Case Study 1 - Kfc in India - 1152 Words

Case Study 1 KFC in India – Ethical Issues 1. Since its entry into India in 1995, KFC has been facing protests by cultural and economic activists and farmers. What are the reasons for these protests and do you think these reasons are justified? Explain. No tolerance for ‘cruel multinationals’ was the main reason for the protests made by cultural and economic activists and farmers. Due to the economic liberalization policy of the Indian government during the early 1900’s, foreign fast food companies were granted permission to enter India. From the cultural and economic activists and farmers perspective there were numerous disadvantages with the opening of these fast food chains, in particular KFC. The main fear for nationalists and†¦show more content†¦Local businesses are also affected as it is hard to compete against a large international company. Angry farmers were led by Nanjundaswamy. The main reason for their protests was to go against the unethicality of promoting high processed ‘junk food’ in a poor country where malnutrition is already a major concern. An increase in the number of fast food stores also posed a threat to local agriculture (with the depletion of livestock) which 70% of India’s population depended on. 2. PETA has been protesting against KFC in India since the late 1990s. What are the reasons for PETA’s protest against KFC and how did KFC’s management react to them? Do you agree with PETA that KFC has been cruel toward the birds and hence it should leave India? The reason for PETA’s protest against KFC was primarily due to the inhumane treatment the chickens faced on KFC farms. Though other fast food organizations such as McDonald’s and Burger King had already ‘upped’ their standards regarding the treatment of animals, KFC had yet to do so. In these factories and poultry farms, birds were kept in very unhygienic conditions and treated cruelly. In the 10 minute video released by PETA in regards to these allegations, viewers witnessed birds living in overcrowded, crammed warehouses with barely any space toShow MoreRelatedKfc Marketing Strategies20155 Words   |  81 PagesI become a KFC franchisee? Initial Franchise Fee =   Monthly Service Fee (Royalties) =   Advertising = $45,000 (if you open a KT multi-brand restaurant, the fees will be $75,000)   5 percent (5%) of Gross Sales 5 percent (5%) of Gross Sales (Includes national and local contributions) The above amounts do not include the initial investment required to construct the restaurant building, training expenses, grand opening expenses or opening inventory. 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