Avestruz, Erin

BSBA OM 3.2A

Kentucky Fried Chicken

1. Identify and explain the VCA approach KFC employs to attain a competitive advantage.
 In the UK, KFC altered their supply chain system. DHL offered cost savings over other
logistics companies, so the company decided to partner with them. Cost advantage
is a strategy that KFC employed to reduce product prices. As a result of the
company's focus on the cost-saving opportunities presented by nationalizing the
supply system, they made the significant decision to alter both the supply system
and the logistic company.

2. Aside from bringing back Bidvest as a logistic partner, what additional actions can KFC take
to overcome its failure in supply chain management?
 KFC must conduct in-depth research on their logistic partner to overcome its
decision-making mistakes in the supply chain system. The DHL did not have much
experience transporting perishable goods like auto parts or fresh chickens. When
deciding, they must take into account the capabilities of their chosen company as
well as the potential outcomes or consequences.

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
Distributing of Product Quality Quality control Sales Customer’s
Raw Materials feedbacks
for production Maintenance of Inspections of Marketing and
machineries transports promotion Support
Storing and equipment activities Services
Management
Buying Service Transactions Pricing
Operation
Inventory Product Relationship
Deliveries between
customer and
management

Support Activities:

1. Firm infrastructure:
 Finance
 Accounting
 Strategic Management
2. Human Resource Management:
 Training
Avestruz, Erin
BSBA OM 3.2A

 Recruitment
 Selecting
 Performance Management
3. Technology Development:
 Technology in production, marketing, and distribution.
 Innovative software
4. Procurement:
 Purchasing of equipment, machineries, and supplies.