Chapter 08: Case Analysis - Scenario 2

Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?

APECAPEC

KFC's establishment of international production/processing facilities is an example of

Direct Ownership

Use the following to answer the questions.

KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu--items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries--to offer the customer passing by a preliminary view of their product.

The practice of offering fried octopus and squid at Asian KFCs is best described as

a strategy of some customization.

Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe." If KFC were to resort to paying this bribe in China saying that "it's different doing business there," this would be an example of

cultural relativism.