Identify the different legal systems. Understand government-business trade relations and how political and legal factors impact international business. Why should businesses care about the different political and legal systems around the world? To begin with, despite the globalization of business, firms must abide by the local rules and regulations of the countries in which they operate.
From tothere was an increase of 0. This was mainly due to the new launched of combo meal called KFC X-Meal, which offers extra choice and variety. It consists of an OR Fillet Burger, one piece of chicken and a choice of either regular potato wedges or regular coleslaw or a regular whipped potato.
This was the first time ever KFC customers could get both burger and chicken with a side dish as part of one individual meal combo. This meal had reduced the anxiety of customers especially teenagers and young adult who wanted to eat both burger and chicken at the same time yet paying affordable price.
This is the reason that the revenues rose up 0. Interestingly, the revenue also increased by 0. Apart from the X-Meal that generated huge sales which was permanent product sold in every KFC restaurants. Another reason was due to new launched of product by KFC Restaurants. This product was successfully launched to target teens and young adults as well.
With heavy advertisement and promotion costs of RM4 Million, the increased sale was showing a positive return of the effort Tong Children KFC targets children boys and girls with age 12 below who love to eat fried chicken. At the same time also targets children who love to get free toys with meals.
Normally, KFC target boys and girls who like to eat both fried chicken and burger at for an affordable mean. KFC also have children playground that normally parents would bring their children to play at there, while they could peacefully eat their meals.
Thus KFC also has ala carte menu and real savers menu which emphasize in 1 set with lower price and side orders as well such as potato wedges. There are many other competitors in the market which includes Sugar Bun, Marie Brown, and other fast food chain restaurants.
On the other hand, there is an inter-competition among the SBUs of same corporate for examples Pizza Hut. There were quite a number of successes that McDonald had achieved, for example Superbrands Certificate was given to McDonald in the year Superbrands Asiaand its creativity in the recent year is crucial for its success Chen However, for a company to survive in a country is not simple, and it requires something special that others do not have, for example sustainable competitive advantages.
The meaning of sustainable advantages means erecting barriers against competitor, just like what KFC has something special over McDonald.
The first restaurant of KFC in Malaysia was opened in year while the first restaurant of McDonald in Malaysia was opened in the year This early entry into the market is very important because first comer usually gain more from the experience curve.
It is advantage that it will manage to get its materials at a cheaper price, because of the same corporate it is in, as compared to dealing with other external supplier.
As for the McDonald, the advantage would be its worldwide reputation is better than KFC Keenbecause of the popularity and the wider acceptance. One more advantage, would be that it is not public listed, the reason being it is an advantage is because it can prevent its competitors to get its information like sales revenue conveniently.
Although both of the companies have their own advantages, but the advantages of KFC Malaysia are seems to be internally, which is still not yet fully utilized.
While for the McDonald, it has fully utilized its brand name, its creativity to create better awareness among population in the world. The very important criterion is to fully utilize advantages of KFC to out win its major competitor, McDonald.· Political Stability: Vietnam is an independent, socialist republic country, governed by the only power: Communist party of Vietnam—-contribute to the stable and safe environment.
· Economic factors: · The economy of Vietnam has been through a transformation the last 30 years, Vietnam has evolved from a disorder and poverty society to. The External Environment and Its Effect on Strategic Marketing Planning: a Case Study for McDonald's s. 5 6 7 2 McDonald’s and its external environment 8 9 Political/legal factors Political factors include laws, agencies and groups that influence and limit organisations 1 and individuals in a given society.
the short term but. "There are two factors when looking at market potential – the first is how we do business, call it our internal ambit of control.
The second is the external environment - political stability, economic growth, infrastructure investment etc. The macro-environmental or external factors of KFC can be identified by using PESTLE analysis which stands for Political, Economic, Social, Technology, Legal and Environmental.
Political factors: This factor mainly deals with the government policies and procedures which is worked out through legislation and consists of all legal factors such as. Political Factors.
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. The Department of Health is putting the fast food companies McDonald's and KFC and processed food and drink manufacturers such as PepsiCo, Kellogg's, Unilever, Mars and Diageo at the heart of.