Kfc Japan

4919 Words Nov 17th, 2011 20 Pages
KFC-Japan history from the beginning gives a good picture of the different existing ways of managing subsidiaries. Lessons learned from successive managers can help us to identify what is the best way of seizing external opportunities in a given situation.
The dilemmas KFC is facing at the different stages of her history which can be represented with the three stages theory describes well the organizational and operational challenges usually faced by a “transnational” company.
Each appointed manager represents a specific way of managing subsidiaries or a stage of the “three stages theory”. At the beginnings, each country manager was on his own to make a success of his venture, and most had to learn the business form scratch.
From
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The management style was based on:
- basic goodness of the people
- franchisees fair play
- no strategic control
I.1.1 Industry Growth and development
KFC played a major role in the definition of “the rules of games” and norms in fast food industry, particularly in the expansion through franchising.
There were many advantages in the franchise system:
- reduce high cost of new stores
- need to expand quickly
- capture operating economies in advertising and raw materials purchasing
- motivate chain management
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- at the store level : importance of scale economy
- location as a key success factor
- managers in charge of developing local customers
But there were also disadvantages like the risk of confusing the chain’s image if it deviated too far from its basic menu and core theme.
I.1.2 Acquisition and Growth : the late 1960s
In the late 1960’s KFC KNEW a fast and large development of the company: this was a take off period, always difficult to manage for a company. That’s why many problems occurred at this time. There were problems in Human resources management: KFC headquarters experienced high turnover in its management ranks (senior executives leaving to become franchisees).
One of the solutions to solve those problems has been to use the huge development to…

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