Research Problem

The expansion of KFC to urban Australia would result in better growth and competitiveness

However, there are problems that might arise

These could result in difficulties for KFC in achieving the objectives of its planned expansion

Many macroenvironmental and microenvironmental factors could affect KFC

KFC must have cognizance of these micro environmental and macro environmental factors

KFC must perform a study about the factors that could either hamper or promote its growth in
urban Australia

It must design an expansion strategy which ensures the highest level of success

Research Methodology

The researcher adopted the quantitative research design

It involves the use of statistical and mathematical models

A descriptive research was done to describe the macro environmental and micro
environmental factors affecting KFC i

A questionnaire was the main research instrument used in this project

An online questionnaire was dispersed to 150 people

These people are from the cross section of the management of organizations from the
Australian fast food industry

The questionnaire was designed according to the accepted standards for a quantitative
research

Questions relating to the respondents demographics were asked first

The more complicated questions about the research variables were asked later

Research Population

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The population consisted of people working in the management of organizations in the
Australian fast food industry

These persons would have the best knowledge about the fast food industry

The simple random sampling method was used

The sample consisted of 150 respondents

SPSS was used to analyse the data

Frequencies tests were done to show important demographic trends in the data

Descriptives tests were done to show the level of agreement among the respondents with the
items in the scales

Correlation tests were carried out to show the relationship between the dependent variable
and the independent variables of the research

The first limitation of this study was time limitation

The second limitation was to do with the lack of secondary data about the KFC Australia

The third limitation is that all the research findings can only be used to reflect the expansion
KFC in urban Australia

Findings

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The frequencies findings show that a majority of the respondents are:

Between the ages of 26-30.

Males.
Have a degree education.

Married

Are from New South Wales

Descriptives test results for the expansion variable show that:

Expansion of KFC in urban Australia would result in greater profitability (mean 4.83)

Expansion of KFC in urban Australia would result in greater market share (mean
4.76)

Expansion of KFC in urban Australia would result in greater competitiveness (mean

4.71)

The greater the presence of KFC in urban Australia, the stronger the brand recognition
(mean 4.77)

The presence of KFC in urban Australia would enhance visibility of the brand (mean
4.83)

Descriptives test results for the macroenvironment variable show that:

Fast food consumers in urban Australia have higher purchasing power (mean 4.76)
Fast food consumers in urban Australia have a preference for eating fast food (mean
4.71)
There is wide availability of modern food production related technology in urban
Australia (mean 4.71)
There is greater attention towards environmental protection in urban Australia (mean
4.77)
Fast food consumers in urban Australia are likely to uphold consumer laws that
safeguard them (mean 4.76)

Descriptives test results for the for microenvironment variable:

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 There is high availability of suppliers in urban Australia (mean 4.71)
There are a higher number of potential customers in urban Australia (mean 4.77)
The degree of competition between fast food chains in urban Australia is very high
(mean 4.83)
The availability of employees to staff fast food companies is higher in urban areas
(mean 4.76)
The importance of social responsibility is high in urban Australia is high (mean 4.76)

The correlations analysis shows that:

Microenvironmental factors have a strong role to play in the success of the expansion
of KFC in urban Australia.
Macroenvironmental factors have a strong role to play in the success of the expansion
of KFC in urban Australia.

Conclusion and Recommendations

Microenvironmental factors affect the success of the expansion of KFC to urban Australia
(Research objective 1 satisfied)

Macroenvironmental factors affect the success of the expansion of KFC to urban Australia
(Research objective 2 satisfied)

KFC must carry out a thorough analysis of its environment before it expands its presence in
urban Australia.

It can use environmental scanning tools like PESTLE, SWOT and Porters Five Force
Analysis

The microenvironmental recommendations:

KFC must implement customer relationship management (CRM) strategies to

capitalize on large access to customers
KFC must implement effective HRM strategies to capitalize on large availability of
employees
KFC must implement an effective supplier relationship management strategy to
capitalize on the wide access to suppliers
KFC must implement competitive strategies to enhanced its competitiveness
KFC must implement an enhanced CSR strategy to enhance its social responsibility

The macroenvironmental recommendations:

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 KFC must implement an effective marketing communications strategy to attract more
customers and capitalize on their purchasing power
KFC must promote an image of itself as a convenient restaurant in order to attract
customers who like convenience of eating out
KFC should implement an IT strategy which enables it to capitalize on essential
technology present
KFC must ensure that its operations management function incorporates elements of
CSR to prevent harm to the environment
KFC must have a strong panel of legal advisors to advise the company about the
practices that it should avoid

This research was a success

It showed the importance of carrying out an environmental analysis before expansion in a

particular market

The results can help KFC understand about the various macroenvironmental and
macroenvironmental factors that would affect its planned expansion

KFC would be able to have knowledge of, and capitalize on, the factors that would facilitate
its planned expansion.

KFC would also know about the factors that would hamper its planned expansion

Hence, it can take proactive steps to address these matters