Case: McDonald’s and KFC: Recipes for Success in China
1. Assess KFC’s strategy in China? What should KFC do next? KFC’s strategy in China firstly aimed to be the first leader in foreign quick –service restaurant. KFC differentiated itself from other local Chinese fast food restaurants by not only providing normal standard KFC foods but also offering customers with high quality service with different concept and ambiance. Moreover, KFC adapted itself in the foods variety to match with customer needs. Its menu localization brings the concept of “American brand with Chinese characteristics. People are significant resource for KFC. Thus, KFC started talent development since the first day it started by offering training and providing career growth within the company. This talent development program, later on, greatly supported the expansion of KFC in China successfully. During crisis, KFC created opportunities for itself by expanding aggressively in China. Nevertheless, KFC developed its own logistics system with STAR system. The own logistics system helps KFC to lower the costs, control the quality and deliver products and services to customers faster. With all these strategic plans, KFC succeeds in China greatly. To compete with other foreign fast foods which are coming to China in the near future, KFC should consider backward integration. KFC may set up its own farm to raise its own chickens and other major ingredients in order to control the quality and safety of the materials. This farm will be the only supplier for all the franchised KFC stores in China in order to control the quality and standards of foods. KFC should also set up training center. All the employees should be trained here and hence, to control the quality of the services in different stores. Nevertheless, in order to gain customers trust and loyalty, KFC should also focus on CSR (Corporate Social Responsibility) to show its concern of brining the best quality foods to customers while...
Please join StudyMode to read the full document