International Business-Kfc

Executive Summary
KFC fast food is one of the largest brands in the world. In this article I will introduce KFC is the strategic plan for how to use the international market. KFC select entry mode to manage the company.
1 KFC company use chain business mode start business for global marketing strategy.
2 KFC uses this mode for successful and biggest competitor is a ' McDonald's '.

Introduction
One of the best known companies worldwide is KFC corporation. It is the world's second largest restaurant chain overall (as measured by sales) after McDonald's. KFC (Kentucky Fried Chicken) is a fast food restaurant chain which specializes in fried chicken and is headquartered in Louisville, Kentucky. It is the world's second largest restaurant chain overall (as measured by sales) after McDonald's, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company which also owns the Pizza Hut and Taco Bell restaurant chains. KFC primarily sell chicken nuggets, chicken sandwiches and changes, such as chicken burgers and burritos, salads and side dishes, such as French fries, coleslaw, desserts and soft drinks, are often provided by a Pepsi. The smiling, white-haired man, whose portrait appears in KFC stores and advertisements, founded Kentucky Fried Chicken in 1952. Harland David Sanders is KFC Founder. Harland David Sanders was born September 9, 1890 in Indiana, USA. The young was he had many jobs. At the age of 66, he started selling his idea of Kentucky Fried Chicken by traveling from town to town, preparing his famous chicken recipe for restaurants and their employees. Colonel Sanders appeared on national Television promoting the idea of Kentucky Fried Chicken. He always licked his fingers as he described the Original Recipe taste to viewers – this is how the slogan “It's Finger Lickin' Good” developed. [Source: Brief History of KFC, 27 Aug 2013. Copyright © 2013 KFC Eastern Cape http://www.kfcec.co.za/kfc-history ].

KFC was the first fast food chain to expand the international market. By the 1960s, the UK， Mexico and Jamaica on the chain stores. In the early 1970s, KFC was sold to Heublein spirits distributors, Heublein continue to expand overseas markets. However, in 1987 KFC became the first western restaurant chain established in China. And rapidly expanding in China, KFC is the company's most profitable brand now. KFC expands successfully into many international markets; the company became a symbol of globalization and the spread of the American way of life. [Source: KFC Company History. 27 Aug 2013. http://www.kfcspotlight.org/company_ history.html]

International marketing strategy is a systematic assessment of the company's own resources, the basic tasks and goals, corresponding to different and changing foreign environment, to take the necessary policies and actions to achieve the company's goals a job. Strategic planning is a look for opportunities to deal with the risk of systematic approach.
[Source: International Management. 27 Aug 2013. http://www.businessdictionary.com /international-management.html]

So, KFC must be considered as a multinational corporation the right model to succeed. There are many competitors in the fast food, and the right model can succeed. KFC has a chain business model, consumer groups, as well as advanced business philosophy accurate positioning. This is the key to successful multinational companies get now. So, in this article I will analyze how successful KFC go now.

Content
Entry mode (Franchise mode)
The KFC company use franchise mode start business. Franchise is Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains immediate name recognition, tried and tested products, standard building design and décor, detailed techniques in running and promoting the business, training of employees, and ongoing help in promoting and upgrading of the products. The franchiser gains rapid expansion of business and earnings at minimum capital outlay. [ Source: Franchise. 28 Aug 2013. http://www.businessdictionary.com]. Now, we talk through this diagram to analyze the chain business mode.

Franchise stores
Franchise stores

Franchise fees, rents, professional training and franchise fees
Franchise fees, rents, professional training and franchise fees

Dissemination and training
Dissemination and training
Franchise fees, rents, professional training and franchise fees
Franchise fees, rents, professional training and franchise fees
Franchise stores

Franchise stores

Dissemination and training
Dissemination and training

[Source: KFC franchising concept Aug 27 2013 http://www.franchisedirect.com]
KFC has more than 31,000 chain stores in this world. Through the above figure we know KFC chain business mode. Firstly, the chain (Franchise stores) must make an application to the KFC. After the chain through the application must pay franchise fees, rents, fees and training professionals initial fee. After all expenses paid through the chain KFC will be responsible for publicity and training. Well, this is the KFC chain business mode. KFC can accept the joint venture, the applicant needs to find their own funding can give a person, rather than a joint venture with KFC, but franchisees must be a restaurant operator and a substantial proportion of investment capital. According to the survey, the success of selected candidates needs to invest in the project, more than 70% of the funds.[Source: KFC Franchise. Aug 27 2013. http://zhaoshang.china.com.cn/20120225/n104140380775761.html].

Entry Mode Was Success
KFC used the franchise mode on the international market. Well, this market has been successful until now. Why is this? More and more countries and regions need to fast food to help raise living speed. For example, in China, people are more and more time to the pursuit of money, with no time to eat. Therefore, in such populations need is fast food. So, there are a lot of people want go to different cities and regions on fast food restaurant. So, Chinese fast food cannot to do fast and delicious. But KFC can be done fast and delicious. So, China's entrepreneurs chose Western fast food. This promotes KFC entered China's market. The reason is the same for other countries.

Competitive Environment
KFC is the world's second largest fast-food industry, then KFC's biggest competitive is the world's first McDonald's. We come through the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis KFC and McDonald's. When the KFC a more accurate understanding of the competitor environment. So, KFC can easily make adjustments.

Strengths
KFC McDonald’s 1) KFC is the market leader in the world ,companies featuring chicken as their primary product offering 2) KFC half of revenue from China 3) KFC fast food restaurant for select address is very seriously | 1) Adapt to local food menu 2) The restaurant has an independent franchisees more than 80% 3) McDonald's use to franchise to implement large-scale of low-cost expansion. |

Weaknesses
KFC McDonald’s 1) Negative publicity. 2) Unhealthy food menu 3) Employee turnover | 1) Negative publicity.2) Unhealthy food menu3) Franchisees operate direct influence to the practical interests of the master franchising |

Opportunities
KFC McDonald’s 1) Introducing new products to its only chicken range. 2) Other materials can be added to the KFC menu . 3) Increasing demand for healthier food. | 1) hanging customer habits and new customer groups. 2) Full adaptation of its new practices. 3) Increasing demand for healthier food. |

Threats
KFC McDonald’s 1) Local fast food restaurants can often offer a more local approach to serving food and menu that exactly represents local tastes. 2) McDonald's restaurants overlord 3) There are many fast food rapidly | 1) Saturated fast food markets in the developed economies. 2) Currency fluctuations.3) There are many fast food rapidly |

[McDonald’s Source: McDonalds SWOT Analysis 29 Aug 2013. http://www.strategic managementinsight.com/swot-analyses/mcdonalds-swot-analysis.html]. [KFC Source: KFC SWOT Analysis 29 Aug 2013. http://www.strategicmanagementinsight.com/swot
-analyses/kfc-swot-analysis.html].

Corporate Strategy
Pricing Products and Branding Strategy

肯德基在全球进入市场时利用产品价格市场战略。他们调整产品价格高，向中上层阶级的人。渐渐地，他们调整价格集中在中和下层人们，双方的市场渗透。通过市场的竞争调整产品价格。例如：KFC发现顾客减少可以利用降低价格和促销的方式吸引顾客，其中不包括销量较好的产品。
品牌对于一个公司很重要。对于KFC品牌不仅是一个名称或符号，也是一个工具。肯德基餐厅质量，提升其品牌价值。

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