...food service provider. KFC, which is one of its subsidiaries, not only specializes in fried chicken but is also the leading brand for it. KFC China, since its inception, has been growing at a very fast pace. It has taken astute strategic steps to establish itself in China. It had various key competitive advantages which permitted it to expand to more than 4000 outlets in China (Bell and Shelman, 2011). The company hired a managerial team from Taiwan which had an experience of more than 15 years in the fast food industry (Cho, 2009). It introduced a new concept of high-end, modern and western fast food in China. People considered KFC to be a nice place where they could take their dates. The Chinese love fried chicken, which is probably one of key reasons it has a competitive advantage over the beef focused MacDonald’s, with a ratio of 2:1 unprecedented anywhere else in the world (Cho, 2009). It also catered to local tastes by localizing its menu to suit the Chinese and acquired East drawing- a chain which serves local food. KFC china is also known for its frequent product releases. KFC also dealt with China’s dynamic and rapidly changing business environment by establishing its own supply chain and owning most of the chains instead of giving franchisees like it operates in the US. This was mainly to protect itself from the problems it could face by getting off on the wrong foot with the local partners. (Bell and Shelman, 2011) However, in 2012, KFC china saw its sales fall for...
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...KFC´s radical approach to China Fallstudie #1 23.04.2013 Inhalt 1 2 3 4 KFC Key facts & die Geschichte in China Ausgangssituation Unternehmenssituation Analyse der Vorgehensweise 5 6 7 Gruppe #6 Alternativstrategien Künftige Strategieansätze Fazit KFC´s approach to China 23/04/13 2 1 KFC Key facts KFC wurde vor bereits 83 Jahren in Kentucky gegründet & etablierte sich mit den im Fast-Food-Business typischen Merkmalen weltweit Amerikanische fast-food-Kette Stark etabliert in den USA Erste Filialeröffnung in Kentucky 1930 Gründer Harland D. Sanders Klassisches „Western-Style-Fast-Food“ Begrenztes Produktprogramm & niedrige Preise Verkauf nach dem Take-away-Prinzip 1986 Verkauf an PepsiCo KFC wurde von PepsiCo zu einem späteren Zeitpunkt in Form von Yum! ausgegliedert Allgemeine Unternehmenseckdaten 18.198 Restaurants in 120 Ländern Umsatz ca. 15 Mrd. USD Mitarbeiter weltweit: Ca. 455.000 Hauptstandorte: USA (4618 Filialen) & China (4260 Filialen) Gruppe #6 KFC´s approach to China 23/04/13 3 1 KFC Geschichte in China Seit Markteintritt (1987) in China entwickelt sich die Restaurantkette in den Bereichen Logistik, Produktprogramm & Mitarbeiterqualität stetig weiter 1987 – erste Filiale in Tiananmen, China 1989 – Aufbau eines Chinesischen Management Teams durch Sam Su 1992 – Regierung ermöglicht ausländischen Firmen einen einfacheren Marktzugang Starke Anpassung an lokale Gegebenheiten / Aufbau eigenes Logistiknetzwerk...
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...chicken A success story in China" Degree course: Module: Lecturer: Submitted by: International Business, M.A., 02nd semester International Strategy and Operations Management Summersemester 2014 Dr. Nils Stieglitz Eugen Hölzl, Jia Luo, Bingqi Tang, Xinhe Liu, Matriculation-no.: 493 396 5 Matriculation-no.: 492 574 4 Matriculation-no.: 493 581 6 Matriculation-no.: 492 682 8 1/3 KFC entered the Chinese market in 1987 as an American company. 27 years later, KFC has established its presence in virtually every larger Chinese city and has developed its localization to an astonishing degree. KFC’s performance in the Chinese market significantly outgrew the brand’s performance in its home market in terms of revenue and outlet numbers. With more than 4.500 outlets, KFC China generates more than half of its yearly revenue for the Kentucky based Yum! Brands. There is no doubt that KFC China has written an impressive page in the history of western brands succeeding in the Chinese market. The aim of our case study was to answer three questions: what made KFC so successful in China? Which challenges and opportunities does the company face today? And which strategies are and/or should be in place? To answer the first question, standard macro-analysis tools were used and a detailed look at the market environment at the time of market entry was taken as well as the measures KFC undertook by then. The following are the factors that we believe contributed to KFC China’s success: Reposition:...
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...EXPORTBERICHT KOLUMBIEN Wirtschaft / Außenhandel Geschäftsabwicklung Markterschließung Zollregime / Recht Geschäftsreisen Stand: September 2013 Grundlage dieser Broschüre ist der Länderreport Kolumbien der freundlicherweise von AUSSENWIRTSCHAFT AUSTRIA zur Verfügung gestellt wurde. AUSSENWIRTSCHAFT AUSTRIA ist die Außenwirtschaftsorganisation der Wirtschaftskammer Österreich. Die Überarbeitung erfolgte durch das AUSSENWIRTSCHAFTSZENTRUM BAYERN (AWZ). Weitere Exportberichte sind im AUSSENWIRTSCHAFTSPORTAL BAYERN unter www.auwi-bayern.de → Rubrik „Länder“ abrufbar. 2 Herausgeber, Medieninhaber (Verleger) und Hersteller: AUSSSENWIRTSCHAFT AUSTRIA Wiedner Hauptstraße 63, Postfach 150, 1045 Wien, Redaktion: Publikationen, Telefon: 05 90 900-4321, 4214, Telefax: 05 90 900-255, E-Mail:: aussenwirtschaft.publikationen@wko.at, http://wko.at/aussenwirtschaft Die Unterlage zu dieser Veröffentlichung stellte das zuständige AußenwirtschaftsCenter zur Verfügung. Hinweis: Im Sinne einer leichteren Lesbarkeit werden geschlechtsspezifische Bezeichnungen nur in ihrer männlichen Form angeführt. © AUSSENWIRTSCHAFT AUSTRIA Das Werk ist urheberrechtlich geschützt. Alle Rechte, insbesondere die Rechte der Verbreitung, der Vervielfältigung, der Übersetzung, des Nachdrucks und die Wiedergabe auf fotomechanischem oder ähnlichem Wege durch Fotokopie, Mikrofilm oder andere elektronische Verfahren sowie der Speicherung in Datenverarbeitungsanlagen bleiben, auch bei nur auszugsweiser...
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...which I have collaborated with other students, whom I have named. CLEARLY PRINT Name: | Student ID No: | Signature: | Nisa Unothai | 566110520011 | | Lin Xiao (Rebekah) | 576110520002 | | QinXueFei (Sophie) | 576110520006 | | Li Minyi (Maple) | 576110520007 | | Zhou zhiyu (Jayce) | 576110520010 | | Padcharee Klahan | 576110520015 | | | | | | | | Tasks 1. Select the specific Brand of fast food chain or coffee shop chain e.g. KFC, Starbuck Group 3 selects Kentucky Fried Chicken (KFC in short name) which is an international brand providing fast-food restaurant in many countries. 2. Discuss the similarities and differences of their implementations of marketing mix strategies between two countries e.g. Thailand versus China or Australia. A comparison table format including texts, pictures and video link are recommended. Use components of marketing mix strategies below as possible discussion components: 3.1 Components of Marketing Mix Strategy | Thailand | China | Product |...
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...Analysis of Why KFC is more successful than McDonald in China Analysis of Why KFC is more successful than McDonald in China Kentucky Fried Chicken (KFC) is a chain of fast food restaurants based in Kentucky in the United States. KFC is famous for its fried chicken and the sales revenue is ranking number seven in American Market (Figure 1). McDonald's Corporation is the largest chain of hamburger fast food restaurants in the world and also the largest in American, serving more than 58 million customers daily (Breitbart, 2009). But in China, KFC and McDonalds are in a totally different situation. KFC is the most popular restaurant in China and McDonalds, although popular either, but is performing much less than KFC. This contrast is not a miracle and everything happens for a reason, this report is going to analyze the reasons for KFC is more successful than McDonald in China. Figure 1. KFC and McDonalds in American Contrast |American Market| |McDonalds|KFC| Revenue|2003|$22.1 billion|$4.936 billion| |2002|$20.3057 billion|$4.86 billion| RestaurantsNumber|2003|13,609|5,524| |2002|13,491|5,472| Ranking inAmerican Market|2003|No.1|No.7| Source: The data are adapted from “KFC and McDonalds: A huge difference in China”, retrieved from http://finance.people.com.cn/GB/3799268.html Figure 2. KFC and McDonalds in China Contrast|Chinese Market| |McDonalds|KFC| Revenue (2003)|￥5.3 billion|￥9.3 billion| Revenue increase in 2003|Increase...
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...SUMMARY Boasting a secret recipe of numerous spices and “finger licking good” chicken meals, KFC was started by Harland Sanders as a tiny restaurant called “Sander’s Court and Café” at a gas station. Now, a more than 11000 restaurants in 85 countries, KFC is the world’s largest chicken fast-food restaurant and one of the top fast-food chains worldwide. It was also one of the first fast food restaurants to go international4 and is popular in many countries. After having gone through many different hands, KFC is now under Yum! Brands Inc together with A&W All-American, Food Restaurants, Long John Silver’s, Pizza Hut, and Taco Bell. With a market such as China with a longstanding tradition, KFC executes must realize that they are faced with customers very different from the rest of the world. It cannot distribute the exact same products there as it does in every other part of the world. As they are faced with different markets, KFC must learn to adjust its products accordingly. Like most multinational companies, KFC was first attracted to China by the size of the country’s market potential which is 1.3 billion people, 20% of the world’s total. China is a market with a few thousand years of recorded history, a deeply entrenched culture, and very different from the West. KFC’s decision to pursue a broad and active localization strategy in China began with the assembly of its local leadership team made up of US-educated ethnic Chinese drawn from Taiwan and other parts of...
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...Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) Development in China Wei Hu & Yuanyuan Xie Bachelor’s Thesis 28. 04. 2013 International Business Administration Bachelor’s degree (UAS) SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Wei Hu & Yuanyuan Xie Title of Thesis Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) development in China Date 28.04.2013 Pages/Appendices 53+2 Supervisor(s) Jari Niemelä &Heikki Likitalo Client Organization/Partners McDonald's Corporation & Kentucky Fried Chicken Corporation Abstract McDonald's and KFC are two international fast food restaurants. They both expended their businesses in global scale. It is obvious that McDonald surpassed KFC in terms of sales and fame in international level. However, in China, KFC performs better than McDonald's. The aim of this study is to find out how these two companies developed differently in Chinese market. By making a comparative study of McDonald's and KFC, different operation and competitive strategy theory will be integrated with their development situation. Research is made based on strategy theory, Internet sources and interviews. The thesis is started with general information, Chinese fast food industrial situation introduction and thesis structure. After having introduced the two companies background, we illustrated strategy...
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...INTRODUCTION This project puts in perspective the multinational company called Yum!Brands, which is an American company in the fast-food industry. We will be discussing about some aspects of this company generally, but we intend to give more details on the company Kentucky Fried Chicken(KFC) which is one of the Strategic Business Units (SBU) of Yum!Brands. We will give the profile of Yum!Brands and KFC, and also analyze the strategy of the company, its internal and external environment, its position vis-à-vis its competitors, its competitive advantage and how far it has come/how well it is doing today. We intend to focus on one local market, so in this project we are taking KFC China as our case study. We decided to choose Yum!Brands and specifically KFC as our project case study because we have noticed the rapid growth of the fast-food industry. Fast-food is a typical American trend which reflects the American eating culture of “grabbing a quick bite” so to speak. Today people are very busy, not only in America but all over the world. People have less time to sit and eat a home cooked meal, especially at lunch time when almost everyone is out of the house and working. The most convenient thing to do is to go for a “fast-food”. We noticed that this trend has even moved from being just a lunch-time substitute for home cooked meals to being a fun time meal between friends, colleagues and family. Some corporate bodies even order fast-food for meetings or corporate get-togethers...
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...ase 3–6: McDonald’s and C KFC: Recipes for Success in China Quick Service Restaurant Giants in the Middle Kingdom In 2008, McDonald’s and KFC were the two largest quickservice restaurants (QSR) in the world, with 31,999 and 15,580 outlets, respectively.1 Both chains were renowned for their broad spectrum of consumers on a global basis. McDonald’s appeared to be a clear winner in international expansion. It had over 17,500 international outlets and was the first corporation to set up a solid foundation for international franchising. It spearheaded global expansion with its first overseas outlet in Canada in 1967, and entered Japan in 1971.2 McDonald’s outlets had tremendous success in Japan—despite the difference in culture— with record-breaking daily sales and speed of expansion in the initial stage.3 KFC also started international expansion early, opening its first overseas outlet in England in 1964. However, it was given a bumpy ride when it began to penetrate the market in Asia. The Japanese outlets were far less successful than McDonald’s and only started to make a profit in 1976, six years after KFC entered Japan. KFC outlets opened in Hong Kong in 1973 but were all closed down within two years. The company would eventually win the confidence of Hong Kong customers ten years after its first entry. In Taiwan it experienced relatively smoother development, although KFC headquarters was to spend a huge amount of money and effort in order to get the...
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...Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) Development in China Wei Hu & Yuanyuan Xie Bachelor’s Thesis 28. 04. 2013 International Business Administration Bachelor’s degree (UAS) SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS Abstract Field of Study Social Sciences, Business and Administration Degree Programme Degree Programme in International Business Author(s) Wei Hu & Yuanyuan Xie Title of Thesis Comparative Study of McDonald's and Kentucky Fried Chicken (KFC) development in China Date 28.04.2013 Pages/Appendices 53+2 Supervisor(s) Jari Niemelä &Heikki Likitalo Client Organization/Partners McDonald's Corporation & Kentucky Fried Chicken Corporation Abstract McDonald's and KFC are two international fast food restaurants. They both expended their businesses in global scale. It is obvious that McDonald surpassed KFC in terms of sales and fame in international level. However, in China, KFC performs better than McDonald's. The aim of this study is to find out how these two companies developed differently in Chinese market. By making a comparative study of McDonald's and KFC, different operation and competitive strategy theory will be integrated with their development situation. Research is made based on strategy theory, Internet sources and interviews. The thesis is started with general information, Chinese fast food industrial situation introduction and thesis structure. After having introduced the two companies background, we illustrated strategy...
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...Approach to China The Factors Behind Their Success Westernized fast food chains are steadily growing in foreign countries. Kentucky Fried Chicken is one of the leading U.S. fast food chains currently in China. There are several factors that have contributed to KFC’s rapid expansion and success in China. The story of KFC in China is one of great success on an economic level, as well as a great example of international business. There are many factors behind KFC’s success in China which include, five competitive advantages: infusing a Western brand with Chinese characteristics, expanding rapidly, developing a logistics network, training employees in service, and focusing on ownership rather than franchising. KFC is part of the Yum! Brand, which also owns Pizza Hut and Taco Bell. KFC China’s success in the international market has all been due to its five competitive advantages. The first of these advantages is infusing a Western brand with Chinese characteristics. KFC China makes sure that even though it is a US chain and restaurant it has worked hard to assimilate into the Chinese culture. They have done this by offering a variety of menu choices that cater to the local cuisine. They have also expanded their kitchens and their workforce to be able to produce and accommodate for the additional menu options. Extended families are a big part of Chinese culture; KFC China has acknowledged this by increasing the square footage of their establishments in China. Another advantage...
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...Janay Booker BUAD 4020 November 2, 2013 McDonald’s and KFC Case Analysis Brief Summary In 2008 McDonald’s and KFC were the largest quick service restaurants (QSR) in the world, with 31,999 and 15,580 outlets respectively. Both chains were renowned for their broad spectrum of consumers on a global basis. McDonald’s spearheaded global expansion with its first overseas outlet in Canada in 1967 and entering Japan in 1971. McDonald’s outlets experienced tremendous success in Japan with record breaking daily sales and speed of expansion in the initial stage. KFC similarly started global expansion early with its first overseas outlet in England in 1964 and entered Japan in 1970. However KFC was not as successful as McDonald’s and did not experience profit until six years after entry. KFC opened outlets in Hong Kong in 1973 which all were closed within two years. The company would eventually gain the confidence of Hong Kong customers ten years after its entry. There was a completely different experience in China for KFC. They were recognized as the leader in foreign QSR as well as a significant player in the Chinese restaurant industry as a whole, contributing 1% in the country’s total food and beverage revenues in 2005. In 2005 KFC outlets in China recorded an average on 1.2 million in annual sales per store, compared to just 900,000 for similar stores in the US. In contrast McDonald’s presence in China was less than half of KFC’s with a significantly lower estimated profit margin...
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...Case Study McDonald’s and KFC: Recipes for success in China COUNTRY LEVEL With the largest population in the world, the emerging economy of China was an easy target for companies to begin their international growth. The opportunity to make money in this country is what excites companies to try and integrate their businesses into the area. China is currently a part of the BRICS association making it one of the five major emerging economies in the world. China is located in Southeast Asia along the coastline of the Pacific Ocean. It sits as the fourth largest country in the world and is currently the second largest economy in the world measured by the Purchasing Power Parity Scale. This scale shows that a product in two different countries should have the same price when expressed at the same currency. With China’s size and increasing economy they have really worked to open their economy to international trade. This opens up the market for companies to try and enter and become successful. (Economy, 2010). Companies like KFC and McDonalds saw they opportunity and began to enter the Chinese market. These bolds moves paid off for some and not so much for others. Throughout the analysis we will see who the real winner is and what the future holds for these industries. QUICK-SERVICE INDUSTRY Both KFC and McDonalds are part of the quick-service industry. Many people know this industry as fast food but this is the correct name for it. This industry has been around for years and is...
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...THE GROWTH OF KFC IN CHINA Kentucky Fried Chicken (KFC) has achieved another milestone in delivery, the explosive growth in Asian region most particularly in their current trends in China that KFC fried chicken, burger and fries is gaining its way to superstardom. Currently their food store has been enjoying its popularity and outperforming their competition because of this one particular brand the “Yum Brand” KFC has taken advantage of the Chinese in their preferences and hunger to suit their oriental taste that has developed a product of national image, the technique is to source out food according to their taste changing and integrating their menu and style. The brand has been recognized to serve a good diet while KFC offers a variety of food including grains, cereals, meat, fruit, grains, dairy foods and cereals. KFC also strive to deliver and combine great taste, nutritional and healthy food on the eyes of their Chinese customers. They have stayed as if their food has been locally outsourced. They even employed local management and followed the government recommendation that makes their customer’s feel like their food and store is homegrown. The design of their store structure also has a quiet Chinese theme and standards that encouraged people to come in. The success and performance of KFC in China led them to establish currently as of 2011 over 3500 stores in most populous 700 cities in this country. The growth of their stores is explained by their CEO...
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