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KFC in INDIA - Ethical

PRESENTATION ON THE CASE STUDY

OF

BY-SOUMIK MUKHERJEE(4018)ABHAY SINGH(4048)

SANDEEP SINGH(4058)ANWAR PASA(4068)IMRAN SIDDIQUE(4033)

SHADAB ALAM(4096)S U OS 0 6


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BACKGROUND OF KENTUCKY FRIED CHICKEN

KFC is based in Louisville, Kentucky, and is the worlds most popularchicken 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 byDavid Novak,Chairman & CEO .

KFC operates more than 5,200 restaurants in the United States and morethan 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
http://en.wikipedia.org/wiki/Image:KFC.jpg


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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.


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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 KFC's problems in India


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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


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SWOT ANALYSISSTRENGTHS

WEAKNESSES

NON ETHICAL BUSINESS PRACTICE

PETA PROTEST

KRRS PROTEST

MSG FLAVOUR IN CHICKEN

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 PROTESTINGFOR JUNK FOOD

PROTEST SUPPORT FROM FAMOUS

PERSONALITIES LIKE ANIL

KUMBLE,ADITI GOVITHRIKAR,JOHN

ABRAHAM ETC

UNDERSTAND THE CULTURE,

REGULATORY& ECOLOGICAL ISSUES.

UNDERSTAND THE IMPORTANCE OF

ETHICS IN DOING BUSINESS

EXAMINE THE REASONS FOR PROTESTS

OF PETA

IDENTIFY SOLUTIONS FOR KFCS PROBLEMS

IN INDIA


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Questions For Discussion

Since its entry in India in 1995,KFC has beenfacing protests by cultural & Economic activistsand farmers. What are the reasons for theseprotests?

Question 1 -


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Answer 1

Need for protecting animal rights Chicken they serve is full of chemicals

(mono-sodium glutamate)

It encourage farmers to shiftproductionof crops to animal feeding

Leaves poorer section of society with

no affordable food.
http://kentucky%20fried%20chicken%20sucks%21%20i%20hate%20kfc%21%20-%20google%20chrome.flv/http://kentucky%20fried%20chicken%20sucks%21%20i%20hate%20kfc%21%20-%20google%20chrome.flv/


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Question 2 -Do you think in the light of fierce competition, it

is justified for business organizations not togive importance to ethical values at the cost ofmaking profits? Why or Why not?


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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.


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CONCLUSION

KFC should implement a farm level guideline & auditprogram - a program which is industry-leading in theareas of poultry care and handling, mainly for theirsuppliers in the broiler industry.

Finally, we can understand from the case that everybusiness organization should understand the importanceof ethics by understanding the culture, regulatory &

ecological issues in different countries.


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