Comprehensive Analysis of KFC's Business Environment and Value Chain

This report provides a detailed analysis of KFC's business environment, focusing on the application of Michael Porter's value chain model. It begins with an introduction to the business environment and the context of KFC as a major fast-food chain. The main body delves into the value chain model, explaining both primary and support activities within the KFC context, including inbound logistics, operations, outbound logistics, marketing and sales, and services. The report then provides an overview of KFC, including its history, mission, objectives, and strategies. A significant portion of the report is dedicated to analyzing KFC's internal business environment using the value chain model, providing insights into how each activity contributes to the company's overall success. The report concludes with a reflection on the value chain model's application to KFC and a summary of the key findings, highlighting how the model helps in understanding and improving the company's operations and competitive advantage. The report emphasizes the importance of factors such as supply chain management, operations, marketing, and customer service in KFC's overall business strategy.

Business environment.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value chain model.......................................................................................................................3
Company overview KFC.............................................................................................................4
Analysing internal business environment...................................................................................5
Reflection on value chain model.................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment reflect the internal and external working of the business which
helps in undertaking various strategies to retain the position in market. Present report is based
upon the KFC which is the second largest growing fast food chain after McDonald. This concept
was brought by Harland Sanders in 1930 making KFC one of the speciality in the fried chicken.
This report carries the concept related to value chain analysis and also the internal working of the
company in relation to achieving goals. It also carries the reflective analysis in respect of
applying the value chain analysis model in undertaking the aspects of KFC.
MAIN BODY
Value chain model.
It refers to such model which is designed by the Michael Porters and the main reason of
adapting this model is that it helps in identifying the value of the firm which they imposed upon
preparing the products through reducing cost of the products. By adapting the value chain model
in business, it helps in delivering the quality products in market and also minimize the cost to
protect the interest of the business in the market for longer way (Akai, Kodama and Nishino,
2016). Value chain model mainly carries two types of aspects such as primary and support
activities.
Primary activities mainly carries five activities which helps in adding values in the
business in following ways such as in respect of Inbound logistics it mainly identifies the
inbound arrangement of the goods such as raw materials or any parts from supplier and then
preparing such goods and then deliver such goods to manufacture. The second activity is relating
to Operations as it refers to managing such goods which is received from supplier and then
further transferred to manufactures to sell such goods in market. The third activity is Outbound
logistics which includes the detail of the goods which are stored and moved and also carry the
information regarding the production line users. Fourth activity is relating to Marketing and sales
which indicates the overall strategies which is adapted by company in respect of promoting their
products in market (Porter’s Value Chain Analysis, 2017). Last is related to Service which is
examined once the goods are sold or delivered to the customer.
Support activities is mainly adapted in respect of taking care of the primary activities. It
includes the infrastructure, which carries the activities such as accounting, legality and the
quality control which attract the people towards the business. Technology is one of the latests

aspects which helps business to grow in market for longer way. It mainly carries the hardware,
software and advances codes to protect the right of the customer. HR management is also
undertaken in respect of recruiting the right, trained and skilled person to handle the task in
accurate way.
In respect of business, this model helps in building the strong commitment of business in
market such as increasing productivity through using the innovative tools to promote business or
reducing cost by minimizing the expenses or improving customer satisfaction by taking proper
feedback and then work according to the set instructions (Hamilton and Webster, 2018).
Company overview KFC.
The KFC is fast food restaurant chain which is specializes in Fried Chicken. This words
second large restaurant chain. The company established on 20 March 1930. The company
operates at 22621 number of location with high qualified employees. They sever various food
products to customers for attracting more customers. KFC stand for Kentucky Fried Chicken is
an American fast food company. The aims and objectives of KFC are not only for sale chicken to
make money and profit. Company is also wanted to expand their business whether which is to be
a worldwide business (KFC (Kentucky Fried Chicken), 2016). The company have mission to sell
food in a fast, friendly environment which appeals to provide a pride conscious and healthy
minded customers. The stated objective of company is to product development, variety in menu
list and introduce the best dessert menu in their menu card.
The company have best and effective strategy to increase profitability of KFC by
reducing overhead cost, improve customers services by analysing needs and wants of customers,
increase efficiency of employees for providing best services. This creates most effective and
wonderful pool of customers. The company is implied various objective in their business for
increase customers by providing best services and quality chicken. The company is expanded in
international operations to provide increased percentage of overall sales growth and profit
growth. There are more to KFC than great food which is promoted the education level, diversity
and animal welfare in the number of positive ways (Kljucnikov and et.al., 2016). The company
have supplier code of conduct of brand which are compliance with laws and regulations,
providing the best customers practices staffing members for learn various thinks as well as they
have great working hours and conditions which are followed by each and every employment
within the company.

Analysing internal business environment.
The above is defined value chain model in proper manner. This helpful for analysing
internal business environment of company. This helps to create more effectiveness of company
by performing well. For that here is applying value chain model for KFC company in order to
analysis internal business environment of company are as follows:
Porter value chain model is divided into two parts primary and secondary. Those are help
to analysis complete internal business environment with primary work and secondary work
(Komljenovic, Loiselle and Kumral, 2017). This is a very important part of company.
Primary activities: The primary activities of KFC are directly involved in producing and selling
the products and services to targeted customers. Those are explains below:
 Inbound Logistics: Those are very important and effective part of company which is
help to develop strong relationship with suppliers as their support. In that support of
management is most necessary to receive, store and distribute the products and services.
Without analysing inbound activity company can face various challenges in their process
of product development. As per this analysis company need to transformation of their raw
material into finish good (KFC Value Chain Analysis, 2018). The examples of inbound
activities are raw material, stores and distribution.
 Operations: The operations of company are plays an important role in manufacturing
and services operations. Both the operations are highly helpful for manage work in
effective manner. This operational activities are very important for increase productivity
and for maximizing efficiency of workforce in order to ensure about competitive success
of KFC (Long, N. H. and et.al., 2019). With the analysis of operations of company need
repair cooking equipment and assembling products for storing goods.
 Outbound logistics: This includes various activities which are related with delivering
services of product to the customers by passing with different intermediaries. This refers
with material handling, scheduling and process of orders. In respect of KFC, optimize
that this activity explore higher competitive advantage sources and achieve their business
growth and objectives. With the help of this, KFC is able to handle their outbound
activity in effective manner.
 Marketing and sales: Marketing and sales are another important activity which are quite
beneficial for company (Lynch and Quealy, 2017). This help to differentiate products and

services which are offered by KFC to their targeted customer for beating their
competitors. The examples of marketing and sales are sale forces, advertising,
promotional activities and building strong relations with channel members. This help to
promote product and services at market place. Services: The services are quite important because customers are highly attracted with
the best services which are provided by company to its customers. This help to increase
image of brand at market place.
Secondary activities: Those are considers as a secondary activity which are important to
coordinating and facilitating the primary value chain activities. Those are as follows:
 Firm infrastructure: In that, KFC is make proper focus on quality management,
planning, strategic management and legal matters handling in effective manner. This
creates more effectiveness for KFC by managing quality of food products and services
which are provided by company to customers (Ncube, Roberts and Zengeni, 2016).
 Human resource management: This analysis is reflected on hiring, selecting, training,
rewarding and performance management with other personnel management activities.
The company have the best HR team which is allowed KFC to reduce their competitive
pressure which is based on motivation, commitment and skills of staff members.
 Technology development: Present day's technology is more advanced which are help to
develop and offers the best quality of services to customers in effective manner. The
integration of technology in production, marketing, human resource team and distribution
are help to achieve the best result of work within the KFC.
 Procurement: This is in value chain denotes the process involved in purchasing inputs
which is the range form equipment, machinery, raw material, suppliers and other are very
necessary. In that management of KFC have to clearly and carefully consider their
procurement activity for optimize inbound and operational activities in value chain
model.
Those are very supportive and effective to use in proper manner. This creates more effectiveness
for business by increase their productivity of work.
Reflection on value chain model.
The value chain analysis model is highly important and effective for uses their equipment
in proper by dividing workforce. This model is quite beneficial and effective for companies to

analysis their internal business environment. This creates higher competitive advantage and
strategy for beat customers. Value chain analysis model is helpful for manage their all internal
activities in proper and effective manner (Prajogo, 2016). This model is divided into two parts
primary and secondary activities. This divination is help to analysis all activities in proper
manner. This help to me for understand all the internal activities which are important for
business. Through that I understand that the primary activities includes inbound and outbound
logistics, marketing and sales, services and operations. Services are important think which is
helpful for maintain interest of customers towards company and its growth. Marketing and sales
are another important aspect which is highly helpful for manage work in respective manner.
With this activity, company is able to promote their products and services in effective manner.
Operation, through that I understand the importance of operation management within the KFC
because this maintains and make focus on manufacturing and post services in respective manner.
On the other side, the secondary activities which all those are considered as a support
activity of company. With this I learn that secondary activity includes infrastructure of firm,
human resource management, procurement and technology development. All those are highly
important and effective for manage work proper (Zabeen, Wei and Lu, 2016). This creates more
effectiveness for business y managing proper work force. Like the firm infrastructure is refers
with managing quality of food and planning for preparing the best quality of food item. This is
very helpful for manage work effectively. Human resource management is considers with the
proper management of employees within the KFC. This includes hiring, selecting and organizing
training for employees in order to provide better learnings to customers.
This provides various benefits to company with proper management of staff works.
Through that I perfectly understand that the value chain model is flexible strategy tool for their
business for compete effectively with their competitors at market place. This creates higher
competitive and best advantage for company in both manner are cost and differentiation. With
the help of this KFC gain cost advantage because through that company add new taste and
product in their menu is attracted more customers. Customers are attracted then sales are
increase, sales increase than profit margin is automatically increased. This help to create more
effectiveness for business in order to maintain works.

CONCLUSION
From the above study it had been concluded that the analysis of internal business
environment has highly important for business management. This helped to analysis all those
activities which are highly important for business management which dividing in two parts
primary and secondary activities. The primary activity has includes various activities which has
important for business such as inbound and outbound activities, marketing and sales, operations
and services. On the other secondary activities such as infrastructure of firm, technology
development, procurement and human resource management. Those have quite important for
company for increase their productivity and growth factors.

REFERENCES
Books and Journals
Akai, K., Kodama, K. and Nishino, N., 2016. A Survey of Business Models in Japanese
Restaurant and Retail Industries. In Serviceology for Designing the Future (pp. 3-22).
Springer, Tokyo.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kljucnikov, A. and et.al., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
Komljenovic, D., Loiselle, G. and Kumral, M., 2017. Organization: A new focus on mine safety
improvement in a complex operational and business environment. International Journal
of Mining Science and Technology. 27(4). pp.617-625.
Long, N. H. and et.al., 2019. THE EFFECTS OF CUSTOMER EQUITY ON CUSTOMER
LOYALTY FOR CHAIN RESTAURANTS: CASE STUDY OF KFC VIETNAM.
SOCIO-ECONOMIC AND ENVIRONMENTAL ISSUES IN DEVELOPMENT, p.229.
Lynch, P. and Quealy, S., 2017. Finding the Value in an Animal Health Data Economy: A
Participatory Market Model Approach. Frontiers in veterinary science. 4. p.145.
Ncube, P., Roberts, S. and Zengeni, T., 2016. Development of the animal feed to poultry value
chain across Botswana, South Africa, and Zimbabwe.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Zabeen, S., Wei, J. and Lu, X., 2016. Development of E-business solutions for fast food
restaurants. International Journal of Services and Standards. 11(1). pp.60-80.
ONLINE
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