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Kentucky Fried Chicken (KFC) is a renowned fast  food chain having its operations all
across  the globe and enjoys  a lot of reputation due to its  spicy food items.  KFC has
planned to launch its operation in India in early 1990’s amid of strong protest from the
People for Ethical Treatment of Animals (PETA) and violation of the food Adulteration act,
1954, with an excessive amount of active ingredient of monosodium glutamate.  Along
with this heavy protest from the opposition parties to stop the invasion of KFC into Indian
food market.
KFC, after two decades is now again planning to invest and expand its operations in India.
Being as an industry analyst, how would you analyze the major issues faced by KFC in
India and develop a roadmap for its successful investment.
Hint: Major issues should be considered as Cultural, Political, Economic, Ethical and Agricultural

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The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms.
Vegetarian menu with a sideline of chicken for Indian Muslims (cultural issue)
Approval from the food authorities, have it's products judged and tested by a committee (ethical issue)
Use alternate salt forms, instead of MSG use table salt/black pepper
Economic downfall since 2010 might be an issue, however a cheaper rate list might help KFC establish their place

KFC added three more outlets to its existing one at Bangalore. KFC also announced a major expansion programme for 2005. Sharanita Keswani (Keswani), KFC's Marketing Director, said that as the retail business was poised for a boom in India, they considered it the right time for expansion...

Feeling positive about the flourishing malls in all big cities, Keswani revealed that this time KFC planned to have a presence in prime locations or in a mall where turnout would be assured.

The company aimed at targeting cosmopolitan cities like Chandigarh, Pune, Kolkata, Chennai and Hyderabad, where mall culture was fast developing.

PepsiCo also decided to concentrate on the expansion of KFC since its other brand, "Pizza Hut", had successfully established a strong foothold in India.

Vegetarianism was predominant and was a way of life in India. Many people ate non-vegetarian food only occasionally and avoided it during festivals or religious occasions.

Read more: MGT610 Business Ethics---ASSIGNMENT NO. 02 DUE DATE: 7 TH JANUARY 2013 - VUDESK http://vudesk.com/group/mgt610businessethics/forum/topics/mgt610-bu...


See the attached file please


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