kfc in china case study

Papa John’s plans to increase the number of its outlets in China from 155 to 300 within three years. HBS cases: KFC’s explosive growth in China. Initially, fast reading without taking notes and underlines should be done. Taco Bell was similarly positioned by Yum! Show More. To succeed, the fast-food giant had to throw out its U.S. business model. The opening of the first KFC restaurant in 1987 was largely covered by local medias and was watched by millions of Chinese. KFC will be a really important case study in terms of scrutinising how the tendering process and procurement took place, how the collaboration was established and run (given that we now have ISO standards for managing collaborative relationships), how the handover was carried out with the previous partner involved. Burger King has about three dozen restaurants in China, where its first outlet opened in 2005. I choose KFC Company as the case study because KFC Company is the worldwide company that has many branches around the world. That same year the company implemented a supplier rating system that allows managers throughout China to concentrate purchasing with the suppliers that perform best. KFC China’s rapid growth poses challenges: A highly visible company could easily become the target of a consumer or government backlash against the perceived negatives of fast food. It permits centralized purchasing, which reduces costs, and gives the company a larger share of outlet profits. Tray mats carry educational messages. Brands. Hostesses teach lessons on nutrition to kids. (Current base: ~3300)• KFC China intends to reach 15000 outlets by 2015.• The strengths and competencies KFC China has developed over the years, now pose formidable threats to its competitors. Executives say they believe there is huge potential to drive coffee consumption in China. Global companies face a crucial question when they enter emerging markets: How far should they go to localize their offerings? Many Chinese still wore the tunic suits of the Mao era, and bicycles were the main means of transportation. Rather than go head-to-head with the Big Mac, KFC decided to embrace smaller cities and to build a national business with outlets all over the country. The case provides information on the external environment of the company – the global restaurant and fast food market.KFC is one of the leading companies in fast food and […] D’Altorio, T. (2011). In China, Yum! Therefore, I can research different cultures from KFC’s branches and make an analysis of potential problems and challenges related to the case. Having an average growth rate of 8% in GDP and a population of 1. KFC’s children’s meals are served with vegetables and juice, although fries and soda can be substituted on request. It announced earlier this year that it was considering expansion in China. Kfc Case Study China A Case Study of Kfc’s Cross-Cultural Marketing in China . Free Powerpoint Templates Page 2 3. The area food security authorities scrutinized the scenario and found that KFC China had been conscious of … Pizza Hut is a part of the Yum! KFC China offers important lessons for global executives seeking guidance in determining how much of their existing business model to keep in emerging markets—and how much to throw away. Buying locally is essential to keeping costs low, and it strengthens the parent company’s relationship with the Chinese government. This case KFC in China focus on KFC is able to please the Chinese palate with its 'finger licking good' chicken that is part of the well-established dietary habits of the Chinese. 985 Words 4 Pages. Like every other multinational in China, KFC made its way up the learning curve by trial and error. Although the problem was resolved quickly, Yum! Bell, D. E., & Shelman, M. L. (2011). In the mid-1990s a fellow participant at a seminar in the U.S. asked Su why he would want to bring “junk food” to China—a question that started him thinking deeply. Here’s a look at some of them. Brands is opening a KFC store every day. Moreover, a national presence means that KFCs (and other Yum! Expansion should be progressed in order to take advantage of China’s increasingly growing economy. Some times will make the company lost the market or suffer a setback. Kentucky Fried Chicken (KFC) The first KFC was opened in Tiananmen Square, China 1987; it struggled as western food was unknown to the east. Harvard Business Publishing is an affiliate of Harvard Business School. But the chain was then a unit of PepsiCo, which took a hands-off approach—it was more concerned with beating Coca-Cola than with selling fried chicken. Not logged in In fact, it is the limiting factor in the chain’s expansion, according to Sam Su. Yum! Cite as. (In 2008 Yum! China has some fast food chains. It now offers a lengthy menu that includes seafood pizza, beefsteak, and fried squid, and it attracts an older and more affluent crowd than KFC does. This was an expensive undertaking, but necessary if the company was to expand rapidly, carry a lengthy and complex menu, and introduce new products quickly. The chain, which opened in Shanghai in 2005, offers such favorites as beef rice and bean curd at prices similar to KFC’s. Rice on the menu at Shanghai KFC. To maintain its current restaurant-opening rate, KFC needs at least 1,000 new managers and 30,000 new crew members a year, and they must be ready the minute an outlet opens, because it is likely to be packed. Summary: In 2007, KFC had opened 2000 outlet stores in china, leaving rival MacDonald’s far behind, achieving high praise from Chinese consumers and defeating challengers again and again. KFC China closely monitors the entire supply chain, all the way back to animal feed companies and other input providers, and it trains employees in personal hygiene, including how to dress for the workplace and how often to wash their hands. Food safety is a matter of paramount importance, especially given Chinese consumers’ concern in recent years over incidents involving tainted milk powder and contaminated livestock feed. Utilising a different strategy compared to other Western fast service counterparts, KFC has become the largest restaurant company in mainland China. It is said that case should be read two times. This process is experimental and the keywords may be updated as the learning algorithm improves. 1284 Words | 6 Pages. But this is not the KFC you know in America. Strategic Sourceror (2011). When KFC opened in Beijing, it was one of the first companies to promote excellent customer service—a concept then unfamiliar in China after decades of communism. In The Dragon’s Cave• KFC China is opening almost one outlet a day. Some 700 Chinese cities now have outlets. The company says its strong sales in the Asia/Pacific, Middle East, and Africa regions are led by results in China, and it cites the appeal of such conveniences as delivery, drive-through, and extended hours. If it’s there for the long haul, it should install local managers whose vision is to build an organization that will last. Part of Springer Nature. Kfc Case Study. With KFC as its flagship chain, Yum! Concern in the West over high-fat, high-carbohydrate foods prompted the company to begin changing its menu and educating consumers about health. With a closely involved parent, KFC China might not have been free to pursue its homegrown strategy. Like KFC, it has undergone a transformation in China. outlets) are popular with mall developers. 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