Strategic Management Assignment - KFC

   

Added on  2021-02-20

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STRATEGIC MANAGEMENT
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Table of ContentsINTRODUCTION...........................................................................................................................3Question 1........................................................................................................................................3a. The evaluation of internal and external environments to identify potential strategies forKFC -...........................................................................................................................................3b. Strategies to overcome global recession -...............................................................................6QUESTION 2...................................................................................................................................7C. The purpose of strategic planning and decision making within an organisation alsodifferentiate between intended, emergent and realized stratergy................................................7QUESTION 3 ................................................................................................................................11d. Organizational change implementation and implying SMT analysis to mark its importance....................................................................................................................................................11CONCLUSION .............................................................................................................................13REFERENCES .............................................................................................................................14
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INTRODUCTIONStrategic management is the process of formulating strategies to meet specific goal ofbusiness unit. Present study is based on KFC which is leading fast food provider firm that hasbranches across the world. In the year 2018, US has faced trade war with China. This thing hasaffected many businesses. In the condition of global crises productivity and profitability ofcompanies get badly affected. Current assignment will evaluate internal and externalenvironmental factors that must be considered by business at the time of global crises and it willdescribe various potential strategies that may help the firm in sustaining in crises situationeffectively. Furthermore, report will recommend emergent strategies to manage global recession.In addition, report will explain purpose of strategic planning and will describe differencebetween intended, emergent and realized strategies. Furthermore, report will highlight impact ofglobal crises on firms and changes that occur in such critical condition.Question 1a.The evaluation of internal and external environments to identify potential strategies for KFC –Business environment can be defined as actual situation of company that helps the firm insustaining in market for longer duration. Internal environment explains that internal condition offirm whereas external environment highlights external factors that impact on business unit. SWOT ANALYSIS Strengths -Strong global presence - The food chain KFC is the leading fast food chain across theglobe operating in 130+ countries with about 21000+ stores serving its eatables to the customers(Ansoff, 2018).Customer loyalty - The secret recipe of KFC helped in establishing its own fan base.The crunchiness of the chicken is the favourite part of the customer's preference.Menu's variety - The outlets of KFC serves variety of food menus across the world toattracts the customer's on the basis of region to satisfy the need of its customers (RosenbergHansen, and Ferlie, 2016).Secret recipe - Sandler's 11 herb and spices secret recipe kept in KFC's Louisvilleheadquarters is one the best recipe stated till time. Weakness -
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Supply and distribution - KFC faced a tremendous downfall in supply and distributionchannel and thus threatened the image of the chain.Franchises management - The management of franchises is a major challenge for KFCand some outlets failed to stay functional after the inspection (Jenkins, and Williamson, 2015). Opportunities - Globalisation: if firm enters into new location or market then it would give benefit to thefirm and entity will get opportunity to raise its profit.Introducing new eatables in menu - KFC felt the opportunity of introducing low fatsand calories food in market (Moutinho, 2018).Threats - Change in trends and consumer's food preference - KFC promoted food that is healthin nature as earlier they faced criticism for serving fried items and the government also imposedseveral boundation on law related to food quality (Gallus, and Frey, 2016).PESTEL ANALYSIS - Political - The political risk in KFC vary from sudden change in political party aspolitical stability never exists, the enforcement of law on company, protection of company'sintellectual property, trade barriers, risk of military invasion as always their thus KFC alwaysmanaged to establish a backup plan if changes in political factors occur affecting the businessconditions. As in 2018, US and China involved in trade war and the implementation of Trumpadministration came into existence as they started imposing tariff resulting in impose of 34Billion $ tax on 800 products to which China responded by imposing 25% tax on productsimported from the US (Hill, 2017).Economic - KFC consider economic factors such as GDP, interest rates, exchange rates,unemployment level and other such factors to implement strategies for implementation of itsbusiness plans. KFC established standards to deal from economic risk by stabilizing interestrates, regularly coping up with minimum wage, and even study the change in taxes slabs. Thefree trade is seen benefiting economies of the two countries. Further, according to a bill the UScan be pulled out of the WTO resulting to threaten the economist that policies from thewealthiest countries of the world could result in recession and threaten global policy resulting inmaking the economies unstable since 2008 that could affect working conditions of those places(Frynas, and Mellahi, 2015).
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