ENTATION ON THE CASE STU OF KFC in INDIA - Ethical Issues By Anjli
BACKGROUND OF KENTUCKY FRIED CHICKE KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant chain. Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for hungry travellers. In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN. KFC is part of Yum! Brands, Inc., the worlds largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world.
BACKGROUND OF KENTUCKY FRIEDCHICKEN KFC operates more than 5,200 restaurants in the United States an Yum! Brands is run by David Novak, Chairman & CEO . d more than 15,000 units around the world. 109 countries and territories around the world. Every day, more than 12 million customers are served at KFC restaurants. KFC Division is run by Cheryl Bachelder, President and Chief Concept Officer 8 Million Customer Each day.
K C’s E F ntry in INDIA KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.
IssUEs:» Understand the significance of cultural, economic,regulatory and ecological issues while establishing business ina foreign country» Appreciate the need for protecting animal rights in developedand developing countries like India» Understand the importance of ethics in doing business» Examine the reasons for protests of PETA(People for EthicalTreatment of Animals )» Identify solutions for KFCs problems in India
Problems for KFC Protests by farmers led by the Karnataka Rajya Ryote Sangha (KRRS) & the farmers leader was Nanjundaswamy who used the term ‘junk food’ against KFC. Protests by cultural & Economic activists. Protests by PETA in the late 1990s. Support of celebrities in against of KFC
SWOT ANALYSIS STRENGTHS WEAKNESSES•UNDERSTAND THE CULTURE,REGULATORY& ECOLOGICAL ISSUES. •NON ETHICAL BUSINESS PRACTICE•UNDERSTAND THE IMPORTANCE OF •PETA PROTESTETHICS IN DOING BUSINESS •KRRS PROTEST•EXAMINE THE REASONS FOR PROTESTS •MSG FLAVOUR IN CHICKENOF PETA•IDENTIFY SOLUTIONS FOR KFC’S PROBLEMSIN INDIA THREATS OPPORTUNITY •MSG CHICKEN FLAVOUR•RETAIL BOOM IN INDIA •PETA LIKE ORGANIZATIONS•INDIANS YOUTH ARE ADOPTING WESTERN •POLITICAL PARTIES PROTESTINGCULTURE FOR JUNK FOOD•INDIAN ECONOMY •PROTEST SUPPORT FROM FAMOUS•COSMOPOLITAN RAPID DEVELOPMENT PERSONALITIES LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN ABRAHAM ETC
Questions For Discussion Question 1 -Since its entry in India in 1995,KFC has beenfacing protests by cultural & Economic activistsand farmers. What are the reasons for theseprotests?
Answer 1 Need for protecting animal rights Chicken they serve is full of chemicals (mono-sodium glutamate) It encourage farmers to shift production of crops to animal feeding Leaves poorer section of society with no affordable food.
Question 2 -Do you think in the light of fierce competition, itis justified for business organizations not togive importance to ethical values at the cost ofmaking profits? Why or Why not?
Answer 2No, in the light of cut throat competition, the co. should giveimportance to the ethics rather than the making profit. Profit comes from customers. Customers have ethics. Customer is always right.As someone very rightly said, “customers are always right and ifat any point of time u feel that customer is wrong, and then youare wrong.”
CONCLUSION Finally, we can understand from the case that every business organization should understand the importance of ethics by understanding the culture, regulatory & ecological issues in different countries. KFC should implement a farm level guideline & audit program - a program which is industry-leading in the areas of poultry care and handling, mainly for their suppliers in the broiler industry.