Kfc Globalization

2057 WordsMar 16, 20129 Pages
Among the last two decades of entering, KFC, shorten from Kentucky Fried Chicken, a once lack-luster American fast food brand, outperformed all other competitors and rapidly became the biggest restaurant chain in China. No matter considering the number of restaurants, profit or market shares, KFC dominants the Chinese food market with 2200 branches over China and a speed of 300 new branches annually, unmatched by its arch rival and world market leader McDonald (John, 2008). The successful expansion of KFC China has been one of the mysteries of modern marketing. The success of a company always results from its choice of strategy with regard to low cost and value creation and its ability to configure the internal operations to strategic…show more content…
While, local adaptation of corporate standard, policy, and management system cannot take place without a supportive organizational architecture. Organizational architecture includes a broad dimension of structure, process, incentives, control and people, which can be an invaluable tool for shaping the way it gets things done (David, Michael and Mark, 1997). The following part will discuss the organizational architecture of KFC China in four separate aspects, structure, process, incentive and control, and culture. To beginning with, the worldwide area structure and decentralized decision-making responsibility contribute a large parts of KFC’s remarkable success in China. It is crucial for country subsidiaries which focus on local responsiveness to have decentralized operating decisions (Hill, 2011). KFC is very much decentralized in its operation, their franchises and joint ventures have a good deal of latitude in the way the conduct their business (James and Melissa, 2005). KFC China, based in Shanghai, is a functionally self-contained country subsidiary that the first important move after entering was to selected local partners with government connections and effectively leveraged their tangible and intangible local resources (Karen, 2010).This structure facilitates local responsiveness, especially important in the consumer goods industry, summed by Liu (2005), a former member of the company’s Greater China
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