Answer the following items: (3 items x 10 points)
1. Identify and explain the VCA approach KFC employs to attain a competitive advantage.:
KFC employs a Value Chain Analysis strategy to gain a competitive advantage, with a strong focus on
optimizing inbound logistics. By streamlining its supply chain and ensuring a consistent and efficient flow
of fresh chicken to their restaurants, KFC aims to enhance operational efficiency and customer
satisfaction. Their transition to a national distribution center with DHL was intended to improve the
supply chain process, reducing costs and increasing reliability. However, this shift exposed significant
challenges in inbound logistics, highlighting its crucial role in maintaining KFC’s competitive position and
overall business success.
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 can implement various strategies to address its supply chain management failure beyond simply
reestablishing Bidvest as a logistics partner. Adopting a hybrid approach that utilizes the services of both
DHL and Bidvest can strengthen supply chain resilience, ensuring a more reliable flow of ingredients
while minimizing the impact of potential disruptions. Additionally, enhancing communication and
collaboration among all stakeholders in the supply chain will help streamline operations and enable
quicker responses to challenges, reducing the risk of widespread restaurant closures. Investing in
advanced technology solutions, such as predictive analytics and real-time tracking, will further improve
supply chain visibility and efficiency, allowing KFC to proactively identify and address potential issues
before they escalate.
3. Sample VCA to assess primary and support activities that could help KFC attain a competitive
advantage in the marketplace:
PRIMARY ACTIVITIES
Inbound Logistics Operation Outbound Marketing and Service
Logistics Sales
Improving the Enhancing kitchen Ensuring efficient Investing in Prioritizing
handling of fresh efficiency involves distribution is marketing exceptional
chicken supply streamlining crucial for campaigns and customer service
chains requires a processes to delivering finished promotions is and high-quality
focus on effective reduce complexity products to essential for products is
and punctual and improve restaurants attracting new essential for
delivery to workflow, promptly, customers while maintaining
maintain quality allowing staff to maintaining keeping existing customer
and consistency prepare meals freshness and ones engaged and satisfaction and
across all more quickly and quality. By loyal to the brand. fostering long-
locations. By accurately. By optimizing By leveraging term loyalty. By
optimizing implementing delivery routes, digital advertising, consistently
inbound logistics standardized leveraging real- loyalty programs, delivering
with reliable procedures and time tracking, and and seasonal excellent dining
transportation, automated working with promotions, KFC experiences and
real-time tracking, equipment where reliable logistics can enhance ensuring product
and strategic possible, KFC can partners, KFC can brand visibility, consistency, KFC
partnerships with ensure consistent minimize delays drive sales, and can strengthen its
suppliers, KFC can product and keep strengthen reputation and
ensure a steady preparation while operations customer encourage repeat
and efficient minimizing errors running smoothly. relationships. business.
supply of fresh and waste.
ingredients while
minimizing delays
and disruptions.
SUPPORT ACTIVITIES
Firm infrastructure Establishing a strong organizational structure enables efficient management
and coordination with supply chain partners, ensuring smooth operations and
timely deliveries. By clearly defining roles, responsibilities, and
communication channels, KFC can enhance collaboration, reduce disruptions,
and improve overall supply chain efficiency.
Human Resource Offering training and mentorship programs in supply chain management and
Management customer service helps employees develop essential skills and knowledge to
improve operational efficiency. By equipping staff with expertise in logistics,
problem-solving, and customer engagement, KFC can enhance service quality,
streamline processes, and strengthen overall business performance.
Technology Consider investing in advanced supply chain technology and data analytics to
Development optimize decision-making and improve overall operational performance. By
integrating these tools, businesses can enhance efficiency, reduce errors, and
gain real-time insights into inventory management, logistics, and demand
forecasting.
Procurement Source Sourced top-notch ingredients cost-effectively to maintain high quality while
controlling expenses. Ensuring efficiency throughout the process will help
optimize resources, reduce waste, and enhance overall profitability.
