KFC China: Still “Finger Lickin’ Good?” Harvard Case Solution & Analysis

The Chinese well-known national broadcaster reported that KFC used excessive antibiotics to fatten the chickens and consequently by the end of 2012, an “instant chicken” scandal was revealed. The regional team of food quality assurance investigated the situation that revealed that since 2010 KFC China had been intentionally involved in the situation and tried to hide it. It set off a firestorm among the local customers and netizens that ultimately broke the company’s 11 year streak of double-digit growth in 2013. In response, KFC China launched various initiatives to secure the reputation of this giant fast food company. The overall scenario figure out the challenges encountered by the company’s supply chain management in sustaining the quality and safety of products from its first-tier suppliers and their suppliers in a subsequent tier. Would it be possible for KFC China to recover from the incident quickly, and if so, how could it be possible? How can it regain its customer confidence and develop its supply chain?

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