Business Report: KFC's Market Entry and Business Analysis in Finland

This business report examines KFC's strategic plan for entering the Finnish market. It begins with background information on KFC and the Finnish business environment, followed by a PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors impacting the company. The report then analyzes the business scenario using Porter's Five Forces model to evaluate competitive intensity, bargaining power of suppliers and customers, threats of new entrants and substitutes, and competitive rivalry. The report concludes with a summary of findings and recommendations for KFC's successful market entry and sustainable growth in Finland, considering both opportunities and threats within the competitive landscape. The report highlights KFC's strategies to increase market share, profitability and build image in the market.

Business Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1) Background information on KFC company.......................................................................3
2) Background information of business environment of KFC company in Finland..............3
3)Analysis the Business scenario...........................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is an activity of buying and selling the product and services which leads to
generate money. Every organisation wants to expand their business by establishing new branch
into different sectors of the countries which helps to gain opportunities such as enhancing
reputation, generating huge profit and increasing customers base.
Present report will be based on KFC which is second largest food chain in the world.
Company is planning to establish in Finland which provide Kentucky fried chicken to customers.
There is main objective behind establishing new market which are they want to become first
largest company by providing tasty foods according to customer's preference that helps to
increase market share, profitability, sustainable growth and build image in the market. Along
with this, it would be beneficial to the economy of Finland with reference to have appropriate
foreign direct investment.
This report includes, overall information of KFC which stated in Finland. Further,
explaining about business environment that impact on business activities. It also describes
analysis the business scenario by PESTLE and porter’s five force models.
TASK
1) Background information on KFC company
Kentucky Fried Chicken is one of the largest food chain company all over the world
which have served in 22621 location and headquarter stated in Louisville, Kentucky, US ,
Dallas , Texas. Company provide high range of products such as fried chicken , salads ,
milkshake , chicken sandwich , soft drink . they provide high range of product to customers to
compete with competitor that helps to survive in the market. Market share of the company is
15131 pounds till 2018 but now company expand their market share by opening of new
branches. This company follow monopolistic structure which leads to generate huge profits by
attracting the customers. Recently KFC have huge competitors such as McDonald , subway ,
Starbucks , pizza hut ,Burger king etc. Company adopt various strategy to enhancing the
financial performance which would increase 1750 pounds increase from the last year that helps
to build image in the market.
2) Background information of business environment of KFC company in Finland
PESTLE analysis is the significant tool for every business which helps to formulate
strategies by analysing the external factors which impact on overall activities of the company.

KFC company analysis the external factors like political, legal, social, environmental,
economical etc. Company can face challenges with existing competitors and take future
opportunities by analysing these factors (Anand and Yeung, 2018). It is significant analysing
approach to analysing the factors which impact on selling and profitability of the company. KFC
can prepare planning to reducing the losses due to changing in external factors.
PESTEL analysis
P(political factor)- This is important factor which impact on business. KFC establish es
the branch in Finland then they have mandatory to follow up political factors like tax policies ,
government policy , foreign investment policies and environment law which impact on business
operations. company have to analysis the Finland country’s regulations that helps to study the
potential market. KFC design the price policies which determine the price according to income
distribution. Company have to analyse the tax policy of country that helps to formulate strategy
for generate profitability. If company follow the government rules and regulation which use to
build image in the market that is useful for sustainable growth of the company.
E(Economical factors)- It is important factor to determine the target. Initially they focus
on upper class people but now they formulate strategy to provide product like soft drink , burger
etc which is affordable to all class people. company can provide such product which helps to
contribute in the growth of the company . This factors include growth rate, interest rate ,
exchange rate , inflation rate , employment rate , stock market trend and gross domestic product
impact on business profitability and growth of the business.

Figure 1 Changes in national GDP of Finland
(Source: GDP (current US$), 2018)
Gross domestic product is 271,000,000,000 which create positive impact on the business
because they can hire more workers at the affordable price that helps to increase business by
providing goods on the time of demand. Interest rate and inflation rate also impact on business.
If, inflation rate will increase above 1.10% so create critical situation because they have to
increase price of the consumable goods. This macro factor analysis the customers liking and
disliking product and also analysis the behaviour of payment amount that helps to achieve target
like market target , customer target ,profit target (Bohari, Hin and Fuad, 2017).
S( social culture factor)- This factor such as culture norms , lifestyle , wealth
distribution , per capita income , ethical concern , education level, religion and belief impact on
business. company have to provide product with the concern with religion and belief of the
culture of the country. Recently Finland country have high population rate that is 5262930 if

population increases which leads to increase unemployment rate. KFC deliver non veg product at
that area which impact on religious and belief of customers . It impact on business because they
can't generate profitability and expand their business sue to lower image in the culture. company
have to conduct those activities that positively impact on community and business environment
which helps to improve life styles of the people.
T(Technology factor)- Technology is the fast changing factor in the modern world. KFC
company analysis the innovative technology that impact on business activities. Company always
support the research and development team to introduce the advance technology . they adopt
advance technology which leads to increase productivity level , quality and tasty food and reduce
the price on making food that helps to increase profitability and compete with competitors like
burger king , McDonald etc. advance technology use by KFC for markting activities that helps to
communicating all information to public . It is essential for increase selling growth that helps to
build image and increase profitability of the company.
E(Environment )- KYC have to focus on corporate social responsibility that impact on
business activities . Company shouldn't adopt plastic material for packaging because that
negative impact on environment and people health. This factor include climate , weather ,
recycle standard , attitude toward green product which effect business. If company conduct
business according to environment benefit that positively impact on business that helps to build
strong image in the market and increase profitability and sustainable growth of the company.
L(legal factors)- This factor consist of all laws and legislation such as human right act ,
copyright and patent act , health and safety law , consumer protection act and employment law
which impact on business (Phadermrod, Crowder and Wills, 2019). KFC have to formulated
strategy with concerning the government law and regulation that helps to build reputation in the
market. company analysis the legal factor that leads to smooth running of business operation by
adopting laws.
3)Analysis the Business scenario
KFC company adopt various analysis approach to analysing the those factor which
impact on business activities. They adopt five force model for preparing the strategy to attract the
market and customers. Company also analysis the strength and weakness which leads to take
opportunities and overcome the treats that helps in sustainable growth of the company.
opportunities and Treats of KFC

Company analysis the strength and weakness that helps to formulate strategies in such
way so they can work to enhance strength and overcome the weakness. It is essential to take
future opportunities and reduce treats so company can compete with competitors in new branch
of KFC in Finland. company have to analysis factors that affect to business activities . They
have to understand the strength and weakness that helps to achieve goals and objectives .
company have to prepare effective strategies to grab future opportunities and reducing the treats
that helps to improve position of the company.
Opportunities-
 Company have strong image that can expand their business by introducing new branch in
the market (Gürel and Tat, 2017).
 They can deliver high range of food items to customers that helps to increase customer
base all over the world.
 KFC can start the home delivery services which leads to enhancing profitability of the
company.
 Company can increase share price by providing high range of quality food at the suitable
prices to their customer. It also helps to take competitive advantage and take
opportunities.
Treats-
 KFC face competitive challenges because of their food prices.
 Business can affect due to changing awareness ,taste of customer. Usually customer
prefer healthy, delicious and low calories food which positively impact on their health.
Five force model-
If KFC company want to introducing business in Finland then they have to adopt five
force model which helps to determine competitive intensity. It is very useful to understanding the
current competitive position and attract to market by introducing the new product in the market
that would increase profitability and potential of the company (Arshed and Pancholi, 2016). Five
force model also used as increase strength and overcome the weakness that helps to take
competitive advantage. This model have five forces such as-
Bargaining power of suppliers- supplies of the company can influence by price of the
product . If company have lot of buyers and suppliers then there is lot of changes switch other

company who provide same product at the lower price. In the flip side when company have no
branch in Finland then it makes positive impact on business. Bargaining power of suppliers can
push the prices up when -
 Company have low number of suppliers in the market.
 There is no alternative product provided by other company
Bargaining power of customers- KFC company analysis the customer ability before
establishing the branch in that country. This force focus on customer ability is change due to
changing product quality and that price. when company provide quality and hygienic product at
the reasonable price then they can take competitive advantage because customers will not able to
switch other company product. This factors affecting by price sensitivity , quality of food item ,
range of items , substitute product and total volume of trade which impact on sales growth ,
profitability and customers retention.
Treats of new entry - New entry barrier impact on overall business activities. If new entry
of high competitive industry, strong reputation company which provide homogeneous product
that create typical situation of the company. If new entry into an lower industry that is favourable
impact on economic of scale. KFC company have to analysis the strategies of competitors
companies like burger king , McDonald , subway so they can take competitive advantage by
providing hygienic food at the suitable price that would helps to increase loyal customers and
brands.
Treats of substitute- Customers have too many choice among the different products which
affect the business. Company have to follow product differentiate strategy that helps to
determine the buyer's ability to compete with competition. This treats can determine by some
factors such as - customer relationship, Cost , up to date trends. KFC company prepare strategy
to providing quality and tasty food at the suitable price so loyal customer can't switch to other
product (Omsa, Abdullah and Jamali, 2017). If company prepare strategy to attract the customers
and substitute goods not affect to them so company can compete with competitors ( subway ,
burger king , McDonald ) and become the first largest company across the world.
Competitive rivalry- It is the dominant factor of competitiveness of the industry. KFC adopt
the monopoly competition so they have to fully control over the prices to attract the customers.
Rivalry between the KFC company and other company (McDonald) are high because business
size is same. This factor impact on business when market growth rate is low , Chances of exit are

high and have comparable strategies that impact on business. If company control over the factor
which helps to take competitive advantage and sustain in the market.
CONCLUSION
Above report summarised that KYC is the larget company across the world which
provide various range of food like burger , chicken burger , soft drink. recently KYC have lot of
competitors like McDonald , burger king , Subway etc. It also explained about the analysis of
external factors ( political , economical , social culture, technology, environmental and legal ) is
essential for sustainable growth of the company. company can prepare strategies by
understanding the factor for overcome the future challenges due to change in external factors
which helps to build image in the market. This report also described that KFC company analysis
the strength and weakness so they can prepare sound plan for increasing the strength and
overcome the weakness that helps to take opportunities advantage e and competition advantage.
Further, KYC company adopt five force model analysis approach for attract the market which
helps to achieve goals and objective of the company.
Recommendation- Company have to focus on research and development department for
identifying the customers behaviours that helps to meet out the customer needs at the time of
demand. KYC company also provide high range of items that would increse customers base and
profitability. Company have to establish different place for non veg and veg food items which
leads to increase customers and profitability.

REFERENCES
Books and journal
Anand, D. and Yeung, D., 2018. Employee development and its effect on employee performance
at KFC Restaurant Brands.
Bohari, A. M., Hin, C. W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space. 9(1).
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Gürel, E. and Tat, M., 2017. SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of
International Social Research. 10(51).
Arshed, N. and Pancholi, J., 2016. Porters Five Forces and Generic Strategies.
Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five Competitive Forces Model and the
Implementation of Porter’s Generic Strategies to Gain Firm Performances.
Online
GDP (current US$). 2018. [Online]. Available through :<
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?
end=2017&locations=FI&start=2014>.
Porter’s Five Forces of Competitive Position Analysis.2019.[online].Available
through .<https://www.cgma.org/resources/tools/essential-tools/porters-five-
forces.html>
What is PESTLE Analysis? A Tool for Business Analysis.2019.[online].Available
through .<https://pestleanalysis.com/what-is-pestle-analysis/>