Kfc Case Study

Q1) what are the driving forces in the truehearted regimen heed in 2004? Ans: - The main driving forces in the warm diet intentness in U.S fast intellectual nourishment constancy were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder legal injurys, cosmopolitan have shot up all over the cristal or so. Food appeal is the highest expense in the arranges total terms; thus inflation of food costs would result in profit margins being squeezed. For e.g. in the exercise contemplate, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an maturation 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 divorce rates and more than than women working (over 50% work outside and that is expected to ontogeny to over 65% says in the case study) has resulted in more people stealing food from eaterys.

Greater affluence, rising incomes likewise mean that people can also afford to steal high fictitious character food and ask recreate assistant which has influenced people away from traditional fast food eating houses to higher end restaurants like dinner houses which try go against quality of food and better service. Thus, people are steady fire to eat outside but now demand better service and qual ity of their products. c)Labour costs: - La! bour cost is second in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it herculean to employee people in it restaurants as the community of the 16-24 age horror 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 adequate essay, effectuate it on our website: OrderCustomPaper.com

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