Question

What challenges does kfc face in the micro environment

Answer 1

KFC's challenges in the micro environment include health-related criticisms, threat from competitors, ethical sourcing issues, and managing supplier relationships in the context of environmental and ethical concerns.

Step-by-step explanation:

KFC faces several challenges in the micro environment which encompass dealing with criticism over promotions and health concerns, competition from other businesses, and adapting to environmental and ethical issues connected to its sourcing practices. A prominent example is the backlash from the 'Buckets for the Cure' campaign, where KFC was accused of 'pinkwashing' due to the contradiction between promoting fried chicken and raising funds for breast cancer. In addition, KFC must contend with market pressures such as the threat of new entrants imitating their products or services and maintaining a competitive edge amidst increasing globalization and technological advances that intensify competition.

Furthermore, within the micro environment, KFC also has to manage relationships with suppliers who may face their own challenges, such as those associated with CAFOs, including the ethical and environmental concerns and their reliance on antimicrobials.

Answer 2

Intense competition

Changing consumer preferences

Supply chain disruptions

Dependence on franchising

Regulatory compliance

Labor issues

Shift towards healthier eating

Step-by-step explanation:

The micro environment of a business refers to the factors and actors that are in close proximity to the business and have a direct impact on its operations, such as customers, suppliers, competitors, and intermediaries. KFC, like any other business, faces several challenges in its micro environment. Some of these challenges include:

1. Intense competition: KFC operates in the highly competitive fast-food industry, where there are several established players such as McDonald's, Burger King, and Subway. KFC faces intense competition from these and other fast-food chains, which can impact its market share and profitability.

2. Changing consumer preferences: Consumer preferences for food products and dining experiences are constantly evolving. KFC needs to stay on top of these changes and adapt its menu offerings, pricing, and promotions to meet the changing demands of its customers.

3. Supply chain disruptions: KFC relies on a complex network of suppliers and distributors to ensure a steady supply of raw materials and ingredients. Any disruptions in the supply chain, such as natural disasters or transportation issues, can impact the availability of these resources and affect KFC's operations.

4. Dependence on franchising: KFC operates through a franchise model, which means that it relies on its franchisees to maintain the quality of its products and services. Any issues with franchisee performance or compliance can impact the overall reputation of the KFC brand.

5. Regulatory compliance: KFC operates in a highly regulated industry, where there are numerous health and safety regulations thatmust be adhered to. Any failure to comply with these regulations can result in fines, legal action, and damage to KFC's reputation.

6. Labor issues: KFC, like many other fast-food chains, has faced criticism for its treatment of employees. Issues such as low wages, lack of benefits, and poor working conditions can impact employee morale and motivation, which can in turn impact the quality of service provided to customers.

7. Shift towards healthier eating: There has been a growing trend towards healthier eating, which has led to increased demand for healthier food options. KFC, which is known for its fried chicken, may need to adapt its menu to offer healthier options to meet the changing demands of its customers.

Overall, KFC faces several challenges in its micro environment, which can impact its operations, profitability, and reputation. It is essential for KFC to stay on top of these challenges and adapt its strategies to meet the changing needs of its customers and the industry.