Introduction
KFC is a fast food restaurant business in Malaysia and globally. KFC
organization business started in early 1952. KFC organization business is a
leading fast food restaurant and captured various generation of customers mind
as “so good” fast food. KFC
organization business management has strong plans towards microeconomic issues
(Hanna & Camilla 2008, pp13-45).
According to the KFC organization business strategies shows that the
demand and supply of a product are well balanced at all outlets analysis. KFC
organization business maintains their strategies towards microeconomic issues
to maintain their various resources effects on demand of product at various
outlets (Lovelock, Christopher,2008,pp99-121).
KFC organization business products are more demand from various
generations of customers at all the times to meet the demands the KFC
organization business maintains their various resources. KFC organization
business analyzing time to time consumes behavior according to the periods so
that KFC organization business introducing various interested products to the
market (Hooley, & Graham, 2008 pp45-121).
Company Name : KFC holdings Malaysia Sdn.
Bhd
Company Owner : KFC
Company Established year : 1952
Company Location : Kula Lumpur Malaysia, have strong ware house to produce the
products to all outlets. There are many ware houses in Malaysia at different
location to meet the demand.
Company Size : Malaysia-100 ++ outlets
and different warehouses at various locations
Company Goods : Fast food products like
- Fried chicken
- French fries
- Drinks
- Rice
- Salad
- Wedges
KFC Behavior in Economic Problems
KFC organization business management is always looking into KFC
organization business economic structure to sustain their economical level. The
management analyzing the demand at various locations at various timings so that
they maintain their operations issues, functional issues etc., (Peter, &. Paul , 2008, pp45-92).
To balance the economical issues at various centers the management
also understands the various departments’ functionalities towards economical
issues. The management behavior in the direction of economic problems
particularly recognizes the proper demand and supply levels (Perreault, & William, 2008 pp33-71.)
According to the KFC organization business economical situation in
Malaysia the management is managing the demand of products at various outlets (Hooley, & Graham, 2008, pp45-121).
KFC organization business management is also look into carefully of
their infrastructure with advanced technologies so that they are producing
products efficiently as per the demand (Walker,
Orville C.2007). KFC organization business emphasizing their quality of
products is according to the customer’s satisfaction to meet the demand of
products at various outlets. So it helps to maintain economically in good
condition. (Lovelock, & Christopher, 2008, pp99-121).
KFC organization business market behavior shows that KFC
organization business management well understand the consumer behavior, market
behavior to take a proper decision in functional process, operational process, resource
implements as per the demand in the market. The market growth of KFC from 2006
to 2014 as shown in Figure 1.
Figure 1: KFC Market growth
Source: www.kfc.com/annualreports-2012
KFC organization business is also efficiently interaction between various
outlets operations to maintain their internal operations of final products. KFC
organization business management also understand the various factors influencing
between outlets and as well as consumers (Peter,
& Paul, 2008, pp45-92).
Application
of microeconomics in KFC
Microeconomic deals with the market behavior of KFC organization
business to understand the decision making of KFC organization business process
in various levels (Peter, J. Paul, 2008, pp45-92).
KFC organization business management identifies with individual
buyers and other external factors influences the various outlets consumers. The
microeconomics of KFC organization business supply of various products
according to the consumers taste and behavior to stands on demand of specific
products (Lovelock, Christopher,2008,pp99-121).
It is a clearly shows that KFC organization business is growing a
every outlets with the help of proper production process, quality of products,
inventory level, and various flavors of products as per the customers taste (Walker, & Orville, 2007, pp33-77).
Theories
applied
Consumer’s theory emphasizes on consumers mindset and consumers
budget constrain towards consumption of KFC organization business growth. The
consumer theory is more reflects towards KFC products.
Consumer’s mindset is varied time to time because of lot of fast food
competitors. Consumers mindset is also influenced form the environmental effect
like a social pressures. etc., (Perreault, &
William,2008, pp33-71).
Expectancy theory is also influenced on consumption of products.
This indicates that the demand level of KFC organization business. So the management
must understand consumer’s behavior and choices on products.
Environment
effects
The environmental effect is a major factor in economical situation
of KFC organization business. the mangment must understand the various factors influencing
on demand and supply (Peter, & Paul,2008, pp45-92).
One of the major issues is environmental issue to understand the
resources required to maintain the demand and supply levels to maintain higher level
of supply of the products it involves the environmental effect like employees
motivation, employees performance, mangment leadership roles etc as shown in
Figure 2 (Walker,
& Orville,.2007, pp33-77).
Resources
influences
KFC organization business maintains well balanced resources to meet
the required supply for the products to the market. To maintain the supply
levels the management must look into the resources particularly manpower, raw materials
and infrastructure at all outlets (Hooley, & Graham,
2008 pp45-121).
The Figure 2 explains the resources are major issue at KFC
organization business. In this aspect KFC organization business management
facing a problem at particularly time to produce supply level with a high
quality of the products as per customer satisfaction.
Figure 2: KFC Resources
Source:www.kfc.com/annualreport2012
Resources are important to maintain the demand and supply levels.
Resources in terms of supply level KFC organization business management realize
the connections and relationship with suppliers. Resources like consumers
attraction is a major element to maintain the supply and demand level.
Short
& Long run Productions
KFC organization business management always looking into long and short
term productions a various warehouses as per he various outlets demand’s KFC
organization business mangment also identify he short run production and its requirements
to maintain the demand levels (Peter, & Paul,2008,
pp45-92).
In long run production KFC organization business leaders maintains a
better relationship with suppliers of various resources to meet the required
supply levels at each outlets.
Figure 3 & 4 shows the short and long run supply and its is a strong
factor in economical growth because for a long run production KFC organization
business must maintain better inventory system to check the level of resources
at all warehouses. The graphs represents the fixed cost and variable cost of
KFC products (Perreault, & William,2008 pp33-71).
Figure 3: Long run Production Figure 4: Short run Production
Source: www.kfc.com/annaul=reports-2012
Demand
and Supply
KFC organization business mangment identifying the various demand
levels at various outlets. KFC organization business is growing towards various
flavors of products to attract he customers mind.
Customer behavior shows that the various outlets demand strength so
KFC organization business mangment maintains supply level form various warehouses
as per the demand as shown in Figure 4.
Figure 4: Equilibrium Demand & Supply
Source: www.mu.edu.au/DS.pdf
According to the figure one shows that a demand, supply and
equalibrum of a products at various outlets and at various period. This indicates
that KFC organization business mangment maintains better economical situation (Lovelock, & Christopher, 2008,pp99-121).
Determinants
effects
The various factors influencing demand and supply of products form
KFC organization business is human factor, infrastructure factor, consumer
factor and economical factor.
The human factor mainly employee’s role in warehouses in terms of
their performance will effects on supply and demand. The employees performance
directly influenced on supply level of production. The employees mind is very
important to maintain a high quality of products (Perreault,
& William,2008 pp33-71).
The infrastructure factor is also directly influenced on supply
level as per the demand. So KFC organization business management understands
the current infrastructure at various warehouses.
Economical factor is one of the strong factors directly related to
the resources involved in production. KFC organization business management
recognized the budget involved for various resources to maintain the supply
level as per the demand of the products at various outlets.
Government
intervention/ price regulation roles
KFC organization business started 1952 and expanded many outlets in Malaysia.
This indicates that KFC organization business understand the government invention
as well as price regulation influencing on KFC organization business.
Malaysia government towards taxation on various products is also influenced
on KFC organization business. Due to this intervention and price regulation the
products cost effect on customers. This is a big effect towards customers
buying behavior.
Sensitivity
in Elasticity of Demand & Supply
KFC organization business is flexibility in the direction of supply
of the products as per the different outlets demand. KFC organization business
mangment realize the current demand of the products so that KFC organization
business maintains the various requirements according to the demand level.
as per the KFC organization business market growth shows that there
is a strong demand of KFC products. KFC organization business is flexible in implementation
of new flavors of different size of products into the market. The flexibility
of supply of a products is depends on demand at various outlets (Perreault,& William, 2008 pp33-71).
The elasticity elaborates the differences in demand level of the products
fluctuations and trends and supply level shown in Figure 5. KFC products pricing system and their
strategies are impacts on relatively inelastic demand of KFC product pricing.
The figure % shows the perfect elastic, relative elastic, unit elastic as well
as inelastic if KFC products.
References
Hanna, H & Camilla L. (2008) Business
strategies of MNCs in international market., Indiana Polis: McGraw-Hill/Irwin.
Walker, K & Orville C .(2007) Microeconomics strategy: a decision-focused approach.
New Jersey: McGraw-Hill/Irwin.
Lovelock, M & Christopher, N (2008) Microeconomics Services marketing : people,
technology, strategy. New York: Pearson/Prentice Hall
Hooley, U & Graham J, (2008). Microeconomics strategy and competitive positioning. New York:
FT Prentice Hall.
Perreault, H & William D, (2008) Basic Microeconomics : a marketing strategy planning approach. London:
McGraw-Hill/Irwin.
Peter, J. & Paul, D. (2008). Consumer behavior and Microeconomics. Washington:
McGraw-Hill/Irwin.
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