History and PEST Analysis of Kentucky Fried Chicken (KEF)

Category: Inflation, Kfc, Tax
Last Updated: 31 Mar 2023
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Kentucky fried chicken also knows as KEF, the world most large and well knows fast food restaurant that have more than 10 thousands locations worldwide in more than 80 countries. People from younger age to older age also know the slogan of KEF, which is "Finger licking' Good", and the old man with white suits hand holding a black color crutch. Nowadays, we can see KEF in any shopping centre, or some popular location. We can get service or their product easily, it really convenient. I want to conduct a PEST analysis of this company.

First I have to cover the history of KEF, and hat services and products that KEF provide. History of KEF KEF, Kentucky fried chicken is born at year 1950 at a remarkable pace from one road side restaurant into an internationally renowned restaurant chain. KEF is founded by Harlan Sanders in Carbon, Kentucky. He was born on a small farm in Henry,' ill, Indiana, America, in 1890. Sanders open his first restaurant in a small front room of a gas station in Carbon, Kentucky. He had names the dining area as "Sanders Court & Cafe. In year 1936, Kentucky Governor Ruby Alfalfa makes Sanders an honorary Kentucky Colonel in recognition of his contributions to the state's cuisine. Sanders also developed a unique, quick method of spicing and pressure - frying chicken. Finally, the business growth exceeded until he cannot handle, so he sold it to a group of people formed the Kentucky Fried chicken. In 1964 Sanders sold Kentucky Fried Chicken to an investor group headed by John Y. Brown, Jar. And Nashville financier John Jack) Massey that Colonel Sanders still was Kentucky Fried Chicken Goodwill Ambassador for helping and giving suggestion.

Sanders Colonel died in 1980 he was 90 year old. Although he is no longer with us, his philosophies of hard work and the excellent service we provide to our customers will always be a part of KEF tradition. Products and services The main product of KEF of cause is the original fried chicken. After this, the spicy fried chicken is coming up next. Except of these products, KEF also provide many different kind of fast food. For example, salads, sides, big-box meals, meals for kids, desserts, and much different type of plated meals. Now the latest product is twister, it helps KEF increase much profit.

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People can order depends on their wants. It really convenient for customers. KEF also provide many kinds of services, such as 24 hour arrive, free delivery for some selected location, online ordering, outdoor catering, kid play areas, special dining facility for business customers and more. It can save Pest of Kef By lemonade customers time and coos 2. 0 company PEST TTS That why people like to nave meal at K PEST stands for political, economic, social, and technological. It is important for a business because it will influence the environmental impact of the business.

Recognition is a useful way of pests, and looks forward to the external environment of commercial operation. The strategic that KEF use is demographic, the following actors are included in the demographical of the PEST of KEF. The first one is age, there is no age limit is focus by KEF, and they only target on every age of the society. But I think that KEF will target on younger more than the older. The second is household size, KEF will more target on whole family members, that why KEF have provide many family packages meals. The next one is population.

Population have played an important role in KEF. The light of population they can make their strategy. 2. 0. 1 Political factors Political is the first element of PEST, it will influence the business in any type of way. Political can make many advantages and opportunities for a business. For example, in government policies. KEF have to obey the policies of the government in the location they run their business although KEF is a foreign company. KEF have handled this policy very well and obey the policy of the government, in order to run this type of business in that particular location.

The next policy is price policies. KEF maintain the price policy by the way of keeping in the view of income distribution of the people who living in the country. This is the reason why KEF had targeted all the classes.

 Economic factors

Economic is the second element of PEST, all the organization is affected by the national and global economic factors. The first one is income. Income is important factor for KEF; it is because income will decides which class KEF is going to target. In the early year of KEF, they only force on the upper class.

After few years, KEF start to introduce some meals that target on the middle and the upper level. The next economic factor is payment methods. KEF will do some research on what payment methods are convenient for their customers, then only check whether collect money in the form of cash or plastic money.

Social factors

The third element of PEST is society. It concentrates forces on family, friends, neighbors, colleagues, and media. The first factor is social class. Social class divide into 3 classes, there are upper class, middle class, and lower class.

As I say early, KEF had targeted all the classes to increase the profit of the company. The next two factors are culture and religion. Although the culture of KEF is different, but KEF also try to adopt the different culture from a different location. For example, KEF had adopted the Pakistani cultures. KEF is not only adopting the culture, but also the elision also. KEF offer Hall food to the customers, this is mean that they accepted the Muslim religion.

Technological factors

The last element of PEST is technological factors.

This is the progress of technology has been greatly changed the way they do business. The first factor of technological is pace of change. It is same meaning of rate of change. KEF had make a strategy, if they think is time to introduce the new technological, they only will out the technological. E nee two doctors are research and development, and cap tall adoration. These two factors are important factors of technological. KEF support the work of research and development in order to introduce the new technology. KEF also has a stock of machinery to run their business activities. 2. Information of PEST PEST is use to identity external forces affecting the business. This is some example that shown the business's political, economical, social and technological environment. To intensify the environment, the company have to compete in future, it have to understand the power ad shape variation. In the PEST analysis, it will consider every factor is involved in the entire business environment. There are some examples of PEST: political Political factors influence organizations in many ways. Political factors can create advantages and opportunities for organizations.

It had includes the legal and regulatory, elections, employment law, customer protection, environment regulations, taxes, political trend and more. Economical Economical factors included economic growth trends, consumer confidence index, government spending levels, exchange rates, taxation, disposable income, unemployment, tariffs, inflation, production levels and more. Social It included demographics, health, living standards, housing trends, fashion, lifestyle hinges, diversity, immigration/emigration, attitudes to work, leisure activities, occupations, population shifts, trends, fads and earning capacity.

Technological It included bio-tech, health, research, communications, inventions, internet, information technology, transportation, rates of obsolescence, manufacturing advances, genetics, waste removal/recycling, and so on. 3. 0 The effect of PEST PEST will influence the company earn, there are some example of the effects of PEST factors that I want to shown below: The first element of PEST is political. Political is an important part of PEST, it will affect the price change of the company. For example, if government want to increase the taxes, business have to pay more taxes therefore, the price will increase.

Just like alcoholic drink, the increase of the tax rate affect the markedly reduced. On another hand, employment law also play an important roles is political, it protect the benefit of employees, be fair to employees. The second element is economic. If the economic inflation is low, it will cause the company to cut cost and reduce the profit margins. It will affect the company hard to pass on to the consumer. Another effect is, the demand is buyout, the cost of capital is low, and it ill attract investment and growth of the company of being profitable.

Although a depressed economy will generally be a treat which results in a number of organizations going out of business, it can provide opportunities for some (Robinson and et al. , 1978; Thompson, 2002). The third element is social. It affects the population health, lifestyle change and more. For example, social had forces KEF to change menus because of the health consciousness. The changing of the demographics will affect the company, for example, the chaining of the population of age, regions, numbers of working and more can influence the demand for the reduce or service.

This is the affect of the social on PEST. The last element of PEST is technological. Technological will affect the energy use and the cost. For example, the company use machine to produce the product, it will save more energy and time compare to workers. Nowadays, technology is popular of organization a business. They use internet to promote their product, it had increase the convenient of people. New technology can increase the profit of company, but before use the technology, company have to send some employees to attend the training.


The PEST analysis is important for every business.

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History and PEST Analysis of Kentucky Fried Chicken (KEF). (2018, May 27). Retrieved from https://phdessay.com/pest-of-kfc/

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