Environmental Analysis of KFC: Strategies for Business Development

This report presents an environmental analysis of KFC, a leading fast-food restaurant. The analysis begins with an introduction emphasizing the importance of analyzing industry requirements and developing effective policies to achieve efficiency. The report then conducts a SWOT analysis, identifying KFC's strengths (brand popularity), weaknesses (unhealthy menu), opportunities (expanding product range), and threats (increasing competition and changing consumer preferences). Following the SWOT analysis, a PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing KFC's operations. The political section discusses the impact of campaigns, the economic section highlights the need to cater to different economic segments, and the social section addresses the influence of social factors. Technological aspects include the use of digital systems. Legal considerations involve food safety regulations, and environmental aspects emphasize the need for sustainable strategies. The report concludes by providing a comprehensive overview of KFC's business environment, offering insights into its strategic positioning and areas for improvement.

Environmental Analysis
Student Details
1-1-2020

ENVIRONMENTAL ANALYSIS 1
Table of Contents
Introduction................................................................................................................................2
SWOT Analysis.........................................................................................................................2
KFC PESTLE Analysis..............................................................................................................2
References..................................................................................................................................4

ENVIRONMENTAL ANALYSIS 2
Introduction
The organisations are required to focus on analysing the requirements within the industry and
accordingly develop policies so that the organisation can effectively focus on achieving
efficiency within the industry. As the competition within the fast-food restaurant industry is
increasing and to compete within the industry it is required that the organisation focus on
analysing its competencies and identify the risk and opportunities within the internal as well
as external business environments so that they can deal with the issues and can lead towards
achieving goals and objectives (Mennen, 2011). KFC operates within the industry and is
among the leaders within the industry, therefore it is required that the organisation focus on
SWOT and PESTLE analysis to analyse the internal and external environment respectively so
that the organisation can focus upon developing strategies through which it would be able to
retain its position within the industry.
SWOT Analysis
Internal analysis of the organisation can be done through analysing the organisational
strengths, weakness, opportunities and threats.
Strength: KFC is among the leaders within the industry and the organisation’s brand
popularity, as well as expanded market share, is the strength for the organisation.
Weakness: KFC’s unhealthy food menu and the focus towards non-veg is a weakness for the
organisation.
Opportunity: KFC has the opportunity to expand its product range from non-veg to veg
products, also the organisation can focus upon adopting a menu that promotes healthy eating
habits among the customer.
Threats: Increasing competition within the industry is a threat for the organisation, also the
shift in taste and preference towards healthy food items is increasing which may affect KFC
business in future (K., 2018).
KFC PESTLE Analysis
Political: KFC faces political issues within the nation, for example, the campaign of KFC
which included fried chicken was perceived as unhealthy food and negatively impact the
organisation’s brand image.

ENVIRONMENTAL ANALYSIS 3
Economical: KFC is required to focus on the economic segment of the nation and
accordingly develop a menu for the nation, as in past KFC was majorly focused towards
catering the needs and requirements of the upper class, but has introduced meals for the
middle section of the society (Bediako , 2018).
Social: KFC’s business is highly influenced by the social factors, as it deals in non-veg
products, as a result, the societies that prefer veg products are out of reach of KFC and they
also oppose the establishment of KFC outlets in the specific areas.
Technological: KFC makes effective use of advanced technologies in business operations, as
the organisation uses automated and digitalised billing and accounting systems, and utilise
social media to interact with customers and business stakeholders.
Legal: KFC deals in the fast-food industry, as a result, it has to deal with the legal rules and
regulations related to food safety and to maintain the nutritional factors of the product. Also,
as per the legal rules and regulations, KFC is required to renovate its policies within the
organisation.
Environmental: Being the part of the society it is required that KFC focuses on the
environmental concerns and accordingly adopts strategies within the organisation to support
environmental change within the industry (Hongbiao, 2016).

ENVIRONMENTAL ANALYSIS 4
References
Bediako , K. A., 2018. KFC’s sustainable competitive advantage in the international
franchising. [Online]
Available at: http://www.aabri.com/SA2018Proceedings/SA18012.pdf
[Accessed 17 March 2020].
Hongbiao, D., 2016. Food Hygiene, Agriculture And Animal Science - Proceedings Of The
2015 International Conference. Singapore: World Scientific.
K., O. S., 2018. SWOT analysis: The tool of organizations stability (KFC) as a case study.
Journal of Process Management, 6(4), pp. 27-34.
Mennen, M., 2011. Strategic Analysis of the BBC. s.l.:GRIN Verlag.