Economics and Finance for Business

This research paper explores the economic growth and competitive strategies in the business industry, focusing on the KFC and Oporto business models. It covers topics such as marketing structure, growth strategies, pricing and non-pricing strategies, and more. Gain valuable insights into the dynamics of the fast food industry and learn about the factors that contribute to the success of companies like KFC and Oporto.

Economics and Finance for Business
Student Name:
Register Number:
Submission Date:
1

Table of Contents
Abstract........................................................................................................................................................................... 3
Introduction..................................................................................................................................................................... 3
Marketing structure and Competitive strategies...............................................................................................................4
Analysis competitor...................................................................................................................................................... 5
Economic competitor analysis....................................................................................................................................... 6
Micro environment....................................................................................................................................................... 6
Growth strategies............................................................................................................................................................. 7
Horizontal, vertical, and organic growth of the KFC strategy........................................................................................8
Pricing and non-pricing strategies.................................................................................................................................... 8
Pricing strategies.......................................................................................................................................................... 9
Analyzing the market share on the growth of business activity....................................................................................10
Non pricing analysis of the Market share values..........................................................................................................11
Opportunity of the marketing analysis........................................................................................................................ 11
Further competitor matrix.......................................................................................................................................... 12
Conclusion..................................................................................................................................................................... 16
Reference....................................................................................................................................................................... 17
2

Abstract
A Business firm, on the line of popular fast food chains like the Oporto and KFC, with
the same business improvement on the basis of economic growth has to be selected and
identified. That is the purpose and aim of this project and that is what we shall explore and
understand. In many developed countries, the local fast food companies and firms are giving
tough rivalry to KFC, plus newer companies like Oporto, Kyochan and other local and
international fast food companies are giving a tough challenge to the established KFC Company.
The competition is very intense among the various fast food outlets in the developed companies
and they are eating into one another’s market share. Oporto which specializes in burgers and
Subway which is into sandwiches are both in the burger category of fast food and also the two
main competitors of KFC.With their vast global presence and reach, both KFC and Oporto are
always fighting for the market share and against each other, while Subway is behind as its lags
the distribution reach of the other two.The market business levels, which are used for the
analysis of the competitors, are used for the pricing and non-pricing analysis of the market and
on which the analysis of the growth on the KFC Companyfollows. This whole scenario we shall
investigate and study as part of the project.
Introduction
The main aim of this research paper is to choosing a near business company on the KFC and
Oporto pattern for the economic growth of the business improvement and same shall be
investigated. The researching business process of KFC and Oporto will beanalyzedfor the growth
of business analysis, marketing structure and competitive strategy of the monopolistic
competition business analysis, growth strategy of KFC and Oporto Company, pricing and non-
pricing strategies analysis on the economic business environment. KFC Corporation. Serving
nearly eight million customers all over the globe with the ever popular items like the original
recipe extra crisps, TM and colon's crispy stripes chicken. KFC, which is located at Louisville,
Kentucky, is the world's most popular chicken restaurant chain. With the original recipe of half a
century ago, KFC still serves its original recipe of chicken, Colonel Hartland Sanders. at its
every outlet all over the world. From salmon sandwiches in Japan to a chunky chicken pot bag in
3

the USA, customers around the world enjoy more than 300 of the KFC menu items. In the US
alone it has over 300 restaurants.Popular called as "home-food alternatives", and with other food
chains like Opera, Taco Bell and Pizza Hut, KFC “Colonel Sanders”, has been selling its chicken
items for more than 50 years. "Sunday Dinner, seven days a week", that was the phrase given by
Colonel Sanders for KFC food. Specializing in the Portuguese-style poultry and burgers,
“Oporto” is a Portuguese-theme Australian fast food restaurant owner. One of the most well-
known symbols and logo in the world, “Kennel Harland Sanders” reflects the Colonel Spirit and
tradition of KFC's. How to analyse and improve the business model on the economics of pricing
and non-pricing strategies and, understanding the current business of marketing competitors on
the KFC and Oporto Company, will be taken up in this project and studied.
Marketing structure and Competitive strategies
The Economic business of the market structure they can focus on the four types of the
marketing structure they are includes the pure competition, perfectly monopolistic market and
oligopoly on the business market. The KFC monopolistic market they can follows the different
characteristics of the product to be delivery in the customer to be specified the monopolistic
market. This is obvious because KFC competes with the other thought they can follows the three
different kinds of factors that are includes the quality, prices, and marketing analysis of the
business strategies. The following the three factors they can used for the promote KFC and
Oporto market demand is increasing values, and the causing it to long run economics of the scale
experience. The KFC industry is one of the fast food famous industry in the world. As KFC is
growing rapidly growing around the world, more enterprises enter, the profits see KFC, which
does not have any entry or exit and strongly supports the fact that it is a monopoly market. This
leads to an increase in supply across the globe.They can specified the eight competitors in the
KFC Company. The KFC Company of the notable competitors they are includes the,
McDonalds, Burger King, subway, Dunkin Donuts, Starbucks, pizza Hut, Domino's pizza and
Taco Bell (Capolupo, 2017).
Most customers and employees should face the problem that KFC has to create. Make sure to
provide the best service. The products of KFC and Opporto will be sorted into the current menu
of fruits and vegetables on the growing demand for the KFC Marketing Business Service.After
the new investors to start a fast food business, the fast food industry, which is the largest in the
4

investment and business market. The current and grown thing of brands such as KFC and MC
Donegal, they can develop strong business and create a loyal customer service.Avoid this
customer and go to new restaurants. This professional entry barrier has further increased the
ability of businesses to ensure the same product flavor, restaurant and global customer service.
This leads to new pipes in the middle of KFC
Serving the market as per the requirement of the customer by using a sector of people is
what KFC uses. Giving the best exports in the market, KFC, just like McDonald’s has started
customizing its menu in recent times. On the basis of the product-based value, KFC have
modified their stabilizing strategy. With vegetarian options being the least, the maximum
emphasis on the menu is reserved for chicken. But this is the strong and most important point of
KFC, with ever popular items like chicken wings and chicken bucket. At KFC, most vegetarian
lovers are stripped on this excellent goal technique. For any business to grow and expand, the
most important thing to do is carry out competition analysis.At the product level, most
companies conduct competitive analysis, while at the unit level or company level, the strategic
business analysis is carried out.Used for various factors that create a company, competing
analysis is a very powerful and vital tool.Therefore, the objectives of the competing analyses are
widespread, but it is very useful for the start-up company and for the larger system.Designed on
a Portuguese theme, and a name derived from the Porto, the second largest city in the country,
Oporto is a renowned Australian fast food restaurant chain. Portuguese colonist Antonio
Chercheria in the North Pond in 1986, when not finding a Portuguese-style chicken in Australia,
established the restaurant and the very popular Portuguese-style chicken to the country.
Managing the marketing and the restaurant’s advertising, Australia's largest fast-service
restaurant company is handled by Quick Service Restaurant Holdings Pty Ltd, which also
manages other popular food chains like Red Roster, Opportunity and Chicken Treat. It also looks
after their marketing, supply chain and in an integrated manner, controls the company's
marketing functions. Lot of detailing and attention is given by the various departments of the
Department of Marketing Strategy and along with this to analyzeand understand the current
social trends, wants and customer opportunities, social media and platforms are also used. With
the focus on customer satisfaction and business improvement, strong emphasis is given to
customer’s answers and feedback on their social platforms and for the betterment of their product
delivery.
5

Analysis competitor
The KFC and Oporto competitors can be analyzed in these 6 categories, that includes,
 Price differentiation
 Relationship differentiation
 Items differentiation
 Service differentiation
 Channel differentiation
 Reputation differentiation
Economic competitor analysis
 Inclusion of all the actual and potential buyers of the product.
 Through exchange, Buyers can satisfy their needs and demands.
• Opportunities are created as KFC operates in large macro environment of forces.
• On a Large scale, people and organizations are affected as a company such as KFC
usually cannot influence trends in the macro environment.
•Creating competitive responses to examine macro environmental trends is what KFC
should be able to study and evaluate (Fier, Liebenberg & Liebenberg, 2017).
te
6

Micro environment
A company like KFC usually can not alter the tendencies of large-scale impacts with people and
companies, as KFC operates in large macro environments that create opportunities in which Alto
resides (Jin & Li, 2013).
 On which KFC has an impact, the microenvironment consists of all forces that are close
to KFC.
 The customers and ability to serve them is directly affected by KFC.
 Three major components influence KFC’s.
 Using marketing strategies, KFC competes with its competitors.
 In various events such as Ramon's offer, midnight opportunity, they offer different sets
like these events.
 By providing good services, KFC competes with competitors.
 To market their products on the market, KFC require the services of the hardest sales
people for promoting their employees in order of companies. This also benefits the
KFC's quality products and service(Shimp and Andrews, 2013) through the employees
and also for their competitors.
7

Growth strategies
The key qualification of a company provides consumer benefits for its products while
simultaneously providing the company's competitors with leveragability for different products
and markets.. The KFC Corporation's core capabilities include the ability to provide a unique
recipe based chicken. This recipe is shared among global markets as a result of a consistent
product offered among the global markets. Also KFC Corporation has significant expertise in
managing and opening owners and restaurants in international markets.The company also has the
ability to negotiate with its suppliers, allowing the company to increase and sell its profit margins
for the sale of goods at a lower price. The company will provide the economy with its local,
regional and international operations. It is used by the suppliers to strengthen their cots benefits,
although the strategy currently does not work. Since KFC began, they insisted on the chicken, so
that the world over on the KFC and Oporto business industry. KFC India has released 20%
growth in 2018. It recorded a growth of 17% in the fourth quarter ended December 31.The KFC
and Oporto which improve the marketing structure of the business service and they are growing
industry.
8

Horizontal, vertical, and organic growth of the KFC strategy
Organic growth Horizontal growth Vertical growth
The growth of organic business is
characterized by the development of natural
systems and organisms, societies and
economies, as a dynamic system process, for
increased expansion of business expansion,
customer fundamental expansion, or new
product growth, against admissions and
acquisitions, on the KFC company growth
on the business market.
Horizontal of the KFC and
oporto development
broadens the functions of a
company by increasing the
range of products and
services offered by other
geographical regions and /
or current markets.
In contrast, KFC and
Oporto the vertical
development covers
the company taking a
process previously
done by a supplier or
distributor.
Pricing and non-pricing strategies
Pricing strategies
Facing in terms of company/ production, competition and consumers, companies like KFC &
Oporto, use pricing strategies which begin with the situation analysis and for analyzing the
market situation (Liu & Sun, 2016). Observing and studying certain trends or patterns, we study
and give our opinions for the same. Then to understand market analysis, we carried out a survey
targeting college students. Focusing on the consumers of KFC, their products, their competitions
and competition products, we focused on the well-being, health and nutritious perspective of the
products. Aimed at concept testing, we then conducted our first set focus groups. The agency
team was taken for the receiving the work order, preparing and conducting the interviews and
this proved to be a very successful exercise which gave lot of information and insight of the
conducted survey.To test in the nest set of focus groups, we developed AD’s by help of the
agency team and from the receiving focus group feedback’s.The agency team received great
feedback for improvements after the immense success of the copy testing focus groups.
9

The pricing strategies for the customer order items manufacturing cost were
Rs. 100/-5% marketing cost (PER UNIT) Rs. 5/-
Total cost Rs.105/-15% G.S.T +15% RETAIL MARGIN Rs.25/-.
Total retail Price Rs.140/- (for the market analysis)
The KFC and Oporto company have given a factor which is specified by the location of weight
as 35% and the price values is 15%, analyzing the service price value is 10%, after that they can
denote it as the total market shared analysis is 10 %(Peter and Donnelly, 2013).
Analyzing the market share on the growth of business activity
With more than 2,100 locations, China has been one of the main countries to focus into
by KFC for their international expansion plans. The chain is making some additions to their
menu keeping in mind the changing trends and needs and, also the growing pressure from local
and international competitors.By having a plan of offering breakfast menu in the near future for
10

their locations, KFC has already started thinking ahead. They have already introduced new items
on the menu like grilled chicken sandwiches for the more health conscious customers. At one of
their locations in central Oporto company market analysis, KFC have already introduced a
breakfast menu.
Non pricing analysis of the Market share values
For KFC, the price of losing a single customer is not big deal. So, if only one customer threatens
to no longer eat at KFC, the store is not going to lower its price as individual buyers, have almost
no bargaining power (Peoples, 2012). Same is true regarding the little bargaining power for
buyers as well as for the suppliers. A brilliant move made by KFC was to aid the local suppliers
with technological support and methods to overall improve their products (Pagano & Pica,
2012). It also asked the US Suppliers to start locating new branches in countries like India. KFC
had successfully integrated this plan for India and it was working very well. They had option at
hand that is in case if there is an increase in the price of supplies from US, than they can buy the
products from the local Indian suppliers. So they had a ready domestic local market for their
11

needs in addition to their regular US suppliers. There was an inside competition among all the
suppliers for lowering the price of their supplies of the Oporto on the business analysis. This was
a Fantastic plan and good for study and evaluation.
Opportunity of the marketing analysis
Cross Culture: In India, American culture of fast food is generally having a good acceptance.
Indian mindset is fast changing as they are not just keeping it a once in a month affair, people are
opening up to fast foods more regularly in their daily lives.
Large Youth population: With more than 60% of the population under the age of 30yrs(Eliot,
2016), India has a very large share of youth population as compared to other countries. This is
positive news for the company, as the young generation isopen, demanding and modern to this
culture of fast foods.
New variety: For bringing in more, newer and variety of customers, the company can introduce
new items like Garlic breads, Pizzas, etc (Stam, 2010).
Further competitor matrix
KFC and Oporto company of the factor which is specified by the location of weight is 35% and
the price values is 15%, analyzing the service price value is 10%, after that they can denote it as
the total market shared analysis is 10 %
12

We went out to analyse how to compare other fast food restaurants with KFC, so to
understand how to compete at the KFC tournament.With the concept of Dollar
Menu, the customers were happy with its value for money and that’s what they
replied to the researchers when asked about KFC. When responding to the fast
food, our respondents have greatly emphasized that they usually have two
important things of value. When asked about the price of KFC, it was a little less
compared to their rivals, KFC(Batten, 2012). KFC claims that they are eating a lot of
food, and for most people, they are going to eat with a group rather than only by
themselves, as opposed to a restaurant.
13

Because of the poultry farming, we reduced the place in KFC's main competition.
In the survey, most respondents felt that the chick-fill-A was the best chicken in all
the chicken varieties and this was very surprising for the researchers even while
KFC was a major player in the chicken market. Chick-fill-A's chickens, which was
selected by the majority of the respondents for its healthier option compared to the
other chickens items. Popeye’s another chicken based brand, gave a tough
competition to KFC, which barely managed to hold to the second
position.Unhealthy, unsanitary greasy chicken, this was the idea about KFC
Chicken in most of the respondents view in the survey. They said thatit was not
something they would eat on a regular day-to-day, even though KFC chicken’s
image of being fried and with a greasy image did not bother them. One of the other
amazing things of the survey was that KFC got much less votes than compared to
14

other chicken outlets like Burger King and Wendy’s.
KFC does in fact offer healthier grilled chicken and this is something that the
respondents will be surprised to know. And the respondents and customers that
visited the restaurant more regularly were the respondents who knew about this
fact about KFC.They would more likely go to KFC if they knew about the grilled
chicken sandwiches, was the response of the correspondents. They would also
reduce their outings in other food outlets, if they knew what they are getting into
and KFC would listthe health content of their food at least at the restaurant. This
was one of the unanimous thingsas per the survey and response from the
participants.An effort to promote healthier options and alsoto put more emphasis
on health in general, should be the focus of KFC, especially in their advertising
strategy, as this was one of the outcomes of the survey that was conducted.
Increasing the customer’s will be the outcome if KFC implies this suggestion after
as per the outcome of the survey.
15

Conclusion
The objective of this research paper was to present and choose a business company on the basis
of the KFC and Oporto business type and on the economic growth of the business improvement,
has been completed. The researching business process of the KFC and Oporto which can be
analyzed on the growth of the business analysis and marketing structure and competitive strategy
of the monopolistic competition business analysis, and growth strategy of the KFC and Oporto
Company, pricing and non-pricing strategies analysis on the economic business environment has
been completed. Serving more than 8 million customers worldwide, KFC Corporation, located in
Louisville, Kentucky, serving popular chicken items like TM, colon's crispy stripes chicken and
the ever famous original recipe extra crisps, is the world's most popular chicken restaurant chain
With salmon sandwiches in Japan to chunky chicken pot bag in the USA, and along with 300
other items, KFC has been a favorite of customers worldwide. Keeping their traditional recipe of
half a century ago, KFC still keeps the taste consistent and same.KFC continues to meet
customers in more than 300 restaurants and other households in the United States. In some more
American cities, KFC, along with other cafés such as Opera, Taco Bell and Pizza Hut, sold more
than fifty years ago, as Colonel Sanders, the so-called "home-food alternatives". He called it
"Sunday Dinner, seven days a week". “Oporto” is a Portuguese-theme Australian fast food
restaurant owner. Oporto is specialized in Portuguese-style poultry and burgers. One of the
world's best known symbols, the logo kennel Harland Sanders along with the Colonel Spirit, the
tradition of KFC is kept flying high all over the globe. Analyzing the current business marketing
competitors on the KFC and Oporto Company and how to improve the business model on the
economic of pricing and non-pricing strategies, has been completed. The KFC and Oporto
company factor which is specified by the location of the weight is 35% and the price values is
15%, analyzing the service price value is 10%, after that they can denote it as the total market
shared analysis which is 10 % , and this also has been completed.
16

Reference
Batten, J. (2012). Derivative Securities Pricing and Modelling. [Place of publication not
identified]: [publisher not identified].
Eliot, G. (2016). The Mill on the Floss. Dinslaken: Anboco.
Peoples, J. (2012). Pricing behavior and non-price characteristics in the airline industry.
Bingley, U.K.: Emerald.
Peter, J. and Donnelly, J. (2013). Marketing management. New York, NY: McGraw-Hill.
Shimp, T. and Andrews, J. (2013). Advertising, promotion, and other aspects of integrated
marketing communications. Mason, Ohio: South-Western Cengage Learning.
Capolupo, R. (2017). Finance, Investment and Growth: Evidence for Italy. Economic
Notes, 47(1), 145-186. doi: 10.1111/ecno.12097
Fier, S., Liebenberg, A., & Liebenberg, I. (2017). Insurer Growth Strategies. Risk
Management And Insurance Review, 20(3), 309-337. doi: 10.1111/rmir.12088
Jin, B., & Li, G. (2013). Green economic growth from a developmental perspective. China
Finance And Economic Review, 1(1), 4. doi: 10.1186/2095-4638-1-4
Liu, G., & Sun, R. (2016). Economic Openness and Subnational Borrowing. Public
Budgeting & Finance, 36(2), 45-69. doi: 10.1111/pbaf.12088
Pagano, M., & Pica, G. (2012). Finance and employment*. Economic Policy, 27(69), 5-55.
doi: 10.1111/j.1468-0327.2011.00276.x
17

Stam, E. (2010). Growth beyond Gibrat: firm growth processes and strategies. Small
Business Economics, 35(2), 129-135. doi: 10.1007/s11187-010-9294-3
18