Question

Choose ONE organisation in Malaysia (For example: Old Town Cafe, KFC, etc). Explain the process and implementation of business collaboration strategies and the varieties of inter-organisational relations for the selected organisation. Beside that, discuss the advantages and disadvantages of strategic alliances (franchising and joint venture) for the selected organisation. Finally summarised All of the key points .

**Please provide detail in 2000 word only .**

Answer 1

Let's start discussing about a very well known food chain " KFC".

Kentucky Fried Chicken ( kfc) is a well renowned fast food chain that has headquarters in America. It is the second largest food chain after Mcdonalds. The organisation was founded in 1930, and has 20,000 plus stores around the corner of the world. It has stores in almost 123 plus countries of the world. Over the years the brand has grown immensely well and has given a cut throat competiton to the worlds largest food chain - "MC DONALDS".

Let's now discuss briefly the factors contributed to such a growth over the years. If we look at the KFC'S business model, we can easily denote one particular thing through which kfc has grown and that game is " FRANCHISING"

KFC generates it's revenue through the various franchisees it has opened across the world. Each franchisee store gives a handful of it's share to the master franchisor. But the regulatory franchisor makes sure that all the franchisee store operates as per the directed guidelines. All stores are instructed to maintain proper hygeine and store cleanliness.

The overall success model of kfc ( including the malaysia) , can be elaborated in the form of a CANVAS with the following key points :

A.) KEY PARTNERSHIP :

Kfc has partnership with PEPSI and food supplier which has led to his high end growth in the recent years.

B.) Key activities :

KFC across all it's stores in various countries, follows these activities :

* Local Marketing

* Logistic management

* Franchise management

* Catering management

C. Value Proposition :

* Fast Food

* Home Made Chicken

* Secret recepie

D. Customer relationship :

* Standard customer assistance.

E. Customer Segment :

It has a huge base of customer divided across

* Fast food lovers

* Mass market

* Franchisor

* Franchising

F. Cost Structure :

The overall cost structure comes under two parameters

1. Branding and Communication

2. Storage and tools

G. Revenue Stream :

* Food sale

* Franchising

Based on the above listed points in th canvas pyramid of the marketing structure of KFC, we can easily see that everything is so structured and well mannered that KFC has now become a brand only because of these few pointers.

Now let's understand the the KEY MARKET SEGMENTATION OF KFC :

1. GEOGRAPHIC SEGMENTATION :

Kfc has broken up it's business operations in various countries like :

* America

* Europe

* Asia / Pacific, middle east and africa.

* other countries like canada and latin america.

One imp thing in this is the variety of food offering it has as per the taste of the people in that specific geographical location.

2. KFC Target market :

kfc includes both the vegetarians and non vegetarians target segments. It has huge offerings in the menu to cater both the adults and the young ones. Below are the three factors which determine kfc's target segment :

a. The size of the segment and growth

b. The attractiveness of the segment

c. the objective of the company and the resources it has.

3. Key Pricing strategy :

The target audience of the kfc is the middle class and upper middle class and have a wide variety of offerings as per the audience pocket size. KFC basically follows two pricing strategy

a. Optional pricing strategy : It basically refers to the act of customer to start increasing the add ons once it starts to buy. In simpler terms what we call as add ons

b. Bundle pricing :

KFC bundles different products together and offers it to customers at a slightly lower price. KFC provides different combo offers to its customers and also provide an option to its customer to make the combo of their own choice.

That concludes the KFC marketing strategy.

Based on all of the above mentioned pointers we can easily relate to whatever is mentioned in the given question.

Hope it helps !!