Strategic Management and Strategic Competitiveness

StrategicManagement and Strategic Competitiveness

Inthe current competitive world of business, businesses have to deviceaffordable and sustainable ways and means of staying above thecompetition. The strategic management and strategic competitivenessstrategies that companies use dictate how well they may performcompared to other players in their area of specialization. Thestrategies need to be affordable so as not to take up more resourcesthan the business can afford. On the other hand, the strategiesshould be sustainable to have long-lasting impacts on the company’soperations. This essay seeks to analyze the management andcompetitive strategies of KFC, formerly known to many as KentuckyFried Chicken.

KFC,once known as Kentucky Fried Chicken, is an American fast foodcompany established in 1952 with a universal presence in over 130countries. With its headquarters in Louisville, Kentucky in theUnited Sates, KFC operates fast-food restaurants in many countries inthe world. The restaurant specializes in fried chicken, chickenburgers, French fries, desserts, soft drinks and breakfast packages.As of December 2013, the company had 18,875 branches in 118 countriesacross the globe, making it the second largest chain of restaurantsafter McDonalds (In Smith, 2013). The Company is one of the venturesof Yum! Brands Inc. Other ventures owned by Yum! Include Pizza Hutand Taco Bell.

Inthe world today, globalization and technology are the major drivingwheels behind most of the operations in many companies (Gong, 2013).As seen in the description of the business, KFC is focused on havinga global presence. It services are found in most areas of the worldincluding Asia, Australia, and Africa. The urge to have a globalreach is one of KFC’s goals, and the business is clearly workingtowards this. It opens new branches in new areas either by building abranch from scratch or franchising the already existing restaurants.

Inthe fast food business where KFC is a key player, technology has asignificant influence on the face of business. Technology is used invarious aspects of KFC operations. These include product promotionthrough its website and social media. Technology also makes operatingthe many branches that the business operates by easing communicationand coordination between management, staff, suppliers, customers, andanother stakeholder. Technology changes have forced the company tochange certain aspects of its operations (In Smith, 2013). Forinstance cashless methods of playing for goods and services haveseen the business embrace the use of debit and credit cards, awayfrom traditional cash payments.

Theindustrial organization model adds to the existing theory of themarket by incorporating aspects of the structure of other firms andmarkets operating in the same field as the company. The greatestinput of this model is that it adds the complications that emerge inthe real business world into the competitive strategy of a business.Such complications include transaction costs and limited access tovital information. Industrial organization analyzes the factors thatdetermine the relationship between the market, the firm and businessbehavior such as competition and monopoly. By doing so, theindustrial organization model explores the strategic behaviors ofbusinesses and how they interact to arrange the structure of markets.

KFCcan make major gains based on the industrial organization model. Themajor reason for this is that the environment in which KFC operatesin is determined by other players, not just KFC itself. For instance,McDonald’s is the major competitor of KFC in the fast food market.McDonald’s market strategies have a direct effect on the operationsof KFC. If McDonald’s decided to hike its prices unreasonably, mostconsumers would be attracted to KFC’s products and service by theirlower prices. As a result, if McDonalds does not lower its prices,KFC will gain a monopoly through consumer preference, leading toabove average returns.

Theresource-based theory views the availability of resources as the keyto an outstanding performance by any firm (Yong, 2013). Havingadequate resources gives the firm the ability to gain a competitiveadvantage over its peers. As per this model, KFC could earn aboveaverage returns if it has all the resources it needs at its disposal.These resources will include adequate supplies, qualified staff, andwell-furnished restaurants among others. With these resources at itsdisposal, KFC would have all it requires to operate at its productionpeak, enabling it to earn above average returns.

Acompany’s vision and mission statements act as the inspirationbehind working to achieve the set goals. KFC’s mission statement is“Tosell food in a fast, friendly environment that appeals to prideconscious, health-minded consumers” Themission statement guides KFC to give swift and friendly service totheir customers. It also ensures that their products safeguard thehealth and economic status of their clients.KFC’s Vision statement is&quotTobe the leading integrated food services group in the ASEAN regiondelivering consistent quality products and excellent customer-focusedservice.” Thevision statement keeps KFC focused on the consistent delivery ofhigh-quality products and exemplary customer service delivery.

AsIn Smith (2013) notes, KFC has different stakeholders. Each plays adifferent role in ensuring the success of the company. They includethe employees, customers, delivery crew, contracted vendingcompanies, suppliers, and government agencies. The employees do theirjobs diligently to keep the firm running. Customers play for theproducts and service they get, earning the company money. Thedelivery crew and contracted vendors ensure that KFC products reachtheir destinations and are served to customers respectively.Government agencies, for example, the Dairy Management Inc ensurethat KFC follows the set guidelines in its operations to avoidrisking the health of clientele, employees, and other stakeholders.


Gong,Y. (2013). Globaloperations strategy: Fundamentals and practice.Berlin: Springer.

InSmith, A. F. (2013). Foodand drink in American history: A &quotfull course&quotencyclopedia.