Business and Management Report: KFC and Subway Comparative Analysis

This report provides a comprehensive analysis of the business and management strategies of KFC and Subway. It begins with an introduction to both companies, followed by a detailed examination of their external environments using PESTEL analysis, and their internal strengths and weaknesses through SWOT analysis. The report then delves into their organizational structures, including vision, mission, and key departments. It assesses the financial performance of both companies, including revenue, profit, and dividend trends. The report also includes a comparison of KFC and Subway across various factors, such as external environment, advertising, and marketing strategies. Finally, the report concludes with a summary of key findings and insights, emphasizing the importance of understanding market trends and competitive landscapes for effective business strategy. The report highlights the need for organizations to adapt to changes in consumer preferences and legal regulations to remain competitive.

Introduction to business
and management

Table of Contents
TASK 1 INTRODUCTION ............................................................................................................2
TASK 2 EXTERNAL ENVIRONMENT........................................................................................4
TASK 3 THE ORGANISATIONAL STRUCTURE......................................................................6
TASK 4 ORGANISATIONAL PERFORMANCE.........................................................................7
TASK 5 COMPARISON AND CONCLUSION............................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

TASK 1 INTRODUCTION
Business and management are the important kind of disciplines devoted to organizing,
evaluating and planning the various kinds of business operations and activities. It is the branch of
education that provides the knowledge and training to supervise organisational works and
activities positively. Respective report is based on the Food industry by evaluating their Internal
strength, external business environment, organisational performance, organisational structure of
both the organisations and at last comparison and contrast of both companies.
About Subway
Subway is a well known restaurant chain specialize in submarine sandwiches, it become
the largest fast food chain in market of USA in terms of no. of outlets (Chaffey, Hemphill and
Edmundson-Bird, 2019).
About KFC:
KFC is an American fast food restaurant that specialize in the Fried chicken. It is the
world's largest chain of food after McDonald's as it records its presence in the 136 countries.
SWOT analysis
SWOT of KFC
Strength
 The major strength of KFC that it
establish over 15,000 establishments in
120 countries as it internationally well
recognized (Gray, 2019).
 The USP of the KFC is life tastes by
giving unique taste of product that is
Weaknesses
 The major weaknesses in front of KFC
that it suffer from kinds of common
issues that shared by other food joints
that is high in fat as per daily allotted
calories.
 To solve respective concern

not only fried chicken but it sell service
and satisfaction to consumers.
organisation continuously observe or
evaluate the consumer preferences in
order to give best products.
Opportunities
 KFC is the prime time for the
vegetarian food market.
Threat
 In the fast food chain there are common
kind of threat is competition in market.
Key findings:
It has been evaluated that organisation operates in global level with the great brand
identity in the marketplace. It is very much potential for them to enlarge the products and
services by introducing new products and services such as healthy food as consumers are very
much health conscious in today's business environment.
SWOT of Subway
Strength:
 The major strength of Subway that it
has great range of customization that
helps to enhance consumers satisfaction
level (SWOT Analysis of KFC, 2020).
Weaknesses:
 The major weakness that in their
organisation the turnover rate of
employees is very high.
 To solve out respective issue
organisation conduct research and
development.
Opportunities:
 Due to change in consumer taste and
preferences such as demand for healthy
food provides opportunities to enlarge
business activities.
Threats:
 Due to increase in no. of local fast food
restaurant chain in market is a serious
threat for them.
Key findings:
From the analysis it has been evaluated that they are well known food service provider in
the market but on other hand faces the threat of local food provider which hinders their self
interest (Harmon, 2019).

TASK 2 EXTERNAL ENVIRONMENT
To analyse the business environment it is very much important to use a framework that is
PESTEL analysis that are as follows:
Factors Subway KFC
Political Political factors impact on the
business works and activities.
For an example the UK and
EU passes through the certain
changes and BREXIT also
created uncertainties in market
.
KFC is one of only fast food
restaurants with fast food
services to achieve the goals
they make political system that
change their business strategy
and make progress of
company.
Economic In economic factors consist of
interest rates, tax regimes and
many more (Hassanien and
Dale, 2019). In context of
Subway the recession in USA
impact on their business in UK
and other countries. Subway
increase in revenue due to
enhancement in their
disposable income.
In economic aspect of the
organisation is about fund or
money as they provide their
products at lower prices. They
provide the food packet as per
the consumer demand that
support to buy there again
(KFC PESTEL analysis for
international expansion,
2020.).
Social In social factors Subway
considers the two important
factors first is styles of people
in general in UK, USA and
EU. They by obeying the
religious rules in certain
countries in order to gain
desirable outcomes.
In social factors consist of
change in taste and preferences
of consumers they by
providing the food that taste
related with the country that
have a good performance and
talent in cooking for chef.
Technological They by using the social media In context of KFC they focus

tools in order to promote the
products and services. By
using their own loyalty card “
subcard” to pushing consumers
towards purchasing.
on the advancement of
products and services by
making a website so that easily
can reach at large no. of
consumer base.
Legal Subway must comply with the
rules of land it operates.
Packaging, food hygiene,
quality of food that affect on
their law. The different kind of
legal systems affect on their
business activities.
KFC is a legal company by
overseas the companies that
going to international business
so that they can maintain faith
in between the employees.
Environment Change in the local, national
and international
environmental regulations
impact on their business works
and activities (Kao, 2019). By
using the more sustainable and
greener approach in order to
serve consumers in best
manner.
They are responsible for
making Subway restaurants
and operations as
environmentally and socially
responsible as possible.
Environment is one of most
important as without
environment organisation can
not transmit because
environment are their
consumers and they gain profit
from them.
So after analysing respective factors, it has been evaluated that organisation always have
to focus on the major areas of improvement in order to build strategies and tactics positively. In
context of subway they have to build products that are liked by consumers as they demand the

healthy food to capture the large market share. On other hand KFC they have to follow the legal
rules and regulations to coordinate the works and activities in systematic manner.
TASK 3 THE ORGANISATIONAL STRUCTURE
About KFC organisational structure
Organisational structure is the system which outlines the way activities are directed in
order to achieve desirable goals in an organisation (Miller and Engemann, 2019). In context of
KFC they use the hierarchical organisational structure in which with the help of various ranks of
experts and vertical chain of command knowledge and information passes through the right
direction in order to gain desirable outcomes. In it the straightforward chain of knowledge from
the top of organisation to the bottom.
Vision of the organisation:
Their passion as an restaurant company is to put YUM on the face of people around the
whole world. They devoted for satisfying consumers every time by serving better food.
Mission:
KFC is the internationally renowned fast food chain in the whole world, their main
ambition is to enhance the quality of food (Management functions performed by Kentucky Fried
chicken, 2020). They want to provide products in order to give one of best experience by
expanding branches in whole world.
The major department of the organisation are marketing, finance, operation, HRM and quality
control department to control all the activities of organisation.
The major functions of management is to planning, organizing, leading, controlling and
assurance for serving to ultimate consumers positively.
About Subway organisational structure
Organisational structure defines about the formally divided, grouped and coordinated in
order to gain desirable outcomes from the implementation of the structure. In context of subway
they use flat organisation structure refers to the with few or no levels of management in between
the management and staff level (Myers, 2019). In respective structure organisation supervise
employees less while promoting the their increased involvement in the crucial decision making.
Mission and vision of subway:

The mission of Subway is to delight every consumer with great value through fresh,
delicious, made to other sandwiches and exceptional experiences in order to remain competitive
in the marketplace.
The vision statement of the organisation is to become the quick service franchise
restaurant in the whole world by delivering delicious, fresh sandwiches. So all people in the
organisation by building teams aimed to give one of the best products and services to the
ultimate consumer base to remain competitive in marketplace.
TASK 4 ORGANISATIONAL PERFORMANCE
Estimates of the KFC financial performance in pound:
Factors of financial
performance
2020 2021 2022
Revenue 27300 28600 29800
Dividend 60 62 64
Net profit 2100 2300 2450
Gross income 8000 8400 8800
Total assets 26100 28430 30970
From the above data and statistics it has been evaluated that the KFC is very much progressive
organisation as their revenue in 2020 is 27300 pound and it is estimated that it gradually
increases by 28600 in 2021 and 29800 in 2022 (FINANCIALS KFC, 2020). the dividend in year
2020 is 60 and it rises by 62 in 2021 and 64 in year 2022. the net profit of the organisation is
2100 in year 2020 and 2300, 2450 respectively. So it can be said that it is very much important to
measure the financial growth of organisation in order to build strategies and tactics.
Non financial performance:
In non financial performance of the KFC consist of the training and development
program that provided to the service crews or food service workers in field of customer service,
health and safety and food preparation. So respective kind of training program enables to

organisation to serve the consumers in best manner in order to remain competitive in
marketplace.
Estimates of the Subway financial performance in pound:
2017 2018
Operating profit margin 32.38 52.33
Gross profit margin 32.38 52.33
Net sales 0.11
Net profit -0.02 -0.02
From the above discussion it has been summarised that the factors of the financial performance
indicates shows that operating profit margin in the year is 32.38 and in year 2018 is 52.33. the
gross profit margin is same to operating profit margin (Subway Finance And Investment
Company Ltd, 2020). The net sales of the organisation in year 2018 is .11. so it can be said that
there financial prosper organisation and gain sustainability with help of their strategies and
tactics.
TASK 5 COMPARISON AND CONCLUSION
Factors Subway KFC
External environment Subway sandwich string and
concentrates on their
marketing strategy and targets.
In order to they presents the
internal and external
conditions with a detailed
description by using SWOT
for the business in order to
remain competitive in the
marketplace. That helps to
develop the insights into target
market along with promotional
In context of KFC they on
continuous basis conduct the
research and development in
order to collect important
information such as political
background, economic factors
and many more in order to
gain desirable outcomes. With
the help of proactive approach
to deal with the problems to
remain competitive in

and rates strategies so far to
generate value for consumers
(Nosratabadi and et.al., 2019).
marketplace.
Advertising Subway to reach at large no. of
consumer base they use slogan
Eat fresh by focusing on the
way its sandwiches freshly
backed and usage of fresh
ingredients in front of
consumers.
In context of KFC they use
colonel Sanders that is key
component of their advertising
as it work as key icon of
company as an international
symbol of hospitality. With the
help of franchise to fund
nationwide to gain desirable
outcomes positively (Novak
and Janeš, 2019).
CONCLUSION
From the above report it has been concluded that for an organisation it is very much
important to evaluate or visualise various aspects such as competitors in market, trends of market
in order to build strategies and tactics in potential manner. With the help of SWOT, PESTEL and
analysis of organisational internal information a firm can be able to reach at crucial decision
making by acknowledging important information positively. By collecting the financial and non
financial performance organisation can know about their strength and areas of improvement in
order to gain desirable outcomes.

REFERENCES
Books and journals:
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2019. Digital business and e-commerce
management. Pearson UK.
Gray, D.E., 2019. Doing research in the business world. Sage Publications Limited.
Harmon, P., 2019. Business process change: a business process management guide for managers
and process professionals. Morgan Kaufmann.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Kao, E.P., 2019. An introduction to stochastic processes. Courier Dover Publications.
Miller, H.E. and Engemann, K.J., 2019. Business continuity management in data center
environments. International Journal of Information Technologies and Systems
Approach (IJITSA). 12(1). pp.52-72.
Myers, M.D., 2019. Qualitative research in business and management. Sage Publications
Limited.

Nosratabadi, S. and et.al., 2019. Sustainable business models: A review. Sustainability. 11(6).
p.1663.
Novak, R. and Janeš, A., 2019. Business process orientation in the Slovenian power
supply. Business process management journal.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
Online:
FINANCIALS KFC, 2020. [Online]. Available through.
<https://markets.businessinsider.com/stocks/kfc_1/financials>.
KFC PESTEL analysis for international expansion, 2020. [Online]. Available through.
<https://www.ukessays.com/essays/management/kfc-company-pestel-analysis-going-
international-management-essay.php>.
Management functions performed by Kentucky Fried chicken, 2020. [Online]. Available through.
<https://prezi.com/qxjrh3bmaekx/kfcs-departments/>.
Subway Finance And Investment Company Ltd, 2020. [Online]. Available through.
<https://www.moneycontrol.com/india/stockpricequote/finance-investments/
subwayfinanceinvestmentcompany/SFA01#sec_corpact>.
SWOT Analysis of KFC, 2020. [Online]. Available through. <https://pestleanalysis.com/swot-
analysis-of-kfc/>.

1