澳洲論文代寫：The Internationalization Process of KFC代寫
The Internationalization Process of KFC
With the fast development of the global economy, the international business is becoming more and more important to modern organizations because the international business can bring more opportunities than the domestic business. It is necessary for modern organizations to carry out international business underneath the background of the globalization. The implementation of the international business means that the operation environment becomes more complex than before so modern organizations need to pay more attention to the internationalization process (Andrea, 2011). Definitely, the internationalization process is full of opportunities and challenges at the same time. As one famous multinational company, KFC has achieved a lot in the internationalization process. In this essay, it plans to analyze and evaluate the internationalization process of KFC in a comprehensive way especially in the Chinese market. In the process, the evaluation and analysis will take related theoretical knowledge into consideration. As to the structure of the essay, it can be separated into four parts, the background of KFC, the internationalization process of KFC, experience from the internationalization process of KFC and related conclusion.
2. Background of KFC
2.1 Brief Overview of KFC
KFC was founded in the year of 1952 and it is a quite famous international fast food restaurant in the whole world. The main products in KFC include fried chicken, hamburger, chip, cola and other western style fast foodstuff. The biggest competitive power of KFC is its unique fried chicken which is quite delicious and impressive. As a result, KFC becomes quite popular and welcoming in the America and all over the world step by step. KFC is quite successful in the internationalization process and its branch stores are in almost corner of the world and it has formed the super powerful fast food market. The customer base of KFC is the young and the working class at the starting of the business (Patterson, 2007). With the fast development of its operation, the customer base is becoming larger and larger. Till the end of 2013, the number of the branch store of KFC in the Chinese market is more than 4000, which is in the first position of the Chinese fast food industry to a large extent. The appearance of KFC and other fast food restaurants has largely changed the life habits of Chinese people. In other words, the entrance of KFC also brings a series of cultural influences to the whole Chinese society. Taking the Chinese market for example, it can typically show the internationalization process of KFC and how KFC becomes a real successful multinational company in the international market.
2.2 Objectives Related to International Business
The general objective of the internationalization of KFC is to develop a real successful multinational company in the fast food industry. The core international business principle of KFC is to provide the public with high quality products and services. The market position of KFC is not just a fast food restaurant but also a relaxing place for modern people. In order to carry out the international business smoothly, KFC makes good use of the localization policy which tends to combine with the local culture in an organic way. The internationalization process of KFC is motivated by a series of factors which come from both the internal and the external environment. With regard to the internal motivation, KFC wishes to expand its international market share because the competition in the domestic market is quite furious especially from Macdonald. With the fast development of the economy in developing countries like China, the life quality of the whole society has improved in a corresponding way. This creates a series of opportunities for the international expansion of KFC to a large extent. With respect to the external motivation, the fast development of the global economy pushes KFC to develop in the foreign market so as to make good use of the global resources and market in an effective way.
3. The Internationalization Process of KFC
When considering the specialty of the fast food industry, the major internationalization policy of KFC is foreign direct investment, which is to found a new company in the foreign country. The advantage of FDI is that it has strong ownership and authority in the process of carrying out the daily business. The biggest disadvantage of FDI is that the entry is quite difficult and it might encounter difficulties from the local government and enterprises to a large extent. In this part, it plans to analyze the KFC’s internationalization process in the Chinese market in a comprehensive way.
3.1 Analysis of the Internationalization Process of KFC
In the process of developing the Chinese market, KFC makes good use of the localization policy which is to combine with the local culture in an organic way. The localization policy of KFC can be seen from three aspects, the localization of the brand, the localization of products and the localization of services.
With regard to the localization of brand, KFC tries its best to design special advertisements and image with strong Chinese features. For example, the advertisement slogan of KFC in China is ‘life is so wonderful’, which comes from a famous poetry by Mao Ze dong. In China, all Chinese people have quite good impression about Mao Ze dong who is the first president of new China. At the same time, the media advertisement by KFC combines the traditional culture of China, and some advertisements deliver the emotion and connection between daughters and parents. Correspondingly, the whole Chinese society can be easily affected by the advertisement. As a result, the potential customers to KFC will increase in an intangible way.
With respect to the localization of products, KFC pays enough attention to the food culture of Chinese people (Cook, 2010). In the process of designing new products in the Chinese market, KFC tries its best to put more Chinese factors into its products. For example, the local Chinese products provided by KFC include deep fried dough sticks, old Beijing chicken pie, delicious rice set and so forth. These products in the Chinese market are unique and they are only popular in the Chinese market. KFC is still trying to design a series of new Chinese style foods in the process of developing the Chinese market.
From the perspective of the localization of services, KFC knows that China has a history of more than 5000 years. As a result, the services provided by KFC are largely connected to the daily life of Chinese people. The choice of waiters and waitresses of KFC is quite strict, and they must be full of passion in order to serve in a polite way. At the same time, KFC also takes demands of one whole family into consideration. So KFC designs special places for children to play while the whole family is enjoying the happy time in KFC.
3.2 The International Business in China
3.2.1 The Way of Internationalization
In the process of carrying out the international business, KFC mainly takes the foreign direct investment policy. In the process of developing the Chinese market, KFC needs to coordinate with the Chinese government so as to get the government’s permission, which is the first step to implement the foreign direct investment policy (Zoran, 2010). At the same time, KFC needs to communicate with the food management institution so as to get related certifications which are the basis of carrying out business in the Chinese market. In addition, the internationalization process of KFC also involves the real estate industry, package industry, beverage industry and the food industry. In the cooperation process with these local partners, KFC makes good use of the localization policy to manage in order to incorporate into the Chinese market in an organic way (Magnus, 2010).
3.2.2 Impacts of These Actions on KFC
It can be seen that KFC makes good use of the foreign direct investment and the localization policy in the process of carrying out the international business especially in the Chinese market. With regard to the foreign direct investment policy, KFC has established a series of branch stores in China from developed cities to less developed cities. Correspondingly, the internationalization process is largely simplified even if the foreign direct investment process brings some extra costs and difficulties (Dunn, 2012). With respect to the localization policy in the Chinese market, KFC becomes one essential part of the fast food industry in China to a large extent. Generally, the entry of KFC into the Chinese market largely improves the public image of KFC in the international market because of the powerful influences of China.
3.2.3 Impacts of These Actions on Broader Community
At the same time, the internationalization process of KFC also brings a series of influences to the broader community. From the perspective of the competition in the fast food industry, KFC and Macdonald are quite competitive, and both of them has specific customer base because of their special flavor. Also, the success of KFC brings a lot of confidences to the fast food industry and a number of local fast food restaurants in China begin to appear. From the perspective of the food culture, the traditional Chinese food culture is largely changed by the entry of KFC and Chinese people begin to accept the fast culture (Voinea, 2010). On the basis, the daily life and work are also accepted by the fast culture in a natural way.
4. Experience and Lessons from the Internationalization Process of KFC
From above analysis in the essay, it can be seen that the internationalization process of KFC especially in the Chinese market is quite successful to a large extent. Also, the internationalization process of KFC brings a series of implications for modern multinational companies to carry out the international business smoothly. The fast development of the global economy means that no company can escape from the international business. More or less, each enterprise will be affected by the fast development of the globalization. On the basis, modern organizations should try their best to catch these opportunities brought by the globalization. In the process of carrying out the international business in the foreign market, the enterprise must learn to communicate with the host government and local partners in a proper way in order to create good cooperation environment no matter the company chooses what kind of internationalization.
From the perspective of the fast food industry, the company should take the foreign direct investment policy into consideration while it chooses the market entry model (Hayden, 2005). The foreign direct investment can largely avoid unnecessary troubles from the local partners. But, the foreign direct investment also needs corresponding supports from financial and capital aspect to a large extent. Once the foreign direct investment policy succeeds, it will be much easier for the organization to expand in other foreign markets under the guidance of the same principle. For all multinational companies, they must learn to make good use of the localization policy in the process of carrying out the international bus. The localization policy can be separated into the localization of the brand, the localization of products, the localization of services and so forth (Coello, 2008). In the process of localization, the organization should combine with the local culture and make corresponding adjustments in an organic way. To some extent, the localization policy in the process of internationalization means to create a new local brand in the foreign market.
In this essay, it analyzes the internationalization process of KFC especially in the Chinese market in a comprehensive way. As to the internationalization policy of KFC, it mainly makes good use of the foreign direct investment policy and the localization policy, which contributes a lot to the success of KFC. At the same time, the essay shows the internationalization process of KFC and how KFC becomes a famous MNC in the fast food industry in China. In the end, the essay provides a series of lessons which can be learnt from the internationalization process of KFC. In summary, the main lesson is that the internationalization policy of the organization should take the foreign direct investment and the localization into consideration.
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