Fundamentals of Marcoeconomic

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to develop a new market. More than 70% of the market in India being unexplored and unorganized, KFC has a good scope of expanding its operations in the country. KFC have a good scope to open more branches to get maximum market share. Beside that, they have opportunity to expand their sweet products. For cross culture, people are opening up to fast foods more regularly in their daily lives as the Indian mindset is fast changing. KFC also have large youth population. As the young generation are more open to fast food and demand it more, so this is a good news for KFC company. Apart from this, KFC have opportunity to develop new variety. It can come up with new variety in the menu like Pizza, garlic breads to attract more people.

Threats

The threats that faced by KFC are entrance many competitors in to the market that may be local or international brands. Competitor companies like McDonald, Subway, and other fast food chains more familiar are fast chasing up with the market.

The second threats for KFC is from Ngo’s and political organization. Anti-KFC campaigns, such as the one from PETA are affecting KFC’s brand image in a negative way and result in direct dollar losses, as less people are consuming KFC chicken

Saturated US Market also is the one threat for KFC. Now KFC cannot rely on just its home market to generate sales. As the US markets are already saturated and leave no or little scope for growth, company necessarily needs to look at offshore foreign markets to generate sales and keep up the profits.The last and serius threats for KFC is economic crisis. With the government facing high fiscal deficit tax and duty hike like result expenditures cutting on luxury food items.

Environmental element

Social culture

Culture element includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are features of a given geographic area. Multinational company faces the challenge to understand about the culture of that country where they work. To solve these problems KFC hire all employees of local area and now it is easy for them to understand about the culture of everywhere. KFC also emphasize in religion, for instance KFC management knows about that Pakistan is a Muslim country, therefore they use100% Halal chicken. KFC start their branches in those cities which are famous for food eating. Pakistani people like spicy foods, therefore KFC also provide spicy foods in Pakistan. KFC open its branches in advance cities of Pakistan like Lahore and Karachi. In these cities mostly come out with their family because KFC mainly focus family. The family is the most important consumer-buying organization in society. The traditions followed by family are carried forward in children. Family consuming non-vegetarian food passes this attitude to their children also.Many respondents told us that they are non-veg because of their family. So people developed their interest of going to KFC because they are non vegetarians. Small children go to KFC with their parent, which reflects that family plays an important role in decision making

Technological

Technology is very important for the success of any organization. Because without modern technology no organization can compete in the market. The technological know how and expertise will also enter the market with an increase in competition. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. For example, KFC and Domino’s pizza. For a fast food restaurant, technology does not give a very high impact on the company and it is not a significant macro environment variables. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation. KFC purchase machinery from Hanney Penny company, they are main suppliers of machinery through out the world.For example, in inventory system, supply chain management system to manage its supply, easy payment and ordering systems for its customers and wireless internet technology. They use the modernization technology to advertise their product. They make a website of KFC so easily we just search in internet what do we want about KFC and so many information about KFC. There are also many transactions that do by internet and the KFC just delivered the order to the customer address. In our country they have the phone number that can contact if we want to order some food. Sometimes the customer lazy to go out to buy some food, this is the reason they make an order delivered. This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time.

Demographic

In demographics segmentation, the market have divided into groups that base on age, gender, family size, income, occupation and attitude.KFC’s first segment is consisted of the income which are high income, average income and low income. Income is an important key factor for KFC. This factor decides which class is to be targeted. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. For age, generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society. For gender,both male and females are focused by KFC, gender does not play any role here. Family Size is the one of the demographic factor of KFC. This plays a vital role in the demographic factor of the KFC. Generally they target whole families rather than single persons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. For occupation, everyone can use this products means businessman,students, workers and other people. Lastly, attitude of customers also is the one of important factor. When the customers once buy the KFC’s products, they can use the product continuously.

Political

Marketing and business decisions are strongly affected by the changing in political environment.There are different factors such as laws on business employment, population and taxation apply on organization which it has to follow regarding the rules. This has ensured that such international firms as KFC enjoy initiated and implemented policies regarding the operations as well as ownership of business entities. Such government incentives as non-tariff barriers, as well