BPMN 3023 STRATEGIC

MANAGEMENT
GROUP A1
Presented By:

Loh Siew Chin 110683

Pang Jia Chee 110817
Tan Tian Hong 111406
Phang SheinYig112454
Yap Lee Khim 113088
KFC & MCD PROFILE
KFC McDonalds
Founder Colonel Harland Sanders Raymond Albert Kroc

First Jalan Tunku Abdul Rahman, KL Jalan Bukit Bintang, KL on

year 1982.
restaurant in on year 1973 .
Mission
Malaysia To be the leading integrated food services To be our customers'
group in the ASEAN region delivering favourite place and way to
consistent quality products and excellent eat.
customer-focused service.

Vision To maximize profitability, improve To provide Simple Easy

shareholder value and deliver sustainable Enjoyment to every
growth year after year. customer at every
Visit.
KFC & MCD PROFILE
KFC McDonalds
BOD 7 members 9 members

Managing Mr. Jamaludin bin Md Ms. Sarah Casanova

Director Ali

Main Fried Chicken Burger

product
KFC & MCD PROFILE
KFC McDonalds
Slogan

Mascot
SWOT & TOWS MATRIX
 S W O T A N A LY S IS
Strengths : Weaknesses:
KFC has distinctive competence. Leads to loss of control and quality.

Chains for its convenience and menu variety. Lack of most liquid assets to current liabilities.

Name recognition and reputation. Health trend away from fried foods.

Provide employee benefits to maintain employee loyalty. Frozen food is not good for health and despite what so ever

Good practice in corporate social responsibility the standard they maintain.

Has a higher brand share of Chained Fast Food in Malaysia. Lack of customization.

Opportunity: Threats:
Changing customer lifestyle. Change of customer demands.

Increase competition from local outlet. Existing competitors.

Future expansion. Different preferences.

Food and beverage sector normally is a lot more recession- Bird flu.

resistant. Trademark confusing.

Malaysia Culture and religion

Kampung New Economic Model (NEM)

T O W S M A T R IX
SO strategies WO strategies
Open more news outlets in rural Inspection process (W1, O3)

areas (S1, S2, S3, O6) Set up a team of food technologists

Dominate fast food industry in (W3, W4, O2)

Malaysia (S1, S3, O4) Online order and delivery services

Customer friendly (S4, O4) (W5, O4)

ST strategies WT strategies
Introduce healthier recipes (S1, T1) Customization customers’ needs

Introduce cheaper items in the menu (W5, T1, T3)

(S2, T2) Work on the image of a healthy fast

Engage in corporate social food chain through advertising (W3,

responsibility (S5, T5) W4, T1)
Reduce the inventories (W2, T2)
S W O T & TOWS MATRIX
 STRENGTHS (S) WEAKNESSES (W)
1. Focus on quality service and customer 1. Poor Publicity of Unhealthy Fast Food
satisfaction. 2. Costly Rebranding
2.Create a consumer retention program 3. Poor Global Image
3. Adapt to local. 4. Difference due to Franchisee
4.Understand Consumers Trend and Needs 5. Food Quality
5. Training to employee
6.Superb Supply Chain Management
TSOIWSSYLANA

OPPORTUNITIES (O) THREATS (T)

1.Backward integration 1.High threat of new
2.Urbanization entrants
3.The change of lifestyle 2.The increase of ageing
4.The expanding of population
population 3.New entrance create
5.The rapid growth of similar name
Technology 4.The increase of health
consciousness
5.The increase of global
warming awareness
SO Strategic
1. Expand and retain customers by providing
online order services. (S4,O5)
2. Provide staff training in delivery better
Customers’ services and handle e-
commerce. (S5,O5)
3 By maintaining the quality service,
McDonalds will get more customers.
(S1, O4)
ST Strategic
1. Providing customized food package.
(S4,T4)
2. Provide vegetarian and fresh juice
product. (S3,T5)
3. Expanding market niche to family
packages. (S3,T4)
WO Strategic
1. Using the technology to keep warm food
and provide real time service.(W5,O5)
2. Enhance reputation of food quality. (W5,
O4)
3. Improve the image of fast food (W1, O3)
WT Strategic
1. Provide more information about the food.
(W1,T4)
2. Enhance reputation by concerning welfare
for old folks and handicapped person.
(W3,T2)
3. Enhance contribution in earth save program
(W3,T5)
TOWS MATRIX
INDUSTRY ANALYSIS
THE FIVE- FORCES
MODEL OF
COMPETITION
NUMBER OF FAST FOOD OUTLETS FOR
MCDONALDS, KFC, A&W AND MARRYBROWN
AND THEIR MEAL PRICE COMPARISON

Rivalry No. of outlets in Malaysia Meal Price

McDonalds 196 RM8.95 ~ RM11.15

(McValue meal)

KFC 475 RM5.20 ~RM10.35

(Combo Meal) (+ add on drink RM1.80)

A&W 43 RM8.50 ~ RM10.20

(Classic Combos)

MarryBrown 100 RM10.30 ~RM15.50

Burger King 22 RM8.85 ~ RM14.50

 COMPARING ALA CARTE PRICE
AMONG COMPETITORS
Fast Food Fried chicken Drink Burger French Breakfast Kid’s meal
(Hot Milo) fried

RM7.15 RM3.25 RM3~ RM7.75 RM2.00S RM7,90~ RM7.30~

2 piece RM3.80 RM3.25M RM9.80 RM7.95

RM6.05 RM2.65 RM3.50~ RM2.75R RM4.00~ RM7.90

2 piece RM5.90 RM3.15L RM9.30

RM6.50 RM2.80 Rm5.20~ RM2.70R RM6.50~ RM7.50

2 piece RM7.50 RM3.60L RM7.90

- - RM4.10~ RM4.00M - RM10.30

RM9.90 RM4.70L
THE FIVE- FORCES
MODEL OF
COMPETITION
SUBSTITUTE PRODUCTS OUTLETS
AND MEAL PRICE
Substitutes Products No. of outlets in Malaysia Meal price (1 set)

208 RM8.50~RM13.00

19 RM7.90~RM24.90

56 RM12.99~RM14.99

200 n/a

64 RM9.90~RM25.00

38 n/a

uncountable RM1.20~RM5
THE FIVE- FORCES
MODEL OF
COMPETITION
 BRAND SHARES OF CHAINED FAST FOOD
2004-2007
Fast Food Global Brand Owner 2004 2005 2006 2007
Yum! Brands Inc 45.8 46.8 48.5 52.7
McDonald's Corp 22.6 22.0 21.2 19.6
Marrybrown Fried 3.2 3.8 4.3 4.8
Chicken Sdn Bhd

Yum! Brands Inc 2.3 2.4 2.4 2.4

Burger King Holdings Inc 2.2 2.4 2.4 2.1
Others Others 23.9 22.6 21.2 18.4
TOTAL 100.0 100.0 100.0 100.0

Source: Trade associations, trade press, company research, trade interviews, Euromonitor International estimates
REASON TO CHOOSE PREFERRED FAST FOOD
RECOMMENDATION (KFC)

• Special Menu
ØDiet Menu
ØSugar Reduce Menu
ØHigh Blood Pressure Menu



RECOMMENDATION (KFC)

• Online Order
ØIncrease revenue
ØMake business efficient
ØBroader customer reach
ØLow advertising cost
ØZero cost maintaining
RECOMMENDATION (KFC)

• Delivery Service
ØIncrease sales
ØConvenient
Ø
RECOMMENDATION (MCDONALDS)

• Vegetarian Menu
ØMany vegetarian in Malaysia.
ØHalal certification requirements.
ØHealth concern: nutritionally
adequate, and provides health
benefits.
Ø
RECOMMENDATION (MCDONALDS)

• Vending Machine
ØFlexibility inherent.
ØClient satisfaction.
ØReduce employment cost.
ØWork 24 hours without complaining.
ØPassive Income.
ØDon't require training, supervision, or
motivation.
Ø
Fresh Pizza
This vending machine is a pizzeria in a box. ‘The wonder
pizza’ cooks 9 inch pizzas in a mere 2 minutes each. Users
can select their desired crispness and pick from 3
different flavors. Each machine can hold around 100 pizza
and uses real ovens not microwaves to cook the pizza.
u * tique
The ‘u*tique’ would best be described as a luxury vending machine; its
designer Russell Greenberg was asked to create the Ferrari of
vending machines. the machine was first put to use this past
February and carries a curated selection of 50 exclusive products.
the company explains that the items in the machine have all been
hand picked by a group of international trend hunters. the machine
features a touch screen panel that gives more information about each
product to the buyer. the machine stocks everything from designer
jewellery to bath and beauty products.
Questions?
Thank You!