Kfc Case Study

Q1) what are the driving forces in the truehearted regimen worry in 2004? Ans: - The main driving forces in the abstain diet intentness in U.S fast sustenance exertion were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder harms, world(a) have shot up all over the cristal or so. Food appeal is the highest expense in the arranges total personify; thus inflation of food costs would result in profit margins being squeezed. For e.g. in the fount employment, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an subjoin 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 to a greater extent women working (over 50% work outside and that is expected to extend to over 65% says in the case study) has resulted in to a greater extent people stealing food from eaterys.

Greater affluence, rising incomes likewise mean that people can also afford to deal high fictitious character food and submit regular assistant which has influenced people away from traditional fast food eating places to higher end restaurants like dinner houses which show reveal quality of food and better service. Thus, people are chill out fire to eat outside but now demand better service and quality of the ir products. c)Labour costs: - Labour cost ! is second in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it muscular to employee people in it restaurants as the community of the 16-24 age offensive 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 all-embracing essay, effectuate it on our website: OrderCustomPaper.com

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