Case study : KFC - A success in China

In 1987, KFC was the first western fast food restaurant chain  in China. These branches has been expanding rapidly, which are the most profitable market. In total, the firm has more than 4400 outlets in China that is far more than the Mcdonald which is more than 1400. In this numerical data, we can see that the KFC do very well in China by comparing with Mcdonald.  The Irish Times describe as 'by far the most pervasive symbol of Western culture in China.^' 

^Video:

Why you'll see a lot more KFC in China

The most common strategy is the direct investment. Nearly 95% restaurant is belong to the enterprise.They control the employees ,food quality , style , food types ,management skills and advertisement. The centralisation and integration style are the key to success. The business has a clear goal to achieve and has a stable condition to run the business. The mechanistic structure is good for KFC because it is the easy way to manage different resources and has a similar standard.

In fact, people not like  fast food culture at all especially in Asia Countries. Many researches and media (Super size me ) indicated that those fast food shop may contain
Hazardous Chemicals ,These foods is not good for our health. But, the example of KFC in the Greater China regions( China ,Taiwan ,Hong kong) is different. KFC provide more health diet for the mFenu. It also has adapted its menu to suit local tastes, by offering the chicken rice ,congee ,salad ... 

KFC managing international business has paid attention to the different features of the global and local environment. By reference of PESTEL analysis, KFC solved the legal,political, economic and technological issues at the beginning. When it is developing, it knows what is the differences in consumer habits and preferences. In China, The chicken is more spicy than other countries. Therefore, the ingredient of the prosperous because of the Socio-Cultural  method.

Mcdonald's branch is far more larger than KFC.  The outlets of the Mcdonald's
 is the double of KFC in the world. But in China,  KFC is triple of Mcdonald's. It is a strange phenomenon. They are similar fast food restaurant but distinct market share.
Because of the opportunity (SWOT analysis). The KFC strategy fit between internal capabilities and external changes.

KFC knows the potential market and develops it. At frist, KFC can be a dominant position on the fast food market since the first firms in China. They got the great chance to develop the new market. They not only planning but also learning ,they can use many analytical tools on their business.  More than ten  local specialist help the KFC. Their plans always influences with changing market condition. Different country has different type of foods.

Thus , as an excellent enterprise, reaction and proaction with the environment is extremely important. Every company should have connection with the modern society and include up-to-date structure. KFC can adapt the trend of the outer circumstances. Actually, They can modify and amend the organisation structure and the management stragey according to the situation and the need.   They started from one type (direct investment) ,but evolve into another type such as Franchise. 

So, focusing on contingency and situational method is vital. A model of a business should fit an outer environment. Any firm must to concern the tendency so that they can realize and adapt the difference and environment. Do concern on the opportunity and the customers, there are the key points to reach the goals.