Macro Environment Analysis

Running Head: MACRO ENVIRONMENT ANALYSIS OF KFC
Macro environment analysis of KFC
Name of the Student:
Name of the University:
Author Note:

MACRO ENVIRONMENT ANALYSIS OF KFC1
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.

MACRO ENVIRONMENT ANALYSIS OF KFC2
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.

MACRO ENVIRONMENT ANALYSIS OF KFC3
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.