KFC Strategy Report: Comprehensive Environmental & SWOT Analysis

This report provides a comprehensive analysis of KFC's internal and external environments, utilizing a SWOT framework to evaluate the company's strengths, weaknesses, opportunities, and threats. The internal factors examined include product issues, marketing challenges, and management concerns, while external factors encompass political, economic, social, technological, environmental, and legal influences. The analysis identifies KFC's strong brand presence and market leadership as key strengths, while weaknesses include supply chain issues and negative publicity. Opportunities for growth lie in healthier food options and home delivery, but threats include market saturation and changing consumer preferences. The report concludes with recommendations for KFC to adapt to market trends, diversify its product offerings, and enhance its marketing and management strategies, ensuring sustained growth and competitiveness. Desklib offers this and many other solved assignments for students.

Assessment 1 report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Environmental Analysis...............................................................................................................3
SWOT Analysis ..........................................................................................................................4
Recommendations .......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
The internal factors refer to those factors that effects with the internal sources of the
business. Internal factors include the product, management, and environment of the organization.
The external factors are defined as the factors that effects from the external sources of the
organization. Such as, legal, political, environmental and economic factors. KFC is an American
chain. It is headquartered in Louisville. It specializes in fried chicken and it is the world's second
largest restaurants chain after Mc Donald's (Uddin, 2020). The report includes the internal and
external factors that affects the organisation. The SWOT analysis of the organizations and
recommendation to it.
MAIN BODY
Environmental Analysis
The internal factors of KFC are being addressed as how the internal functions are being
addressed and what are the measures which have been contemplating and are included in the
business of KFC. The internal factors are being addressed as and includes –
Product Issues – The major issue which KFC is facing is towards the products which are non-
vegetarian in nature. The products of chicken were accused by PETA for the cruelty towards
chicken (Hussain and Kec̦ili, 2019).
Marketing Issues – The company is facing marketing issues and this helps in addressing the
aspects that how the company is addressing the products and services to the company.
Management Issues – The management issues which KFC is facing is that the forecasting of
company growth and development went wrong which created difficulties and trouble.
External factors: These are the factors those influences the circumstances or situations
that a business cannot control. It affects the business and its decision-making process. The
external factors that influence the KFC are:
Political factors: It includes the policies and trade restrictions that effects on the business of the
KFC. For example, if the policy made by government are favourable for KFC. It will help them
in expanding the business at global level (Hasan, and et. al 2022).
Economic factors: The economic factors such as economic growth rates, interest rates,
exchange rates and inflation (Gottesman, and Seshadri, 2022.). These external factors directly
effect on the prices of the products of KFC. Because high in interest rates results in increase in

price of the product of KFC. This factor brings change in the business as a greater number of
customers are involved in the buying of the products and due to which the business grows and
develops in the market structure.
Social factors: This is the most important external factor in the terms of external factors.
Because it deals with change in taste and preferences of the people (Blind, and Fenton, 2022). It
also has to deal with the new and trendy trends in the market, that is adopted by the emerging
food industries.
Technological factors: The technological factors are linked to the innovation in the KFC. It
helps in the expansion of the business of KFC by providing its online services to the customers.
The technology also plays an important role in the research and development unit of the KFC.
This factor helps the business of KFC in promoting and advertising the products of KFC to the
customers in the market (Yusop, 2018).
Environmental factors: The environmental factor concerns with the ecological impacts on the
business. It deals with environmental change, for example: weather conditions, temperature,
climate change. It also concerns with development of the environmental factor. KFC is doing this
providing eco-friendly bags and recyclable packaging pf its products.
Legal factors: The legal factors in KFC are referred as the laws and regulations, that are
prepared by the government for the development of the food industries. This impacts positively
on the business of KFC. Because the laws like food and safety act and consumer protect act.
These regulations are made for the development of the food and beverages industries (Falsetti,
and et. al 20220.
The current events which are taking place in KFC is that the company is growing its
range of products and services in the manner such that the needs and requirements of the
customers is fulfilled at large scale. The company is focusing on how effectively the products of
veg and non – veg are diversifying its categories of promoting the products to the customers in
large areas.
SWOT Analysis
The SWOT analysis is being conducted for the issues in the internal and external analysis.
Therefore, the SWOT analysis is being done in the manner as to how the strengths, weaknesses,

threats and opportunities are being analysed and evaluated. The SWOT analysis is described as
follows –
Strengths – KFC is the second-best global brand in the fast-food industry. The company has a
strong position in the emerging China. The company is the market leader in the whole world
which offers the product chicken as their primary serving. The company also serves the original
herbs and species recipe (Benzaghta, Elwalda and et.al., 2021). With the help of these aspects
which have been the major factors for KFC there are aspects as to how the company is growing
and diversifying its products and services in the market.
Weaknesses – There are certain suppliers of KFC which are untrustworthy. The company is
having high employee turnover which makes it the biggest drawback of the company. There are
marketing efforts which are made by the company but are weak in the market. Negative publicity
is the major aspect as to how the company is working and is placing the brand in the market at
large scale in the eye of the customers. There are some of the major ingredients which are
unhealthy (Blind and Fenton, 2022)
Opportunities – The company KFC can focus on increasing demand on the healthier food items
and products to be served to the customers. There can be option which can be provided for the
home delivery meal. There can be introduction of the new product which should only be
concerned towards the chicken range provided to the customers. Therefore, the company should
focus on the different range of products which are related to chicken such as providing chicken
to the large number of customers’ at large scale (Teoli, Sanvictores and et.al., 2019).
Threats – There is threat of some of the developing economies having saturated fast-food
markets. There are currency fluctuations which have become the major threat and have increased
the threat of development of KFC (Blind and Fenton, 2022). There is major threat of currency
fluctuations which have been addressing the aspects as to how the currency is being analysed at
large scale. Customers are changing their tastes and preferences towards healthy eating and are
continuing their process of how the changes are being undertaken at large scale. There are
lawsuits against KFC which have been creating the aspects as to how there are changes in the
economies and this becomes the major threat to the company at large scale.
These are some of the issues which are being addressed to both internal and external
analysis of KFC (Vlados, 2019). These aspects help in addressing to the major concerns as to
how the company is able to fulfil the business and customer demands in an effective and

appropriate manner. The company KFC is able to address the issues which are being framed
internally and externally at large scale. The strengths, weaknesses, opportunities and threats are
being and analysed which helps in addressing the aspects of how the company is growing and
developing its scale of business. The secondary sources from where the data is taken is books,
journals.
The SWOT analysis helps in addressing the aspects of how the KFC is keeping up with
its strengths, weaknesses, opportunities and threats.
Recommendations
There are certain recommendations which are being addressed as to how the company
should bring changes and modifications in the business of KFC. These recommendations are
described as follows –
 KFC should create certain strategies which helps in focusing on the changing market
trends and preferences of customers’ at large scale (Uddin, 2020).
 The company should produce variety of products which should include the vegetarian
products as well as per analysing the scale of customers within the market.
 KFC should focus on the marketing and management of the company so that there are no
issues and problems within the organization.
CONCLUSION
From the above report it is concluded that, the internal factors such as: product
development, price, staff, management and branding issues. These affects as the internal factors
in the organization. It directly impacts on the growth and development of the organisation. The
external factors like, political, social, legal, technological, environmental and economic factors.
These factors impact on the businesses of the organization. The impacts are sometimes positive
and sometimes negative also. The SWOT analysis defines the strength, weakness, threats and
opportunities of the organization. This analysis helps a business in its development and growth.
The report also concludes some recommendation to the organization.

REFERENCES
Books and journals
Benzaghta, M.A., Elwalda, A. and et.al., 2021. SWOT analysis applications: An integrative
literature review. Journal of Global Business Insights. 6(1). pp.55-73.
Blind, K. and Fenton, A., 2022. Standard-relevant publications: evidence, processes and
influencing factors. Scientometrics. 127(1). pp.577-602.
Falsetti, and et. al 2022. Shared Molecular Mechanisms among Alzheimer’s Disease,
Neurovascular Unit Dysfunction and Vascular Risk Factors: A Narrative
Review. Biomedicines. 10(2). p.439.
Gottesman, R.F. and Seshadri, S., 2022. Risk Factors, Lifestyle Behaviors, and Vascular Brain
Health. Stroke, pp.STROKEAHA-121.
Hasan, and et. al 2022 systematic review of factors associated with illegal drug driving. Accident
Analysis & Prevention. 168. p.106574.
Hussain, C.M. and Kec̦ili, R., 2019. Modern environmental analysis techniques for pollutants.
Elsevier.
Teoli, D., Sanvictores, T. and et.al., 2019. SWOT analysis.
Uddin, S.M., 2020. Operational strategies and management of KFC: An enquiry. EPRA
International Journal of Research and Development (IJRD). 5(4). pp.172-179.
Uddin, S.M., 2020. Operational strategies and management of KFC: An enquiry. EPRA
International Journal of Research and Development (IJRD). 5(4). pp.172-179.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Yusop, Z.B.M., 2018. PESTEL analysis. COMRAP 2018. p.34.
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