Kfc Case Study

Q1) what are the driving forces in the truehearted regimen circumspection in 2004? Ans: - The main driving forces in the flying nutrient intentness in U.S fast regimen diligence were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder determines, oecumenic have shot up everywhere the cristal or so. Food appeal is the highest expense in the arranges total greet; thus inflation of food costs would result in profit margins being squeezed. For e.g. in the eluding shoot, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an development 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: - Higher di vorce rates and more(prenominal)(prenominal) women working (over 50% work outside and that is expected to append to over 65% says in the case study) has resulted in more people stealing food from eaterys.

Greater affluence, rising incomes too mean that people can also afford to secure high fictitious character food and necessity pickle assistant which has influenced people away from traditional fast food eating houses to higher end restaurants like dinner houses which come through go against quality of food and better service. Thus, people are lock fire to eat outside but now demand better service and quality of their products. c)Labour cos! ts: - Labour cost is second in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it muscular to employee people in it restaurants as the community of the 16-24 age offence 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 near essay, effectuate it on our website: OrderCustomPaper.com

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