KFC Students are required to prepare and submit written answers to a set of questions related to a case study. Topics of submissions include: 1A. Supply and Demand 1B. Pricing 1C. Risk Students are...

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KFC Students are required to prepare and submit written answers to a set of questions related to a case study.  Topics of submissions include: 1A. Supply and Demand 1B. Pricing 1C. Risk Students are required to analyse and justify economics or investment decisions. Questions require the application of business-economic theory and principles to a specific economics or investment decision, and ask students to consider their own personal approach to the moral, ethical and cultural aspects of managerial economics.
Answered Same DayMar 24, 2021

Answer To: KFC Students are required to prepare and submit written answers to a set of questions related to a...

Parul answered on Mar 27 2021
142 Votes
Introduction
Kentucky Fried Chicken or better known as KFC is a Fast Food chain, which is regard as one of the massive franchise restaurant groups all across the world. This is because there is excessive demand of their products, which ha
s further risen because of their corporate strategy of curating their products as per the taste of particular geographies. For instance, “KFC Bowl” and “Chicken Little”, are one of the bestsellers of KFC in US is while in India, every year KFC sells more than millions of “Chicken Popcorn” and “Maharaja chicken burger”. Furthermore, there are variety of dishes sold that are consistent all across the world like the popular fried chicken that can be combined with other items as side cuisines.
Supply and Demand of KFC
Demand, in general, can be considered as desire or need of some product or service while if we speak in economic terms, taking reference from “Demand and Supply Analysis: Introduction”, (Eastin, R., V. and Arbogast, G., L., 2011) demand can be considered as quantity that consumers are volunteering to purchase at provided price point. Food is one of the necessary element for survival and with current lifestyle, normally people goes outside to hangout or some gatherings especially on weekends. However, with growing health concerns since KFC is a fast food restaurant it can be categorized as a desirable and not a necessity for the customers as people can still survive without it. Nevertheless, demand of KFC is colossal that has also made the brand so successful in market of multiple geographies.
Price of KFC
KFC has priced its product after carefully studying the market. The price range of KFC is very competitive and not expensive at all. This also contribute in captivating huge customer base and gaining the market share. As per the law of demand relationship between quantities of product demanded and corresponding price of the product are inversely proportional to each other. Essentially, this imply that when the price of product decreases correspondingly demand of the product shoots up. For instance, when there are exclusive offer on Wednesday, the meal is 25% off this discount incentives many people to have the meal in KFC on a weekday and selecting this restaurant than any other place. Thus, products in KFC are price sensitive which in economic is referred as price elastic. The sensitivity of demand in...
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