KFC's international management strategy and cultural adaptation challenges

KFC Case Study

I am not fully convinced of the effectiveness of KFC's management of its international operations. In the case of Japan, for example, Loy Weston and others were simply sent to a remote location with instructions to expand the business. The rest was left up to them. This created a sense of independence among these entrepreneurs. The sudden change, decades later, to be hands-on in terms of management overseas operations clearly resulted in considerable resentment, which is never a good thing for smooth business operations. Furthermore, the company's headquarters seem to have a particular lack of sensitivity when it comes to the local culture of foreign markets. In the case of Japan, for example, Weston and Ohkawara, managers who have worked in the franchise for decades, were completely ignored in terms of local customs and tastes in favor of attempting to force them into adopting a more standard menu. On the other hand, I can also understand the Headquarter point-of-view, which is that Japan's profits have been far lower than desired over the time of the company's operations. In short, however, I feel that a middle ground should be negotiated for all regions rather than a draconian and forceful attempt to standardize operations worldwide, since it is a general principle of business to modify products and services to cater for local tastes.

2. As mentioned, I would consider a strategy that is not overly aggressive. First, I would conduct a full SWOT analysis of the existing company and focus particularly on the weaknesses and threats sections with a view to mitigate these. For an international market, one significant potential weakness is a company's lack of understanding in terms of the local culture. As seen in the case study, profits will absolutely fail if a manager is not fully involved in his company's operations to ensure that there is a commitment to the local customer in terms of culture and taste. This is particularly the case for the food industry. The case study also mentions KFC's initial misgivings about expanding internationally because of exactly this concern. The wide variations in food tastes across the world and across cultures is indeed a significant factor to consider when expanding this kind of business.

3. The first stage is the entrepreneurial stage. For this stage, entrepreneurs are expected to make their own way and learn the business according to the requirements of the industry. Nonetheless, to ensure consistency and quality, such learning needs to take place under the umbrella of certain standards and conditions. The second stage is the development on the local plane, when local businesses are developed to expand the parent business. This is the stage during which foreign managers can use the skills and local knowledge they have built to create more autonomy for themselves. The third stage concerns the rise of professional management, where planning, measurement, and business development ideas can be implemented in the long-term.