Kfc Case Study

In: Business and Management

Submitted By taeyangYeoz
Words 1289
Pages 6
KFC in India Case Study Assignment (Ethical Issue)


The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA and other animal rights organizations, KFC planned a massive expansion program in India.

(see http://www.icmr.icfai.org/casestudies/catalogue/Business%20Ethics/BECG044.htm)


Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country.

Appreciate the need for protecting animal rights in developed and developing countries like India.

Understand the importance of ethics in doing business.

Examine the reasons for protests of PETA

Identify solutions for KFC's problems in India.

Key Terms

KFC, Business Ethics, International Business, People for Ethical Treatment of Animals (PETA), Food Adulteration, Selling Junk Food, Cruelty against Animals, Animal Welfare Legislation, KFC's Poultry Welfare Guidelines.

"Each bird whom KFC puts into a box or a bucket had a miserable life and a frightening death. People would be shocked to see our footage of a KFC supplier's employee who walks through a barn, carelessly lighting lamps and letting flames fall…...

Similar Documents

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Kfc Japan Case Study

...Kfc Japan Case Study – KFC Japan INTRODUCTION Kentucky Fried Chicken (KFC) was set up by Harland Sanders. In the first decades of the enterprise there were no management systems or strategic controls. However, it worked fine in the beginning, mainly because for launching new franchises an entrepreneurial spark was fundamental. Nevertheless, the company grew and after suffering declines in sales and profits the implementation of strategic planning, which was introduced by Michael Miles in late 1975, seemed to be an adequate measure to solve the problems. By 1979, the various programs of the strategic planning progress were beginning to show results. Anyhow, some foreign subsidiaries resisted and didn’t want to adopt these measurements. PROBLEM STATEMENT One of the main problems KFC was facing, was that foreign subsidiaries were not willing to adapt standards – like strategic planning - imposed by the headquarter. Especially KFC-J has been strongly resisting the implementation of administrative operational controls and systems. Should the headquarters be prepared to accept operational variations? Moreover, it had to be clarified what was an appropriate level of performance expectations for overseas units. Even though it was obvious that KFC had to maintain its drive for aggressive growth, there was incertitude about how to ensure the continuance of such growth. Additionally, there was the issue of how to expand into new markets and countries successfully. KFC......

Words: 306 - Pages: 2

Case Studies

...IM for Lovelock & Wirtz, Services Marketing 6/e Teaching Notes for Cases - Section 5 45 CASE 6 AUSSIE POOCH MOBILE OVERVIEW After creating a mobile service that washes dogs outside their owners’ homes, a young entrepreneur has successfully franchised the concept. Her firm now has more than 100 franchisees in many parts of Australia, as well as a few in other countries. In early 2002, she and her management team were debating how best to plan future expansion. STUDY QUESTIONS How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? ________________________________________________________________________ Note: All financial data are in Australian dollars (AUD), whose exchange value in 2003 at the time of the case was USD 0.57 = EUR 0.58 = GBP 0.41. [More recent exchange rates reflect a sharp drop in the value of the U.S. dollar against the Australian dollar, euro (EUR), and pound sterling (GBP). By late 2006, AUD 1.00 = USD 0.76 = EUR 0.60 = GBP 0.40). These changes in exchange rates would not affect decisions by APM on expansion within Australia but could have an impact on the relative attractiveness of future investments in, say, the UK versus the U.S.] 1. © 2004, 2007 Christopher H. Lovelock 2. Compare and contrast the tasks involved in recruiting new customers and recruiting new franchisees. From a franchisee’s perspective, what are the key benefits of......

Words: 9755 - Pages: 40

Case Study

...Case Study: Quick Service Restaurants CASE STUDY: QUICK SERVICE RESTAURANTS The Story so far... The project KFC were bowled over by Merrychef when researching heating options for a new product in 2004. Parent company Yum! Brands wanted an oven to speedily deliver a consistent product throughout its 300+ outlets in the UK. Merrychef worked in close partnership with the KFC food development team to create the Rice Bowl, a combination of KFC’s original recipe chicken breast fillet with basmati rice and a sweet and sour sauce for a “fully fused flavour sensation”. The Results The finger lickin’ good Rice Bowl project saw Merrychef supply more than 600 heavy duty 1925 micro cook ovens within a three month period for a high profile national launch. The HD 1925 is now specified for all KFC-A&W and KFC-Long John Siler multi-brand sites across Europe, making it a firm favourite with parent company Yum! Brands. The Menu Rice Rice Bowl sauce Bbq Baked Beans Corn Cobette Gravy Tortilla Key Benefits • • • • • • Consistent quality Consistent operational delivery Speed of service Reduced number of lost sales Ease of operation Reduced training time Many development chefs use our development kitchens to work on new food solutions. If you would like to see how we can improve results and speed up cook times OR for more information on our products and services or would like a copy of our corporate DVD please call Carol Thompson on 01252 553718 or visit......

Words: 274 - Pages: 2

Ib331 Case Study

...KFC in India Case Study Question 1: Since its entry in to India in1995, KFC has been facing protest by cultural and economic activist and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. There are many reasons for the protest KFC has been facing since its entry into India. Firstly, the KFC does not concern about animal rights, the chickens served by KFC are being given hormones, antibiotics and arsenic to fatten them. Secondly, the activists said that junk food like KFC would create many diseases like obesity and heart attack, and that the chicken served by KFC was full of chemicals. Thirdly, foreign fast food chain would deplete India’s livestock, which would affect the agriculture and environment. In addition, KFC would encourage Indian farmers to shift from growing basic crops to animals feed and meat causing the poorer section of society couldn’t afford for the food. Furthermore, the economist also said that fast food joint like KFC would create more trash in the cities. In my opinion, I agree with the reasons given by the protestors of KFC. This is because KFC could pose threats to Indian people and society. Chicken served by KFC is full of chemicals such as hormones and antibiotics; in addition, the consumption of fast food like KFC could bring many diseases. Unlike tradition food in India, which is more nutritious, resulted in Indian people has relatively low disease. Therefore, I think India is one of the...

Words: 1216 - Pages: 5

Case Study 1 - Kfc in India

...Case Study 1 KFC in India – Ethical Issues 1. Since its entry into India in 1995, KFC has been facing protests by cultural and economic activists and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. No tolerance for ‘cruel multinationals’ was the main reason for the protests made by cultural and economic activists and farmers. Due to the economic liberalization policy of the Indian government during the early 1900’s, foreign fast food companies were granted permission to enter India. From the cultural and economic activists and farmers perspective there were numerous disadvantages with the opening of these fast food chains, in particular KFC. The main fear for nationalists and cultural activists was the disturbance to the Indian culture and the effect of globalisation. Though KFC had implemented traditional Indian dishes such as ‘tandoori chicken’ and ensured that it was more nutritious, this does not enquire that the majority of those who visit KFC will not go for other junk-food alternatives. With a low rate of obesity, hypertension, heart disease and cancer, India now faced a threat to these illnesses caused by high sodium and cholesterol through the consumption of meat, fried, and processed foods. From an economic viewpoint, the opening of more KFC chains initially stimulated employment and infrastructure opportunities as well as providing the Indian economy (FDI) with many benefits. This also gave a chance......

Words: 1163 - Pages: 5

Mcdonalds and Kfc Case Analysis

...Janay Booker BUAD 4020 November 2, 2013 McDonald’s and KFC Case Analysis Brief Summary In 2008 McDonald’s and KFC were the largest quick service restaurants (QSR) in the world, with 31,999 and 15,580 outlets respectively. Both chains were renowned for their broad spectrum of consumers on a global basis. McDonald’s spearheaded global expansion with its first overseas outlet in Canada in 1967 and entering Japan in 1971. McDonald’s outlets experienced tremendous success in Japan with record breaking daily sales and speed of expansion in the initial stage. KFC similarly started global expansion early with its first overseas outlet in England in 1964 and entered Japan in 1970. However KFC was not as successful as McDonald’s and did not experience profit until six years after entry. KFC opened outlets in Hong Kong in 1973 which all were closed within two years. The company would eventually gain the confidence of Hong Kong customers ten years after its entry. There was a completely different experience in China for KFC. They were recognized as the leader in foreign QSR as well as a significant player in the Chinese restaurant industry as a whole, contributing 1% in the country’s total food and beverage revenues in 2005. In 2005 KFC outlets in China recorded an average on 1.2 million in annual sales per store, compared to just 900,000 for similar stores in the US. In contrast McDonald’s presence in China was less than half of KFC’s with a significantly lower estimated profit......

Words: 1404 - Pages: 6

Case Study Kfc

...TRAINING COACHING AND LEADING THE SALES FORCE: KENTUCKY FRIED CHICKEN I. Time Content Eugene Somosa officially took over as a Training Coach in KFC Philippines. Prior to assuming the position, Mr. Eugene was in charge with increasing the store’s sales and coaching the standardization guidelines in all kfc staffs. Now, he reflected on the last 5 years of KFC’s sales strategy and searched for direction. Should he focus with giving the company continous sales increase through making out the best employees? Or should he focus with reaching customer’s satisfaction through giving beyond-the-expectations services. With the customer’s complains inflation and the resignation of the company’s employees, its reputation in the market suffered. Mr. Eugene had a lot to figure out. He was not responsible for the events that led up to the situation, but he have to deal with the aftermath of the training team. II. Point of View KFC needs time-to-time store visits to ensure that standard procedures were being followed by staffs as well as the management team. Strict training and caoching should be done with the newly-hired employees. KFC offers quality foods that really satisfies their customers desires. Services are given satisfactory at times, also. Active sales promotions are observed everywhere. III. Historical Background of the Company From Young Cook to KFC's Famous Colonel Kentucky Fried Chicken, pioneered by Colonel Harland Sanders, has grown to become one of......

Words: 998 - Pages: 4

Case Study Mcdonald's vs. Kfc

...Case Study McDonald’s and KFC: Recipes for success in China COUNTRY LEVEL With the largest population in the world, the emerging economy of China was an easy target for companies to begin their international growth. The opportunity to make money in this country is what excites companies to try and integrate their businesses into the area. China is currently a part of the BRICS association making it one of the five major emerging economies in the world. China is located in Southeast Asia along the coastline of the Pacific Ocean. It sits as the fourth largest country in the world and is currently the second largest economy in the world measured by the Purchasing Power Parity Scale. This scale shows that a product in two different countries should have the same price when expressed at the same currency. With China’s size and increasing economy they have really worked to open their economy to international trade. This opens up the market for companies to try and enter and become successful. (Economy, 2010). Companies like KFC and McDonalds saw they opportunity and began to enter the Chinese market. These bolds moves paid off for some and not so much for others. Throughout the analysis we will see who the real winner is and what the future holds for these industries. QUICK-SERVICE INDUSTRY Both KFC and McDonalds are part of the quick-service industry. Many people know this industry as fast food but this is the correct name for it. This industry has been around for years and......

Words: 3692 - Pages: 15

Case Study Mcdonalds

...Case Study: McDonald’s With intense domestic and intentional competition in the Filipino fast-food market, McDonald’s needs accurate demographic and geographic data in order to understand the current market situation. Challenge With intense domestic and intentional competition in the Filipino fast-food market, McDonald’s needs accurate demographic and geographic data in order to understand the current market situation. Summary Company McDonald’s Philippines is a subsidiary of the Filipino-owned Golden Arches Development Corporation. The first Filipino McDonald’s to open for business was in the Morayta university districts in Manila during 1981. These days McDonald’s is operating over 150 restaurants throughout the islands of the Philippines. Being a 100% Filipino-owned franchise allows McDonald’s Philippines to be more agile and take quicker actions, making them an even more competitive force in the Filipino fast-food market. Challenge Accurate and timely demographic data is difficult to obtain in western economies; the ability to collect this precise data is even further strained when the survey is of a developing country. With a land area of 300,000 km2 spread over 7000 islands and a domestic population of nearly 100 million people, timely and accurate demographic data requires in-depth, thorough, but quick market surveying. McDonald’s Philippines has been operating in an incredibly competitive market for over 25 years. Domestic competition from the leading......

Words: 614 - Pages: 3

Kfc Study

...KFC (the name was originally an initialism for Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United States. It is the world's second largest restaurant chain (as measured by sales) after McDonald's, with 18,875 outlets in 118 countries and territories as of December 2013. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains. KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders," Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. However, the company's rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey. KFC was one of the first fast food chains to expand internationally, opening outlets in the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it......

Words: 469 - Pages: 2

Kfc Case Study

...1.I would have to support PETA on this because there are so many ways that KFC and its other chains can stay as successful as they are and treat chickens in a humane matter. I am a vegetarian for many reasons. It’s my life style that I have obtained because I hate the texture of meat and can’t stand hearing the awful things this world does to innocent animals. They deserve happy healthy lives just like we do. I couldn’t imagine eating something that is treated so such disgusting ways. Many other fast food restaurants have made this major change, now it’s their turn to follow suit. I think that PETA was being a little harsh to exploit them so intently. They were given a certain amount of time to right their wrong. If they didn’t pull through then PETA could jump down their throats and exploit them like they have. I can see PETA’s reasoning for how they reacted after two years of KFC doing little about the issue. However, I don’t think that what PETA is asking KFC to do is out of their reach. Even though PETAs actions can be over the top, they defiantly get their point across clear and concise. It is only going to better this world. 2. PETA’s basic criticism of KFC is that they are angry with them for supporting hatcheries, feed mills, grow out plants, processing plant and cold storage buildings that handle the chickens in grotesque ways. Yes PETA is convincing. By all their demonstrations and protests they certainly get their point across. The blood is on KFC’s hands due......

Words: 1148 - Pages: 5

Kfc Case Study. Business Proposal

...I. ISSUES In 1996, KFC remained the world’s largest chicken restaurant chain and third largest fast food chain. It held over 50 percent of the U.S market in terms of sales and ended 1995 with over 9000 restaurants worldwide. KFC opened 234 new restaurants in 1995 and operated in the 68 countries. One of the first fast food chains to international during the late 1960’s, KFC had developed one of the world’s most recognizable brands. Despite of the KFC’s past success in the U.S market, much of the KFC’s growth was driven by its international operations, which accounted for 94 percent of all KFC restaurants built in 1994 and for 100 percent of the increase in 1995. Domestically the restaurant count dropped by seven restaurants because of unit closures, intense competition among the largest fast food competitors resulted in a number of obstacles to further expansion in the U.S market. Expansion of free standing restaurants was particularly difficult. Fewer sites were available for new construction and those sites, because of their increase cost, were driving profit margins down. However the most critical or major issue of this case in the future will be their ability to handle changes. Their system is older, in terms of facilities and product form, and their attitudes still don’t reflect the realities of their changing business environment. One on the great challenges at KFC is that there is a lot that needs fixing and the...

Words: 3635 - Pages: 15

Kfc Case Study

...would you describe the relationship between PETA and KFC from April 2001, to August, 2003? How did the two organizations communicate with one another? What specific messages were exchanged? The relationship between the two groups deteriorated significantly between April 2001 and August 2003. At first, KFC was cooperation (or stating that they would cooperate) with PETA and noting that the concerns of PETA would be addressed timely or at least considered. Once KFC was give a the list of concerns they closed the communication channels and PETA, being left in the dark regarding progress, went about their usual shock tactics for garnering KFC’s and the public’s attention. The communications were handled via e-mail and phone, eventually developing into a promise for face-to face communications. Unfortunately, this may have been a ploy by KFC to “buy time” or at least let the heat die down from the backlash of a negative media report. The communication was cordial and polite, however, the responses began to take longer and longer to be received by PETA and they grew concerned that action would not be taken by KFC. The communications began to deteriorate and PETA began to use harsher methods of indirect communication with KFC to get their attention. By leaking details to the press and handing out shock items, they were hoping to back KFC into a wall where they would have to respond immediately. The messages that were sent by KFC were messages intended to keep PETA believing......

Words: 929 - Pages: 4

Kfc Case Study

...1.0 Introduction Kentucky Fried Chicken is one of the well-known fast food restaurants in the world. Kentucky Fried Chicken (KFC) Corporation, based in Louisville, Kentucky, is the world's most widespread chicken restaurant chain offering services to more than 12 million customers in 109 countries all around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC was founded by Harland Sanders (Sanders) in the early 1930s. He started cooking and serving food for hungry travelers who stopped by his service station in Corbin, Kentucky, US. KFC has been a brand and operating segment, of Yum Brands since 1997 when that company was acquired from PepsiCo as Tricon Global Restaurants Inc. Background of the Ethical Issue : Recently KFC faced accusation from non government organizations like PETA and Greenpeace regarding unethical practices from KFC’s supply chain such as Pilgrim’s Pride and Cargill.KFC was accused of ill-treatment towards its chicken by PETA and Greenpeace blamed KFC for its role in the destruction of the Amazon rainforest. This case study discusses these ethical issues in detail and concludes with suggestions and recommendations from the case study team, on how similar issues could be avoided or tackled. Objectives Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country. Which are: Appreciate the need for protecting......

Words: 275 - Pages: 2

Running Man Episode 51 | Weekly Idol Episode 359 | Mummies Alive - Die Hüter des Pharaos