Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote
wave
  1. a) Identify and describe concepts and theories of risk and crisis management within the context of the Hospitality and Tourism industries
  2. b) Analyse and evaluate principles and strategies of risk and crisis management within the context of the Hospitality and Tourism industries

Your task is to choose one of the following hospitality or tourism businesses and perform an internal and external environmental scan to identify areas of strength, weakness, potential opportunities and threats.

  • Thredbo Ski Resorts
  • Coogee Bay Hotel
  • Sari Club Bali
  • Costa Concordia Cruise Ship
  • KFC

Please remember: Your choice of hospitality or tourism business in this assessment will also be the subject of your second assessment.

You will be strategic and business minded in your report. You will thoroughly identify:

  • Key stakeholders
  • Strengths, weaknesses, opportunities and threats to the business
  • Internal risks - human factors, technological factors and physical factors
  • External risks - economic factors, natural factors and political factors

In addition to investigating the stakeholders and internal and external risks, you will provide a summary table of risks, which will illustrate for each risk:

  • The risk category (internal/external)
  • The risk type
  • Stakeholders affected
  • Likelihood rating
  • Consequence Rating
  • Risk Control Method

Background of Kentucky Fried Chicken (KFC)

Risk is defined as the situation or the scenario in which an individual or an organization stands to gain or lose something substantial or of value (Franks et al., 2014). In the particular context of the business world this loss or gain is generally in terms of profitability, market share, revenue, projects, image or brand name and others (Grace et al., 2015). The business enterprises during the course of their business operations often find themselves in these situations of risks and the prospects of a business enterprise depends to a great extent on the effectiveness as well as efficiency with which it being able to mitigate the risk (Farrell & Gallagher, 2015). In this regard, the process of identification of risk or business environment scanning becomes very important since they provide an overview to the organization regarding the kinds of risks that it is facing currently (Bromiley et al., 2015).

An effective knowledge regarding the risks and the stakeholders who are affected by these risks is important since it helps the organizations to formulation the strategies or the measures that can help it to mitigate the adverse effects of these risks. Wu, Chen and Olson (2014) have opined that the various risks are actually future opportunities which if utilized in an effective manner can contribute in a substantial manner towards the growth of the concerned organization. This report will discuss about the concept of risk management and its affect on the stakeholders (internal and the external) in the particular context of the organization Kentucky Fried Chicken (KFC).

Kentucky Fried Chicken (KFC), founded by Harland Sanders in 1952, is an “American fast food restaurant chain” and has its headquarters at Kentucky (KFC.com, 2018). The food chain specializes in the genre of fried chickens and as a matter of fact the entire brand or the market image of the company has been established on the basis of the these fried chickens that the company offers to the customers (Owens, 2018). The company initially began its business operations in Kentucky however after gaining success in this city the food chain expanded into the other cities of the nation (Davis et al., 2018). Furthermore, the food chain is currently operational in more than 100 different nations of the world and in addition to the standard fried chickens which had made the company it offers other kinds of food items to the customers as well depending on the kind of city or nation it is operational in (Talwar, 2018). For example, some of the most popular food items offered by the company to its customers are “chicken fillet sandwiches and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks” (KFC.com, 2018).

The company in order to expand the prospects of its business in the recent times has undertaken collaborations with companies like PepsiCo, Pizza Hut, Taco Bell and others (KFC.com, 2018). In addition to these, the company under discussion here also takes the help of effective promotional as well as marketing strategies for the promotion of the food items offered by them to the customers (Chan, 2015). The various promotional slogans used by the company over the years like “’It's Finger Lickin' Good!”, “Nobody does chicken like KFC”, “So good” and others have contributed in a significant manner towards the success gained by the company (Zabeen, Wei & Lu, 2016). For example, the company is the 2nd largest private food chain of the world just behind McDonald’s with annual revenue of US$26 billion (KFC.com, 2018). Furthermore, the food chain has more than 20,000 outlets in different nations of the world (KFC.com, 2018).

Stakeholders of Kentucky Fried Chicken (KFC)

Jones, Wicks and Freeman (2017) have stated that the stakeholders are the entities who not only take an active interest in the business activities of a particular organization but at the same time are affected by the strategies or the business decisions of the concerned organization as well. In the majority of the cases, it is seen that there are two kinds of stakeholders who are associated with a particular organization, namely, the internal stakeholders and the external stakeholders. As per Tantalo and Priem (2016), the internal stakeholders refer to the individuals who are already associated with the business enterprise in the capacity of board members, staff, donors, volunteers and others. The decisions or the strategies that an organization decides to pursue had a direct impact on the internal stakeholders of the company and thus it is important for an organization to formulate the different strategies that they are going to use in discussion with the internal stakeholders of their business. The external stakeholders, on the other hand, are individuals, communities, constituents and others which are impacted by the business activities of an organization (Tantalo & Priem, 2016). Jones, Wicks and Freeman (2017) are of the viewpoint that both of these stakeholders are important for a particular business enterprise and thus they need to take into effective consideration the perspective and also the needs of both of them for making decisions.

  An analysis of the internal and the external stakeholders of the company KFC is likely to reveal important information regarding the business operations of the organization. The internal stakeholders of the KFC are the various members of board of the organization, the regional managers, the waiters, cooks, ground staff, cleaning staffs and the other individuals who are associated with the business of the concerned organization (Talwar, 2018). On the other hand, the external stakeholders of the concerned organization are the customers who opt for the food items offered by the company, the constituents in which they are operational and others (Owens, 2018). These in short are the main internal and the external stakeholders of the company KFC.

A SWOT analysis of the company would reveal the following details-

Strength

· The company has been operational in the food industry for more than six decades and enjoys a positive brand or market image (KFC.com, 2018).

· The fried chickens offered by the company had become a brand in itself and has been much appreciated by the customers over the years (Owens, 2018).

· The company offers a wide range of food items to the customers including sandwiches, salads, soft drinks and others (KFC.com, 2018).

· The recent collaborations that the company has undertaken with Pizza Hut, Taco Bell, PepsiCo and others have enhanced the prospects of the company’s business (Owens, 2018).   

Weakness

· The overdependence of the company on its fried chickens for the process of their business in all the nations has not hampered the prospects of the company in some nations (Davis et al., 2018).

· The high employee turnover which the company has been facing for quiet sometime now is adversely affecting the prospects of the company (Talwar, 2018).

· Some of the suppliers used by the company had not only delivered as per the requirements of the company and this had affected the business of the company in an adverse manner (Davis et al., 2018).  

Opportunity

· Effective focus on the age bracket of 18-24 is likely to increase the sale of the food items offered by the company in a significant manner.

· Use of e-commerce and other kinds of mobile apps within the framework of their business would help the company in a substantial manner (Talwar, 2018).

· Focus on corporate social responsibilities events and policies would enhance the brand image of the company and thereby the sale of the food items offered by them (Chan, 2015).

Threat

· High level of competition from competitors like McDonald’s, Subway and others (Davis et al., 2018).

· The growing consciousness of the people regarding their health and also the kind of foods that they consume is adversely affecting the sale of the food items offered by KFC since the majority of the items offered by the company belong to the category of junk food (Owens, 2018).

The different kinds of risks that the company KFC faces currently on the score of its business operations can be broadly categorized into two categories, namely, the internal risks and the external risks.

Grace et al. (2015) are of the viewpoint that the internal risks are the ones which an organization faces on the basis of its internal affairs like the management of the business, internal stakeholders and others. However, at the same time, it needs to be said that these internal risks are as catastrophic as the external ones and thus the organizations need to adopt adequate mitigation measures or strategies for the resolution of the same (Franks et al., 2014). The internal risk that the company KFC is facing currently because of the human factor is the high employee turnover rate (Chan, 2015). This has been one of the major issues of worry for the company and it is seen that every year thousands of employees switch over the other companies complaining about the uncongenial working environment of the company. The internal risk that the company KFC is facing currently because of the technological factor is the inability of the company to take the help of the emerging technologies within the fold of their business operations (Zabeen, Wei & Lu, 2016). The competitors of the company by virtue of taking the help of these emerging technologies pose a substantial amount of threat to the company. Another physical factor because of which the company faces a substantial amount of risk is the fact that the physical locations of most of the outlets of the company are a bit far away from the heart of the city and this adversely affects the business of the company (Zabeen, Wei & Lu, 2016). A look at the competitor of the company McDonald’s reveals that most of their outlets are located in the heart of the cities and this as a matter of fact has contributed towards the success gained by them (Zabeen, Wei & Lu, 2016).   

Risk Management and Stakeholders in Kentucky Fried Chicken (KFC)

As per the opinion of Soltanizadeh et al. (2016) the external risks are the kind of risks that an organization faces on the basis of the external business environment in which it is operational. The majority of the nations of the world are still reeling from the adverse effects of the economic recession that it faced a while and this had affected the buying behavior of the customers in a substantial manner (Cole, Giné & Vickery, 2017). The company KFC faces a significant amount of economic risk on the basis of this particular fact. The people of the contemporary times have become much conscious regarding their health and also the kind of food products that they offer to the customers (Cole, Giné & Vickery, 2017). In this regard, it needs to be said that the majority of the food items offered by the company belongs to the category of junk foods (Owens, 2018). Thus, the company faces a substantial amount of natural risk on the basis of this factor. KFC is currently operational in more than 100 different nations and it is seen that the company does not gets the same kind of congenial political conditions in all these nations. A stable congenial political environment is one of the most basic requirements of the business enterprises and thus the organization faces a significant amount of risk because of the uncongenial political condition of some of the nations in which it is operational (Davis et al., 2018).     

Risk Category

Risk Type

Stakeholders Affected

Likelihood Rating

Consequence Rating

Risk Control Method

Internal

Human Factors

Internal stakeholders

D

D

Improvement of the human capital management strategies followed by the organization.

Internal

Technological Factors

Internal and External stakeholders

B

B

Integration of recent technologies within the framework of organization so as to improve the business processes and also the quality of services offered to the customers.

Internal

Physical Factors

Internal and External stakeholders

C

C

Establishment of outlets which are at suitable business locations.

External

Economic Factors

External stakeholders

D

D

Provided discounted offers to the customers to attract them towards the food items sold by the company.

External

Natural Factors

External stakeholders

E

E

Changing the menu offered by the company and making it healthy.

External

Political Factors

Internal and External stakeholders

E

E

Forming effective business relationships with the national governments

Conclusion

To conclude, the business enterprises on the score of their business operations face various kinds of risks which can affect the prospects of their business in an adverse manner. These risks can be categorized as internal and external risks and have the potential to hamper the long-term as well as the short-term goals of an organization in an adverse manner. Thus, it becomes important for the organizations to take the help of diverse kinds of mitigation strategies so as to mitigate the effects of these risks. The mitigation of these risks is not only important from the perspective of the business prospects of an organization but also from the perspective of the stakeholders as well. Thus, it can be said that the success or the failure of an organization depends to a large extent on the ability of the organization to mitigate the different risks that it faces.

References 

Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), 265-276. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0024630114000582

Chan, T. S. (2015). Franchising of Us Fast Food Chains in Hong Kong: Entry and Expansion Strategies. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual Conference (pp. 163-167). Springer, Cham. Retrieved from https://link.springer.com/chapter/10.1007/978-3-319-17055-8_33

Cole, S., Giné, X., & Vickery, J. (2017). How does risk management influence production decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6), 1935-1970. Retrieved from https://doi.org/10.1093/rfs/hhw080

Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage management. Routledge. Retrieved from https://www.taylorfrancis.com/books/9781317193876

Farrell, M., & Gallagher, R. (2015). The valuation implications of enterprise risk management maturity. Journal of Risk and Insurance, 82(3), 625-657. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/jori.12035

Franks, D. M., Davis, R., Bebbington, A. J., Ali, S. H., Kemp, D., & Scurrah, M. (2014). Conflict translates environmental and social risk into business costs. Proceedings of the National Academy of Sciences, 201405135. Retrieved from https://doi.org/10.1073/pnas.1405135111

Grace, M. F., Leverty, J. T., Phillips, R. D., & Shimpi, P. (2015). The value of investing in enterprise risk management. Journal of Risk and Insurance, 82(2), 289-316. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/jori.12022?userIsAuthenticated=false&denied

Jones, T. M., Wicks, A. C., & Freeman, R. E. (2017). Stakeholder theory: The state of the art. The Blackwell guide to business ethics, 17-37. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1002/9781405164771.ch1

KFC.com. (2018). Home [online]. Retrieved from https://www.kfc.com/

Owens, J. D. (2018). No Chicken tonight?. Salford University News Channel. Retrieved from https://usir.salford.ac.uk/46109/1/no-chicken-tonight

Soltanizadeh, S., Abdul Rasid, S. Z., Mottaghi Golshan, N., & Wan Ismail, W. K. (2016). Business strategy, enterprise risk management and organizational performance. Management Research Review, 39(9), 1016-1033. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/MRR-05-2015-0107

Talwar, J. (2018). Fast food, fast track: Immigrants, big business, and the American Dream. Routledge. Retrieved from https://www.taylorfrancis.com/books/9780429969096

Tantalo, C., & Priem, R. L. (2016). Value creation through stakeholder synergy. Strategic Management Journal, 37(2), 314-329. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2337

Wu, D. D., Chen, S. H., & Olson, D. L. (2014). Business intelligence in risk management: Some recent progresses. Information Sciences, 256, 1-7. Retrieved from https://www.sciencedirect.com/science/article/pii/S0020025513007238

Zabeen, S., Wei, J., & Lu, X. (2016). Development of E-business solutions for fast food restaurants. International Journal of Services and Standards, 11(1), 60-80. Retrieved from https://www.inderscienceonline.com/doi/abs/10.1504/IJSS.2016.076972

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). Internal And External Environmental Scan Of KFC Essay.. Retrieved from https://myassignmenthelp.com/free-samples/rcm301-risk-and-crisis-management/valuation-implications-of-enterprise.html.

"Internal And External Environmental Scan Of KFC Essay.." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/rcm301-risk-and-crisis-management/valuation-implications-of-enterprise.html.

My Assignment Help (2021) Internal And External Environmental Scan Of KFC Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/rcm301-risk-and-crisis-management/valuation-implications-of-enterprise.html
[Accessed 21 May 2024].

My Assignment Help. 'Internal And External Environmental Scan Of KFC Essay.' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/rcm301-risk-and-crisis-management/valuation-implications-of-enterprise.html> accessed 21 May 2024.

My Assignment Help. Internal And External Environmental Scan Of KFC Essay. [Internet]. My Assignment Help. 2021 [cited 21 May 2024]. Available from: https://myassignmenthelp.com/free-samples/rcm301-risk-and-crisis-management/valuation-implications-of-enterprise.html.

Get instant help from 5000+ experts for
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing: Proofread your work by experts and improve grade at Lowest cost

loader
250 words
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Plagiarism checker
Verify originality of an essay
essay
Generate unique essays in a jiffy
Plagiarism checker
Cite sources with ease
support
Whatsapp
callback
sales
sales chat
Whatsapp
callback
sales chat
close