1- What did each of KFC's three different corporate parents - Heublein, R. Reynolds and Pepsi Co - do to contribute to or hinder KFC's growth and success?.
Conflicts appeared as a result of Hublein's little experience in the fast restaurant market. As a result, there was low quality control, poor service and shortage on new restaurant openings.
R.J Reynolds was also new to the business, so it decided to take a hands-off approach in management.
Pepsi on the other hand had some experience in the industry. It interfered with KFC's management and replaced it with its own.
2- What are the chief economic and business characteristics of the global fast food industry?.
The fast food industry is extremely large and it reported $320 billion in sales in 1997 for approximately 500,000 restaurants in the US. The market growth rate is 5.2% annually. It is considered as mature. The industry consists of numerous organizations and companies, ranging from McDonald's to Checkers, and it is not limited to the United States. .
We can divide the industry into 6 groups of restaurants and chains:.
Sandwich chains.
Dinner houses.
Griller Buffet .
Family restaurants.
Pizza.
Chicken.
.
3- What does a five-forces analysis of fast-food competition tell us about the overall strength/intensity of competitive pressures in this business?.
The rivalry among competing sellers: figuring the following:.
Product line and services: efforts are made to extend the product offerings, sometimes beyond the traditional, for example when McDonald's offered chicken burgers. Services are also considered as a competitive edge.
Pricing and promotions: pricing is critical for buyers and many chains use promotions especially when the offerings exceed demands.
Location and store format: is important likewise any business and has a direct effect on clients.
The potential entry of new competitors: which is difficult since KFC is a very large chain.