Kfc International Business

593 Words3 Pages
The article “KFC’s Radical Approach to China” but David Bell and Mary Shellman informs the reader on the struggles and accomplishments of KFC in the Chinese market. The American company of KFC was able to adapt its menu and customer service processes to better fit the culture in the Chinese marketplace. In the 1980’s, the American company KFC wanted to expand their company into China but they understood they could not just pick up the traditional American restaurant and transplant it to China. After China lifted many of its laws concerning foreign companies in 1992 to allow more international businesses in China, KFC began to expand in the country. KFC executives began to formulate a strategy for success in China. The strategies were “ turning KFC into a brand that would be perceived as part Chinese; expanding rapidly into small and midsized cities; developing a vast logistics and supply chain organization; extensively training employees in customer service; and owning rather than franchising the restaurant” (Bell). KFC wanted the Chinese community to view KFC as Chinese and not an American restaurant in China. As a result, KFC adapted its menu to include more items that appeal to the Chinese culture and taste according the Bell and Sherman. “KFC China’s menu typically include 50 items, compared to 29 in the United States” (Bell). By expanding the menu to include more items, KFC was able to cater to customers and their palate. The menus that were created contained food items that Chinese customers were acquainted with eating. KFC also understood that in order to stay competitive, they would have to develop a logistics network that could accommodate the extensive menu and rapid expansion of stores in China. KFC executives decided to build warehouses and run the trucking fleets themselves. “This was necessary if the

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