Kfc Ehtical

In: Business and Management

Submitted By Nicoleman
Words 1530
Pages 7
Kentucky Fried Chicken (KFC) Corporation is the world's most widespread chicken restaurant chain offering services to more than 12 million customers in 109countries all around the world.

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.

PETA Perspective
Every year more than 1 billion chickens are killed from the chicken farms, meant for KFC. The improper breeding of birds combined with improper working conditions of workers and lack of ethically efficient operation processes led to improper practices in KFC’s supplier’s poultry farms. As a result KFC was accused of animal abuse by PETA, on the supplier’s farm. The People for Treatment of Animals (PETA), an animal right protection organisation, accused KFC for its unethical treatment (behaviour) towards the chicken in KFC’s supplier factory farms. Pilgrim’s Pride (PP) is one of KFC’s award-winning supply operations and the second largest processor of chickens in the United States. PETA’s investigations in Pilgrim’s Pride poultry farm brought to light the inappropriate practices that prevailed in KFC’s supplier operations.
PETA released a shocking video that clearly depicted the ill-treatment of chickens and the unhygienic behaviour in the Pilgrim’s Pride poultry farm. Experts commented the video to have depicted the worst cruelty towards chicken and the worst employee behavior. The release of the video led to widespread…...

Similar Documents

Kfc in India

...KFC IN INDIA PRESENTATION ON THE CASE STUDY OF KFC IN INDIA Daniel maina Hillary Omondi Senjuur Cheworei Rosa Okode Ratemo Oira Kiiru Maina , Aridi, Ochieng BACKGROUND OF KENTUCKY FRIED CHICKEN KFC KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant chain. Founded by Colonel Harland Sanders in the early 1930s by cooking & serving food for hungry travellers.In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN . KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. Yum! Brands is run by David Novak,Chairman & CEO . KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. 109 countries and territories around the world. Every day, more than 12 million customers are served at KFC restaurants. KFC Division is run by Cheryl Bachelder, President and Chief Concept Officer KFC’s Entry in INDIA KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. Ethical Issues in Business organizations Ethics are “the code of moral values and principles that rule the behavior of a person or......

Words: 1074 - Pages: 5

Kfc Japan

...An unique and tasteful recipe that can’t be easily copied by competitors, is a key success factor in fast food business. There is so much of competition in the fast food business that it’s very difficult for businesses to thrive by selling a fast food product that does not appeal to the mass as far as taste is concerned. KFC was able to expand its business in early years because of the unique recipe that Sanders developed. [2] From the perspective of Dick Mayer at headquarters, what are the key issues involved in managing KFC’s international operations?   Response: Dick Mayer faced four key issues while managing KFC’s international business. Dick Mayer found it challenging to set appropriate level of performance expectations for KFC’s overseas units. Though some of KFC’s overseas entities had rapidly grown in terms of sale and profitability, there was still enormous scope to expand the business within the same country. For example: even though KFC Japan was experiencing double digit growth from 1979-82 and was about to open its 400th store in 1983, penetration level, on a per capita basis, was less than 25% of the penetration level of KFC in USA. Mayer did not want to consider an overseas entity as mature just on the basis of the number of stores or on the basic of sales. Mayer wanted to use penetration as the yardstick instead and pushed for aggressive growth in the markets where KFC’s penetration was relatively low. The second issue that Mayer faced......

Words: 967 - Pages: 4

Kfc Marketing

...in Africa. In general, my suggestion of marketing strategy in Africa, it is to relay more on customer satisfaction and loyalty as the new trend of marketing which gives customer the priority in every action taken by the KFC, that will actually inverse the organization chart from traditional to Modern one. (Please refer to appendix 2) Showing to Africans that KFC is not there to only generate profits, but also to help in the development of the their countries like: working with the governments to reduce the poverty, given some scholarships to student, sponsoring associations and advising the youth entrepreneurs, in how to star up their business. Adding to this investing lot of money on corporate social responsibility, all that will be reflect positively on the KFC brand and create word of mouth among people, businesses and governments, which can increase the awareness of KFC and get a easy access to all Africa’s opportunities.  Segmenting and targeting Children must be segmented separately and target with some menus which include toys and magic cards, also for weekends KFC can organize some competition of sport games or singing which can be opportunity for children to get together and have fun. Youth are the most consumer of fast food which pushes KFC to offer them some specific menus which can meet their needs and wants with free access to internet and music or organizing events and bringing some famous signer and players....

Words: 277 - Pages: 2

Kfc Malaysia

...KFC HOLDINGS (MALAYSIA) BHD 65787-T 1 KFC Holdings (Malaysia) BHd (65787-T) annual Report 2011 annual Report 2011 after 38 years of ‘Finger lickin’ good’, we have changed our tagline to simply ‘so good’. ‘so good’ reflects our commitment to product, place, people, price and promotion. ‘so good’ is that great experience of a good meal shared between family and friends. at KFC, it is all about building a brand that brings people together and creates that ‘so good’ moments. Thus, the choice of the cover illustrates ‘so good’ which is what the brand is all about. KFC Holdings (Malaysia) BHd (65787-T) annual Report 2011 2 Contents Shareholders’Overview Financial Highlights 6 notice of annual general Meeting 9 statement accompanying notice of annual general Meeting 14 Our Performance in 2011 Corporate statement 18 Review of operations 32 Reliable Corporate Citizen Corporate social Responsibility 48 The Corporation Board of directors 60 Top Management Committee 76 Head of division 77 shariah advisory Council 80 Corporate information 81 group structure 82 Accountability Corporate governance statement 84 audit Committee Report 93 statement on internal Control 97 additional Compliance information 100 Financial Statements directors’ Report 127 statements of Financial Position 131 statements of Comprehensive income 132 Consolidated statement of Changes in Equity 133 statement of Changes in Equity 135 statements of Cash Flows 137 notes to the......

Words: 63483 - Pages: 254

Strategy of Kfc

...INTRODUCTION This project puts in perspective the multinational company called Yum!Brands, which is an American company in the fast-food industry. We will be discussing about some aspects of this company generally, but we intend to give more details on the company Kentucky Fried Chicken(KFC) which is one of the Strategic Business Units (SBU) of Yum!Brands. We will give the profile of Yum!Brands and KFC, and also analyze the strategy of the company, its internal and external environment, its position vis-à-vis its competitors, its competitive advantage and how far it has come/how well it is doing today. We intend to focus on one local market, so in this project we are taking KFC China as our case study. We decided to choose Yum!Brands and specifically KFC as our project case study because we have noticed the rapid growth of the fast-food industry. Fast-food is a typical American trend which reflects the American eating culture of “grabbing a quick bite” so to speak. Today people are very busy, not only in America but all over the world. People have less time to sit and eat a home cooked meal, especially at lunch time when almost everyone is out of the house and working. The most convenient thing to do is to go for a “fast-food”. We noticed that this trend has even moved from being just a lunch-time substitute for home cooked meals to being a fun time meal between friends, colleagues and family. Some corporate bodies even order fast-food for meetings or corporate......

Words: 1643 - Pages: 7

Kfc China

...fast food service provider. KFC, which is one of its subsidiaries, not only specializes in fried chicken but is also the leading brand for it. KFC China, since its inception, has been growing at a very fast pace. It has taken astute strategic steps to establish itself in China. It had various key competitive advantages which permitted it to expand to more than 4000 outlets in China (Bell and Shelman, 2011). The company hired a managerial team from Taiwan which had an experience of more than 15 years in the fast food industry (Cho, 2009). It introduced a new concept of high-end, modern and western fast food in China. People considered KFC to be a nice place where they could take their dates. The Chinese love fried chicken, which is probably one of key reasons it has a competitive advantage over the beef focused MacDonald’s, with a ratio of 2:1 unprecedented anywhere else in the world (Cho, 2009). It also catered to local tastes by localizing its menu to suit the Chinese and acquired East drawing- a chain which serves local food. KFC china is also known for its frequent product releases. KFC also dealt with China’s dynamic and rapidly changing business environment by establishing its own supply chain and owning most of the chains instead of giving franchisees like it operates in the US. This was mainly to protect itself from the problems it could face by getting off on the wrong foot with the local partners. (Bell and Shelman, 2011) However, in 2012, KFC china saw its sales......

Words: 1895 - Pages: 8

Kfc and Mcd

...Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) Development in China Wei Hu & Yuanyuan Xie Bachelor’s Thesis 28. 04. 2013 International Business Administration Bachelor’s degree (UAS) SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Wei Hu & Yuanyuan Xie Title of Thesis Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) development in China Date 28.04.2013 Pages/Appendices 53+2 Supervisor(s) Jari Niemelä &Heikki Likitalo Client Organization/Partners McDonald's Corporation & Kentucky Fried Chicken Corporation Abstract McDonald's and KFC are two international fast food restaurants. They both expended their businesses in global scale. It is obvious that McDonald surpassed KFC in terms of sales and fame in international level. However, in China, KFC performs better than McDonald's. The aim of this study is to find out how these two companies developed differently in Chinese market. By making a comparative study of McDonald's and KFC, different operation and competitive strategy theory will be integrated with their development situation. Research is made based on strategy theory, Internet sources and interviews. The thesis is started with general information, Chinese fast food industrial situation introduction and thesis structure. After having introduced the two companies background, we illustrated......

Words: 13594 - Pages: 55

Project on Kfc

...Dr.Zain Yousafzai External Supervisor : __________________ Department of Business Administration Preston University Peshawar IV Preface This report focus on KFC marketing strategies, its marketing environment , demographic factor ,marketing factors. I designed a report to provide a brief description about its marketing mix & its major competitors in Pakistan. We also discuss four P·s of marketing & their marketing tools. In addition to it, this report includes a research base survey on KFC. We all have tried our level best to fulfill all the requirements mentioned to us. Now its depend upon the reader to read it carefully and understand what we want to communicate. This report provides a brief knowledge about KFC in Pakistan. _____________________________________________________ V Acknowledgement With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor Prof.Dr.Zain for his valuable guidance and the confidence he instilled in me, that helped me in the successful completion of this project report. Without his help, this project would have been a distant affair. His thorough understanding of the subject and professional guidance was indeed of immense help to me. Also, this acknowledgement would remain incomplete without thanking the staff of KFC Islamabad and Peshawar for their wholehearted and kind co-operation. I am also greatly thankful to the faculty members of our institute who co-operated with me and gave me......

Words: 8393 - Pages: 34

Kfc Introduction

...INTRODUCTION KFC (the name was originally an  initialize 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......

Words: 2957 - Pages: 12

Kfc Japan

...worrying about whether Mr. Weston is obeying company policies and headquarters decisions. The negative aspects of terminating Mr. Weston are all of the following: He may start working for one of Kentucky Fried Chicken's (KFC's) close competitors and with his knowledge about the company's strategic mission and his skills, he may become a significant rival to KFC. Furthermore, KFC-International will surely loose an excellent worker with plenty of valuable experience in starting-up new business enterprises. Also, terminating a senior manager such as Mr. Weston could be very expensive. If Dick Mayer would chose this approach, he has to be able to back-up his decision with relevant evidence and he must have the full support from KFC's top-management. If Mr. Weston is terminated, he may ask for a significant financial compensation. Second, Dick Mayer can chose to relocate Mr. Weston within the organization. By this approach, Mr. Weston will have less authority and top-management control can be enhanced (centralized control over international subsidiaries). It is important, however, that Dick Mayer will be able to find an area in the KFC organization where the corporation can utilize his great entrepreneurial skills. Mr. Weston must understand that he is important to the company and that the reason behind the transfer is to better utilize his skills and experience. However, there are some negative aspects to this approach. Mr. Weston may not accept the new position, and......

Words: 1388 - Pages: 6

Kfc Anaylysis

...of organization: KFC Chicken meat production is the largest sub segment of South African agriculture. It contributes almost 18% to agriculture's gross income which contributes to the economy growth and development of the nation. Chicken meat is the most important protein source in the diet of the majority of South Africans, including the poor. Chicken meat is the cheapest source (in terms of R/kg) of meat in South Africa, however, since 2013 chicken meat prices in South Africa increased by 13 percent and in the past year by more than eight percent, as increased import tariffs of chicken meat, coupled with anti-dumping duties, escalated local prices. KFC is known to be a favorite of meat lovers it specializes in fried chicken, and this segmentation is the main success factor of KFC. KFC’s key objectives include: * To increase their market share in the fast food industry * To improve annual profit margin in order to maintain company growth * To increase shareholders dividends and franchise KFC’s strategies KFC’s main success strategy lies in their super secret blends of eleven herbs and spices that are used to differentiate their chicken from other organization offering similar services. In addition, their marketing and advertising strategy that portrays the product as an ultra-unique, one-of-a-kind thing, with no exact equal in the entire world to a target audience gives them competitive advantage over others. Other key success factors of KFC include:......

Words: 2294 - Pages: 10

Kfc Japan

...KFC-Japan history from the beginning gives a good picture of the different existing ways of managing subsidiaries. Lessons learned from successive managers can help us to identify what is the best way of seizing external opportunities in a given situation. The dilemmas KFC is facing at the different stages of her history which can be represented with the three stages theory describes well the organizational and operational challenges usually faced by a “transnational” company. Each appointed manager represents a specific way of managing subsidiaries or a stage of the “three stages theory”. At the beginnings, each country manager was on his own to make a success of his venture, and most had to learn the business form scratch. From this start point, the main issue is to determinate the appropriate level of control in this given situation. The issue of performance measurement is closely linked to the one of the level of control. On one hand, standardization facilitates performance measurement and control, but can also lead to counter performances if excessive. In this respect, it is very important to determine the expected level of performance (the same everywhere?). On the other hand, tolerating exceptions tends to weaken the whole system. KFC development until the critical point of confrontation illustrates one of the existing methods of launching a new activity overseas (I). Conflicts between headquarters and KFC-J raise a number of issues which well......

Words: 4919 - Pages: 20

Kfc in China

...Hoi Shan Wu Prof. Dennis Lee Doing Business in China 16 May 2017 KFC in China As China develops the pace of life has gotten quicker. The Chinese people’s demand for fast food service with good hygiene has grown due to fit their busier lifestyle. An analyst from China Venture Group, Wan GE, said that fast-food has become the first choice for 85% of Chinese city residents when eating out. (Hu and Chen) The fast-food industry in China is fast growing with an 11.6% growth from 2010 to 2015. (Fast-Food Restaurants in China: Market Research Report) Kentucky Fried Chicken (KFC) a subsidiary of YUM! Brands, was the first quick-service restaurant (QSR) to enter China in 1987, and remains China’s number one QSR today with more than 5000 restaurants in over 1100 cities. (Yum! Restaurants in China) KFC started as a joint venture company; 60% stake held by KFC, 27% by the Beijing Tourist Bureau and 13% by Beijing Food Production. In 1988, Bank of China bought 25% of the venture, diluting KFC to 51% of shares. The first KFC was opened in Beijing, Qianmen, five minutes away from Tiananmen square. (Qingfen) When KFC first entered China, it was a great success. It was an eye-opener into American cuisine and culture. Chinese consumers had the perception that anything from the west is the best; since KFC is from the west it was the best. Chicken is the second preference of meat followed by pork in China. Naturally Chinese customers loved KFC’s fried chicken not only because of the product...

Words: 2875 - Pages: 12

Kfc File

...Kentucky Fried Chicken ‡ Four P¶s of Marketing mix. Introduction ‡ KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo. ‡ KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Marketing Mix ‡ The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. ‡ Product ‡ Price ‡ Place ‡ Promotion Product Anything that can be offered to a market to satisfy a want or need. KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. Segmentation ‡ Geographic segmentation : KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the......

Words: 1583 - Pages: 7

Kfc Today

...are served at KFC restaurants in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC is world famous for its Original Recipe® fried chicken, made with the same secret blend of 11 herbs and spices Colonel Harland Sanders perfected more than a half-century ago. Customers around the globe also enjoy more than 300 other products -- from Kentucky Grilled Chicken in the United States to a salmon sandwich in Japan. In my paper I will be reviewing KFC in Japan and explaining the following: 1. KFC’s History 5. The Culture 2. Management 6. Economics 3. Legal Practices 7. Geography 4. Political Structures 8. Competition KFC is a predominant franchise that’s nationwide. KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. KFC is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008. KFC’s History Colonel Harland Sanders was the founder of Kentucky Fried Chicken. In 1952 the Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. In 1960 the Colonel's hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U.S. and Canada. In 1964 KFC reached......

Words: 2584 - Pages: 11