read The case study (KFC opens a store a day in China) and answer the three questions about it.

1. Do you think that at some point in your career you will become involved in international management? Explain.

2.  Assuming that you are involved in managing a KFC in China, what challenges do you think would be the most difficult for you in improving this Chinese KFC’s success? Why?

3.  Evaluate the following statement: KFC can learn to manage its U.S. operations better by studying how successful competitive operations are managed in other countries

KFC Opens a Store a Day in
restaurant in every major city and small town. TV and
n the United States, we are accustomed to seeing a KFC
Internet advertisements feature Colonel Sanders, played
by different actors, who touts the company’s secret recipe
and that the chicken is “finger lickin’ good.” KFC’s growth
in the United States is an impressive study in itself, but
the exponential expansion of the quick-service giant in
China is even more noteworthy.
The first location of a KFC in China was in Tiananmen
Square in 1987. The company was even able to get a foot-
hold in the country ahead of McDonald’s once the Chinese
government paved the way for more Western businesses to
operate in the country. Since then, the company has con-
tinued to grow. To date, there are over 5,100 locations and,
on average, a new KFC opens somewhere in China every
Sorbis/Shutterstock
KFC’s exponential
over 5,100 locatio
single day.
What is driving this success? The answer highlights
the importance of a company recognizing that its tradi-
tional forms of growth in the United States probably
country. From the
store managers re
flexibility in what
ucts. Referring to
the country, Sam
“Although custo
steady progress.
understandingt
bucket of chicke
tomer. However
wouldn’t work in Asian markets. KFC has taken a unique
approach with its expansion in China. First, the company
as localized the menu, tailoring offerings specific to the
market. In the United States, a typical KFC menu has about
30 items, but in China, guests have over 50 to choose from.
One common menu item in China is congee—a porridge
that consists of an egg, mushrooms, pickles, and pork.
Other offerings include a Beijing chicken roll and a Sichuan-
style spicy diced chicken.1
Another reason for the phenomenal growth that KFC
has experienced is a strong relationship with the Chi-
nese government. The company has faced challenges
such as suppliers who provided KFC with expired pro-
cessed chicken as well as raw food that was heavily
laden with antibiotics. KFC’s quick response to drop
these suppliers and open all its locations to frequent
health inspections has helped the firm succeed. KFC’s
willingness and eagerness to correct these problems is
an example of the management employability skill of
offered in a ple
ees who teach
customers.
KFCs in CH
U.S. location, t
a larger seatin
side business
ethics and social responsibility. The guiding principle
KFC is using to respond to scandals and issues ensures
that the firm is recognized by customers as a company
that truly wishes to provide a safe product free from
dangerous effects.
KFC is owned by Yum! Brands, and the Chinese divi-
sion of the parent company also owns Pizza Hut and Taco
Bell, which are also seeing moderate growth in the
also employ a
does a U.S. sto
50 menu item
on a daily ba
The less
distinctive A
different cul
the culture,
the local cu
chain has g
the compa
ah
KFC’s exponential expansio
over 5,100 locations and growing daily!
it
country. From the beginning of KFC’s Chinese operations,
store managers realized that growth hinged on the firm’s
flexibility in what it offered and how it offered its prod-
ucts. Referring to those early days of KFC’s first foray into
the country, Sam Su, CEO of Yum! Brands China, said,
“Although customers didn’t like the food much, KFC made
steady progress.”2 Part of the progress stemmed from the
understanding that in Chinese culture, food is central. A
bucket of chicken simply does not equate to a repeat cus-
tomer. However, chicken spiced with local flavors and
offered in a pleasing setting with a hostess and employ-
ees who teach children English words brings in repeat
customers.
KFCs in China are about twice the size of the typical
U.S. location, too. The reasons are the extensive menu and
a larger seating area, where families dine together along-
side business executives who are having a meeting. They
also employ about twice the number of associates than
does a U.S. store. Again, food preparation of more than
50 menu items requires a larger team to get the work done
on a daily basis.
The lesson learned is that KFC did not try to force its
distinctive American brand, store layout, and menu on a
different culture, It moved slowly, discovered more about
the culture, and then tailored its operations to appeal to
the local customer base. Once successfully established, the
chain has grown by leaps and bounds. And to epitomize
the company’s success, in a typical year, KFC now opens
about 600 to 700 new stores in China.