Homework SourseKFC Worldwide 1952 1955 1960 1963 1965 197o 1980 1990 1997 2
Solution
In the given question we are going to analyse the one of the two outlets of food chain that are competing to each other. As two of the world\'s largest fast-food giants, McDonald\'s and Kentucky Fried chicken (KFC) are both from the United States.
1. Analyse KFC and McDonald\'s in terms of number of outlets worldwide: - If we see the graph of KFC and McDonald’s both the company some ware start there outlets at the same time and both the outlets belong to USA. If we see between 1965 to 1980 the outlet of KFC are more than McDonald’s. But after that we can see a great high in the number of outlets of McDonalds since 1980. And we can see in 2008 the gap between the two had become double.
2.Analyse the Top 25 Market of KFC by unit count in 2007:- If we analyse the table given we find that the highest number of outlet of KFC are in USA and least in India the main reason behind the wide gap between two countries because of eating habit. As KFC represent NON VEG fast food whereas India is one on the highest populated country which are Vegetarian. One more thing we need to analyse is that KFC has most influence USA market China market and Japan market.
3. Analysis Of The Company Outlet ownership:- If we analyse the data given for the no of outlets which are owned by KFC and McDonalds and outlets had given there franchises or licence to other.
As it was very difficult for the American based company to purchase assets all over the world and sell their food. So they introduce the concept of franchises which is now common now a days among any type of restaurant business. This can be shown from the figure that KFC and McDonald both had maximum number of outlets through franchises so that they can reach to the worldwide with low cost investment in assets.
4. Analysis Of USA (Local Market) outlets:- If we see among the USA market all the Food chain there is no much fluctuation in the market KFC, Pizza Hut and Taco Bell maintain their outlets in numbers. But the small companies not having that much growth so they start reducing their outlets over the period of time i.e. A&W and Long John Silver.
5. Analysis Of International outlets:- If we see the international market for these entity KFC and Pizza Hut is quite successful in international market compare to others Long John Silver and A&W only maintain their outlets in international market.
6 Analysis of China Market of Restaurant:- The trend we notice in international market the same trend KFC and Pizza Hut maintain in China market but if we see Taco Bell and A&W both the food chain fail to give their existence in China market. As we can see A&W not even try to open a single outlet in china and if we see Taco Bell it try to start in china but it fails over there.
7 YUM CHINA DIVISON VS YUM USA DIVISON :- If we compare the above two market we see the margin of profit in USA market is less than China market which show that china market was among one of the most benefited market for USA based company. And it was very benefited for these company to sell their food internationally. We also see that China market growth from 25% market compare to USA to 50% in 2008 which show a good market in china.
CONCLUSION FROM THE ABOVE DATA: - From the above data we can conclude that if we see overall growth in no of outlets of KFC and McDonald we can say that worldwide growth of McDonald is almost double than KFC. But if try to explore the data division wise than we can find that in CHINA division the growth was just opposite as compare to worldwide in which KFC is Doubled than McDonald’s. IF we see revenue wise USA which is local market had the highest revenue and European country comes second in terms of revenue after that APMEA counties come.
