Analysis of Kfc. The Forces and KFC

2279 Words10 Pages
| The Forces and KFC | |

James Watson

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
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This consists of strategic planning, skill level, knowledge management, corporate objectives, mission, vision, and value statements. The economic future of China is what so many businesses are really going after. Chinas economy has grown steadily over the past thirty or so years. In the last ten years, disposable income has quadrupled from $760 to about $3000 per person on average (Censky). This new found middle class and their discretionary income is what KFC and many other businesses are focusing on. With an increasing amount of consumption for western type luxury 's and with an eagerness to adopt an easier and faster way of life, Chinese consumers are the target for KFC. While income distribution is not at all equal, with many rural Chinese having disposable income of about $1000 per year while urban Chinese in large cities like Beijing, Shanghai, and Shenzhen have around $12,000 per year (Censky), the up and coming Chinese are willing to spend their income on fast food. It must be mentioned that Chinas economic boom and therefore the rise of Chinese disposable income has come with a price when it concerns the country 's environmental climate. With the speed of industrialization, China has compromised much of its forests, rivers, and air quality. While KFC has not had to deal with any environmental forces it has to be conscious of being a good business that doesn 't
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