KfC Pest Analysis Essay
KfC Pest Analysis
The political factors includes the government policies as KFC being a foreign company, but they have to obey the policies of the Government laid by the government of Pakistan, the country where the business activities are being carried out. KFC has handled this situation very tactfully and has obeyed the policies of the Government as prescribe by the government in order to run this kind of business. The other major factor is the pricing policies. KFC maintain & design its price policies keeping in view the income & income distribution of the people living in the country. That’s why all the classes are the target market of KFC. And the most important factor is the political instability. As in Pakistan, there are political crises faced by the government, these greatly affect the business of KFC.
The economic factors includes the income of the people, KFC is going to target. Income is an important economical factor of the KFC. This factor decides which class KFC is going to target. In the early time of KFC, they were focusing on the upper class but they after some time changed their strategies and started to target the mass market by introducing some different kinds of meals and offers through which we can say that they target the middle & the upper level as well. The consumption behavior of the people plays an important role. KFC also estimated the consumption behavior of the people, their liking and disliking and make decision accordingly. Payment method is an important factor in the economical factor of the KFC. They check the behavior of the regarding the payment methods of the people. They check whether the gives money in the form of cash or plastic money.
The Social/Cultural Factors includes the Social Class, as it is discussed earlier that KFC target all the class including the upper class, upper middle and lower middle class etc. Although the culture of KFC from where they come is entirely different but they have adopted the Pakistani culture as they had to serve the people living in Pakistan having entirely different culture from other areas. And it has not only adopted the Pakistani culture but also the Religion as well. They offer Halal foods to the customers, which is the symbol that they adopted the Muslim religion strategies as they had to serve in the Muslim country, to the Muslim customers.
The technological factors include the Pace of change at a fast level. Pace of change mean rate of change. KFC has strategy to introduce new technology whenever they think that it is a time to introduce new technology. Research & Development is also an important factor in the Technological factor. KFC always support the work of research & development in order to introduce the new technology. Capital formation means stock of machinery. KFC has a stock of machinery in order to run its business activities. In other words KFC has a good amount of Capital Formation.