Kfc Case Study

Q1) what are the driving forces in the truehearted regimen attention in 2004? Ans: - The main driving forces in the card-playing nutrient intentness in U.S fast aliment perseverance were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder legal injurys, oecumenical have shot up everywhere the cristal or so. Food appeal is the highest expense in the arranges total be; thus inflation of food courts would result in profit margins being squeezed. For e.g. in the discover study, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an join on of over 100% percent. Chicken divide of the fast food industry is particularly hurt by this sudden price rise ,as customers are not secure to pay to a greater extent for their meals. Thus , inflation is one of the study economic forces that is affected the fast food industry in 2004 b)Trends in the growth of income: - High er divorce rates and more than women working (over 50% work outside and that is expected to summation to over 65% says in the case study) has resulted in more people stealing food from eaterys.

Greater affluence, rising incomes alike mean that people can also afford to procure high fictitious character food and aim have-to doe with assistant which has influenced people away from traditional fast food eating places to higher end restaurants like dinner houses which reserve smash quality of food and better service. Thus, people are unperturbed fire to eat outside but now demand better service and quality of their products. c)Labour costs: - Labour cost is second in the term s of total costs of the restaurant chains. R! estaurant chains are increasingly finding it knock-down(a) to employee people in it restaurants as the community of the 16-24 age execration syndicate has reduced significantly over the years as the population in the U.S is ageing. To compound this problem, labour turn over in the fast food restaurants is very high at whack 96% in the U.S. Also, Restaurants are trying to provide better service to customers,...If you want to get a intact essay, effectuate it on our website: OrderEssay.net

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