Steers: Good for Kenya
Steers: good for Kenya?
A TNC is a firm which has the power to co-ordinate operations in more than one country. McDonalds, Coca Cola, Pepsi, Toyota, KFC, and Nike are just few of the many TNCs that exist globally. From my research, most trading goods like food, clothing, automobiles, cellular phones, etc have at least one TNC operating in those sectors. There are an estimated 37,000 TNCs which operate around the world. The top 100 TNCs control 50% of world trade in manufactured goods and therefore are a major force in the global economy. TNCs operate in home countries (the country from where it started) and host countries (the country where it has expanded to).
Steers is one of the TNCs that operate in Kenya. It is a South African fast food chain which has grown in South Africa and spread to other countries like Angola, Botswana, Malawi and Tanzania. It operates a chain of restaurants through franchises which focuses on flame-grilled burgers. Today they have a total of over 600 outlets worldwide and have presence in 78% of the countries in Africa.
Steers has generated employment opportunities in Kenya especially to the food industry by employing chefs, waiters, and managers. It has trained top level management from their experience in existing outlets in South Africa. Secondly it has brought foreign investment into the country. Thirdly, it has benefited other industries that provide raw materials for their products like packaging flour and meat industries.
Most TNCs like Steers would take advantage of labour availability and give lower pay as compared to their own country. Secondly, profits earned by the Steers Kenya would be repatriated out of the country in form of royalties and franchise fees. Top management post in Steers Kenya would be reserved for South Africans and hence Kenyans would not get that post. Steers is financially very strong and thus have an advantage over the smaller local fast food companies like Kenchick. For example Steers can
A TNC is a firm which has the power to co-ordinate operations in more than one country. McDonalds, Coca Cola, Pepsi, Toyota, KFC, and Nike are just few of the many TNCs that exist globally. From my research, most trading goods like food, clothing, automobiles, cellular phones, etc have at least one TNC operating in those sectors. There are an estimated 37,000 TNCs which operate around the world. The top 100 TNCs control 50% of world trade in manufactured goods and therefore are a major force in the global economy. TNCs operate in home countries (the country from where it started) and host countries (the country where it has expanded to).
Steers is one of the TNCs that operate in Kenya. It is a South African fast food chain which has grown in South Africa and spread to other countries like Angola, Botswana, Malawi and Tanzania. It operates a chain of restaurants through franchises which focuses on flame-grilled burgers. Today they have a total of over 600 outlets worldwide and have presence in 78% of the countries in Africa.
Steers has generated employment opportunities in Kenya especially to the food industry by employing chefs, waiters, and managers. It has trained top level management from their experience in existing outlets in South Africa. Secondly it has brought foreign investment into the country. Thirdly, it has benefited other industries that provide raw materials for their products like packaging flour and meat industries.
Most TNCs like Steers would take advantage of labour availability and give lower pay as compared to their own country. Secondly, profits earned by the Steers Kenya would be repatriated out of the country in form of royalties and franchise fees. Top management post in Steers Kenya would be reserved for South Africans and hence Kenyans would not get that post. Steers is financially very strong and thus have an advantage over the smaller local fast food companies like Kenchick. For example Steers can
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