the extinction of rare and endangered species.
Legal Factors
Ideally, businesses operations are governed and regulated by the laws that vary across different countries. Being a legal and limited entity, the activities of KFC must always be legally binding. Apart from holding to the expected health standards and codes, KFC is also expected to meet its tax obligations in the countries of operation. Like other fast food companies such as McDonald, KFC has not been lean without controversial and legal tussles. People for the Ethical Treatment of Animals (PETA) has filed legal suits against KFC accusing the company of violating and abusing the rights of chicken and other animals. According to PETA, throat slitting and electrical stunning of the chicken is very inhuman. In their view, it is important for the KFC to abide by the Animal Care Standards as outlined in the constitution and animal acts. The Centre for Science in Public Interest (CSPI), on the other hand, filed a case against KFC for using soyabean and palm oils for frying their fast foods. This forced KFC to consider replacing these oils with more healthy ones. Besides, KFC has had court cases with environmental conservation and protections groups including the Greepeace for destroying rainforests. These legal issues have adversely interfered with the operations of KFC.