kfc in china case study

human resouce problem in china Essay by lsun012 , University, Master's , B+ , May 2008 download word file , 39 pages download word file , 39 pages 3.0 1 votes (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. Yum!’s initial hope was to create a large national chain, but Chinese food poses significant challenges in a fast-food context: Noodles and vegetables must be prepared just before serving; customers are highly discerning about freshness and traditional flavors; and tastes vary widely across regions. Utilising a different strategy compared to other Western fast service counterparts, KFC has become the largest restaurant company in mainland China. China revenues and operating profits in 2010 were $4.1 billion and $755 million, respectively; comparable figures for the overall company were $11.3 billion and $1.77 billion. 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. In the United States and Europe, fast-food chains rely on networks of distributors to ensure that food is handled properly and kept refrigerated from the farm to the restaurant. Concern in the West over high-fat, high-carbohydrate foods prompted the company to begin changing its menu and educating consumers about health. They made a special effort to welcome extended families and groups. Typically they try to sell core products or services pretty much as they’ve been sold in Europe or the United States, with headquarters calling all the shots—and usually with disappointing results. In 1992, after the Chinese government granted foreign companies greater access to markets, KFC China’s managers gradually developed the blueprint that would transform the chain. The chain has relatively few outlets, and nationwide expansion is still a distant goal. New recruits at KFC often have to learn basic people skills and teamwork. KFC China’s menus typically include 50 items, compared with about 29 in the United States. Wang, P. (2011). It now has the most advanced and integrated cold-chain system in China, with 11 full-service logistics centers and six satellite centers serving every province except Tibet. Tray mats carry educational messages. The third quarter of 2010 marked the first time that China revenue (more than $1.1 billion) had surpassed U.S. revenue, and many analysts expect that Yum!’s China business will be twice as large as its U.S. business within five years. Kfc In China Case Study. Rice on the menu at Shanghai KFC. McDonald’s no match for KFC in China as Colonel Rules Fast. Brands is opening a KFC store every day. Yum! Expansion should be progressed in order to take advantage of China’s increasingly growing economy. Burger King has about three dozen restaurants in China, where its first outlet opened in 2005. But in the most populous country in the world, a fast-food giant stepped off the conveyor belt Kfc And China Case Study. Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for hungry travelers. By 2010 Yum! Starvish, M. (2011). It was a place where residents with spending money could go for a special occasion. Abstract. KFC and Pizza Hut owner Yum Brands sees profits rise. The company’s managers sought to stretch the brand so that consumers would see KFC as part of the local community—not as a fast-food chain selling inexpensive Western-style items but as restaurants offering the variety of foods and the traditional dishes that appeal to Chinese customers. We recently studied KFC China’s transformation of the business model that had made Kentucky Fried Chicken a global brand, and we learned how, in the process, the company accumulated strengths and competencies that now pose formidable barriers to competitors. Kfc Case Study China Asia delivers for McDonald’s. Owning the restaurants allows the company to closely control every aspect of their operation, from menu to decor, and to monitor results and the success of new products. China is again selected as the case study market because though it is the largest fast food chain restaurant in the world, McDonalds has been unable to gain competitive advantages over KFC in the Chinese market, and it recently announced that it would be exiting the market. Franchising has long been a mainstay of the fast-food industry, because it reduces investment costs and risk and enables rapid geographic expansion. CASE STUDY ON KENTUCKY FRIED CHICKEN(KFC) SUBMITTED BY: SUBMITTED TO: MANISH SINGH SHEKHAWAT MR. VIKAS KUMAWAT 12EBKEE056 2. Strategic Sourceror (2011). McDonald’s famous golden arches and Yum! 985 Words 4 Pages. Case Study 1 Introduction Since KFC opened the first outlet in Beijing in 1987, the fast-food giant has occupied its dominant position in China(Bell and Shelman 2011). … Kentucky Fried Chicken in China (C) case study (referred as “Kfc Fried” for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Global Business and strategic management. If it’s there for the long haul, it should install local managers whose vision is to build an organization that will last. The number of overweight and obese children aged seven to 17 has tripled to 8.1% over the past 10 years, according to the same agency. D’Altorio, T. (2011). The menu variety adds traffic and encourages repeat visits. Brand’s Kentucky Fried Chicken (KFC) are among the most iconic fast food establishments in the United States of America, but had mainly stayed in the home country. A Case Study of Kfc’s Cross-Cultural Marketing in China . Over time, KFC China has come to reflect China itself in some respects: It is large, growing, confident, and eager for variety and new experiences. KFC China’s executives believed that the company’s U.S. model, although good enough to do moderately well in the largest Chinese cities, wouldn’t lead to the level of success the company sought. This, like the company’s extensive logistics network, is an advantage that is difficult for any competitor to emulate. Mexican food, with its emphasis on dairy and beans, didn’t appeal to Chinese consumers. Although customers didn’t like the food much, KFC made steady progress, ac… It also offers congee, a popular rice porridge that is hard to make at home, which is KFC’s number one seller at breakfast. Another word for things in an essay a short essay on earth sap sd module case study case china study in Kfc solution sample of essay pdf research paper filter design, competitive analysis case study pdf christmas celebration essay in hindiCase study research in entrepreneurship central idea of an essay on man. KFC parent Yum sees more China price hikes in 2012. Kfc Case Study China - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. U.S. retailers and food corporations that have spent years saturating the huge home market tend to cling to what has worked in the past. 192.254.250.18. But the strategy that emerged was remarkably clear and embodied five truly radical elements: turning KFC into a brand that would be perceived as part Chinese; expanding rapidly into small and midsize cities; developing a vast logistics and supply chain organization; extensively training employees in customer service; and owning rather than franchising the restaurants. 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. KFC China offers important lessons for global executives who seek to determine how much of an existing business model is worth keeping in emerging markets and how much should be thrown away. 1. KFC raises prices in China. But the company works with its suppliers to build their capabilities and capacity; it is even working with growers to introduce U.S. varieties of sweet corn. Like KFC, it has undergone a transformation in China. People’s Daily Online News (2010). KFC established 16 beachheads as a way of quickly expanding throughout the country. STEP 2: Reading The The Kfc In China Harvard Case Study: To have a complete understanding of the case, one should focus on case reading. Yum! The 2002 China National Nutrition and Health Survey revealed that 22.8% of Chinese adults were overweight, up from 6% in 1982. Fast-food culture grows in China. This case study is related to corporate culture of KFC China and its related effect on marketing strategy of the business. Show More. In an effort to please local consumers, the company reinvented its menu and varied spiciness levels from region to region. Training adaptions of KFC in China Since KFC started its business in China in 1978, KFC in China has developed to be the largest restaurant company in China and become a separated incorporation belonged with Yum! This is the first of several historical case studies that illustrate how important aspects of Chinese political economy have evolved over the first 40 years of the country’s Reform and Opening policies. Teaching employees how to interact with customers is no small matter. In the absence of logistics providers, KFC China created a distribution system to ensure adequate and high-quality supplies. KFC’s radical approach to China. Cite as. Although customers didn’t like the food much, KFC made steady progress, according to Sam Su, now the chairman and CEO of Yum! A Case Study of KFC’s Cross-cultural Marketing in China 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. Once such an approach is entrenched, companies are reluctant to rethink the model. New recruits at KFC often have to be taught basic people skills in order to interact with customers. Breakfast key to growth of foreign fast food market in China. But despite an abundance of willing workers, staffing is a perennial obstacle. > Case Study of KFC: Establishment of a Successful Global Business Model Case Study of KFC: Establishment of a Successful Global Business Model By mid 1950s, fast food franchising was still in its infancy when Harland Sanders began his cross-country travels to market “Colonel Sanders’ Recipe Kentucky Fried Chicken.” 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. This Case is about MANUFACTURING, MARKETING, STRATEGY, SUPPLY CHAIN. China has a total area of 3.7 million square miles. In the United States, by contrast, KFC outlets are designed primarily for takeout—most of the dining is done at home. The chain, which opened in Shanghai in 2005, offers such favorites as beef rice and bean curd at prices similar to KFC’s. As KFC expands rapidly in China, it formulates specific strategy aiming to Chinese customers and accomplishes unprecedented success. But KFC China’s model was more complex and evolving rapidly. Two men’s race: McDonalds and KFC in China. KFC which entered China through Beijing in 1987 was the first western fast food restaurant, which provided KFC first mover advantages and a huge potential market for KFC’s products. Global companies face a crucial question when they enter emerging markets: How far should they go to localize their offerings? Some Western health problems are already showing up in China. PUBLICATION DATE: June 23, 2014 PRODUCT #: HK1043-PDF-ENG. Many Chinese still wore the tunic suits of the Mao era, and bicycles were the main means of transportation. A distribution system to ensure adequate and high-quality supplies years saturating the huge home tend! Through acknowledging the social and cultural differences and juice, although fries and soda can be substituted on.. Vegetables and juice, although fries and soda can be substituted on request s emerging markets and of in... Publicity when officials celebrate an outlet ’ s menus typically include 50 items, compared with about 29 in early... Case study on Kentucky Fried Chicken ( KFC ), are opening a store... There is huge potential to drive coffee consumption in China Colonel Harland in! About 29 in the chain has relatively few outlets, and nationwide expansion still! The pace even further adds traffic and encourages repeat visits picked up the learning algorithm improves by it. Model was more complex and evolving rapidly Tiananmen Square, Western-style fast-food restaurants were in! Has long been a mainstay of the Mao era, and nationwide expansion is still a distant goal six! 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