Positive and Negative Impact of Macro Environment on KFC

This report analyzes the positive and negative impact of the macro environment on the business operations of KFC. It discusses political factors affecting the company, such as the change in name to improve brand image. It also highlights the need for KFC to adapt to consumer preferences and serve healthier food to stay competitive. The report concludes with recommendations for the company to improve its operations and maintain its market share.

BUSINESS AND BUSINESSBUSINESS AND BUSINESS
ENVIRONMENTENVIRONMENT

TABLE OF CONTENTTABLE OF CONTENT
• INTRODUCTIONINTRODUCTION
• TASK 2TASK 2
• CONCLUSIONCONCLUSION
• REFERENCESREFERENCES

INTRODUCTIONINTRODUCTION
• This report covers questions such as types of company, SWOT analysis,This report covers questions such as types of company, SWOT analysis,
PESTLE analysis of KFC, Interrelationship between SWOT analysis and PESTELPESTLE analysis of KFC, Interrelationship between SWOT analysis and PESTEL
analysis, interrelationship with marketing factors, scope and objectives of theanalysis, interrelationship with marketing factors, scope and objectives of the
company. These all questions will cover the brief analysis of KFC that howcompany. These all questions will cover the brief analysis of KFC that how
they should operate, where to expand, where to improve.they should operate, where to expand, where to improve.

POSITIVE AND NEGATIVE IMPACT THE MACROPOSITIVE AND NEGATIVE IMPACT THE MACRO
ENVIRONMENT HAS UPON BUSINESSENVIRONMENT HAS UPON BUSINESS
OPERATIONS OF KFCOPERATIONS OF KFC
• Political factors affecting KFCPolitical factors affecting KFC
• In the beginning KFC didn’t used abbreviation for their name they changed itIn the beginning KFC didn’t used abbreviation for their name they changed it
because their former name gained negative associations for the company that isbecause their former name gained negative associations for the company that is
why they changed it so that they can save the image of the brand.why they changed it so that they can save the image of the brand.
• KFC only deals in proper unhealthy food unlike their competitors such as BurgerKFC only deals in proper unhealthy food unlike their competitors such as Burger
King or McDonalds they can make their burgers healthy but fried chicken willKing or McDonalds they can make their burgers healthy but fried chicken will
always be unhealthy.always be unhealthy.
• That is why they changed their name to abbreviation still now the companyThat is why they changed their name to abbreviation still now the company
serves the same and high amount of calorie intake food but by implementing thisserves the same and high amount of calorie intake food but by implementing this
trick they have changed the perception of the peopletrick they have changed the perception of the people

SWOT ANALYSIS OF KFCSWOT ANALYSIS OF KFC
• Strength-Strength-
• KFC has the brand value of $6 billion which makes it the second largestKFC has the brand value of $6 billion which makes it the second largest
company in the market it is known by people in many countries and have trust incompany in the market it is known by people in many countries and have trust in
the market because of their marketing strategies and the expansion in multiplethe market because of their marketing strategies and the expansion in multiple
countries. The recipe KFC uses is a secret they never reveal it to others that iscountries. The recipe KFC uses is a secret they never reveal it to others that is
why they have a slight advantage over their competitors. Half of the money KFCwhy they have a slight advantage over their competitors. Half of the money KFC
earns comes from China as their market is increasingly growing and they haveearns comes from China as their market is increasingly growing and they have
4,000 outlets in China alone. KFC partnered with different restaurants such as4,000 outlets in China alone. KFC partnered with different restaurants such as
Pizza Hut and Taco Bell so that they can offer more varieties to feed more peoplePizza Hut and Taco Bell so that they can offer more varieties to feed more people
with more variety. KFC offers chicken as their main variety and primary product.with more variety. KFC offers chicken as their main variety and primary product.

CONCLUSIONCONCLUSION
• From the above studies it has been concluded that KFC has to change their wayFrom the above studies it has been concluded that KFC has to change their way
of operating in the market otherwise they will loose their fair share.of operating in the market otherwise they will loose their fair share.
• Company also needs to change their suppliers who contaminate the food andCompany also needs to change their suppliers who contaminate the food and
increase the issues such as adultery and preservation of food. By changing themincrease the issues such as adultery and preservation of food. By changing them
it may disturb the flow for once but it will save the reputation of the company.it may disturb the flow for once but it will save the reputation of the company.
• To survive in the market KFC has to adapt according to the taste and choices ofTo survive in the market KFC has to adapt according to the taste and choices of
people they have to start serving healthy food otherwise they will be long gonepeople they have to start serving healthy food otherwise they will be long gone
against their competitors because buns can be converted into a healthy food butagainst their competitors because buns can be converted into a healthy food but
fried chicken cannotfried chicken cannot

REFERENCESREFERENCES
• Akhtar, M. and Sushil, S., 2018. Strategic performance management systemAkhtar, M. and Sushil, S., 2018. Strategic performance management system
in uncertain business environment. Business Process Management Journal.in uncertain business environment. Business Process Management Journal.
• Bah, E.H. and Fang, L., 2015. Impact of the business environment on outputBah, E.H. and Fang, L., 2015. Impact of the business environment on output
and productivity in Africa. Journal of Development Economics. 114. pp.159-and productivity in Africa. Journal of Development Economics. 114. pp.159-
171.171.
• Calabrese, M., and et.al.,., 2018. From mechanical to cognitive view: TheCalabrese, M., and et.al.,., 2018. From mechanical to cognitive view: The
changes of decision making in business environment. In Social Dynamics in achanges of decision making in business environment. In Social Dynamics in a
Systems Perspective (pp. 223-240). Springer. Cham.Systems Perspective (pp. 223-240). Springer. Cham.