kfc-mcd
TRANSCRIPT
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Strategy Management Workshop
• Agenda 1 : Workshop #2
– Resource Audit
• To find out weakness(room for improvement),
strength, and constraints
• Why? Competitive Advantage & Value Creation
• Agenda 2 : Workshop #6
–Setting Strategic Direction• Core Values on an International Bank
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KFC vs McD
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STRATEGY MANAGEMENT
WORKSHOP #2: THE RESOURCE AUDIT
Operations Product &Services
Marketing FinanceManagement &People
Staffing Level
-turnover
-competency
-profileManagement
-Culture
-Style
-Attitude
-Performance
Operational
-Staff Morale
-Trng & Dev
-Engagement
-HC Dev
Restriction
-Legal
-Min Wage
Operational -Performance
-Facility
-Ctrl&Quality
-Supplier
-Capex
-Support
Function
Conducive
Working Env
etc
Product
-Niche, gaps
-Brand name
-Comparativerating
-Customer
rating
-Market
Share
-Patent
-Price Level
Pricing
-Stability
-margin &
cost-Sales & Cost
-customer
type
Customer
-Loyalty
-Turnover
Promotion
-Effectiveness
Reputation
-Response
Time
Track Record
-Profit
-Dividend
-Cash Flow-Forecast
-AR & AP
Gov Policies
-Taxation
-Reporting
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THE RESOURCE AUDIT
1. Review the resource base of the organization using the rating scale as
shown:
Very
Poor(1)
Poor
(2)
As
Expected
(3)
Good
(4)
Excellent
(5)
1.1
Management &
People Audit
KFC McD
1.2 Operations
KFC & McD
1.3 Product & Services
KFC McD
1.4 Marketing
KFC McD
1.5 Finance
KFC McD
1.6 Others
1.6.1 CSR
KFC McD
1.6.2 Innovation
KFC McD
1.6.3 Suppliers KFC McD
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Q2. Summaries by outlining Internal Strengths &
Weakness
Management
& People
Audit
OperationsProduct &
ServicesMarketing Finance CSR Innovation Suppliers
KFC 3 4 3 4 3 3 4 4
McD 4 4 4 5 4 4 3 3
0
1
2
3
4
5
6
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KFC Strength & WeaknessNo Strength Weakness
1 Long brand position(70s) Variation in size of fried chicken
2 Original recipe(Strong Trademarks recipe)
Hygienee.g. In 2009 a KFC store London
was charged with 13 food fines
3 More than 500 outlets
(Malaysia)
Franchise control in Malaysia-loss
of quality
4 Accessibility(urban & sub-urban area)
Corporate ownership turmoilNo corporate direction(QSR &
KFCH)
5 Customized local menu Untrustworthy suppliers
6 Second best global brand in fast food
industry in terms of value ($ 6 billion) Negative publicity
7 KFC is the market leader in the world
among companies featuring chicken as
their primary product offering
Unhealthy food menu
8 High employee turnover
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McDonald’s Strength & Weakness
No Strength Weakness
1 Global Brand Name(80s)
Brand recognition valued at $40 billion
Saturated Food Market
2 Environmental Friendly Low barrier to entry
3 Price(Lunch deal) Rising cost of raw material
4 Hamburger University
-Developing Human Capital
-Talent Retention
Foreign currency risk
5 Unique Selling Proposition--McValue Meal
Promo
-”Would you like to upsize that?”
-Supplementary Menus
Growing concern on healthy menu
6 Largest fast food market share in the world Negative publicity
7 $2 billion advertising budget Unhealthy food menu
8 Locally adapted food menus Mac Job and high employee turnover
9 Partnerships with best brands Low differentiation
10 More than 80% of restaurants are owned by
independent franchisees
11 Children targeting
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3.Conclude this audit by assessing the resource
base for Sustainable Competitive Advantage
0
1
2
3
4
5
Management &
People Audit
Operations
Product & Services
Marketing
Finance
CSR
Innovation
Suppliers
KFC McD
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Critical Success Factors-Voice of Customer
0
1
2
3
4
5Taste
Product/Varieties
Customer Service
Availability
Value
Consistent Quality
KFC
McD
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A-11
DIMENSIONS OF SERVICE PERFORMANCE :
PERSONAL & PROCESS
P E R S O N
A L
PROCESS
HIGH
LOW
HIGHLOW
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A-12
DIMENSIONS OF SERVICE PERFORMANCE :
PERSONAL & PROCESS
P E R S O N
A L
PROCESS
HIGH
LOW
HIGHLOW
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A-14
DIMENSIONS OF SERVICE PERFORMANCE :
PERSONAL & PROCESS
P E R S O N
A L
PROCESS
HIGH
LOW
HIGHLOW
CONSISTENT
TASTE
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THE RESOURCE AUDIT
KFC vs McD
1 1 O i
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1.1 Opportunity
The fast food trend in Malaysia has benefited McDonalds as they are able to capture more
market share and customers. Malaysian would like to eat outside with the increasing of number
of women workers. They would like to look at convenience place to eat as McDonalds provide it
for them. The technology advance has improved McDonald's services efficiency as their
customer able to order through phone and online. The growing internet users in Malaysiasupported for this kind of service. 24 hours service will open a revenue window for McDonalds
as customers look for quick meal at late night.
1.2 Threat
The increase of competitions from KFC, Subway, Burger King, and others has made the
competition for market share in Malaysia tighter. Customers have more range of fast food being
offered and they would have no brand loyalty with one brand. McDonalds need to fight backwith their promotion and advertisement to gain the customers feeling. They need to spend a
large amount of money on it. The health concern has become a main treat for McDonalds as
most customers concern on healthy foods. Fast food is considered unhealthy because of too oily.
This will reduce the number of customers to purchase McDonalds foods.
Read more: http://www.ukessays.com/essays/communications/mcdonalds-in-
malaysia.php#ixzz2Ph7cyIqM
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WORKSHOP #2: THE RESOURCE AUDIT
• A company we are familiar
• KFC & McDonalds