Presentation SM Jc

BPMN 3023 STRATEGIC MANAGEMENT

GROUP A1Presented By:

Loh Siew Chin 110683Pang Jia Chee 110817Tan Tian Hong 111406Phang SheinYig112454Yap Lee Khim 113088

KFC & MCD PROFILE KFC McDonalds

Founder Colonel Harland Sanders Raymond Albert Kroc

First restaurant in Malaysia

Jalan Tunku Abdul Rahman, KL on year 1973 .

Jalan Bukit Bintang, KL on year 1982.

Mission To be the leading integrated food services group in the ASEAN region delivering consistent quality products and excellent customer-focused service.

To be our customers' favourite place and way to eat.

Vision To maximize profitability, improve shareholder value and deliver sustainable growth year after year.

To provide Simple Easy Enjoyment to every customer at every Visit.

KFC & MCD PROFILE KFC McDonalds

BOD 7 members 9 members

Managing Director

Mr. Jamaludin bin Md Ali Ms. Sarah Casanova

Main product Fried Chicken Burger

KFC & MCD PROFILE KFC McDonalds

Slogan

Mascot

SWOT & TOWS MATRIX

Strengths : KFC has distinctive competence.

Chains for its convenience and menu variety. Name recognition and reputation.

Provide employee benefits to maintain employee loyalty.

Good practice in corporate social responsibility Has a higher brand share of Chained Fast Food in

Malaysia.

Weaknesses: Leads to loss of control and quality.

Lack of most liquid assets to current liabilities. Health trend away from fried foods.

Frozen food is not good for health and despite what so ever the standard they maintain.

Lack of customization.

Opportunity: Changing customer lifestyle.

Increase competition from local outlet. Future expansion.

Food and beverage sector normally is a lot more recession-resistant.

Malaysia Culture and religion Kampung New Economic Model (NEM)

Threats: Change of customer demands.

Existing competitors. Different preferences.

Bird flu. Trademark confusing.

SWOT ANALYSIS

SO strategies

1.Open more news outlets in rural areas (S1, S2, S3, O6)2.Dominate fast food industry in Malaysia (S1, S3, O4)3.Customer friendly (S4, O4)

WO strategies

1.Inspection process (W1, O3)2.Set up a team of food technologists (W3, W4, O2)3.Online order and delivery services (W5, O4)

ST strategies1.Introduce healthier recipes (S1, T1)2.Introduce cheaper items in the menu (S2, T2)3.Engage in corporate social responsibility (S5, T5)

WT strategies1.Customization customers’ needs (W5, T1, T3)2.Work on the image of a healthy fast food chain through advertising (W3, W4, T1)3.Reduce the inventories (W2, T2)

TOWS MATRIX

SWOT & TOWS MATRIX

STRENGTHS (S)1. Focus on quality service and

customer satisfaction.2.Create a consumer retention program

3. Adapt to local.4.Understand Consumers Trend and

Needs5. Training to employee

6.Superb Supply Chain Management

WEAKNESSES (W)1. Poor Publicity of Unhealthy Fast Food

2. Costly Rebranding3. Poor Global Image

4. Difference due to Franchisee5. Food Quality

OPPORTUNITIES (O)1.Backward integration

2.Urbanization 3.The change of lifestyle

4.The expanding of population

5.The rapid growth of Technology

THREATS (T)1.High threat of new

entrants2.The increase of ageing

population3.New entrance create

similar name4.The increase of health

consciousness5.The increase of global

warming awareness

SWO

T AN

ALYS

IS

SO Strategic1. Expand and retain customers by providing online order services. (S4,O5)2. Provide staff training in delivery better

Customers’ services and handle e-commerce. (S5,O5)

3 By maintaining the quality service, McDonalds will get more customers.

(S1, O4)

WO Strategic1. Using the technology to keep warm food and provide real time service.(W5,O5)2. Enhance reputation of food quality. (W5, O4)3. Improve the image of fast food (W1, O3)

ST Strategic1. Providing customized food package. (S4,T4)2. Provide vegetarian and fresh juice product. (S3,T5)3. Expanding market niche to family packages. (S3,T4)

WT Strategic1. Provide more information about the food. (W1,T4)2. Enhance reputation by concerning welfare

for old folks and handicapped person.(W3,T2)3. Enhance contribution in earth save

program (W3,T5)

TOWS MATRIX

INDUSTRY ANALYSIS

Threats of New Entrants

Threats of Substitute Products

Bargaining Power of Supplier

Bargaining Power of

Buyer

THE FIVE- FORCES MODEL OF COMPETITION

Rivalry Among Competing Seller

Rivalry No. of outlets in Malaysia Meal Price

McDonalds (McValue meal)

196 RM8.95 ~ RM11.15

KFC(Combo Meal)

475 RM5.20 ~RM10.35(+ add on drink RM1.80)

A&W(Classic Combos)

43 RM8.50 ~ RM10.20

MarryBrown 100 RM10.30 ~RM15.50

Burger King 22 RM8.85 ~ RM14.50

NUMBER OF FAST FOOD OUTLETS FOR MCDONALDS, KFC, A&W AND MARRYBROWN AND THEIR MEAL PRICE COMPARISON

Fast Food Fried chicken Drink(Hot Milo)

Burger French fried

Breakfast

Kid’s meal

RM7.152 piece

RM3.25RM3.80

RM3~ RM7.75 RM2.00SRM3.25M

RM7,90~ RM9.80

RM7.30~ RM7.95

RM6.052 piece

RM2.65 RM3.50~ RM5.90

RM2.75RRM3.15L

RM4.00~ RM9.30

RM7.90

RM6.502 piece

RM2.80 Rm5.20~ RM7.50

RM2.70RRM3.60L

RM6.50~ RM7.90

RM7.50

- - RM4.10~ RM9.90

RM4.00MRM4.70L

- RM10.30

COMPARING ALA CARTE PRICE AMONG COMPETITORS

Threats of New Entrants

Threats of Substitute Products

Bargaining Power of Supplier

Bargaining Power of

Buyer

THE FIVE- FORCES MODEL OF COMPETITION

Rivalry Among Competing Seller

Substitutes Products No. of outlets in Malaysia Meal price (1 set)

208 RM8.50~RM13.00

19 RM7.90~RM24.90

56 RM12.99~RM14.99

200 n/a

64 RM9.90~RM25.00

38 n/a

uncountable RM1.20~RM5

SUBSTITUTE PRODUCTS OUTLETS AND MEAL PRICE

Threats of New Entrants

Threats of Substitute Products

Bargaining Power of Supplier

Bargaining Power of

Buyer

THE FIVE- FORCES MODEL OF COMPETITION

Rivalry Among Competing Seller

Fast Food Global Brand Owner 2004 2005 2006 2007

Yum! Brands Inc

45.8 46.8 48.5 52.7

McDonald's Corp

22.6 22.0 21.2 19.6

Marrybrown Fried Chicken Sdn Bhd

3.2 3.8 4.3 4.8

Yum! Brands Inc

2.3 2.4 2.4 2.4

Burger King Holdings Inc

2.2 2.4 2.4 2.1

Others Others 23.9 22.6 21.2 18.4

TOTAL 100.0 100.0 100.0 100.0

BRAND SHARES OF CHAINED FAST FOOD 2004-2007

Source: Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

KFC55%Mcdonald

32%

Other13%

Peferred Fast Food by UUM Students (Age Range: 19-26years old)

REASON TO CHOOSE PREFERRED FAST FOOD

RECOMMENDATION (KFC)

• Special MenuDiet MenuSugar Reduce MenuHigh Blood Pressure Menu

• Online OrderIncrease revenueMake business efficientBroader customer reachLow advertising costZero cost maintaining

RECOMMENDATION (KFC)

• Delivery ServiceIncrease salesConvenient

RECOMMENDATION (KFC)

RECOMMENDATION (MCDONALDS)

• Vegetarian MenuMany vegetarian in Malaysia.Halal certification requirements.Health concern: nutritionally adequate, and

provides health benefits.

• Vending MachineFlexibility inherent.Client satisfaction.Reduce employment cost.Work 24 hours without complaining.Passive Income.Don't require training, supervision, or motivation.

RECOMMENDATION (MCDONALDS)

Fresh PizzaThis vending machine is a pizzeria in a box. ‘The wonder pizza’ cooks 9 inch pizzas in a mere 2 minutes each. Users can select their desired crispness and pick from 3 different flavors. Each machine can hold around 100 pizza and uses real ovens not microwaves to cook the pizza.

u*tiqueThe ‘u*tique’ would best be described as a luxury vending machine; its designer Russell Greenberg was asked to create the Ferrari of vending machines. the machine was first put to use this past February and carries a curated selection of 50 exclusive products. the company explains that the items in the machine have all been hand picked by a group of international trend hunters. the machine features a touch screen panel that gives more information about each product to the buyer. the machine stocks everything from designer jewellery to bath and beauty products.

Questions?

Thank You!