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By: Jordan Richardson The Globalization of KFC
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A Brief History of Kentucky Fried Chicken Started by Harland Sanders aka “Colonel Sanders”. First restaurant called Sander’s Court & Café. In 1952 the first KFC franchise was stared in Salt Lake City, UT. By 1960 there were 190 franchises with over 400 restaurants in the US and Canada. In 1964 the Colonel sells the company for $2 million. 1971 3,500 franchised and company owned restaurants in worldwide operation.
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A Global Business Currently there is a KFC in 109 countries. 36,000 locations around the world. KFC leads the restaurant industry in China. Globalization is a good growth strategy for business.
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Challenges to Global Growth Business practices around the world vary from culture to culture. Local context: Customer habits, cultural values, and government regulation. Attractiveness of products to local culture. Management styles vary globally.
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KFC Global Business Strategy Used local leadership to run restaurants. Local leaders have a deep understanding of cultural values and practices. This helped the American business adapt and become more connected with other cultures.
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KFC Global Business Strategy Menus vary according to location. Spicy beef rice in China, Shrimp cutlet sandwich in Japan, Zinger Shrimpo in Africa Marketing adapted to individual cultures- still introducing original KFC recipe.
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KFC on the World Wide Web Every website caters to countries accompanying culture. Marketing utilizes local business practices because of local leadership. Websites are easy to navigate and introduce American history and culture to the market.
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Benefits of a Global KFC Over 4,000 restaurants in China alone. China accounts for over 40% of revenue. Company grossed about $3 billion in 2011. Continuous growth around the world.
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