KFC in China (Jenish Patel) PDF

Preview

Summary

Download KFC in China (Jenish Patel) PDF

Description

Jenish Patel



BA 4101

9/3/19

What are the risks and opportunities of entering China at the time of the case? - Risk that plagued KFC is the big uncertainty of expansion and revenue in Chinese market. Attracting consumers in china is a big question mark. Management and employees are also a big risk as they would need to be trained properly on how Kentucky friend chicken is made, which would cost more money and level of uncertainty due to lack of communication. Finally, the startup cost could be very high and not feasible because it can vary from location to location depending on where KFC is being established.

- Biggest opportunity for KFC is no real threats or competition in Chinese market. McDonald’s is the only real competition, but chicken is more popular by costumers in china then beef. Growth in the Chinese market can lead to more revenue and further expansion possibilities in future in China or worldwide. Gain popularity, which would help KFC expand and tap into different markets such as India, which is one of the world’s biggest countries.



Does KFC have the capabilities to expand? What are its competencies and deficiencies? - Yes, KFC does have capabilities to expand because it is highly profitable company and the demand for tasty chicken by the consumers. KFC competencies are that their chicken is highly regarded by many as best friend chicken. Smart and knowledgeable individuals at upper management making smart business decisions to increase revenue and growth of the business. Biggest deficiencies for KFC are the lack of risk-taking moves which could benefit the company. Not having reliable source of fresh chicken at every location and lacked adequate cleanliness while proving not so great customer service. Lastly, the constant change in management is also one of its deficiencies.



Where should KFC establish initial operations – Beijing, Shanghai, or Guangzhou? - KFC should establish its initial operations at Beijing because Beijing is the second most populated city which means more potential customers. Also, there are more schools and universities in the city that can help KFC focus on attracting students. More population means more chances of generating higher RMB sales. No real risk involved besides the possibility of government interference. - Shanghai has the risk to lure away potential customers due to pollution and Guangzhou is lacking an adequate supplier of chicken....