Macro Environment Analysis

TASK 1 Choose a global fast food chain such as KFC, McDonald, Texas Chicken, Burger King, Subway, Pizza Hut and Domino’s Pizza. Explain the elements of its macro environment and discuss how these elements affect the company. Recommend improvements that can be made by the company in managing its macro environment effectively. 

Running Head: MACRO ENVIRONMENT ANALYSIS OF KFC
Macro environment analysis of KFC
Name of the Student:
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1MACRO ENVIRONMENT ANALYSIS OF KFC
Introduction
The respective essay in general gives more emphasis on the functional aspects that are
associated with the organization KFC in the market where the major objective of the study is
to understand and evaluate certain macro environment factors that are related to the
operational prospective of the company in the global market operations. The other part of
the study gives more understandings on key major macro environment factors affecting the
company in the international market (Srivastava, 2015). KFC in the market basically known as
Kentucky Fried Chicken is American based restaurant which is completely based on fast food.
The headquarter of KFC is situated at Louisville, Kentucky where the key specialization of
the company related to their key product fried chicken. KFC is considered to be the subsidiary of
Yum product brands.
Yum brands on the other hand is considered to be the restaurant brand which owns Taco
bell, wing Street chains and Pizza Hut. KFC was first started at Utah in 1952 where some of the
key products which are associated with the organization is based on the sale of fried chicken,
Chicken Sandwiches, Soft drinks, French fries and Wraps. It is situated in more than 22,621
locations where the total revenue of the organization is US$23 million. In the respective part
along with the above-mentioned objectives of the essay, there are also certain recommendations
added to make the study more understandable and effective on a complete basis.

2MACRO ENVIRONMENT ANALYSIS OF KFC
Discussion
PESTEL Analysis of KFC (with key affecting factors)
As compared to the functional aspects that are associated with the respective organization
KFC in their international market operation, it is considered to be a stated part that there are
several macro-environmental and external factors that shape and influence the success and
growth of the company. The PESTEL analysis conducted under this respective part which
deliver and offer a detailed analysis of each and every factor which generally play a key major
role in the organization growth and future prospective.
Political Factors of KFC
As compared to the organization KFC, major and key political factors which generally
shaped and influenced the respective franchise based on fast food business is associated
with their unhealthy mode of food laden with calorie diet on a higher basis. The other part of
operation associated with the respective brand was where they changed their name from
Kentucky Fried Chicken to KFC in order for the purpose of dropping the product fried
chicken from the name without taking to experience any key internal changes. Though this
respective part was considered to be an adaptive move performed form the side of Franchise,
there were certain issues raised from the side of various campaigners and nutritionists as the
brand generally capitalizes on psychological Vulnerability of maximum people.
For example, it can be stated that had been rise of various health conscious campaigns
and individuals against most of the fast food restaurants and chains for the reason of promoting
obesity and unhealthy lifestyle.

3MACRO ENVIRONMENT ANALYSIS OF KFC
Economic Factors of KFC
Some of the key major objectives that are related to many of the fast food restaurants is
associated with the part of generating and attaining more sustainable profit in the business.
Again, some of the major reason behind this respective part is their strong mode of association
with unhealthy mode of lifestyle and diet. According to the respective brand KFC, they
generally have menu which comprises of fried chicken which consist of unhealthy fats and
high content of calorie. Currently the brand has introduced some changes to their current menu
including variety of vegetarian food categories (Wibowo & Tielung, 2016). Though they have
made an innovative approach under this respective part, apart from this there are certain
initiatives required to be implemented within the organization to change their standing of
being unhealthy.
Additionally, it can be stated that KFC in the market is also well known for their
budget menu where the customers gain higher value for their made payment. Paired with
steadily deteriorating customer base, there exist a key economic factor which plagues the growth
of KFC.
Social Factors of KFC
As compared to the functional aspects that are associated with the respective brand KFC
in the market, the organization generally faces some social problem and issues within the
internal environment of the organization (Rijal, 2015). Among these paying minimum wage
for employees is considered to be one of the key major issues faced by the brand in the market.
As they generally have a strong mode of presence in the international market employees are only
paid with minimum wage rate without availing any mode of extra benefits.

4MACRO ENVIRONMENT ANALYSIS OF KFC
The organization is also facing certain discrepancies for their advertisements which
are completely on a suggestive and lucrative basis which completely attract the children and
make them much engaged towards the consumption of fast food where this ca also leads to
certain risk and health issues.
For example, the organizations like KFC and many fast food chains also evoke
negative reactions for causing animal cruelty (Omer, 2018). The chicken used by the respective
brand is completely loaded with strong hormones in order to retain higher quantity of muscles
and fats. On the other hand, there, farms also mistreat animals through the process of packing
them in unclean and unhygienic facilities and environments.
Technological Factors of KFC
As compared to KFC, they have generally introduced certain advancements in their
current technological aspects understanding the current trends and need value of the
customers. Most outlets of KFC in the current times generally has a click carry option where the
customers can order the food before they reach the outlet. This helps in the part of saving queues
and time.
For example, it can be stared that they have introduced online platforms, machines
that are voice automated. Self-order kiosk in order to increase their profit and sales value
associated with the organization. KFC on the other hand has also introduced their presence in the
digital media platforms through innovative mode of promotions and management.
Environmental Factors of KFC
Being a stable and consistent giant under the fast food industry with more than 22000
locations, KFC on a complete basis have an innovative contribution towards environment. Paper

5MACRO ENVIRONMENT ANALYSIS OF KFC
supplier of KFC is connected in most of the cases with wildlife destruction, deforestation
and environment endangering.
This is considered to be one of the major reasons where some of the customers who are
generally more health conscious never opt to select KFC for the respective reason. It is
important for KFC to give more emphasis on certain factors which can avail a strong mode of
environment friendly approach in order to reduce consumption and waste.
Legal Factors of KFC
As the brand KFC generally operates in more than 140 countries complying with local
regulations and laws are considered to be the key major reason behind the success and
growth of the company. In order avoid several penalties and lawsuits it is important for them
to adhere to the actual guidelines which are based on health and food quality.
For example, there are numerous cases raise against the brand KFC for serving the
customers rotting and low-quality food products which have introduced a system of negative
publicity for the brand in the market.
Micro environmental Factors of KFC
Some of the major Micro environmental factors associated with the organization are
based and is related to the organization’s key customers, Suppliers, Shareholders, Employees,
competition and media. The key functional aspects associated with the same are mentioned
below:
Customers of KFC

6MACRO ENVIRONMENT ANALYSIS OF KFC
They generally represent the actual image associated with the brand KFC where this can
be generally controlled by this. The key responsibility of the respective brand is completely
related to attraction, retention and access of their customers in the market. For example, as
compared to KFC in Australia home deliveries are considered to be the major part for the
purpose of maximizing customer base in the market. Certain measures that are generally based
on self service is regarded as the major segment which basically works for them in the
international market. The major reason can be that customers mostly prefer to choose as per their
taste and preference (Abdullah et al., 2015). Secondly, it creates and generates enough time for
serving others. It is important for KFC to implement a desk for customers in order to post their
complaints regarding the service quality and product quality rendered by them in the respective
market.
Shareholders of KFC
Shareholders on the other hand is considered to be the second most valuable asset of
business unit. It is important to treat the shareholders of the brand with better respect for the
purpose of preventing them from noticing from the organization. When this respective part
occurs, this may affect the share value of the company along affecting their brand image in the
market.
It is important for KFC to make them informed about any mode of changes which is
required to be implemented within the management along with maintaining innovative mode of
consistency in making communication to make stakeholders feel more important for the
organization.
Suppliers of KFC

7MACRO ENVIRONMENT ANALYSIS OF KFC
Better mode of relationship with the suppliers basically means the system of gaining
strong mode of feed back quality form the side of consumers. For example, when suppliers
associated with numerous fast food chain receive advanced and effective mode of treatment form
the brand KFC this mostly likely will respond with goodwill.
Under this respective part the suppliers will try to ensure that there is no any mode of
food poisoning caused to the served food and along with this they will take responsibility
regarding the process of introducing quality meals to the public form the side of KFC.
Employees of KFC
Employees generally form an authoritative part for the organization KFC in the market.
For KFC in order to introduce adaptive marketing strategy in the market, it is important for them
to ensure that several techniques based on the system of employees handling reflect through
better service delivery in the market.
In this respective part it is important to provide salaries and extra benefits for employees
at right point of time without bringing any mode of negative discrepancies under this respective
part. They must ensure that the employees may not bring any mode of unfair treatment with the
customers due to the negative affect of psychological factors caused within themselves.
Competition of KFC
As compared to the respective brand KFC, they generally face strong mode of
competition with brands like McDonalds, Burger King, Pizza hut and many other as they come
under the category of serving same mode of food products in the international market operations
(Win, 2016). In order to remain more stable and sustainable in the global market competition, it

8MACRO ENVIRONMENT ANALYSIS OF KFC
is important for KFC to develop certain competitive strategies to gain adaptive mode of
competitive advantage in the market.
Under this respective part, it is important for KFC to give more emphasis under the area
of developing their system of customer care service offered along with increasing the food
varieties understanding the taste and preference of the customers along with maintaining better
relations with media and work in the part of developing the brands corporate image on a
complete basis. KFC must try to invest in the part of franchising their brand in other international
markets like Africa and Latin America to increase their brand presence and sustainability.
Media of KFC
In order to adapt strong and innovative mode of market strategy in the market, adaptive
mode of influence form the side of media under this respective part may generally paly a vital
role. It is important for KFC to adapt strong mode of concern when any part of issues related to
media generally arise. They must try to make the best use of media for the purpose of making
positive publicity and must avoid any contact with media during the cause of scandals.
As compared to KFC media has generally played a demonstrative role in the part of
introducing innovative advertising strategy in the market, On the other hand several aspects that
are associated with the system of internal memos, conference and press releases has also played a
vital role in the part of making the brand more aware and visible to public in the international
market.
Recommendations related to Macro environmental Factors.
 The first and foremost part of initiative required to be adopted by KFC is associated with
the system of giving more emphasis on their solid sustenance. In the current times the

9MACRO ENVIRONMENT ANALYSIS OF KFC
customers are generally more concerned about their health. Under this respective part,
they have introduced certain control over fast food products.
For example, Fricasseed Chicken. Accordingly, KFC may lose their current business
operation. So, under this respective part, it is important for KFC incorporate and introduce
more beneficial food varieties to their current menu such as vegetable wraps, vegetable
hamburgers giving more emphasis on health factor of customers.
 Setting accommodation assessing menu: KFC should try to introduce some
accommodation assessing menu such that they will be able to pull in some new
purchasers remarkably understudies.
 Enhancing adaptive mode of representative inspirations: KFC must try to incorporate
and develop their inspiration position towards the company representatives such that the
rate of turnover will be reduced and the workers will be able to deliver better
administrations. Subsequently, the loyalty rate of the consumers will support.
 In order to remain more environment friendly, they must try to bring large control over
the system of food wastage along with adopting investing strategies over energy effective
appliances.
Conclusion
As compared to the organization KFC, key negative factors which generally shaped and
influenced the respective franchise based on fast food business is associated with their unhealthy
mode of food laden with calorie diet on a higher basis. Organization generally faces some social
problem and issues within the internal environment of the organization. Among these paying
minimum wage for employees is considered to be one of the key major issues faced by the brand

10MACRO ENVIRONMENT ANALYSIS OF KFC
in the market. It is also important for the brand to adapt innovative operation through the process
of remaining more environmentally friendly in order to remain more sustainable and competitive
in the market. The key consideration must be given under the area of bringing better
advancement under the part of organizations political. Economic, social and environment factors
to gain competitive advantage in the market for the current and future functioning’s.
Task 2
Learning From this Course
After learning and going through entire course, I was able to gain in depth and effective
knowledge about innovation process and entrepreneurship. This respective source generally
possesses enough flexibility in the part for developing the preconceived knowledge that are
based and is related to the system of entrepreneurship and innovation. Provision of deep
information regarding the system of entrepreneurship and types has completely changed my
attitude regarding theses respective issues. Several considerations that are related to the part of
additional readings take exposed to numerous avenues for the part of making and introducing
noticeable advances under the area of entrepreneurship on a complete basis. Under this
respective part, I believe several phases which are associated with the transformation process in
entrepreneurship are identical to several phases related to my life. Reviewing different
implications associated with the entrepreneurship function, I felt completely elated in the part of
its advanced and widespread presence related to the business filed.
My feeling about my learning experience

11MACRO ENVIRONMENT ANALYSIS OF KFC
Among several widespread application that are related to the system of entrepreneurship,
I believe creativity is considered to be the most important element under this respective part. The
core reason behind this respective part is that creativity in the entrepreneurship function helps in
the part of introducing and generating new and innovative ideas on a complete basis.
Entrepreneurship nature which is multi faced has completely invoked me in the part of studying
several behavioral aspects that are associated with the people. Within this respective part,
studying several characteristic traits associated with the people reflected the counselling
mentality of mine towards the process of approaching events in creative manner. Apart from this
respective part I was able to gain a strong insight in to comparative studies which generally exist
between entrepreneurship and many other aspects related to the same.
Through these respective part, I realized that several functional process related to the
system of entrepreneurship is just not a term, on the other hand it is one of the major tool for
business both in the part of introducing and creating innovative ideas along with the system of
generating a strong mode of problem solving techniques in the market (Siew, Wai & Hoe,
2016). As a part of suggestion to the learning experience made from my side, I believe that
evaluation is one of the major components required to be adopted form my side for the part of
enhancing advance mode of problem solving and innovative ideas in the future while performing
with an organization.
My suggestions to improve learning quality
Some of the major suggestions which can be made from my side regarding the learning
quality of the respective course based on entrepreneurship are mentioned below:

12MACRO ENVIRONMENT ANALYSIS OF KFC
 In the first part as the respective study is completely based on the system of
entrepreneurship and innovation, it is important to create and adapt better opportunities
for the students to represent themselves in Social Entrepreneurship Contest (Donnelly et
al., 2018).
 The other major part is associated with the process of inviting Business Executives of
organizations in order to share their real-life experience and conduct lectures.
 Teachers must ensure that, they strictly follow case studies to conduct sessions that are
related to entrepreneurship and innovation such that the students can easily get connected
to the part of generating new ideas and developing strong mode of problem-solving
techniques to be a successful entrepreneur in the future (Mittelmeier et al., 2018).
 One of the most important part is associated with the function of encouraging students to
conduct internship with business organizations in order to make themselves more
connected with real business world and happenings.

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