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Empirical Evidence : Emerging Economy

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Discuss about the Empirical Evidence for Emerging Economy.



The following report offers the various management practices involved so as to run the chain of fast food market effectively in Australia. The report identifies the regularly occurring natural data that can help in analysing behavioural patterns of employees working within KFC and monitor behavioral patterns of both employees and manager to promote effective work culture. The report has done a thorough research on the various threats opportunities strengths and weaknesses KFC has and face while running a business in Australia. Finally, the report identifies strategies managers need to undertake to build effective communication with different classes of stakeholders and what kind of measures must be taken to increase the overall business of KFC in Australia.

Understanding the nature of naturally occurring data and how this can be objectively analysed to inform your practice and influence your behavior

Naturally occurring conversational data helps in understanding what kind of conversations take place between different members within an organisation. It helps us to analyse what kind of conversations people are having and whether it meets that standards and protocols of the organisation. These naturally occurring data can be used to monitor the kind of communication happening within the organisation (Bucic, Ngo and Sinha, 2016). These kinds of conversational data can help us to analyse the effect of conversations, what kind of conversations employees have between themselves, what kind of words and language are used for such kind of communications and what are the subjects concerning the conversations. Analysing these conversations happening between employees can help to identify their behavioural patterns (Soh, Chua and Singh, 2010). Additionally, certain times employees tend to spill secrets regarding work and other topics, so by analysing the set of conversations managers can identify whether such situations prevail and can also use strategies to keep a check on them. By analysing the emails between team leaders and employees within the organisation, the pattern of communication can be identified. We can identify how the manager communicates with his employees, what kind of language and words he is using, whether his languages are of the demanding and commanding type or does he speak motivationally addressing everyone with due respect. This kind of pattern analysis will increase the growth of employees. By keeping a track on the emails forwarded from managers to employees, it can be analysed what kind of behavioural pattern is exhibited by the manager is communicating information to the employees. Thus, if any problem arises people within the organisation will be able to easily identify the cause of such problem through the assessment and analysis of regularly occurring conversations, emails, and corporate artefacts and take measures accordingly.

Analysing the structure and characteristics of organisation and how it influences and constrains managers and their decision-making

KFC, Australia has a unique hierarchical structure where decisions are taken smoothly and responsibilities are fixed.



KFC, Australia is the second best fast food brand in the fast food industry stemming a value of almost $6 billion. KFC outlets use all of the original eleven herbs and spice recipes. The brand at present enjoys a strong position in developed countries and rapidly is rapidly growing its market in developing countries as well (Dr. M. Vanishree and Dr. L. Shanthi, 2012). In certain areas of Australia, KFC has a combination venture running along with Taco Bell (KFC-Taco Bell) and Pizza Hut (KFC- Pizza Hut) which proves to be very advantageous is taking KFC’s business to great heights. KFC is the market leader in Australia as compared to other companies whose primary product offering features chicken.


However, KFC outlets in Australia have untrustworthy suppliers and a negative publicity doing rounds in the food market. The food items offered by KFC outlets in Australia are very unhealthy offering high-calorie items thereby receiving strong protests and rejections from organisations fighting for obesity. In an era where everyone has become conscious about healthy food consumption; this has a very negative impact on KFC. The company also has a very high employee turnover every year. One crucial weakness of the KFC Company doing business in Australia is their marketing strategies; they lack strategies to promote strong marketing which is giving a very negative impact on the company on a whole (Hu, 2015).


As mentioned earlier, in an era of rising demand for healthier food items, KFC can introduce healthier food items. This will win the organisation fighting for obesity on their side and help them in increasing their popularity in a positive way. More and more people are opting for home meal delivery choices and KFC can fully exploit this opportunity to increase its business by reaching more number of customers (Soh, Chua and Singh, 2010). KFC can expand beyond their only chicken range and include pork, beef, and even only vegetarian items. This will help them to target a bigger consumer group and help them to reach out to more number of customers.


There is a rising demand of fast food markets and as such the fast food industry is slowly reaching its saturation point in the developed countries. Australia is becoming overcrowded with a number of fast food companies and in this overcrowded market; KFC will find it difficult to grow its business (Dr. M. Vanishree and Dr. L. Shanthi, 2012). An increasing number of organisations are fighting for obesity and ill food habits that give rise to numerous diseases and illness. These organisations along with help from the government are causing people to become health conscious and follow healthy food habits. KFC because of their major high calorie, fat meals will face a hard blow due to this. Rising number of local fast food chains attaining to the local tastes from the streets and different regions and serving them at lower prices are proving to become potential competitors for KFC to run their business in Australia. Even though, KFC does a brilliant job of adapting to local tastes and preferences, the local fast food chains with their low price meals is a potential threat to KFC. KFC has already been sued many times and the company has lost quite a number of battles at the cost of the good amount of money and time. This has led to negative popularity and the way KFC continues their business, there is a high chance of them sacrificing a good deal of money at the cost of popularity (Jurevicius, 2016).


PEST Analysis

KFC was started as "Kentucky Fried Chicken" owing to the location from where the business was initiated. KFC is a foreign brand and to run its business in Australia it has to comply with the rules and policies. Australian government maintains strict rules about healthy food and safe environment. KFC has a great deal of fried high-calorie food items marketed under their brand name. Besides, the fast food brand purchases it packaging materials from a company that contributes towards deforestation for making paper. These two factors can be a serious threat to their business in Australia. The company also has to follow strict rules for maintaining high standards for food safety and health according to Australian protocols (KRUEGER and WALKER, 2010).


KFC being a foreign brand needs to pay a high amount of taxes for doing business in Australian regions. Also, to compete with local fast food restaurants offering meals at a cheaper price, KFC needs to lower their price ranges to get more customers. KFC's employee turnover is very high since jobs are low paid and performance is poor so a lot of money is spent in training a new set of employees. 


The fast food chain purchases packing material from a company which contributes towards deforestation by cutting down trees to make paper. Also, the company recruits workers on minimum wages and makes them work for more number of hours. This is an unethical treatment, they also indulge in meeting unethical treatment to animals and lure children to their unhealthy chain of food. The chickens used for KFC food are genetically modified so as to facilitate more storage of fat making the birds unable to move. This is cruel treatment meted to the animals and a number of NGO fighting for an animal cause are protesting against it.



The brand is using location targeting techniques to target more and more customers. On the basis of a survey to identify a target group of customers, KFC is making their food items affordable and readily available for busy working couples and luring children. They have launched KFC app making ordering and paying hassle-free (Free PESTEL Analysis, 2016).

Identifying the range of organisational stakeholders and explaining how managers can manage effective relationships with them to motivate, manage and lead them to a preferred decision outcome

The range of organisational stakeholder for KFC is diverse and varies greatly in terms of quantitative values. The management needs to devise effective strategies so as to maintain a trustworthy relationship with all of their stakeholders. Stakeholders form a crucial part of any organisation and in the case of KFC doing business in Australia; the stakeholders primarily belong to two categories- external and internal stakeholders. The external stakeholders include the Australian government, the suppliers, the environment, the customers, and the environment too. The internal stakeholders are mostly the employees working at various hierarchical levels to help run KFC in Australia. Managers when taking decisions need to communicate about their plans to the various stakeholders and take each one of their consent in running their business (KRUEGER and WALKER, 2010).The manager has to take decisions in such a way so that it must not negatively affect any of the organisational stakeholders. Even if the managers need to take a decision that might involve negatively affecting any of the stakeholders, the managers need to preempt so that the decisions are communicated properly and care must be taken that the group of stakeholders being negatively impacted should have their effects minimised as much as possible. In order to maintain a trustworthy and effective relationship with suppliers, their payments should be done in time. Feedbacks must be taken from customers and worked upon to satisfy customers. Employees must be treated with respect and not subjected to unethical treatments. All of these strategies will ensure KFC establishes an effective relationship with its range of stakeholders.


Apply a range of techniques and strategies to communicate effectively to a culturally diverse range of stakeholders.

The management needs to come up with strategies for communicating effectively with culturally diverse stakeholders. They need to devise communication plans in such a way that will not include measures or strategies that can affect the sentiments of any one cultural group. Thus, KFC running their business in Australia need to come up with a communication plan keeping in mind all of their culturally diverse stakeholders and not just focus on one group. The understanding between the brand and their potential stakeholders should be strong so that even if any of their communication plans is to affect any of the culturally diverse stakeholder group, they need to come up with strategies to minimize the effect as much as possible. Communication plan has to devise at different levels targeting all of the culturally diverse groups of stakeholders. They must arrange meetings over definite periods of time to meet with different stakeholders and come up with strategies that interest and attract all of the different culturally diverse groups of stakeholders (KRUEGER and WALKER, 2010). KFC’s mission must reflect the cultures of different stakeholder groups and be devised in the interest of all of the culturally diverse groups of stakeholders. KFC running its business in Australia needs to thoroughly understand the country’s culture and devise objectives which reflect the country’s religion, culture and beliefs. The strategic decisions must be made through proper consultation and communication with the culturally diverse group of stakeholders so as not to affect their cultures anyhow,


SWOT and PEST analysis shows that the fast food brand has a lot on its plate. They need to come up with effective marketing strategies so as to reduce the number of threats the company is facing at present in Australian grounds. The company needs to replace its existing unhealthy food items with healthier options so as to attract number of customers and win the support of organisations and comply with the rules and regulations of Government to run a successful business in Australia.



Bucic, T., Ngo, L. and Sinha, A. (2016). Improving the effectiveness of market-oriented organisation: Empirical evidence from an emerging economy. Australian Journal of Management.

Dr. M. Vanishree, D. and Dr. L. Shanthi, D. (2012). A Study on Customer Awareness and Satisfaction Towards Kentucky Fried Chicken (Kfc) in Coimbatore. Global Journal For Research Analysis, 2(1), pp.141-144.

Free PESTEL Analysis. (2016). PESTEL/PEST Analysis of KFC. [online] Available at: [Accessed 3 Dec. 2016].

Hu, M. (2015). Explore Brand Crisis Management Strategy of Food Industry from KFC. Advance Journal of Food Science and Technology, 8(1), pp.52-58.

Jurevicius, O. (2016). KFC SWOT analysis 2013. [online] Strategic Management Insight. Available at: [Accessed 3 Dec. 2016].

KRUEGER, S. and WALKER, R. (2010). Management Practices and State Bond Ratings. Public Budgeting & Finance, 30(4), pp.47-70.

Soh, C., Chua, C. and Singh, H. (2010). Managing diverse stakeholders in enterprise systems projects: a control portfolio approach. Journal of Information Technology, 26(1), pp.16-31.

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