Importance of Analysis of Internal and External Business Environment for KFC

This project explores the importance of analyzing the internal and external business environment for KFC, including SWOT analysis, Porter's five forces model, and marketing mix. It also provides recommendations for the company's growth and development.

Business Project
(KFC)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background of the company............................................................................................................3
SWOT Analysis...............................................................................................................................3
Porters five force model...................................................................................................................4
Marketing mix.................................................................................................................................6
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
This project is going to show some importance of analysis of internal and external
business environment. There are several internal factors such as strengths, weaknesses,
opportunities and threats that affect strategic position and performance of the company
(Erasmus, Strydom and Rudansky-Kloppers, 2016). The main aim of this study is to create a
successful strategy for taking competitive advantages and attracting wider range of customers for
KFC. In internal environment it also shows the way of behaving and performing activities by
employees. In external environment it analysis impacts of several factors such as bargaining
power of customers, suppliers and threat of new entrants in fast food industry. All these factors
are being analysed with the help of Porter's 5 forces model and make changes in organizational
policies and strategies accordingly.
MAIN BODY
Background of the company
This present study is based on KFC which is an American fast food restaurant chain with
having headquarter is in Louisville, U.S. This company was founded in the year of 1930 by
Harland Sanders. It serves and offers its services and products in approximate 22,621 locations
which shows that it is a large multinational fast food restaurant. It provides fresh fried chicken,
soft drinks, chicken sandwiches, salads and desserts. The quality of its products is the main key
of its success and expansion of its business in many countries. It was one of the first American
fast food chains which expanded its business internationally. The main speciality of its products
is it uses Sander's recipe of 11 herbs and species for pressure fried chicken pieces.
Competitive market analysis
SWOT Analysis
Strength
The company has been identified as the world largest one chain of restaurant which is having
more than 18000 outlets in more than 120 countries and territories around the world
development.
The next is blast the company have the strong parents company as been subsidiary of yum which
is been considering been the part of fortune 500 companies as one of the world largest one in
fast food industries .

The next more also company have the maximum level of offering the finger licking chickens
along with venturing out both vegetarian stuff to have increasing efficient business.
Weakness
The company is been identified as the one who is using maximum of the unhealthy fats along
with using the unhygienic calories which is creating sense of responsibility ratters than being the
fastest growing food chains all over world.
The next is about the managing different level of franchises which is turning out to be more level
of critical issues as there is major identifications of conflicts between company outlets being
closed through the time of inception
Opportunities
The market has the major level of expansion opportunities as due to emerging level of
economies and their respective changes in lifestyle is expected to have higher level of growth as
there is chances of the presence and popularity of McDonalds is anytime more daunting for KFC.
The company have the chance no re in order to have expansion into vegetarian section have the
level of limited menus which is been against the established level of players which will helps in
over growth and development of company in major level of extension.
With the rise in people who are considered to be more level of health conscious will helps
company to have indemnification of new market which is parts of exploration as due to change
in lifestyle who are getting less level of time due to rising level of health issues.
Threat
The company’s is tending to faces the various level of challenges as been the established well
company in order to have flourishment been caste in development of various business
origination. The increase level of awareness improper in order to have the proper level of
analysing regarding the various level of consumption which is casually taking place in business
environment which is having the major contribution in developing economy. The next is absolute
the rise in price of raw materials will have the major impacts of development of growth of
company’s which is been affected. There are arising of various level of conflicts which is
electing as the major brad image towards development of negative mouth.
Porters five force model
This model helps in analysing the various level of strategic pillars of company to have the proper
analysing the what are the inherit level of potentiality the business in intended to have the growth

across the industry. The company is bale to make the level of analysis what is the surrounding of
business environment od companies against the various level od threats and opportunities which
helps company to understand the growth and unfeasibility. His model will help company KFC to
have analysis in terms of level of attractiveness which is through the inherent potentiality of
profit. This will make in analysing more in proper manner to take the level of strategic decision
These Porter’s five forces are as follows:
 Threat of New Entrants
 The company’s have the level of commoditize advantage as it is difficult for the other
firm o gains the compositor to firm as it requires a large level of production cost which is
turns to be costlier to gains the advantage of development the company’s tend to hang
varsity of production cost ad differentiation with major level o emphasis of advertising
and maintenance of better level of customer service the new form need a Large amount
capsizals which is making the new entrants to have deals with the increase level of
competitiveness in the market which leading major level of development. in this
competitive world , the new entrants wants a large access for network development in
order to gains the compete business development which is not an easy task to be
accomplished
 Bargaining Power of Suppliers there is large number od urge suppliers that the company
is have the major level of prevalence which not impacting the development of the
business in any of the major perspective. So the suppliers don’t have the control the
process of product which is being manufacture by companies . the company have
standardized level of suppliers which bargaining power makes the stronger essence for
development of company development in more of company’s effective in major terms of
development the company’s has been identified as the impotent customer to its suppliers
os the the profits of birth are closely interrelate led in order of providence of suppliers I
there at low prices
 Bargaining Power of Buyers there are large number of the buyer which is being operating
in a large bumbler of companies which is actually developing products. This means that
the buyers have a few firms to choose from, and therefore, do not have much control over
prices. This makes the bargaining power of buyers a weaker force within the industry.

The next is that the quality pf product are still being considered the important aspects of
developing the various level of alternatives which is causally prevailing in market as the
buyers has been considered as more important aspect of development. This have the
meaning that the buyer less level of price sensitives which tends the bargaining power of
the buyer for the particular company’s has been undebatable as low.
 Threat of Substitute Products or Services
There are very few substitutes available for the products that are produced in the industry
in which KFC operates. The very few substitutes that are available are also produced by
low profit earning industries. This means there is nor level of ceiling price which can be
bale to have developed by company in order to have the earning of maximum level of
profit development. All these factors have the clear level of signification the three has
been threat of the submissive in the market has been undatable in reduction and
development of business perspective. There is the viability of the attitudes in market
which are more expertise of that the reason KFC has been operating at lower prices sixth
having more level adequality of quality is the major consideration of loyal customer
makes the level of signification in development
 Rivalry Among Existing Firms of their KFC are been considered as very few in
marketplaces which means theta the company’s is not able to have signification of mover
without been noticed. The fixed costs are high within the industry in which KFC operates
as this makes the existence of the rivalry firm more noticed to have development on
understanding the level of existing forces which is considered sat more stronger level of
indications working. All these factors have the clear level of signification the three has
been threat of the submissive in the market has been undatable in reduction and
development of business perspective
Marketing mix
Product

 Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy, Mini
Krusher,
 Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
 Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa
 Toasted Wraps
 Burger: Veg Zinger, Chicken Zinger, Tower Zinger
Price
There is major level of following of the bundle and optional pricing which is having the
varsity of category development. the company also have various options such combo to
offer better. Place as the company is more than 18000 outlets in more than 120 countries
and territories around the world development. The majorly distribution is based on
franchises and are company run outlets
Promotions
The company’s has been level of promotion activities which are such as the add on, gift
menus coupon and many more to attracts customers. there is major promotion at big
display screens to have better products promotion along worth online advertising
People
the one who are been involved in province of the service has been made. This also have
the inclusion of employee working in company’s which have the proper level of training
and development to have proper communicates guideline
Process
The price have the usually start-up with the visitation of customer along with company’s
is successful implementations it self to order the product ore to online development it is
considered a d or easy and consent process which having maximum customer stictions
and good tool equipment’s
Physical evidence
It has the reference to the physical; level of environment which is being considered to the
various level of business outlets where the customer have level of visitation along per th

standard of parent company development. The company’s is tentful to be creative in
filing positive level of influences vy having maximum cushier sticktails and good tool
equipment’s
RECOMMENDATION
The company tends to have the due to emerging level of economies and their respective
changes in lifestyle is expected to have higher level of growth as there is chances of the
presence and popularity of McDonalds is anytime more daunting for KFC
With the rise in people who are considered to be more level of health conscious will helps
company to have indemnification of new market which is parts of exploration. The
company’s should be more printable in indemnifying its current threats in order to gains
compete advantage in market giants its competitors for father level of development. he
quality pf product are still being considered the important aspects of developing the
various level of alternatives which is causally prevailing in market as the buyers has been
considered as more important aspect of development.
CONCLUSION
From the above study it has been summarized that The main speciality of its products is it
uses Sander's recipe of 11 herbs and species for pressure fried chicken pieces.In external
environment it analysis impacts of several factors such as bargaining power of customers,
suppliers and threat of new entrants in fast food industry. The company have the strong parents
company as been subsidiary of yum which is been considering been the part of fortune 500
companies. The company is been identified as the one who is using maximum of the unhealthy
fats along with using the unhygienic calories. The bargaining power of buyers a weaker force
within the industry which is the majorly distribution is based on franchises and are company run
outlets

REFERENCES
Books and Journals
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44. pp.194-203.
Omer, S.K., 2018. SWOT analysis: The tool of organizations stability (KFC) as a case study.
Journal of Process Management. New Technologies, 6(4). pp.27-34.
Genoveva, G. and Siam, S.T., 2017. Analysis of marketing strategy and competitive advantage.
Journal of Economic & Management Perspectives, 11(1).pp.1571-1579.
Omer, S.K., 2018. SWOT analysis: The tool of organizations stability (KFC) as a case study.
Journal of Process Management. New Technologies, 6(4).pp.27-34.
Bentham, J., 2018. The Great KFC Chicken Shortage 2018. Teaching Business & Economics,
22(2). pp.6-7.