Business Organisations in a Global Economy

This report analyzes the impact of the business environment on KFC, including a PESTEL analysis. It discusses the company's size, location, and current operations. The report also explores the application of appropriate analytical approaches and provides recommendations for the company's expansion.

Business Organisations
in a Global Economy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Information .............................................................................................................3
Discussion on the allocated business environment................................................................4
Application of an appropriate analytical approach.................................................................6
Use and application of appropriate data and example............................................................7
CONCLUSION................................................................................................................................9
REFERANCES..............................................................................................................................10

INTRODUCTION
Business environment is made up of many components that includes many internal and
external elements. It is important for every organization to keep in their mind those factors, so
they can be aware about the business environment.
This report will cover KFC company which is famous in the all around the world. KFC is
an multinational company, this a food restaurant that serves fast food products, and they are
famous and specialist for the fired chicken. KFC is a 2nd largest Cain in worldwide after the
McDonald's, and they are having more than 22600 locations globally in the 130 plus country. It
will cover the information about the company which will include the size, location and current
oppression of the company. This report will discuss the allocation business environment which
will include PESTEL. This report will provide application of the appropriate analytical
approaches and it will add demand supply schema for the analysis. In the end of this report will
provide recommendation for the company and where they can expand their business to be
successful in their business.
MAIN BODY
Business Information
KFC is leading brand that has global presence, because they are selling fried chicken
and different recopies which is attracting lots of customers to eat their food. Basically they are
selling fast food, and they are having huge demand in the market. KFC is a multinational
company and their headquarter is in the US, Where most of the people eat food from the KFC
restaurant. They are having varieties of the dishes and their taste is different from the others.
KFC was the one of the first American company who expand their business global, and they get
success in their business (Deasy and et.al., VMware Inc, 2016).
KFC is having restaurant in the worldwide, and they have location of the shops more than
the 135 country. This company is second largest restaurantt in the world after the McDonald and
the world’s most popular chicken brand. KFC’s menu has evolved from its legendary Original
Recipe pressure fried chicken (“11 herbs and spices”) and side dishes to include grilled chicken,
chicken strips, chicken sandwiches, hot wings, and desserts (Bah and Fang., 2015).
KFC is looking to expand their business in the Greece country. According to the
marketing team of the KFC , people of the Greece country like to eat fast food and most of the
people are non-vegetarian and this can create huge opportunity to invest their money and

business in this country which will help their company to gain profitability, and they can give
competition to the McDonald. This can be good decision from the KFC because they are having
huge potability to be success in this country, and they will expand their business.
Discussion on the allocated business environment
PESTEL analysis of KFC
Political factor
The laws which the county enforces, specially with the business related, such as the
contract law and company law, as they rule what the KFC Greece company is an is not accepted
to do. In some the counties where it is important for them to disallow alcohol or have some
premises (PESTEL Analysis of KFC. 2019). While there are some government systems which
have incompetent number of the red strip which disapprove the business of the KFC Greece
company. The trade obstruction that the host nation has would defend KFC Greece company;
however, trade obstruction that nations with potential trade partners would damage companies by
preventing possible exports. A high level of tax would demotivate companies like KFC Greece
from increasing their profits. The risk of military incursion by hostile countries may cause
divestment from project. Whether, a company’s intellectual property is secure. For example, a
country that has no argumentation for IP security would mean that businessman may find it too
risky to spend in KFC Greece
Economic
Yum ! Brand own just similar restaurant like KFC Greece which also include the Pizza
hut and Taco Bell. All the brand are troubled in the Greece market and there are almost who
cannot seems like they are growing and some are on the profit decrement. Portion of the
problem for this company is the association with the fried chicken. Once's this company have
tries to seprate from by the abbreviating the name. The health-conscious people are not
interested to gain their wet , calorie-dense foods (Belás and et.al., 2015). And since most of KFC
Greece menu consider some form of fried chicken, these customers don’t have too much
options. KFC Greece has established their business in some countries where the employment
rates are very high such as china and India, In these countries KFC Greece is focusing more to
expand their business because both the country have high population and labor rates are also

high, it means that the employees in this both county are ready to work in low wages and
workers in the both country are hard-working and better than the others.
Social
KFC Greece is struggling from the social issue because people are declining their food
because it is unhealthy for them and it is creating many problem related to their health .
(Benmamoun and et.al., 2016). it is important for the company to look for the health of the
people and provide better food to the society. People in Greece are careful about their health, so
they are avoiding eating fast food which is affecting profitability of the KFC Greece and
restaurant who are providing healthy food are taking advantage of this habit. They started selling
green food which is attracting people .
Technological
KFC Greece has location in the Australia where they are introducing new technology for
the employees of the company through the social media.. Technology plays important role in the
company's growth. KFC Greece also start their online application in which customers can order
their food from the nearest location. This help company to give their business growth, and they
able to make profit from the online delivery of their food. Their apps are available on the play
store and android users can download and order from their home,
Environmental
A complex Past with this company paper provider has affected the individual sentiment
of the brand. The paper institutions are linked to the Di- forestation, which impact on the
Planet's health, It also contributes to the risk of wildlife and kindred species who are already on
the threshold of extinction.
Again, an increasing number of health-conscious individuals opt to turn away from KFC
Greece due to reasons like this. The restaurant needs to adopt more environmentally friendly
practices reducing waste and consumption.
Legal factor
This company has expanded their business in all around the world, and they have to pay
all the taxes and legal authority to the government. If they fail to pay their taxes then government
can shut down their shops in their country (Erasmus, Strydom and Rudansky-Kloppers., 2016). It
is important the company to follow the rules of the government according to the country and pay

all the taxes because they have to pay and run their business according to the governmental
rules other wise government have rights to shut down their business in their country.
There are lot of case filed against the KFC Greece company in all around the world
because of their low quality food, which is affecting the health of the customers and that have
invited the lo9t's of negative publicity of the company. Many of the company have branded this
company because of their low quality food , this is making people seek and creating problem for
their health. It is essential for the KFC company to maintain their quality and look to use the high
quality food products.
Application of an appropriate analytical approach
Porter's 5 forces
Competitive Rivalry
Fast food industry of Greece is very wide and facing intense competition. Goody’s
Burger House is the leading fast food firm in Greece that is well established brand and
generating huge profit. other competitors in this industry try to overtake this company with the
sachems to attract the customers (Hillary., 2017). KFC needs to provide such offers to
consumers that can gain their attention and for that in Greece it is offering membership cars to
end users. KFC Greece company also introduce their membership cards for the kids and they are
not online give discount in the KFC company but kids can also use this cards on the Zoo Melaka,
subway etc. this help this company to gain competitive advantage in the global market.
Threats of new entrant

This is the sector that needs large investments. New entrants can not enter into this
industry so easily because companies will have to invest in marketing, research, product
development etc. in order to gain profit. Greece is the big country where many leading fast food
brand are already available hence chances of gaining success of new entrant is very low.
Consumers like to buy items that have taste and excellent services. Hence KFC needs not to
worry with new entrant in Greece fast food industry because they can not affect performance of
business unit.
Bargaining power of supplier
KFC needs to buy items such as soft drinks, chicken etc. from suppliers (Kljucnikov and
et.al., 2016). As demand of fast food is very high hence there are many suppliers available those
which are providing great quality materials. KFC Greece ensures to make contact with right
supplier and one is providing poor quality material then switch of supplier is the best idea. Hence
suppliers have low power. As KFC has high power in Greece that help firm in gaining success
and sustaining in Greece to great extent.
Bargaining power of the customers
Buyer of this company6 are customers who used to come in their restaurant's on the daily
basis. They customers also have arrayed to go for the same other choices such as Subway,
McDonald, Pizza Hut etc. Therefore, KFC Greece company do not rise their prices in the menu,
it remains same every day (Komljenovic, Loiselle and Kumral., 2017). If they will rise their
prices then, customers will go to the other restaurant s who also provide same services, and they
are competitors of the KFC.
Threats of Substitutes
Goody’s Burger House is the leading fast food firm that is offering same quality material
and services to wide range of consumers in Greece. KFC always ensures to provide luxurious
services to consumers hence it gives WIFI facilities and rest other services to them. This aids
business in attracting more customers and sustaining in market for longer duration. Substitute
products are very strong but still they have moderate power to influence business performance of
KFC Greece.
Use and application of appropriate data and example
World wide shares of the KFC

According to the above Data KFC has and 9 percent shares in the worldwide, and they
are getting competition from the subway and McDonald's food company. We can see that
subway also have 9 5 % of shares in the all over the world so it is important of the KFC company
to make new strategies otherwise subways can overtake them anytime (Prajogo., 2016). It will
take time to the KFC to give competition to the McDonald because they have strong reputation
in the market and most of the shares own by the KFC. According to this chard McDonald' shave
19 percent shares, 9% KFC, 9 % subway, 1 % Panera Bread, 2 % Burger King and 57 % shares
other companies.
KFC growth in China
KFC company open their first restaurant in 1987 (Lee., 2017). In 2000 this company has
open fast food china with the 400 outlets. From 2000 they started from 400 and in 2003 they
reaches to 950 and after the 2003 they expand their business in china more, and they reach to the
1,736 in the 2006 with the time the demand of their food incensing every year on the other side
other brand was losing their business and KFC was giving them a strong competition in the
market. Till the 2009 this company open 2,728 outlet in the china which was huge number

according to the demand of the fast food in this country. Recently they are having more then
4500 outlet in the whole china this is an big achievement for any company.
CONCLUSION
As per the above report has been analyzed the KFC company which is famous in the all
around the world. This report has been covered the information about the company which has
included the size, location and current oppression of the company and also has been provided
complete in for mentioned the company . It has been discussed the allocation business
environment which has included PESTEL analysis and also explained that how this factors affect
the company. This report has been provided application of the appropriate analytical approaches
and it also has been add porter's 5 forces and concluded all the 5 forces. In the end of this report
has been provided recommendation for the company and where they can expand their business to
be successful in their business.

REFERANCES
Books and journal

[Online]
PESTEL Analysis of KFC. 2019. Available through; <https://pestleanalysis.com/pestel-analysis-
of-kfc/>