Case Study - Kfc
Case Study – Kentucky Fried Chicken and the Global Fast Foods Industry
Submitted in the requirements for Section 1, Question 1 in TMA 4
MBA5921 on 28 September 2009 with a word count of 1976
Masters in Business Administration
at the
University of South Africa
Table of Contents
Page 1 Summary 3 2 Introduction 3 3 Value Creation in KFC 4 4 Strategic Issues Facing KFC 6 5 Conclusion 8 6 References 9
1. Summary
Kentucky Fried Chicken (KFC) being one of the world’s largest chicken restaurant chains has many challenges. Two of these challenges being value creation through its corporate parent PepsiCo during the 1980’s and 1990’s as well as strategic issues they face in terms of their expansion internationally more specific to Latin America.
The role of corporate parenting is used as a basis in commenting on the value creation provided to KFC under the ownership of PepsiCo. The strategic issues that KFC faces in its expansion internationally specifically Latin America is also commented on using the frameworks of international strategy. In conclusion, final comments are passed regarding these challenges.
2. Introduction
Kentucky Fried Chicken (KFC) is one of the world’s largest chicken restaurant chains and is operational in 85 countries with more than 10, 800 restaurants. KFC had grown its business within the United States through franchisees in the 1950’s and was sold to two businessmen named Jack Massey and John Brown Jr. Massey and Brown during the late 160’s turned towards international markets. After a joint venture with Mitsuoishi Shoji Kaisha who assisted franchising the business internationally, the business was later acquired by Heublin Inc in 1977.
In 1982, R. J Reynolds Industries Inc. (RJR) acquired Heublin and merged. After RJR had acquired Nabisco, RJR had attempted to redefine itself as a world leader in the consumer foods industry which led to the divestment
Submitted in the requirements for Section 1, Question 1 in TMA 4
MBA5921 on 28 September 2009 with a word count of 1976
Masters in Business Administration
at the
University of South Africa
Table of Contents
Page 1 Summary 3 2 Introduction 3 3 Value Creation in KFC 4 4 Strategic Issues Facing KFC 6 5 Conclusion 8 6 References 9
1. Summary
Kentucky Fried Chicken (KFC) being one of the world’s largest chicken restaurant chains has many challenges. Two of these challenges being value creation through its corporate parent PepsiCo during the 1980’s and 1990’s as well as strategic issues they face in terms of their expansion internationally more specific to Latin America.
The role of corporate parenting is used as a basis in commenting on the value creation provided to KFC under the ownership of PepsiCo. The strategic issues that KFC faces in its expansion internationally specifically Latin America is also commented on using the frameworks of international strategy. In conclusion, final comments are passed regarding these challenges.
2. Introduction
Kentucky Fried Chicken (KFC) is one of the world’s largest chicken restaurant chains and is operational in 85 countries with more than 10, 800 restaurants. KFC had grown its business within the United States through franchisees in the 1950’s and was sold to two businessmen named Jack Massey and John Brown Jr. Massey and Brown during the late 160’s turned towards international markets. After a joint venture with Mitsuoishi Shoji Kaisha who assisted franchising the business internationally, the business was later acquired by Heublin Inc in 1977.
In 1982, R. J Reynolds Industries Inc. (RJR) acquired Heublin and merged. After RJR had acquired Nabisco, RJR had attempted to redefine itself as a world leader in the consumer foods industry which led to the divestment
References: 1. Grant RM. 2008. Contemporary Strategy Analysis. 6th edition. New York: Wiley 2. Open University 3. Horn SS. 2004. The Strategy Reader. 2nd edition. Oxford: Blackwell Section B