Conflicts appeared as a result of Hublein’s little experience in the fast restaurant market. As a result, there was low quality control, poor service and shortage on new restaurant openings.

R.J Reynolds was also new to the business, so it decided to take a hands-off approach in management.

Pepsi on the other hand had some experience in the industry. It interfered with KFC’s management and replaced it with its own.

2- What are the chief economic and business characteristics of the global fast food industry?

The fast food industry is extremely large and it reported $320 billion in sales in 1997 for approximately 500,000 restaurants in the US. The market

Competitive pressures stemming from buyer bargaining power and seller-buyer collaboration: the buyer’s purchasing power is not very strong since the cost of the products purchased by a single buyer do not affect greatly the sales volume. However, we can note that the switching cost for a buyer is null.

KFC can take advantage of the following key success factors:

Ø Conflict experiences with multiple owners: Colonel Sanders, Pepsi, etc.

Some topics in this essay:
Sanders Pepsi, Griller Buffet, Wendy’s Popey’s, RJ Reynolds, Pepsi Co, Mexico KFC, McDonald’s Checkers, , fast food, competitive pressures, Restrictions Canadian, fast food industry, competitive pressures stemming, food industry, key success, Ø quality, demands Ø, example mcdonald’s, chains Ø, key success factors, product line, etc Ø,