Project on Swot

7/29/2019 Project on Swot

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PROJECT REPORT ON

SWOT ANALYSIS-AN EXPLORATORY PROJECT

A PROJECT SUBMITTED TO THE UNIVERSITY OF

MUMBAI FOR THE AWARD OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

(SEMESTER V)

BY

PILLAI SHARANYA SHASHI

MODEL COLLEGE

DOMBIVLI (EAST)

UNIVERSITY OF MUMBAI

OCTOBER 2011


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DECLARATION

I, PILLAI SHARANYA SHASHI STUDENT OF BACHELOR OF

MANAGEMENT STUDIES FIFTH SEMESTER OF MODEL COLLEGE,

HEREBY DECLARE THAT I HAVE COMPLETED THIS PROJECT ON

SWOT ANALYSIS OF KFC AND MC.DONALDS FOR THE ACADEMIC

YEAR 2011 2012.

THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE

BEST OF MY KNOWLEDGE.


BACHELOR OF

MANAGEMENT STUDIES, SEMESTER V


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ACKNOWLEDGEMENT

There are many people who have knowingly and unknowingly helped

me with my project for which I want to express my gratitude to them.

I am short of words to express my deep sense of gratitude to my

guide GEETA MADAM for her help and her untiring efforts, constant

inspiration and stimulating guidance to me in my academic endeavor

and in my project.

I also thank my teachers for holding discussions and for the

information given to me that formed the basis of the study.

I would also like to thank the college for giving me this opportunity for

doing this project. I would also like to thank my family for giving me

the support to do the same.



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LIST OF TABLES

TABLE NO DESCRIPTION PAGE NO

3.1 SWOT ANALYSIS

4.1 SWOT OFMCDONALDS

4.2 SWOT OF KFC


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TABLE OF CONTENT

SR NO. DESCRIPTION PAGE NO

CERTIFICATE I

DECLARATION II

ACKNOWLEDGEMENT III

LIST OF TABLES IV

1 CHAPTER-1

INTRODUCTION

2 CHAPTER-2

PROFILE OF COMPANY-KFC AND

MC.DONALDS

3 CHAPTER-3

THEORETICAL VIEW

4 CHAPTER-4

SWOT ANALYSIS OF KFC AND

MC.DONALDS

5 CHAPTER 5

CONCLUSION

6 BIBLOGRAPHY


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CHAPTER: 1


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Chapter 1

Introduction

SWOT analysis is a strategic planning method used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats involved in

a project or in a business venture. It involves specifying the objective of the

business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieve that objective.

What makes SWOT particularly powerful is that, with a little thought, it can

help you uncover opportunities that you are well placed to exploit. And by

understanding the weaknesses of your business, you can manage and

eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the

SWOT framework, you can start to craft a strategy that helps you

distinguish yourself from your competitors, so that you can compete

successfully in your market.

Strengths:

What advantages does an organization have?

What does an organization do better than anyone else?

What unique or lowest-cost resources can an organization draw uponthat others can't?

What do people in market see as organization strengths?

What factors mean that "get the sale"?

What is an organization's Unique Selling Proposition (USP)?
http://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://www.mindtools.com/pages/article/newTMC_11.htmhttp://www.mindtools.com/pages/article/newTMC_11.htmhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Strategic_planning


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Consider the strengths from both an internal perspective, and from the

point of view of the customers and people in the market.

It should also be realistic - it's far too easy to fall prey to "not invented here

syndrome." Also, an organization is having any difficulty with this, try writing

down a list of organization's characteristics. Some of these will hopefully be

strengths.

When looking at strengths, think about them in relation to competitors.

Weaknesses:

What could an organization improve?

What should an organization avoid?

What are people in market likely to see as weaknesses?

What factors lose an organizations sales?

Again, consider this from an internal and external basis: Do other people

seem to perceive weaknesses that an organization doesnt see. Arecompetitors doing any better than?

It's best to be realistic now, and face any unpleasant truths as soon as

possible.

Opportunities:

What good opportunities can an organization spot?

What interesting trends are you aware of?

Useful opportunities can come from such things as:


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Changes in technology and markets on both a broad and narrow

scale.

Changes in government policy related to the field.

Changes in social patterns, population profiles, lifestyle changes, and

so on.

Local events.

A useful approach when looking at opportunities is to look at your

strengths and ask yourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you

could open up opportunities by eliminating them.

Threats

What obstacles does an organization face?

What are competitors doing?

Are quality standards or specifications for job, products or services

changing?

Is changing technology threatening organization position?

Does the organization have bad debt or cash-flow problems?

Could any of your weaknesses seriously threaten your business?

When looking at opportunities and threats, PEST Analysis can help to

ensure that an organization doesnt overlook external factors, such as

new government regulations, or technological changes in yourindustry.
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About the report

Title of study:

Present study is titled as SWOT ANALYSIS. The study is made with

special reference to MC.DONALDS and KFC.

Objective of the study:

To understand how SWOT is applied to companies.

To understand the strengths, weakness, opportunities and threats of

companies.

Data and methodology:

Here for this comparative study secondary data were collected from various

magazines, journals, reference books and websites

Chapter layout:

Chapter 1: Introduction to title and report

Chapter 2: Profile of KFC and MC.D

Chapter 3: Theoretical view of SWOT analysis.

Chapter 4: Comparative study of Kentucky Fried Chicken and McDonald

Chapter 5: Conclusion


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CHAPTER: 2


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Chapter 2

Profile of McDonald's

McDonald's is the leading global foodservice retailer with more than 32,000local restaurants serving more than 64 million people in 117 countries each

day. More than 80% of McDonald's restaurants worldwide are owned and

operated by independent local men and women.

They serve the world some of its favorite foods - World Famous Fries, Big

Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

Their rich history began with our founder, Ray Kroc. The strong foundation

that he built continues today with McDonald's vision and the commitment of

their talented executives to keep the shine on McDonald's Arches for years

to come.

McDonald's Corporation is the world's largest chain ofhamburgerfast food

restaurants, serving around 64 million customers daily. Headquartered in

the United States, the corporation was founded by businessman Ray

Kroc in 1955 after he purchased the rights to a small hamburger chain

operated by the eponymous Maurice and Richard McDonald.

A McDonald's restaurant is operated by a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties
http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Hamburger


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and fees paid by the franchisees, as well as sales in company-operated

restaurants. McDonald's revenues grew 27% over the three years ending in

2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french

fries, breakfast items, soft drinks, shakes and desserts. In response to

changing consumer tastes, the company has expanded its menu to

include salads,wraps and fruit.

The business began in 1940, with a restaurant opened by brothers Richard

and Maurice McDonald in San Bernardino, California. Their introduction ofthe "Speedee Service System" in 1948 established the principles of the

modern fast-food restaurant. The original mascot of McDonald's was a man

with a chef's hat on top of a hamburger shaped head whose name was

"Speedee." Speedee was eventually replaced with Ronald McDonald by1967 when the company first filed a U.S. trademark on a clown shaped

man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name McDonald's on May

4, 1961, with the description "Drive-In Restaurant Services," which

continues to be renewed through the end of December 2009. In the same

year, on September 13, 1961, the company filed a logo trademark on an

overlapping, double arched "M" symbol. The overlapping double arched

"M" symbol logo was temporarily disfavored by September 6, 1962, when a
http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Hamburger


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trademark was filed for a single arch, shaped over many of the early

McDonald's restaurants in the early years. The famous double arched "M"

symbol in use today did not appear until November 18, 1968, when the

company filed a U.S. trademark.

The first McDonald's restaurants opened in the United States, Canada,

Costa Rica, Panama, Japan, the Netherlands, Germany, Australia, France,

El Salvador and Sweden, in order of openings.

The present corporation dates its founding to the opening of

a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15,

1955, the ninth McDonald's restaurant overall. Kroc later purchased the

McDonald brothers' equity in the company and led its worldwide expansion,

and the company became listed on the public stock markets in 1965. Kroc

was also noted for aggressive business practices, compelling theMcDonald brothers to leave the fast food industry. The McDonald brothers

and Kroc feuded over control of the business, as documented in both

Kroc's autobiography and in the McDonald brothers' autobiography. The

site of the McDonald brothers' original restaurant is now a monument.

With the expansion of McDonald's into many international markets, the

company has become a symbol ofglobalization and the spread of

the American way of life. Its prominence has also made it a frequent topic

of public about obesity, corporate ethics and consumerresponsibility.
http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonald#Franchisinghttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Franchising


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Corporate overview

Focusing on its core brand, McDonald's began divesting itself of other

chains it had acquired during the 1990s. The company owned a majority

stake in Chipotle Mexican Grill until October 2006, when McDonald's fully

divested from Chipotle through a stock exchange. Until December 2003, it

also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston

Market to Sun Capital Partners.

Types of restaurants

Most standalone McDonald's restaurants offer both counter

service and drive-through service, with indoor and sometimes outdoor

seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known

in many countries, often has separate stations for placing, paying for, and

picking up orders, though the latter two steps are frequently combined; it

was first introduced in Arizona in 1975, following the lead of other fast-food

chains. The first such restaurant in Britain opened

at Fallowfield, Manchesterin 1986.

In some countries, "McDrive" locations nearhighways offer no counter

service or seating. In contrast, locations in high-density city neighborhoods

often omit drive-through service. There are also a few locations, located

mostly in downtown districts, which offer Walk-Thru service in place of

Drive-Thru.
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Specially themed restaurants also exist, such as the "Solid Gold

McDonald's," a 1950s rock-and-rollthemed restaurant. In Victoria, British

Columbia, there is also a McDonald's with a 24-carat (100%)

gold chandelierand similar light fixtures.

To accommodate the current trend for high quality coffee and the popularity

of coffee shops in general, McDonald's introduced McCaf, a caf-style

accompaniment to McDonald's restaurants in the style ofStarbucks.

McCaf is a concept created by McDonald's Australia, starting with

Melbourne in 1993. Today, most McDonald's in Australia have McCafs

located within the existing McDonald's restaurant. In Tasmania, there are

McCafs in every store, with the rest of the states quickly following suit.

After upgrading to the new McCaf look and feel, some Australian stores

have noticed up to a 60% increase in sales. As of the end of 2003 there

were over 600 McCafs worldwide.

Some locations are connected to gas stations/convenience stores, while

others called McExpress have limited seating and/or menu or may be

located in a shopping mall. Other McDonald's are located in Wal-

Mart stores. McStop is a location targeted at truckers and travelers which

may have services found at truck stops.
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Since 1997, the only KosherMcDonald's in the world that is not in Israel, is

located in the "Abasto de Buenos Aires", Argentina.

Global operation

McDonald's has become emblematic ofglobalization, sometimes referred

to as the "McDonaldization" of society. The Economist newspaper uses the

"Big Mac Index": the comparison of a Big Mac's cost in various

world currencies can be used to informally judge these

currencies' purchasing power parity. Scandinavian countries lead the Big

Mac Index with four of the five most expensive Big Mac's. Norway has the

most expensive Big Mac in the world as of July 2008, while the country with

the least expensive Big Mac is Malaysia.

Thomas Friedman once said that no country with a McDonald's had gone

to war with another. However, the "Golden Arches Theory of Conflict

Prevention" is not strictly true. Exceptions are the 1989 United States

invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon

War, and the 2008 South Ossetia war.

Some observers have suggested that the company should be given credit

for increasing the standard of service in markets that it enters. A group of

anthropologists in a study entitled Golden Arches East looked at the impact
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McDonald's had on East Asia, and Hong Kong in particular. When it

opened in Hong Kong in 1975, McDonald's was the first restaurant to

consistently offer clean restrooms, driving customers to demand the same

of other restaurants and institutions. McDonald's have recently taken topartnering up with Sinopec, the second largest oil company in the People's

Republic of China, as it begins to take advantage of the country's growing

use of personal vehicles by opening numerous drive-thrurestaurants. McDonald's has opened a McDonald's restaurant and McCaf

on the underground premises of the French fine arts museum, the Louvre.
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Profile of Kentucky Fried Chicken

KFC, founded and also known as Kentucky Fried Chicken, is a chain offast

food restaurants based in Louisville, Kentucky, in the United States. KFC

has been a brand and operating segment, termed a concept ofYum!

Brands since 1997 when that company was spun off from PepsiCo as

Tricon Global Restaurants Inc.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. While

its primary focus is fried chicken, KFC also offers a line of grilled and

roasted chicken products, side dishes and desserts. Outside the USA, KFC

offers beef based products such as hamburgers or kebabs, poutine, pork

based products such as ribs and other regional fare.

The company was founded as Kentucky Fried Chicken by Colonel Harland

Sanders in 1952, though the idea of KFC's fried chicken actually goes back

to 1930. Although Sanders died in 1980, he remains an important part of

the company's branding and advertisements, and "Colonel Sanders" or

"The Colonel" is a metonym for the company itself. The company adopted

KFC, an abbreviated form of its name, in 1991. Newer and remodeled

restaurants will adopt the new logo and name, while older stores will

continue to use the 1980s signage. Additionally, Yum! continues to use the

abbreviated name freely in its advertisement.
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History

Born and raised in Henryville, Indiana, Sanders passed through several

professions in his lifetime. Sanders first served his fried chicken in 1930 in

the midst of the Great Depression at a gas station he owned in North

Corbin, Kentucky. The dining area was named Sanders Court & Caf and

was so successful that in 1935 Kentucky GovernorRuby Laffoon granted

Sanders the title of honorary Kentucky Colonel in recognition of his

contribution to the state's cuisine. The following year Sanders expanded his

restaurant to 142 seats, and added a motel he bought across the street.

When Sanders prepared his chicken in his original restaurant in NorthCorbin, he prepared the chicken in an iron skillet, which took about 30

minutes to do, too long for a restaurant operation. In 1939, Sanders altered

the cooking process for his fried chicken to use a pressure fryer, resulting

in a greatly reduced cooking time comparable to that ofdeep frying. In

1940 Sanders devised what came to be known as his Original Recipe.

The secret recipe

The Colonel's secret flavor recipe of 11 herbs and spices that creates the

famous "finger lickin' good" chicken remains a trade secret. Portions of the

secret spice mix are made at different locations in the United States, and

the only complete, handwritten copy of the recipe is kept in a vault in

corporate headquarters.
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On September 9, 2008, the one complete copy was temporarily moved to

an undisclosed location under extremely tight security while KFC revamped

the security at its headquarters. Before the move, KFC disclosed that the

recipe, which includes exact amounts of each component, is written in

pencil on a single sheet of notebook paper and signed by Sanders. It was

locked in a filing cabinet with two separate combination locks. The cabinet

also included vials of each of the 11 herbs and spices used. Only two

unnamed executives had access to the recipe at any one time. One of the

two executives said that no one had come close to guessing the contents

of the secret recipe, and added that the actual recipe would include some

surprises. On February 9, 2009, the secret recipe returned to KFC's

Louisville headquarters in a more secure, computerized vault guarded

by motion detectors and security cameras. Reportedly, the paper

has yellowed and the handwriting is now faint.

In 1983, writerWilliam Poundstone examined the recipe in his book BigSecrets. He reviewed Sanders' patent application, and advertised in

college newspapers for present or former employees willing to share their

knowledge. From the former he deduced that Sanders had diverged from

other common fried-chicken recipes by varying the amount of oil used with

the amount of chicken being cooked, and starting the cooking at a higher

temperature (about 400 F (200 C)) for the first minute or so and then

lowering it to 250 F (120 C) for the remainder of the cooking time. Several

of Poundstone's contacts also provided samples of the seasoning mix, and

a food lab found that it consisted solely of sugar, flour, salt, black

pepperand monosodium glutamate (MSG). He concluded that it was
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entirely possible that, in the years since Sanders sold the chain, later

owners had begun skimping on the recipe to save costs.

Packaging

The famous paper bucket that KFC uses for its larger sized orders of

chicken and has come to signify the company was originally created

by Wendy's restaurants founderDave Thomas. Thomas was originally a

franchisee of the original Kentucky Fried Chicken and operated several

outlets in the Columbus, Ohio area. His reasoning behind using the paper

packaging was that it helped keep the chicken crisp by wicking away

excess moisture. Thomas was also responsible for the creation of the

famous rotating bucket sign that came to be used at most KFC locations in

the US.

Menu items

Chicken

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.

Kentucky Grilled Chicken This marinated grilled chicken is targeted

towards health-conscious customers. It features marinated breasts, thighs,
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drumsticks, and wings that are coated with seasonings before being grilled.

It has less fat, calories, and sodium than the Original Recipe fried

chicken. Introduced in April 2009.

KFC has two lines ofsandwiches: its "regular" chicken sandwiches and its

Snackers line. The regular sandwiches are served on either a sesame

seed orcorn dusted roll and are made from either whole breast fillets (fried

or roasted), chopped chicken in a sauce or fried chicken strips. The

Snackers line are value priced items that consist of chicken strips and

various toppings. In the UK, Australia and New Zealand, sandwiches are

referred to as "burgers"; there is the chicken fillet burger (a chicken breast

fillet coated in an original-recipe coating with salad garnish and

mayonnaise) and a Zinger Burger (as with the former but with a spicier

coating and salsa). Both of these are available as "tower" variants, which

include a slice of cheese and a hash brown.KFC considers its Double

Down product a sandwich in spite of containing no bread. A variety offingerfoods, including chicken strips, wings, nuggets, and popcorn chicken, and

potato wedges, are served with various sauces.

Several pies have been made available from KFC. The Pot Pie is

a savory pie made with chicken, gravy and vegetables. In the second

quarter of 2006, KFC introduced its variation on Shepherd's pie called

the Famous Bowl. Served in a plastic bowl, it is layered with mashed

potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served

with a biscuit. The bowl had been available at KFC's special test
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market store in Louisville since the third quarter of 2005.The KFC Twister is

a wrap that consists of either chicken strips or roasted chicken, tomato,

lettuce and (pepper) mayonnaise wrapped in a tortilla. In Europe, the

Twister is sold in two varieties: 1) the Grilled Twister (chicken strips), and 2)

the Grilled Mexican twister/Spicy Toasted Twister (UK) (chicken breast

supplemented by tortilla chips and salsa, UK: adds only salsa to pepper

mayonnaise), KFC Fillers are a 9 in (23 cm) sub, available in four varieties

over the summer period in Australia.

Shish kebab in several markets KFC sells kebabs.

Kentucky Barbecued Chicken barbecued chicken dipped in the original

recipe

Wrapstar is a variant of the KFC Twister, consisting of chicken strips with

salsa, cheese, salad, pepper mayonnaise and other ingredients, contained

in a compressed tortilla.

Advertising

Despite his death in 1980, Sanders remains a key symbol of the company

in its advertising and branding. Early television advertisements for KFC

regularly featured Sanders licking his fingers and talking to the viewer

about his secret recipe, and by the 1960s both the Colonel and the chain's

striped bucket had become well-known. The bucket as product

placement can be seen in the hands of both Annette Funicello and Dwayne

Hickman in 1965's and was also featured prominently in the 1968 Peter
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Sellers vehicle, The Party. KFC itself was featured in 1980's Superman II.

The Colonel made appearances as himself in Jerry Lewis's The Big

Mouth (1967), Herschell Gordon Lewis' Blast-Off Girls (1967) and Al

Adamson's Hell's Bloody Devils (1970), as well as an appearance in 1968

on Rowan & Martin's Laugh-In.

Before he became a platinum-selling pop star in the 1970s, Barry

Manilow sang the commercial jingle "Get a Bucket of Chicken", which was

later included on Barry Manilow Live as part of "A Very Strange Medley."

Throughout the mid 1980s, KFC called on Will Vinton Studios to produce aseries of humorous, claymation ads. These most often featured a cartoon-

like chicken illustrating the poorfood quality of competing food chains,

mentioning prolonged freezing and other negative aspects.
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Chapter: 3


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Chapter: 3

SWOT analysis is a strategic planning method used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats involved in

a project or in a business venture. It involves specifying the objective of the

business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieve that objective. The technique

is credited to Albert Humphrey, who led a convention at Stanford University

in the 1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or

objective. A SWOT analysis may be incorporated into the strategic planning

model. Strategic Planning has been the subject of much research.

Strengths: characteristics of the business or team that give it an

advantage over others in the industry.

Weaknesses: are characteristics that place the firm at adisadvantage relative to others.

Opportunities: external chances to make greater sales or profits in

the environment.

Threats: external elements in the environment that could cause

trouble for the business.

Identification of SWOTs is essential because subsequent steps in theprocess of planning for achievement of the selected objective may be

derived from the SWOTs.
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First, the decision makers have to determine whether the objective is

attainable, given the SWOTs. If the objective is NOT attainable a

different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify

strengths, weaknesses, opportunities and threats. It is particularly

helpful in identifying areas for development.

History

SWOT analysis came from the research conducted at Stanford Research

Institute from 1960-1970. The background to SWOT stemmed from the

need to find out why corporate planning failed. The research was funded by

the fortune 500 companies to find out what could be done about this failure.

The Research Team were Marion Dosher, Dr Otis Benepe, Albert

Humphrey, Robert Stewart, Birger Lie.

It all began with the corporate planning trend, which seemed to appear first

at Du Pont in 1949. By 1960 every Fortune 500 company had a 'corporate

planning manager' (or equivalent) and 'associations of long range corporate

planners' had sprung up in both the USA and the UK.

However a unanimous opinion developed in all of these companies that

corporate planning in the shape of long range planning was not working,

did not pay off, and was an expensive investment in futility.
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It was widely held that managing change and setting realistic objectives

which carry the conviction of those responsible was difficult and often

resulted in questionable compromises.

The fact remained, despite the corporate and long range planners, that the

one and only missing link was how to get the management team agreed

and committed to a comprehensive set of action programmes.

To create this link, starting in 1960, Robert F Stewart at SRI in Menlo ParkCalifornia lead a research team to discover what was going wrong with

corporate planning, and then to find some sort of solution, or to create a

system for enabling management teams agreed and committed to

development work, which today we call 'managing change'.

The research carried on from 1960 through 1969. 1100 companies and

organizations were interviewed and a 250-item questionnaire was designed

and completed by over 5,000 executives. Seven key findings lead to the

conclusion that in corporations chief executive should be the chief planner

and that his immediate functional directors should be the planning team. Dr

Otis Benepe defined the 'Chain of Logic' which became the core of system

designed to fix the link for obtaining agreement and commitment.

1. Values

2. Appraise

3. Motivation
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4. Search

5. Select

6. Program

7. Act

8. Monitor and repeat steps 1 2 and 3

They discovered that they could not change the values of the team nor set

the objectives for the team so they started as the first step by asking the

appraisal question, for example, what's good and bad about the operation.

They began the system by asking what is good and bad about the present

and the future. What is good in the present is Satisfactory, good in the

future is an Opportunity; bad in the present is a Fault and bad in the future

is a Threat. This was called the SOFT analysis.

When this was presented to Urick and Orr in 1964 at the Seminar in Long

Range Planning at the Dolder Grand in Zurich Switzerland they changed

the F to a W and called it SWOT Analysis.

SWOT was then promoted in Britain by Urick and Orr as an exercise in and

of itself. As such it has no benefit. What was necessary was the sorting of

the issues into the programme planning categories of:

1. Product (what are we selling?)

2. Process (how are we selling it?)

3. Customer (to whom are we selling it?)4. Distribution (how does it reach them?)

5. Finance (what are the prices, costs and investments?)

6. Administration (and how do we manage all this?)


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The second step then becomes 'what shall the team do' about the issues in

each of these categories. The planning process was then designed through

trial and error and resulted finally in a 17 step process beginning with

SOFT/SWOT with each issue recorded separately on a single page called

a planning issue.

The first prototype was tested and published in 1966 based on the work

done at 'Erie Technological Corp' in Erie Pa. In 1970 the prototype was

brought to the UK, under the sponsorship of W H Smith & Sons plc, and

completed by 1973. The operational programme was used to merge the

CWS milling and baking operations with those of J W French Ltd.

The process has been used successfully ever since. By 2004, now, this

system has been fully developed, and proven to cope with today's

problems of setting and agreeing realistic annual objectives without

depending on outside consultants or expensive staff resources.

Internal and external factors

The aim of any SWOT analysis is to identify the key internal and external

factors that are important to achieving the objective. These come from

within the company's unique value chain. SWOT analysis groups key

pieces of information into two main categories:

Internal factors The strengths and weaknesses internal to the

organization.

External factors The opportunities and threats presented by the

external environment to the organization.


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The internal factors may be viewed as strengths or weaknesses

depending upon their impact on the organization's objectives. What may

represent strengths with respect to one objective may be weaknesses

for another objective. The factors may include all of the 4P's; as well as

personnel, finance, manufacturing capabilities, and so on. The external

factors may include macroeconomic matters, technological change,

legislation, and socio-cultural changes, as well as changes in the

marketplace or competitive position. The results are often presented in

the form of a matrix.

SWOT analysis is just one method of categorization and has its ownweaknesses. For example, it may tend to persuade companies to

compile lists rather than think about what is actually important in

achieving objectives. It also presents the resulting lists uncritically and

without clear prioritization so that, for example, weak opportunities may

appear to balance strong threats.

It is prudent not to eliminate too quickly any candidate SWOT entry. Theimportance of individual SWOTs will be revealed by the value of the

strategies it generates. A SWOT item that produces valuable strategies

is important. A SWOT item that generates no strategies is not important.

Use of SWOT analysis

The usefulness of SWOT analysis is not limited to profit-seeking

organizations. SWOT analysis may be used in any decision-making

situation when a desired end-state (objective) has been defined.

Examples include: non-profit organizations, governmental units, and
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individuals. SWOT analysis may also be used in pre-crisis planning and

preventive crisis management. SWOT analysis may also be used in

creating a recommendation during a viability study/survey.

Corporate planning

As part of the development of strategies and plans to enable the

organization to achieve its objectives, then that organization will use a

systematic/rigorous process known as corporate planning. SWOT

alongside PEST/PESTLE can be used as a basis for the analysis of

business and environmental factors.

Set objectives defining what the organization is going to do

Environmental scanning

Internal appraisals of the organization's SWOT, this needs to

include an assessment of the present situation as well as a

portfolio of products/services and an analysis of the

product/service life cycle

Analysis of existing strategies, this should determine relevance

from the results of an internal/external appraisal. This may

include gap analysis which will look at environmental factors

Strategic Issues defined key factors in the development of a

corporate plan which needs to be addressed by the organization Develop new/revised strategies revised analysis of strategic

issues may mean the objectives need to change

Establish critical success factors the achievement of objectives

and strategy implementation
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Preparation of operational, resource, projects plans for strategy

implementation

Monitoring results mapping against plans, taking corrective

action which may mean amending objectives/strategies.

Marketing

In many competitor analyses, marketers build detailed profiles of

each competitor in the market, focusing especially on their relative

competitive strengths and weaknesses using SWOT analysis.

Marketing managers will examine each competitor's cost structure,

sources of profits, resources and competencies, competitive

positioning and product differentiation, degree of vertical integration,

historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research

to collect the data required to perform accurate marketing analysis.

Accordingly, management often conducts market research

(alternately marketing research) to obtain this information. Marketers

employ a variety of techniques to conduct market research, but some

of the more common include:

Qualitative marketing research, such as focus groups

Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets

Observational techniques such as ethnographic (on-site)

observation


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Marketing managers may also design and oversee various

environmental scanning and competitive intelligence processes to

help identify trends and inform the company's marketing analysis.

Using SWOT to analyse the market position of a small

management consultancy with specialism in HRM.

Strengths Weaknesses Opportunities Threats

Reputation in

marketplace

Shortage of

consultants atoperating level

rather than

partner level

Well

establishedposition with a

well defined

market niche

Large

consultanciesoperating at a

minor level

Expertise at

partner level inHRM

consultancy

Unable to deal

with multi-disciplinary

assignments

because of size

or lack of ability

Identified

market forconsultancy in

areas other

than HRM

Other small

consultancieslooking to

invade the

marketplace

Table no: 3.1


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Swot analysis - different applications

SWOT analysis is a powerful model for many different situations. The

SWOT tool is not just for business and marketing. Here are some examples

of what a SWOT analysis can be used to assess:

A company (its position in the market, commercial viability, etc)

A method of sales distribution

A product or brand

A business idea

A strategic option, such as entering a new market or launching a new

product

A opportunity to make an acquisition

A potential partnership

Changing a supplier

Outsourcing a service, activity or resource Project planning and project management

An investment opportunity

Personal financial planning

Personal career development - direction, choice, change, etc.

Education and qualifications planning and decision-making

Life-change - downshifting, relocation,

Whatever the application, be sure to describe the subject (or purpose or

question) for the SWOT analysis clearly so you remain focused on the

central issue. This is especially crucial when others are involved in the


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process. People contributing to the analysis and seeing the finished SWOT

analysis must be able to understand properly the purpose of the SWOT

assessment and the implications arising.


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CHAPTER: 4


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Chapter: 4

SWOT of McDonald's

Strengths

1. McDonald's has been a thriving business since 1955 and 20 of the

top 50 corporate staff employees started as a restaurant level

employee. In addition, 67,000 McDonalds restaurant managers and

assistant managers were promoted from restaurant staff. Fortune

Magazine 2005 listed McDonald's as the "Best Place to Work for

Minorities." McDonalds invests more than $1 billion annually in

training its staff, and every year more than 250,000 employees

graduate from McDonald's training facility, Hamburger University.

2. Ranks very high on the Fortune Magazine's food service companies

that are most admired list.

3. Approximately 85% of McDonald's restaurant businesses world-wide

are owned and operated by franchisees. All franchisees are

independent, full-time operators and McDonald's was named

Entrepreneur's number-one franchise in 1997. They have global

locations in all major airports, and cities, along the highways, tourist

locations, theme parks and inside Wal-Mart.

4. They have an efficient, assembly line style of food preparation. In

addition they have a systemization and duplication of all their food

prep processes in every restaurant.


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5. McDonald's uses only 100% pure USDA inspected beef, no fillers or

additives. Additionally the produce is farm fresh. McDonald's serves

100% farm raised chicken no fillers or additives and only grade-A

eggs. McDonald's foods are purchased from only certified and

inspected suppliers. McDonalds works closely with ranchers, growers

and suppliers to ensure food quality and freshness.

6. McDonalds only serves name brand processed items such as

Dannon Yogurt, Kraft Cheese, Nestle Chocolate, Dasani Water,

Newman's Own Salad Dressings, Heinz Ketchup, Minute Maid Juice.

7. McDonald's takes food safety very seriously. More than 2000

inspections checks are performed at every stage of the food process.

McDonalds are required to run through 72 safety protocols every day

to ensure the food is maintained in a clean contaminate free

environment.

8. . McDonald's was the first restaurant of its type to provide consumers

with nutrition information. Nutrition information is printed on all

packaging and more recently added to the McDonald's Internet site.

McDonalds offers salads, fruit, roasted chicken, bottled water and

other low fat and calorie conscious alternatives.

9. One of the best brand recognition in the world, the golden arches and

Ronald McDonald.

10. Community oriented business models.

11. Very socially responsible.

12. Global operations all over the world.


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13. Cultural diversity in the foods that are provided based on location of

the restaurant.

1. Weakness

2. Their test marketing for pizza failed to yield a substantial product.

Leaving them much less able to compete with fast food pizza chains.

3. High employee turnover in their restaurants leads to more money

being spent on training.

4. They have yet to capitalize on the trend towards organic foods.

5. McDonald's have problems with fluctuations in operating and net

profits which ultimately impact investor relations. Operating profit was

$3,984 million (2005) $4,433 million (2006) and $3,879 million (2007).

Net profits were $2,602 million (2005), $3,544 million (2006) and

$2,395 million (2007).

6. Not much variation in seasonal products that are offered.

7. Quality concerns due to franchised operations.

8. Focus on burgers and grease fried foods and not on healthier options

for their customers.

Opportunities

1. In today's health conscious societies the introduction of a healthy

hamburger is a great opportunity. They would be the first QSR (Quick

Service Restaurant) to have FDA approval on marketing a low fat low


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calorie hamburger with low calorie combo alternatives. Currently

McDonald's and its competition health choice items do not include

hamburgers.

2. They have industrial, Formica restaurant settings; they could provide

more upscale restaurant settings, like the one they have in New York

City on Broadway, to appeal to a more upscale target market.

3. Provide optional allergen free food items, such as gluten free and

peanut free.

4. In 2008 the business directed efforts at the breakfast, chicken,

beverage and convenience categories. For example, hot specialist

coffees not only secure sales, but also mean that restaurants get

increasing numbers of customer visits. In 2009 McDonald's saw the

full benefits of a venture into beverages.

5. Opening more joint ventures with several different retailers.

6. Advertising the capabilities of Wi-Fi internet services in the branches.

7. Creating more play places for the children in more of the restaurants.

8. Expanding on the advertising in regards to being more socially

responsible in the environment.

9. Expansions of business into newly developed parts of the world.

10. Creating a more upscale appearance to attract a more upscale

clientele.


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Threats

1. They are a benchmark for creating "cradle to grave" marketing. They

entice children as young as one year old into their restaurants with

special meals, toys, playgrounds and popular movie character tie-ins.

Children grow up eating and enjoying McDonalds and then continue

into adulthood. They have been criticized by many parent advocate

groups for their marketing practices towards children which are seen

as marginally ethical.

2. They have been sued multiple times for having "unhealthy" food,

allegedly with addictive additives, contributing to the obesity epidemic

in America. In 2004, Michael Spulock filmed the documentary Super

Size Me, where he went on an all McDonalds diet for 30 days and

wound up getting cirrhosis of the liver. This documentary was a direct

attack on the QSR industry as a whole and blamed them for

America's obesity epidemic. Due in part to the documentary,

McDonalds no longer pushes the super size option at the dive thruwindow.

3. Any contamination of the food supply, especially e-coli.

4. Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's,

KFC and any mid-range sit-down restaurants.


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Table no: 4.1


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SWOT of KFC

Strengths

1. Kentucky Fried Chicken is a very famous chain of fast food outlets

that started from Louisville, Kentucky. The company is became a sub-

brand of Yum Brands in the year 2002 and benefitted greatly from the

position and brand value of Yum foods. In the past the KFC chain of

restaurants grew at a very fast pace and has become today one of

the largest chicken restaurants chain in the world.

2. KFC has been known to be a leader in the chicken restaurantsegment with an annual sale of more than a billion dollars. The KFC

as a brand is well established in the dining out as well as delivery

service provider in the fast food industry.

3. Despite the entrance and presence of many competitors in the fast

food industry the company was able to retain its large loyal customer

base because of its unique offering. Due to this reason the KFC ranks

highest when it comes to chicken restaurant chains, convenience

restaurants and variety food provide.

4. Over the years KFC has gained enormous recognition as a reputable

brand for fast food and has globally positioned itself well in the

industry.

5. Brand Equity is the major strength of the company.

6. It is second largest fast food sellers in the world, first being

McDonalds.

7. Recognized and experienced all over the world and have strong

markets in UK, Thailand, Japan, Korea, China, Mexico and Middle

East.


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8. KFC franchises and licensing fees earn huge revenue for the

company.

9. Secret and trade mark of the recipes had maintained its supremacy in

the fast food world.

10. The company is holding over 50% shares in the fast food industry

because of its global brand recognition.

11. The company has deep concerns to hygiene, availability of the

fresh products to the customer and establishing the environment

friendly approach.

12. Profits of the company increases by almost $ 1 billion each year.

Weaknesses

1. When other companies in the chicken industry were trying to increase

its market share and were not able to compete well in the market or

retain its customers.

2. Also the special paper buckets that is now used by the KFC for

delivering large sized orders was originally introduced by Wendys

restaurant

3. The company has entered so many markets in the past in the United

States that its growth rate was about only one percent an year.

4. The company is said to not to pay attention to its resource and

development.

5. Least concerned about the importance of research and development

industry.

6. Quality comprise on few of its franchises that is harming the brand

name and its image.

7. Inflexibility of prices makes it unaffordable to middle class people.


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8. Unequal entrance of the franchises to different markets at one time

especially in United States has tremendously decreased its growth

rate.

9. Unable to work out for their original ideas, the thick paper bags used

by the company were initiated by Wendys restaurant.

Opportunities

1. KFC has been trying to enter new markets and position itself in some

of the hard to enter markets like the South America. With more

investments the company can definitely make its position stronger in

the food industry.

2. More spending on the resources and development as well as

introducing new food items and products the company can increase

its market share and profit.

3. Entrapping and tempting the young customer between 18 to 24 years

of age.

4. Reliability of the chicken meat used as the people are scared of

diseases from eating cows meat internationally.

5. Replacing home meals very speedily.

6. Increased and efficient services specially home delivery and office

orders.

7. Updating the restraints with facilities like play stations for kids, LCDs

and booking the outlets for parties.

8. Induction of new products other than chicken including fish in almost

all the items in which chicken is present, corns, salads etc, in fact the

whole menu is balanced and attracts the customers considerably.


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9. Trying to position itself strongly in the markets of South America, with

a view of increasing market value as well as share.

Threats

1. The competitors of KFC have successfully captured a large market

share. According to findings McDonalds has about 35 percent of the

share in Sandwich Segment whereas the Burger King owns about

sixteen percent of the market share in fast food industry. The local

restaurants in different countries where KFC has presence pose a

threat to the company.

2. The baby boomers formed the major part of the loyal customers of

the company that now have ages between 35 to 50 years and are

likely to move towards healthier foods.

3. The other entrants in the industry are continuously improving and

trying to enter new markets and increase their market share andsales.

4. With the lifestyle of people changing due to growing awareness about

healthier food people now look for something healthy, low calories

and delicious at the same time.

5. High rates on the prices as compared to the other brands selling

same items may cause the customers shift.

6. Less economical packages and deals are being offered in

comparison of its biggest competitor McDonalds, which work on the

strategy of seasonal induction of tempting deals.


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7. Shift of customer demand to more healthy and fresh food, avoiding

the all fried items.

8. Less variety of products pose a threat to the company, as they have

very few products other than their portfolio Fried chicken.


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Strengths

Brand Equity

1. 2nd Only to McDonalds

in Foreign Sale.

2. Strong Cash Flows

3. Generate $1B each

year.

4. Very strong

Internationally

UK, Middle East,

Thailand, China, Japan,

Korea, Mexico

5. Strong Franchise and

License Fee revenues

for cash flow.

6. Interactive relationship

marketing

7. Strong trademarks

recipes

8. Ranks highest among

all chicken restaurant

chains for its

Weaknesses

1. Recent drop in sales

for KFC

2. Failed to rank in top

20 in growth in

3. 2000.

4. Same Store sales

declined

5. Lack of point of scale

scanning system

6. Admitted inability to

provide quality

7. service

8. Lack of knowledge

about their customers

9. Lack of relationship

building with

employees,

customers and

suppliers i.e.

Chick-fil-a


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convenience and menu

variety.

9. Largest multibranded

restaurant in the world

100 KFC and Pizza Hut

combos 600 KFC

and Taco Bell combos

10. Question of

over franchising leads

to

11. loss of control

and quality

12. Lack of focus

on R&D

Opportunities

1.Growth of 18-24 age

demographic

2.Increase in U.S. median

income3. International beef scare

from mad-cow and hoof and

mouth disease.

4.Home Meal Replacement

Market will exceed an

estimated $577 billion by

2020

5.Targeting to growing ethnic

markets Asian American

and Hispanic

Threats

1.Rated 83 out of 100 in

terms of competitiveness.

2.Increasing wage rates

directly affect menu prices3. 85% annual employee

turnover for fast food

market

4. Supermarkets and new

competitors threaten HMR

market International

Exchange Rates.

5. Health Trend away from

fried foods.

6.Changing customer


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Table no: 4.2

6.New Leadership

Domestic markets

Updating restaurants

Balanced menu

Customer focus

Increase delivery service

demands

7.Quality of Service Focus


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Chapter: 5


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Chapter: 5

Conclusion

As per the swot analysis it is seen that kfc has more of non-vegetarian

items in its menu whereas mc.d has an equal combination of both.

The menu of mc.d provides a variety of vegetarian as well as non-

vegetarian items. As a result more people are attracted as the menu is

comparatively large.

Mc.d is more successful in India as compared to kfc because Indian

population consists of many vegans. Kfc has faced certain problems in

India as organizations like peta interfered in its business.

Also the prices of kfc are comparatively higher as compared to that of mc.d.

Also there are quality concerns due to franchised operations with kfc.

Also the market share of mc.d is much higher than that of kfc.

Mc.d has high scope for development by properly using its opportunities

like expanding on the advertising in regards to being more socially

responsible in the environment or expansions of business into newly

developed parts of the world.

Whereas the opportunities of kfc of kfc are limited as companies like

burger king are big players in this sector.


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So mc.d should see to it that they use the opportunities they have and

actualizing these opportunities would help them have a major gold over the

market.

Also kfc can include more of vegetarian items in its menu and thus can

attract more customers. Also they can they as lower their prices initially so

that they can have a hold over the market and then increase the prices as

per the market conditions.


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Webliography

Google

Wikipedia

Quickmba

Marketingteacher

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