KFC-McD

7/28/2019 KFC-McD

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Strategy Management Workshop

• Agenda 1 : Workshop #2

– Resource Audit

• To find out weakness(room for improvement),

strength, and constraints

• Why? Competitive Advantage & Value Creation

• Agenda 2 : Workshop #6

–Setting Strategic Direction• Core Values on an International Bank

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KFC vs McD

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STRATEGY MANAGEMENT

WORKSHOP #2: THE RESOURCE AUDIT

Operations Product &Services

Marketing FinanceManagement &People

Staffing Level

-turnover

-competency

-profileManagement

-Culture

-Style

-Attitude

-Performance

Operational

-Staff Morale

-Trng & Dev

-Engagement

-HC Dev

Restriction

-Legal

-Min Wage

Operational -Performance

-Facility

-Ctrl&Quality

-Supplier

-Capex

-Support

Function

Conducive

Working Env

etc

Product

-Niche, gaps

-Brand name

-Comparativerating

-Customer

rating

-Market

Share

-Patent

-Price Level

Pricing

-Stability

-margin &

cost-Sales & Cost

-customer

type

Customer

-Loyalty

-Turnover

Promotion

-Effectiveness

Reputation

-Response

Time

Track Record

-Profit

-Dividend

-Cash Flow-Forecast

-AR & AP

Gov Policies

-Taxation

-Reporting

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THE RESOURCE AUDIT

1. Review the resource base of the organization using the rating scale as

shown:

Very

Poor(1)

Poor

(2)

As

Expected

(3)

Good

(4)

Excellent

(5)

1.1

Management &

People Audit

KFC McD

1.2 Operations

KFC & McD

1.3 Product & Services

KFC McD

1.4 Marketing

KFC McD

1.5 Finance

KFC McD

1.6 Others

1.6.1 CSR

KFC McD

1.6.2 Innovation

KFC McD

1.6.3 Suppliers KFC McD

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Q2. Summaries by outlining Internal Strengths &

Weakness

Management

& People

Audit

OperationsProduct &

ServicesMarketing Finance CSR Innovation Suppliers

KFC 3 4 3 4 3 3 4 4

McD 4 4 4 5 4 4 3 3

0

1

2

3

4

5

6

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KFC Strength & WeaknessNo Strength Weakness

1 Long brand position(70s) Variation in size of fried chicken

2 Original recipe(Strong Trademarks recipe)

Hygienee.g. In 2009 a KFC store London

was charged with 13 food fines

3 More than 500 outlets

(Malaysia)

Franchise control in Malaysia-loss

of quality

4 Accessibility(urban & sub-urban area)

Corporate ownership turmoilNo corporate direction(QSR &

KFCH)

5 Customized local menu Untrustworthy suppliers

6 Second best global brand in fast food

industry in terms of value ($ 6 billion) Negative publicity

7 KFC is the market leader in the world

among companies featuring chicken as

their primary product offering

Unhealthy food menu

8 High employee turnover

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McDonald’s Strength & Weakness

No Strength Weakness

1 Global Brand Name(80s)

Brand recognition valued at $40 billion

Saturated Food Market

2 Environmental Friendly Low barrier to entry

3 Price(Lunch deal) Rising cost of raw material

4 Hamburger University

-Developing Human Capital

-Talent Retention

Foreign currency risk

5 Unique Selling Proposition--McValue Meal

Promo

-”Would you like to upsize that?”

-Supplementary Menus

Growing concern on healthy menu

6 Largest fast food market share in the world Negative publicity

7 $2 billion advertising budget Unhealthy food menu

8 Locally adapted food menus Mac Job and high employee turnover

9 Partnerships with best brands Low differentiation

10 More than 80% of restaurants are owned by

independent franchisees

11 Children targeting

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3.Conclude this audit by assessing the resource

base for Sustainable Competitive Advantage

0

1

2

3

4

5

Management &

People Audit

Operations

Product & Services

Marketing

Finance

CSR

Innovation

Suppliers

KFC McD

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Critical Success Factors-Voice of Customer

0

1

2

3

4

5Taste

Product/Varieties

Customer Service

Availability

Value

Consistent Quality

KFC

McD

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A-11

DIMENSIONS OF SERVICE PERFORMANCE :

PERSONAL & PROCESS

P E R S O N

A L

PROCESS

HIGH

LOW

HIGHLOW

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A-12


PERSONAL & PROCESS

P E R S O N

A L

PROCESS

HIGH

LOW

HIGHLOW

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http://measuringupblog.typepad.com/photos/uncategorized/2007/04/27/customer_wanting_service.gif

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A-14


PERSONAL & PROCESS

P E R S O N

A L

PROCESS

HIGH

LOW

HIGHLOW

CONSISTENT

TASTE

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THE RESOURCE AUDIT

KFC vs McD

1 1 O i

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1.1 Opportunity

The fast food trend in Malaysia has benefited McDonalds as they are able to capture more

market share and customers. Malaysian would like to eat outside with the increasing of number

of women workers. They would like to look at convenience place to eat as McDonalds provide it

for them. The technology advance has improved McDonald's services efficiency as their

customer able to order through phone and online. The growing internet users in Malaysiasupported for this kind of service. 24 hours service will open a revenue window for McDonalds

as customers look for quick meal at late night.

1.2 Threat

The increase of competitions from KFC, Subway, Burger King, and others has made the

competition for market share in Malaysia tighter. Customers have more range of fast food being

offered and they would have no brand loyalty with one brand. McDonalds need to fight backwith their promotion and advertisement to gain the customers feeling. They need to spend a

large amount of money on it. The health concern has become a main treat for McDonalds as

most customers concern on healthy foods. Fast food is considered unhealthy because of too oily.

This will reduce the number of customers to purchase McDonalds foods.

Read more: http://www.ukessays.com/essays/communications/mcdonalds-in-

malaysia.php#ixzz2Ph7cyIqM

http://www.ukessays.com/essays/communications/mcdonalds-in-malaysia.php







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WORKSHOP #2: THE RESOURCE AUDIT

• A company we are familiar

• KFC & McDonalds

KFC-McD

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