KFC Case Study

KFC has had several owners since Sanders, including Heublein (a manufacturer of beverages), and is currently owned by PepsiCo, which also owns the Taco Bell fast food operation. Where Heublein recognized that it had little experience in fast food and permitted senior KFC managers to remain, PepsiCo has installed its own managers in senior positions. The match is a synergetic one, with KFC providing a strong outlet for Pepsi products, and with the financial strength of PepsiCo helping to drive the expansion that is key to KFC's success.

At this juncture, the company is faced with how to maintain growth that has outstripped the fast food industry as a whole. KFC, and McDonald's, have been successful in expanding their operations in to foreign markets, and KFC has had particular success in Mexico. Although franchising is not a popular method of doing business in Mexico, KFC has had success with corporateowned stores. The country's precarious economic situation

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its chicken sandwich. New products are key to a company's success, and it is critical that KFC learn to develop and introduce new products in such a way that new consumers will be attracted to the stores. Opportunities The greatest opportunity facing KFC at this point is in the international arena where the company has already proven itself successful. Where some fast food operators have only recently begun expanding into the international market, KFC has participated as a multinational corporation for several decades. As a result, the company is familiar with the logistical and quality problems which accompany operating an international food operation, and has demonstrated that it can work with host countries and businesses within the host country to develop a strategy which works. Mexico is a particularly attractive marketing opportunity because of the success the company has had there and because of recent relaxation of regulations which previously made it difficult for American companies to conduct business. In addition, franchising is no longer a completely foreign concept within Mexico, with the result that experienced franchise operators are available to help build KFC's presence. As additional fast food chains exp
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Approximate Word count = 1992
Approximate Pages = 8 (250 words per page)

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