PRESENTATION ON THE CA

OF
KFC in INDIA Ethical

Questions For
Discussion
Question 1 Do you think in the light of fierce competition, it
is justified for business organizations not to
give importance to ethical values at the cost of
making profits? Why or Why not?

BACKGROUND OF KENTUCKY FRIED CHICKEN

KFC is based in Louisville, Kentucky, and is the

worlds 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 world's largest

restaurant company in terms of system restaurants,
with more than 36,000 locations around the world.

Yum! Brands is run by David Novak,

Chairman & CEO .

KFC operates more than 5,200 restaurants

in the United States and 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

KFCs Entry 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 in a foreign country
Appreciate the need for protecting animal rights in
developed and developing countries like India
Understand the importance of ethics in doing
business
Examine the reasons for protests of PETA(People
for Ethical Treatment of Animals )
Identify solutions for KFC's problems in India

Questions For
Discussion
Question 2 Since its entry in India in 1995,KFC has been
facing protests by cultural & Economic activists
and farmers. What are the reasons for these
protests?

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
UNDERSTAND THE IMPORTANCE OF PRACTICE
PETA PROTEST
ETHICS IN DOING BUSINESS
KRRS PROTEST
EXAMINE THE REASONS FOR PROTESTS
MSG FLAVOUR IN CHICKEN
OF PETA
IDENTIFY SOLUTIONS FOR KFCS PROBLEMS
IN INDIA
OPPORTUNITY
RETAIL BOOM IN INDIA
INDIANS YOUTH ARE ADOPTING
WESTERN CULTURE
INDIAN ECONOMY
COSMOPOLITAN RAPID DEVELOPMENT

THREATS
MSG CHICKEN FLAVOUR
PETA LIKE ORGANIZATIONS
POLITICAL PARTIES PROTESTING
FOR JUNK FOOD
PROTEST SUPPORT FROM
FAMOUS PERSONALITIES LIKE
ANIL KUMBLE,ADITI
GOVITHRIKAR,JOHN ABRAHAM
ETC

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

Answer 1
No, in the light of cut throat competition, the co. should give
importance 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 if
at any point of time u feel that customer is wrong, and then you
are wrong.

Answer 2

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.