Kentucky Fried Chicken Case Study
Kentucky Fried Chicken and the Global fast-food Industry The case focuses on four major topics: (1) analysis of the fast-food industry from both a domestic and an International point of view; (2) the development of Cuff’s business strategy from 1992 to 1996; (3) an analysis of Cuff’s Investment strategy In Mexico and Latin America; and (4) the Mexican peso crawls of 1995.
This case begins by analyzing the strategic changes that took place In Kentucky Fried Chicken Corporation (KEF) as t moved through a variety of ownership changes from the sass through the sass: (1 ) CIFS founding by “Colonel” Harlan Sanders in 1954; (2) the sale of KEF to Jack Massey and John Young Brown, Jar. , in 1964; (3) Hobbler’s acquisition of KEF in 1971; (4) the acquisition of Hubble by R. J. Reynolds in 1982; and (5) Pepsico acquisition of KEF in 1986.
As such, the case provides an opportunity to examine issues related to corporate diversification/ acquisition strategy and business portfolio management.
The case also discusses the U. S. Fast-food industry and its international dimension. It also examines Cuff’s international strategy with a particular focus on Mexico, providing a vehicle for discussion of risks and opportunities of doing business In a foreign country. Some of the Strategic Issues and Discussion Questions for This Case Include: 1. How did different corporate parentage-under Hubbell, R.
Reynolds, and PepsiCo-affect KEF? 2. What motivated the three International corporations to ay KEF? 3. Can you identify any added value that each of these three firms brought to KEF? 4. What are the driving forces in the fast-food industry? 5.
Using the five forces model, assess the strength of each force within the fast-food industry. 6. Complete a SOOT analysis for KEF. 7. In what ways is KEF positioned to take advantage of the industry key success factors? 8. What are the major strategic issues surrounding Cuff’s decision to expand or freeze growth In Mexico?