Case Study Of Kfc

1088 Words 5 Pages
KFC China’s decision to focus on healthy food option is a good strategic management decision to take due to several factors that can promote health related issues. Yum Brands own KFC, Pizazz Hut and Taco Bell and the growing number of middle class consumers hold the key to this success. There has been increasing changes in Chinese eating habits dating back to 1949 and 1978 when there were major food shortages resulting on the dependency of coupon-based supply products such as flour, rice, and meat, including cooking oil. During the difficult times, having more grains and less protein and vegetables was the normal diet. In 1978 China opened its economy resulting in an increase of availability in food and peoples’ income. With an abundant food …show more content…
Food consisted of freshly prepared selections purchased every day from super markets. However, the introduction of supermarkets and refrigerators had many consumers shopping on a bi weekly basis although retired people continued shopping from their neighbourhood markets. Even though the younger generation had moved out, some went home to their parents to eat dinner if they lived near or within the area. As the middle class grew and could afford KFC is when the company strives to achieve a positive outcome. Because its mission and core values were based on the US. Business model, to grow and capture the Chinese market they had to modify it. Since on average they were opening one restaurant a day, they developed a unique strategy with a competitive advantage. Their vision was to turn KFC into a national business that was perceived as being Chinese with rapid expansion to into the smaller and midsize cities. As well, they wanted to develop a countrywide supply chain organization while providing extensive training for their employees in customer service. In the beginning the focus was on franchising which later shifted to ownership of units benefiting the centralized purchasing system when they implemented the system wide quality standards as the focus was on building their …show more content…
By 2005 a third accounted for the obese population in the world which was between 70 to 90 million. Nevertheless, the issue with children due to the one child policy was even more alarming. Overweight and obese children had reached 12 million, with a third accounting for the fastest children in the world. The result was due to grandparents and parents pampering them and fed them more than necessary. The development of the “New Fast Food” concept not only emphasized quality, taste, variety, coking platform and an eating occasion but reemphasized, fast, high quality, safe and delicious, nutritious and balanced, healthy living which were rooted in China. Different protein such as shrimp fish and beef were added including wraps, oven roasted chicken to sandwiches and vegetables dishes which the Chinese enjoy. Creating a balanced meal option with the emphasis on moderation and variety than sticking with a simple menu was the proactive strategy they took. Offering a small discount on combo items and the elimination of super-size items to children’s meals served with vegetables and juice were all part of the strategy to having educational messages and nutritional information on tray mats. This included hostesses teaching nutrition lessons to children. The exercise every day makes you healthy your life slogan was Yum’s way of promoting physical

Related Documents