Essay on Kfc: China's Favorite Chicken

Words: 2892
Pages: 12

Southeast University

Term Paper

KFC: China's Favorite Chicken
Analizyng a Company´s Success

School of Economics and Management

Name - Number: Mariana Osorio - 220123813
Supervisor: Dr. Qiu Bin

September 10th, 2013
KFC: China's Favorite Chicken - Analizyng a Company´s Success
Mariana Osorio, 220123813
School of Economics and Management, Southeast University, 210096, Nanjing, China ABSTRACT
Kentucky Fried Chicken generates more annual profits in China than in its country of origin. In fact, the success of this firm is an example of the great market potential for foreign multinationals. By July 2013, KFC has 4,400 restaurants in 850 cities and the company plans to open another 700 by

But he's also humble. "There's no room for ego," Su explained in the case. "China doesn't have the same culture of individualism that is present in the United States."

Su's strategy was that KFC “would not be seen as a foreign presence but as part of the local community… Our opportunity was to take the best ideas from the US fast-food model and adapt them to serve the needs of the Chinese consumer”.

In a period in which the joint-ventures were the only viable way to enter the Chinese market, and being aware of the role that the state in Chinese society and the need for “Guanxi[1]”, KFC executives selected local government connections and established partnerships with local companies. This allowed the company to capitalize on the experience of local businesses and offer a variety of regional dishes that appealed to local tastes. KFC established a relationship of mutual trust with both partners as with local managers and virtually delegated the Chinese team decision making.

Another factor that has definitely influenced this success story is its management team, specifically the founding team, known as "The Taiwan Gang" because most of its members are from Taiwan. This pioneer team members have extensive international experience, both academical and labor, and a deep understanding of Chinese culture. Those professionals developed a global mindset, who intuitively found opportunities in a