BM2212

Names Section Date

ACTIVITY

Kentucky Fried Chicken (KFC)

Answer the following items: (3 items x 10 points)

1. Identify and explain the VCA approach KFC employs to attain a competitive advantage.

Knowing one's own cost structure and that of the competitors is essential for selecting the best
competitive strategy, such as cost leadership, differentiation, or emphasis. KFC determines the
relevance of activities based on their function in the product / service process to obtain a
competitive advantage.

2. Aside from bringing back Bidvest as a logistic partner, what additional actions can KFC take to
overcome its failure in supply chain management?

Aside from bringing back the Bidvest as a logistics partner, KFC can find a new partners that can
accept on their problems or help them on this situations or KFC can made the decision to switch
its third-party logistics provider from Bidvest to DHL in order to lower the cost of the logistics
service. A group of fried chicken restaurants recently switched to DHL, which said it was trying to
resolve the issue with other supply chain partners. It disappeared when DHL made the error of
doing the same thing with KFC in this particular situation.

3. Provide a sample VCA to assess the primary and support activities that could help KFC attain a
competitive advantage in the marketplace.

Primary Activities
Inbound Operations Outbound Marketing and Service
Logistics logistics Sales
- Collecting - Manufacturing - Delivery - Advertising - Service of the
information - Checking processing - Promotions staff
- Raw machines and - Warehousing of company - Customer
materials equipment - Arrange support
- Service orders

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Names Section Date

operations

Support Activities
Firm infrastructure - Planning
- Management
- Investors

Human Resource Management - Training

- Recruitment
- Salary
Technology Development - Products
- Market research
- Product development

Procurement - Supplies
- Machines and equipment

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