Analysis of Kfc. The Forces and KFC
| The Forces and KFC | |
James Watson
12/23/2012
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Executive Summary
The seven international environmental forces that impact international business are natural resources and environmental sustainability, economic and socioeconomic forces, political forces, intellectual property and other legal forces, understanding the international monetary system and financial forces, labor forces, and international competitive strategy. While some of the factors mentioned above are completely under the control and maneuverability of a country, others are inherited and have to be dealt with in order for a country to become competitive. The focus of this report will be on KFC and how they have handled the various forces mentioned earlier and have managed to become an international powerhouse. More specifically this report will detail KFCs success in China. KFC belongs to Yum! brands which used to be named Tricon Global Restaurants, Inc., the world 's largest food company. Tricon Global Restaurants, Inc. was a spin-off of PepsiCo, Inc.(KFC History). It 's of interest to mention that according to KFC 's history web page in 1964 the first international KFC was actually in Canada and the first oversees KFC was in England (KFC History). I assume these previous locations don 't fully count as international or it doesn 't seem to count as international in the restaurant world because there is not much about the obstacles or forces KFC faced while achieving the above. The chain has grown to more than 3,200 locations in 650 cities, according to Bloomberg, there is no arguing that KFC is successful.
The Forces
Natural resources and environmental sustainability are basic factors that a country inherits and either has no control or very limited control over such as topography, climate, and natural resources (Ball, Geringer, Minor, and McNett ). Terrain and climate can be wildly different in the same country, mountains, deserts, plains and bodies of water
James Watson
12/23/2012
|
Executive Summary
The seven international environmental forces that impact international business are natural resources and environmental sustainability, economic and socioeconomic forces, political forces, intellectual property and other legal forces, understanding the international monetary system and financial forces, labor forces, and international competitive strategy. While some of the factors mentioned above are completely under the control and maneuverability of a country, others are inherited and have to be dealt with in order for a country to become competitive. The focus of this report will be on KFC and how they have handled the various forces mentioned earlier and have managed to become an international powerhouse. More specifically this report will detail KFCs success in China. KFC belongs to Yum! brands which used to be named Tricon Global Restaurants, Inc., the world 's largest food company. Tricon Global Restaurants, Inc. was a spin-off of PepsiCo, Inc.(KFC History). It 's of interest to mention that according to KFC 's history web page in 1964 the first international KFC was actually in Canada and the first oversees KFC was in England (KFC History). I assume these previous locations don 't fully count as international or it doesn 't seem to count as international in the restaurant world because there is not much about the obstacles or forces KFC faced while achieving the above. The chain has grown to more than 3,200 locations in 650 cities, according to Bloomberg, there is no arguing that KFC is successful.
The Forces
Natural resources and environmental sustainability are basic factors that a country inherits and either has no control or very limited control over such as topography, climate, and natural resources (Ball, Geringer, Minor, and McNett ). Terrain and climate can be wildly different in the same country, mountains, deserts, plains and bodies of water
Cited: "KFC Agrees to Raise Workers ' Pay in China 's Liaoning." BBC Monitoring Asia PacificJun 08 2010. ABI/INFORM Complete; Los Angeles Times; ProQuest Newsstand. Web. 12 Dec. 2012 . "KFC History." KFC. N.p., n.d. Web. 13 Dec.2012. <http://www.kfc.com/about/history.asp> Ball, Donald A., J. Michael Geringer, Michael S. Minor, and Jeanne M. Mcnett. International Business : The Challenge of Global Competition. 12. New York: McGraw-Hill College, 2010. Print. Censky, Annalyn. "China 's Middle Class Boom." CNN Money 26 Jun 2012, News/Economy. Web. 20 Dec. 2012. Cho, Karen. KFC China 's Recipe for Success. Fountainebleau, France, Fountainebleau: INSEAD, 2009. ABI/INFORM Complete.Web. 11 Dec. 2012. Evelyn Iritani Special to the Tribune Evelyn Iritani is a staff writer for the Los Angeles Times,,a Tribune newspaper. "Gimmicks, Courtesies Help KFC Rule Roost in China." Chicago Tribune: 10. Sep 16 2001. Los Angeles Times; ProQuest Newsstand. Web. 11 Dec. 2012 . Insana, Ron. "Yum Brands Builds Dynasty in China ; KFC, Taco Bell Owner Sets Sights on Growth." USA TODAY: 0. Feb 07 2005. Los Angeles Times; ProQuest Newsstand. Web. 13 Dec. 2012 . McMahon, Denis. "Kfc in China: Secret Recipe for Success." Far Eastern Economic Review 172.1 (2009): 67-8. ABI/INFORM Complete. Web. 13 Dec. 2012. Shen, Samuel. "KFC Hangs its China Expansion Hopes on Local Tastes." International Herald Tribune: 15. May 06 2008. Los Angeles Times; ProQuest Newsstand. Web. 12 Dec. 2012 .