Pest Analysis of KfC Essay

1.0 introductionKentucky fried chicken also knows as KFC, the world most large and headspring knows fast victuals restaurant that have more than 10 thousands locations worldwide in more than 80 countries. People from younger succession to older age also know the slogan of KFC, which is Finger lickin Good, and the old man with white suits hand holding a black color crutch. Nowadays, we derriere find oneself KFC in any shopping centre, or nigh popular location. We fuck get service or their product easily, it really convenient. I want to convey a gent analysis of this company. First I have to cover the history of KFC, and hat services and products that KFC provide.History of KFCKFC, Kentucky fried chicken is born at category 1950 at a remarkable pace from one road side restaurant into an internationally renowned restaurant chain. KFC is founded by Harland Sanders in Corbin, Kentucky. He was born on a small farm in Henryville, Indiana, America, in 1890. Sanders open his first r estaurant in a small front direction of a gas station in Corbin, Kentucky. He had names the dining atomic number 18a as Sanders Court & Caf.In year 1936, Kentucky Governor Ruby Laffoon makes Sanders an honorary Kentucky Colonel in recognition of his recognition of his contributions to the states cuisine. Sanders also developed a unique, quick method of spicing and pressure frying chicken. Finally, the business growth exceeded until he cannot handle, so he sold it to a group of people formed the Kentucky Fried chicken.In 1964 Sanders sold Kentucky Fried Chicken to an investor group headed by arse Y. Brown, Jr. and Nashville financier John (Jack) Massey that Colonel Sanders still was Kentucky Fried Chicken Goodwill Ambassador for helping and giving suggestion. Sanders Colonel died in 1980 he was 90 year old. Although he is no longer with us, his philosophies of gruelling work and excellent service we provide to our customers will al paths be a part of KFC tradition.Products and s ervicesThe briny product of KFC of ca using up is the original fried chicken. After this, the spicy fried chicken is coming up near. Except of these products, KFC also provide many contrasting kind of fast food. For utilization, salads, sides, big box meal, meal for kids, desserts, and much different type of plated meals. Now the latest product is twister, it helps KFC growing many profit. People can put together depends on their wants. It really convenient for customers. KFC also provide much kind of services, such as 24 hour service, free delivery for some selected location, online ordering, eruptdoor catering, kid play areas, special dining facility for business customers and more. It can save customers time and costs. That why people like to have meal at KFC.2.0 Company chapPEST stands for political, economical, social, and technological. It is important for a business beca implement it will go the environmental impact of the business. Recognition is a useful way of pe sts, and looks forward to the external environment of commercial operation. The strategic that KFC use is demographic, the following factors are included in the demographical of the PEST of KFC. The first one is age, at that place is no age limit is focus by KFC, and they but target on every age of the society. But I think that KFC will target on younger more than the older. The second is household size, KFC will more target on a whole family members, that why KFC have provide many family packages meals. The next one is cosmos. Population have played an important role in KFC. The light of population they can make their strategy.2.0.1 Political factorsPolitical is the first component of PEST, it will influence the business in many type of way. Political can make many advantages and opportunities for a business. For example, in government policies. KFC have to chase the policies of the government in the location they run their business although KFC is a foreign company. KFC have handled this policy very well and obey the policy of the government, in order to run this type of business in that particular location. The next policy is price policies. KFC maintain the price policy by the way of keeping in the view of income distribution of the people who living in the country. This is the reason why KFC had targeted all theclasses.2.0.2 Economic factorsEconomic is the second element of PEST, all the organization is touched by the national and global economic factors. The first one is income. Income is important factor for KFC it is because incomes will decides which class KFC is going to target. In the early year of KFC, they only forces on the upper class. After few years, KFC start to demonstrate some meals that target on the middle and the upper level. The next economic factor is payment methods. KFC will do some research on what payment methods is convenient for their customers, then only check whether collect money in the form of coin or plastic money.2. 0.3 Social factorsThe leash element of PEST is society. It concentrates forces on family, friends, neighbours, colleagues, and media. The first factor is social class. Social class divide into 3 classes, there are upper class, middle class, and lower class. As I say early, KFC had targeted all the classes to increase the profit of the company. The next two factors are farming and religion. Although the culture of KFC is different, but KFC also try to adopt the different culture from different location. For example, KFC had adopted the Pakistani cultures. KFC is not only adopting the culture, but also the religion also. KFC put forward Halal food to the customers, this is mean that they accepted the Muslim religion.2.0.4 Technological factorsThe last element of PEST is technological factors. This is the progress of technology has been greatly changed the way they do business. The first factor of technologic is pace of change. It is same meaning of rate of change. KFC had make a st rategy, if they think is time to introduce the new technologic, they only will out the technologic. The next two factors are research and development, and capital formation. These two factors are important factors of technologic. KFC support the work of research and development in order to introduce the new technology. KFC also has a stock of machinery to run their business activities.2.1 information of PESTPEST is use to identity external forces adjoining the business. This is someexample that shown the businesss political, economical, social and technological environment. To indentify the environment, the company have to compete in future, it have to understand the power ad shape variation. In the PEST analysis, it will consider every factor is involved in the entire business environment.There are some examples of PEST PoliticalPolitical factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. It had includes the le gal and regulatory, elections, employment law, customer protection, environment regulations, taxes, political trend and more.EconomicalEconomical factors included economic growth trends, consumer confidence index, government spending levels, exchange rates, taxation, disposable income, unemployment, tariffs, inflation, production levels and more.SocialIt included demographics, health, living standards, housing trends, fashion, lifestyle changes, diversity, immigration/emigration, attitudes to work, leisure activities, occupations, population shifts, trends, fads and earning capacity.TechnologicalIt included bio-tech, health, research, communications, inventions, internet, information technology, transportation, rates of obsolescence, manufacturing advances, genetics, waste removal/recycling, and so on.3.0 The effect of PESTPEST will influence the company earn, there are some example of the effects of PEST factors that I want to shown below The first element of PEST is political. Pol itical is an important part of PEST, it will affect the price change of the company. For example, if government want to increase the taxes, business have to pay more taxes therefore, the price will increase. Just like alcoholic drink, the increase of the tax rate effect the markedly reduced. On another hand, employment law also play an important roles is political, it protect the benefit of employees, be upright to employees. The second element is economic. If the economic inflation is low, it will cause the company to cut cost and reduce the profit margins. It will affect thecompany hard to pass on to the consumer.Another effect is, the demand is buyout, the cost of capital is low, and it will attract investment and growth of the company of being profitable. Although a deject economy will generally be a treat which results in a number of organizations going out of business, it can provide opportunities for some (Robinson and et al., 1978 Thompson, 2002). The third element is soci al. It affects the population health, lifestyle change and more. For example, social had forces KFC to change menus because of the health consciousness. The changing of the demographics will affect the company, for example, the chaining of the population of age, regions, numbers of working and more can influence the demand for the product or service.This is the affect of the social on PEST. The last element of PEST is technological. Technological will affect the energy use and the cost. For example, the company use machine to produce the product, it will save more energy and time compare to workers. Nowadays, technology is popular of organization a business. They use internet to promote their product, it had increase the convenient of people. New technology can increase the profit of company, but before use the technology, company have to put up some employees to attend the training.4.0 ConclusionThe PEST analysis is important for every business. It is very important to have PEST c ontrol in all food company. A good PEST can helps us to avoid taking the wrong action from begin, it for the reasons beyond the control. PEST is important for start business on a new area or countries. It helps you to faster adapt to the realities of the new environment. The political, economic, social and technology stand for PEST. Use PEST headlines from the characteristics, agitate countries or regions, and drop behind conclusions important strength, change the scope of business. PEST is a useful tool for a business to control their economic and some policies of the country.With the analysis of pests, can fill the horizon of the company, and the longer to clarify strategic opportunity and threat the organizations face. Through the observation of the potential external environment, we can see the changes on the horizon, the enterprise imminent strategic picturening process from the stage and the horizon in day of tomorrow. Not a set of strict pests ideas need to be classified i nto the compartment. This is the best one, canbe used to fish for important facts.5.0 References Wichudaa Hnoodaam (2009). Background KFC Corporation. Online Aug 7th 2009. Available from World Wide Web http//murasakibara-murasakibara.blogspot.com/2009/08/background-kfc-corporation.html. accessed 12nd oct 2010 Tutor2u.com 2009. Strategy- introduction to PEST analysis. Online available from World Wide Web http//tutor2u.net/business/strategy/PEST_analysis.htm. accessed 12nd oct 2010 Learn marketing.net 2009. Marketing environment- PEST analysis. Online available from World Wide Web http//www.learnmarketing.net/pestanalysis.htm. Accessed 12nd oct 2010 Khawaja Naveed 2010. KFC marketing plan for Pakistan. Online available from World Wide Web http//www.scribd.com/doc/15657169/KFC-Marketing-Plan-for-Pakistan . accessed 12nd oct 2010 Lucky ee 2008. KFC new product plan. Online available from World Wide Web http//www.scribd.com/doc/9259321/KFC-New-Product-Plan. accesses 12nd oct 2010 A level of achievement business studies A level resources 2004. PEST analysis. online http//www.ngfl-cymru.org.uk/vtc/bus_studs/members/downloads/PDF%20Output/PEST.pdf. accessed 13rd Oct 2010 MindTools.com.1995-2010. PEST analysis. online http//www.mindtools.com/pages/article/newTMC_09.htm. accessed 13rd Oct 2010