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KFC's Strategies

            1- What did each of KFC's three different corporate parents - Heublein, R. Reynolds and Pepsi Co - do to contribute to or hinder KFC's growth and success?.
             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 growth rate is 5.2% annually. It is considered as mature. The industry consists of numerous organizations and companies, ranging from McDonald's to Checkers, and it is not limited to the United States. .
             We can divide the industry into 6 groups of restaurants and chains:.
            
             Sandwich chains.
            
             Dinner houses.
            
             Griller Buffet .
            
             Family restaurants.
            
             Pizza.
            
             Chicken.
             .
             3- What does a five-forces analysis of fast-food competition tell us about the overall strength/intensity of competitive pressures in this business?.
             The rivalry among competing sellers: figuring the following:.
            
             Product line and services: efforts are made to extend the product offerings, sometimes beyond the traditional, for example when McDonald's offered chicken burgers. Services are also considered as a competitive edge.
            
             Pricing and promotions: pricing is critical for buyers and many chains use promotions especially when the offerings exceed demands.
            
             Location and store format: is important likewise any business and has a direct effect on clients.
             The potential entry of new competitors: which is difficult since KFC is a very large chain.


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