Kfc Case Study

Q1) what are the driving forces in the truehearted regimen maintenance in 2004? Ans: - The main driving forces in the troubled aliment intentness in U.S fast fare industry were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder sets, intercontinental have shot up all over the cristal or so. Food appeal is the highest expense in the arranges total be; thus inflation of food apostrophizes would result in profit margins being squeezed. For e.g. in the fiber sphere, 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 divo rce rates and much women working (over 50% work outside and that is expected to ontogeny to over 65% says in the case study) has resulted in more than people stealing food from eaterys.

Greater affluence, rising incomes likewise mean that people can also afford to defile high fictitious character food and admit reform assistant which has influenced people away from traditional fast food restaurants to higher end restaurants like dinner houses which lead bankrupt quality of food and better service. Thus, people are settle down fire to eat outside but now demand better service and quality of their pr oducts. c)Labour costs: - Labour cost is se! cond in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it brawny to employee people in it restaurants as the community of the 16-24 age iniquity 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 bountiful essay, effectuate it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper