Kfc and the Global Fast-Food Industry in 2003-2004 Free Essays

KFC and the Global Fast-Food Industry in 2003-2004 Course: MGT 710 [pic] 1. Executive Summary This paper analyzes the market situation of the major U. S. We will write a custom essay sample on Kfc and the Global Fast-Food Industry in 2003-2004 or any similar topic only for you Order Now fast-food firms in Latin America in 2004 from the perspective of the KFC Corporation. By analyzing political, economic, cultural, logistical, and competitive forces, a potential strategy for KFC to successfully establish a strong position in Central and South America is proposed. Through a thorough analysis, it was determined that KFC should establish wholly-owned subsidiaries in Mexico and Brazil to manage operations in Central and South America, respectively. After a strong position is established in these countries, KFC should then open franchises in Central America, Argentina, Colombia, Venezuela, and Chile. 2. Problem 1. Expanding into Latin America From 1993 to 2002, KFC dominated the chicken segment of the U. S. fast-food market. Their market share, however, decreased by 13. 4% over that 10 year period (Exhibit 4, 553). As the fast-food market matured, firms began to focus on globalization to continue growth. By early 2004, 56% of KFC’s restaurants were outside of the U. S. (558). Their initial focus was on Mexico, Puerto Rico, and the Caribbean, where they established dominance among competitors. Their struggle was in expanding beyond those markets. In their attempt to expand into Central and South America, KFC was met with many challenges. Many Latin American markets had not adopted the fast-food concept and preferred a more leisurely dining experience. The intense competition with major U. S. fast-food chains made it very risky to enter a new market. The geographic distance from the corporate offices made it difficult to control standards and quality. To continue growth, KFC would have to develop a strategy to overcome these obstacles and expand into these markets. 2. Strengthening position in Central America KFC initially expanded into Mexico, Puerto Rico, and the Caribbean due to geographic proximity and existing political and economic ties to the U. S. They were able to establish dominance in these markets because they had first-mover advantage and the local cultures accepted the fast-food concept. To further expand into Central America, KFC will have to develop a strategy to leverage their strong positions in Mexico and the Caribbean. They will have to consider factors such as the business model, global integration, national responsiveness, and mitigating risk. 3. Breaking into South America KFC had attempted to enter Brazil, with limited success. Political, economic, and cultural challenges had prevented KFC from gaining a foothold, and subsequently forced them to pull out of the market. Other countries in South America had little competitive presence, but had significant barriers to entry. In addition, the farther away the countries are from the corporate offices, the more expensive and logistically difficult the operation becomes. To enter these markets, KFC would have to carefully weigh its options to establish a presence and mitigate risk. 3. Analysis 1. Industry analysis 1. Basic economic characteristics Latin America is home to more than 550 million people. It has an aggregate GDP of more than $4 trillion. Figure 1 shows that Brazil and Mexico have the highest GDP. However, Argentina, Chile, and Costa Rica have the highest GDP per capita. [pic] Figure 1 – Latin America GDP (Source: http://en. wikipedia. org/wiki/Latin_America) 2. Competition In general, Central America and Brazil are the markets most penetrated by the large U. S. fast-food chains. McDonald’s is the dominant competitor in Latin America, with 584 stores in Brazil, 261 stores in Mexico, and 203 stores in Argentina. KFC follows with 274 stores in Mexico and 134 stores in the Caribbean. Burger King operates 163 stores in Puerto Rico and 154 stores in Mexico. Wendy’s only operates 143 stores in all of Latin America (Exhibit 6, 559). To assess the competitive landscape, Porter’s Five Forces model can be used, as shown in Figure 2. For KFC, the highest levels of competitive rivalry are in Central America and Brazil. Most of South America, with the exception of Brazil, has relatively low penetration. The threat of new entrants is high within any market, as all of the major competitors are vying for the same markets. The threat of substitute products is also generally high, since fast-food chains must compete with established local restaurants that already cater to the local tastes and customs. The bargaining power of customers is medium in more developed countries such as Brazil, Mexico, and Argentina where customers are less price sensitive. In less developed Latin American countries, however, the bargaining power is high where most customers cannot afford high prices. The bargaining power of suppliers is medium in most countries where there aren’t a large amount of imports, but high in countries like Mexico and Brazil. [pic] Figure 2 – Porter’s Five Forces (Source: http://en. wikipedia. org/wiki/Porter_5_forces_analysis) 3. Factors driving change As Latin American countries become more developed, they begin to adopt more global brands. As the internet penetrates these markets, users become exposed to global brands. Cultures begin to change as the world becomes a global market. While they do maintain local tastes and values, people begin to separate from traditions and become more modern. As economies become more developed, people begin to adopt the on-the-go lifestyle that we are accustomed to in the U. S. As countries like the U. S. drive globalization to foreign markets, trade barriers are often removed and countries begin to adopt foreign firms. 4. Relative strength of firms As previously stated, McDonald’s has the strongest position with 1,605 stores in Latin America. KFC follows with 650 stores, followed by Burger King and Wendy’s. McDonald’s is dominant in South America, while KFC controls Central America. 5. Rivals’ next moves The most significant acquisition of note is McDonald’s purchase of Boston Market in 2000. Boston Market caters to the growing trend for healthy fast-food, as well as the casual, sit-down atmosphere that is popular in Latin America. While Boston Market does not have any presence in Latin America, McDonald’s could decide to leverage existing resources to expand there. 6. Critical success factors All franchise corporations are concerned with standards and consistency between units. While certain factors can differ from one region to the next, a general level of consistency is needed with regards to product quality and taste. It is critical that service and cleanliness are upheld to a high level of quality. Particularly in Latin American markets, the menus may need to be diversified and incorporate local flavors. With the great distance between Latin American markets and corporate headquarters, effectively executing logistics, distribution, and operations is critical to success. Effectively managing resources and keeping costs low will also be critical when entering new markets. With the political and economic events that may occur, the firm must be resilient to changes in the economy and trade regulations. Firms should seek to establish relationships with local governments in order to protect their interests abroad. 2. Strategic planning for foreign market entry 1. Identifying company’s objective in foreign market entry The first step in developing KFC’s Latin American strategy is to identify the objectives for entering new markets. Some reasons to enter new markets would be to exploit an untapped market, obtain a competitive advantage, secure essential raw materials and distribution channels, and cutting costs by employing inexpensive labor. Currently, KFC has a large presence in Mexico and the Caribbean. This gives them a launching point to enter nearby markets. The nearby Central American countries have a relatively low presence from the large fast-food firms. The Central American region is home to approximately 40 million people. According to Figure 1, the Central American nations have a GDP of approximately $173 billion. This region has a considerably sized market, relatively low penetration, and proximity to KFC’s large presence in Mexico, making it ideal for entry. Brazil is the largest and most coveted market in Latin America. Unfortunately, McDonald’s has a large competitive advantage with 584 stores. KFC has failed in the past to enter this market, but the opportunity is still there. Establishing a position in this market would allow KFC to power investments in other South American markets. While they may not be able to dominate the market, it is a strategic location that would act as the locus for all South American operations. Argentina and Chile have $445B and $161B GDP, respectively, making them large attractive markets. They also have the highest GDP per capita in Latin America. While McDonald’s has a relatively strong position in these countries, there should still be opportunity for KFC to capitalize on. Other South American countries, such as Paraguay, and Uruguay, Have little competitive presence and a relatively low GDP. These countries may not have strategic value to the company. 2. Preliminary country screening After determining the objectives for each country, an analysis of advantages and attractiveness can be performed. To determine national competitive advantages, Porter’s diamond model is used, shown in Figure 3. Mexico, Brazil, Argentina, Colombia, and Chile stand out as the most developed Latin American countries. This indicates that advanced factor endowments such as infrastructure, skilled labor, and technology should be readily available. Demand conditions should also be most favorable in the countries with the highest GDP, as an active economy tends to increase demand for on-the-go meals. The most significant supporting industry is the poultry industry. According to the USDA, Brazil, Mexico, and Argentina have the largest poultry industries in the region. [pic] Figure 3 – National Competitive Advantage (Source: http://www. teagasc. ie/research/reports/foodprocessing/4984/eopr-4984. htm) 3. Risks in foreign markets In all Latin American countries, there is a high degree of political risk, due to the propensity of corruption and instability in governments. This is apparent even in the more developed Latin American countries. Many Latin American countries restrict the import of foreign goods, or give preferential treatment to adjacent countries. In addition, the distance from existing production and distribution channels imposes a great risk to the supply of goods to the more southern countries in the region. One of the main company factors is the shortage of skilled labor and high rate of turnover in Latin American markets. For KFC to succeed in any Latin American market, they will need to increase employee retention through training or benefits. 4. Capabilities, resources, and skills needed to succeed in foreign markets The key success factors were described in Section 3. 1. 6. It is important to note that the farther away the country is from existing trade channels, the more difficult it will be for KFC to control quality, standards, distribution, and logistics. Also, the less developed nations will be more susceptible to economic and political events that could devastate KFC’s interest in the market. 5. Fulfilling key success factors KFC’s key strength is their established dominance in Mexico. This position provides many financial and political benefits due to the NAFTA treaty. It also provides them with a strategic position to enter nearby Central American markets. They do not have established trade channels in most of South America, so it will be difficult for them to manage operations without a strong presence in at least one market. This is the main reason why Brazil is a key market to enter. Being that KFC is such a large company within an even larger conglomerate of fast-food chains, the firm should be able to withstand political or economic changes and a loss of revenue during the development stage. Overall, KFC fulfills the key success factors in Central America, but will need to establish a position in at least one major South American market in order to expand there. . Entering the target markets In determining how to enter the target markets, the level of global integration vs. national responsiveness should be assessed. Figure 4 shows the various strategies that can be employed given the appropriate level of integration and responsiveness. The markets in Latin America should be similar enough for KFC to keep menus, processes, and sta ndards consistent across all markets. Pricing and advertising may differ depending on the level of economic development and communications infrastructure in each nation. In addition, KFC would need to implement different business models depending on the proximity, size of the market, and cultural uniqueness. For this reason, KFC should implement a transnational strategy that would keep many aspects consistent, but some aspects unique between various markets. [pic] Figure 4 – Global Integration vs. National Responsiveness 7. Compare and rank targeted countries From the analysis performed, each Latin American market considered was ranked based on the variables discussed. By comparing GDP, geographic proximity, population, and relative penetration of competitors, Table 1 shows the countries scored and ranked. Economy |Competition |Proximity |Market size |Presence |Total | |Mexico |12 |12 |13 |12 |13 |62 | |Brazil |13 |13 |7 |13 |4 |50 | |Caribbean |5 |7 |11 |8 |12 |43 | |Puerto Rico |6 |11 |12 |2 |11 |42 | |Central America |3 |9 |10 |10 |9 |41 | |Colombia |10 |5 |8 |11 |6 |40 | |Argentina |11 |10 |3 |10 |4 |38 | |Venezuela |7 |8 |9 |6 |5 |35 | |C hile |9 |6 |4 |5 |8 |32 | |Peru |8 |3 |5 |7 |7 |30 | |Ecuador |4 |4 |6 |4 |10 |28 | |Paraguay |1 |2 |2 |3 |4 |12 | |Uruguay |2 |2 |1 |1 |4 |10 | |Table 1 – Results of market analysis 4. Recommendations 1. Markets to enter From the results of the analysis performed, KFC should operate company-owned units in Mexico, Puerto Rico, and the Caribbean where it already has a strong position. It should then open franchises in Central American markets to mitigate risk until a strong position can be established, at which point KFC should buy back the successful franchises. KFC should develop a wholly-owned subsidiary in Brazil and aggressively establish a strong foothold. This is not only one of the most attractive markets; it is also a critical strategic location to be the headquarters of South American operations. Once a strong position is established in Brazil, KFC should open franchises or joint-ventures in Colombia, Argentina, Venezuela, and Chile. Given the relatively low scores, KFC should not consider expanding further into Peru, Ecuador, Paraguay, or Uruguay. Although KFC already has operations in Peru and Ecuador, they are not strategically valuable and should be closed or sold if they are not consistently profitable. 2. Strategy for entry 1. Corporate strategy At the corporate level, KFC should focus on developing wholly-owned subsidiaries to act as the regional headquarters in Mexico and Brazil. This would allow KFC to centralize control over standards, quality, process, and distribution within those regions. This tiered structure would lessen the burden on KFC’s U. S. corporate management and provide more specialized attention to those local markets. To offset regional events that may affect all of Latin America, KFC should also consider entering markets in Europe and Asia. If an economic catastrophe were to hit Brazil, for instance, markets in all nearby countries would be severely impacted as well. The Yum! Corporation should also consider strategies to expand its other brands into Latin America as well to leverage KFC’s success. The multibrand strategy that has been so successful in the U. S. may prove successful in Latin America as well. 2. Business strategy At the business level, KFC should develop aggressive marketing strategies in countries where competitors have a strong presence. In Brazil, for instance, KFC will have to fiercely battle McDonald’s to gain market share. In less developed countries, KFC should enter cautiously and focus on mitigating risk. KFC should leverage their strong global brand and target the younger generation. Through internet marketing, KFC should be able to reach the young, modern generation that has a higher acceptance for the fast-food model. KFC should implement a transnational strategy in Latin America. While quality, service, and products should remain consistent throughout Latin America, KFC should develop unique strategies for marketing, pricing, and business models in each region. KFC should launch company-owned stores in high growth markets and enter the rest with franchises or joint-ventures until a strong position is established. In high growth markets, company-owned businesses would allow fixed costs to be spread across multiple restaurants, subsequently allowing for lower prices and increased margins. Franchising would leverage the expertise of local entrepreneurs with understanding of the local customs, language, and marketing strategies. This would help to mitigate the risk of entering unknown markets. 3. Functional strategy Regional franchises should interface with the wholly-owned subsidiaries in Mexico and Brazil. These subsidiaries would control management, distribution, standards, quality assurance, and advertising for their associated franchises. The Central and South American subsidiaries should focus on developing close ties with the governments in their regions. They should lobby to remove trade barriers between nations in order to streamline distribution. They should also focus on developing ties with the local communities in order to gain acceptance from local culture. KFC should develop specialized marketing campaigns for each region, depending on the similarities in culture. They should focus on targeting the young, career-minded demographic through internet marketing. Depending on the lifestyle habits of those individuals, they should also target them through appropriate media advertising. 5. Conclusion KFC is one of the dominant players in the global fast-food industry. They have sufficient resources to launch an aggressive strategy into Latin America. By leveraging their strong position in Mexico, KFC can successfully establish a strong position in Central America. By outsourcing management of Central American firms to a wholly-owned subsidiary in Mexico, KFC will be able to streamline operations and maintain control over franchisees. Although it will be difficult, establishing a foothold in Brazil is KFC’s best strategic option for entering South America. By aggressively marketing the younger demographic, KFC should be able to gain a considerable market share, even though McDonald’s maintains the dominant position. Once they have been successful in Brazil and a wholly-owned subsidiary is established, KFC can then begin to expand further into South America. By implementing this general strategy and addressing the factors and risks discussed in the analysis, KFC should be able to gain substantial market share and continue to grow the firm. How to cite Kfc and the Global Fast-Food Industry in 2003-2004, Essays

Kfc and the Global Fast-Food Industry in 2003-2004 Free Essays

KFC and the Global Fast-Food Industry in 2003-2004 Course: MGT 710 [pic] 1. Executive Summary This paper analyzes the market situation of the major U. S. We will write a custom essay sample on Kfc and the Global Fast-Food Industry in 2003-2004 or any similar topic only for you Order Now fast-food firms in Latin America in 2004 from the perspective of the KFC Corporation. By analyzing political, economic, cultural, logistical, and competitive forces, a potential strategy for KFC to successfully establish a strong position in Central and South America is proposed. Through a thorough analysis, it was determined that KFC should establish wholly-owned subsidiaries in Mexico and Brazil to manage operations in Central and South America, respectively. After a strong position is established in these countries, KFC should then open franchises in Central America, Argentina, Colombia, Venezuela, and Chile. 2. Problem 1. Expanding into Latin America From 1993 to 2002, KFC dominated the chicken segment of the U. S. fast-food market. Their market share, however, decreased by 13. 4% over that 10 year period (Exhibit 4, 553). As the fast-food market matured, firms began to focus on globalization to continue growth. By early 2004, 56% of KFC’s restaurants were outside of the U. S. (558). Their initial focus was on Mexico, Puerto Rico, and the Caribbean, where they established dominance among competitors. Their struggle was in expanding beyond those markets. In their attempt to expand into Central and South America, KFC was met with many challenges. Many Latin American markets had not adopted the fast-food concept and preferred a more leisurely dining experience. The intense competition with major U. S. fast-food chains made it very risky to enter a new market. The geographic distance from the corporate offices made it difficult to control standards and quality. To continue growth, KFC would have to develop a strategy to overcome these obstacles and expand into these markets. 2. Strengthening position in Central America KFC initially expanded into Mexico, Puerto Rico, and the Caribbean due to geographic proximity and existing political and economic ties to the U. S. They were able to establish dominance in these markets because they had first-mover advantage and the local cultures accepted the fast-food concept. To further expand into Central America, KFC will have to develop a strategy to leverage their strong positions in Mexico and the Caribbean. They will have to consider factors such as the business model, global integration, national responsiveness, and mitigating risk. 3. Breaking into South America KFC had attempted to enter Brazil, with limited success. Political, economic, and cultural challenges had prevented KFC from gaining a foothold, and subsequently forced them to pull out of the market. Other countries in South America had little competitive presence, but had significant barriers to entry. In addition, the farther away the countries are from the corporate offices, the more expensive and logistically difficult the operation becomes. To enter these markets, KFC would have to carefully weigh its options to establish a presence and mitigate risk. 3. Analysis 1. Industry analysis 1. Basic economic characteristics Latin America is home to more than 550 million people. It has an aggregate GDP of more than $4 trillion. Figure 1 shows that Brazil and Mexico have the highest GDP. However, Argentina, Chile, and Costa Rica have the highest GDP per capita. [pic] Figure 1 – Latin America GDP (Source: http://en. wikipedia. org/wiki/Latin_America) 2. Competition In general, Central America and Brazil are the markets most penetrated by the large U. S. fast-food chains. McDonald’s is the dominant competitor in Latin America, with 584 stores in Brazil, 261 stores in Mexico, and 203 stores in Argentina. KFC follows with 274 stores in Mexico and 134 stores in the Caribbean. Burger King operates 163 stores in Puerto Rico and 154 stores in Mexico. Wendy’s only operates 143 stores in all of Latin America (Exhibit 6, 559). To assess the competitive landscape, Porter’s Five Forces model can be used, as shown in Figure 2. For KFC, the highest levels of competitive rivalry are in Central America and Brazil. Most of South America, with the exception of Brazil, has relatively low penetration. The threat of new entrants is high within any market, as all of the major competitors are vying for the same markets. The threat of substitute products is also generally high, since fast-food chains must compete with established local restaurants that already cater to the local tastes and customs. The bargaining power of customers is medium in more developed countries such as Brazil, Mexico, and Argentina where customers are less price sensitive. In less developed Latin American countries, however, the bargaining power is high where most customers cannot afford high prices. The bargaining power of suppliers is medium in most countries where there aren’t a large amount of imports, but high in countries like Mexico and Brazil. [pic] Figure 2 – Porter’s Five Forces (Source: http://en. wikipedia. org/wiki/Porter_5_forces_analysis) 3. Factors driving change As Latin American countries become more developed, they begin to adopt more global brands. As the internet penetrates these markets, users become exposed to global brands. Cultures begin to change as the world becomes a global market. While they do maintain local tastes and values, people begin to separate from traditions and become more modern. As economies become more developed, people begin to adopt the on-the-go lifestyle that we are accustomed to in the U. S. As countries like the U. S. drive globalization to foreign markets, trade barriers are often removed and countries begin to adopt foreign firms. 4. Relative strength of firms As previously stated, McDonald’s has the strongest position with 1,605 stores in Latin America. KFC follows with 650 stores, followed by Burger King and Wendy’s. McDonald’s is dominant in South America, while KFC controls Central America. 5. Rivals’ next moves The most significant acquisition of note is McDonald’s purchase of Boston Market in 2000. Boston Market caters to the growing trend for healthy fast-food, as well as the casual, sit-down atmosphere that is popular in Latin America. While Boston Market does not have any presence in Latin America, McDonald’s could decide to leverage existing resources to expand there. 6. Critical success factors All franchise corporations are concerned with standards and consistency between units. While certain factors can differ from one region to the next, a general level of consistency is needed with regards to product quality and taste. It is critical that service and cleanliness are upheld to a high level of quality. Particularly in Latin American markets, the menus may need to be diversified and incorporate local flavors. With the great distance between Latin American markets and corporate headquarters, effectively executing logistics, distribution, and operations is critical to success. Effectively managing resources and keeping costs low will also be critical when entering new markets. With the political and economic events that may occur, the firm must be resilient to changes in the economy and trade regulations. Firms should seek to establish relationships with local governments in order to protect their interests abroad. 2. Strategic planning for foreign market entry 1. Identifying company’s objective in foreign market entry The first step in developing KFC’s Latin American strategy is to identify the objectives for entering new markets. Some reasons to enter new markets would be to exploit an untapped market, obtain a competitive advantage, secure essential raw materials and distribution channels, and cutting costs by employing inexpensive labor. Currently, KFC has a large presence in Mexico and the Caribbean. This gives them a launching point to enter nearby markets. The nearby Central American countries have a relatively low presence from the large fast-food firms. The Central American region is home to approximately 40 million people. According to Figure 1, the Central American nations have a GDP of approximately $173 billion. This region has a considerably sized market, relatively low penetration, and proximity to KFC’s large presence in Mexico, making it ideal for entry. Brazil is the largest and most coveted market in Latin America. Unfortunately, McDonald’s has a large competitive advantage with 584 stores. KFC has failed in the past to enter this market, but the opportunity is still there. Establishing a position in this market would allow KFC to power investments in other South American markets. While they may not be able to dominate the market, it is a strategic location that would act as the locus for all South American operations. Argentina and Chile have $445B and $161B GDP, respectively, making them large attractive markets. They also have the highest GDP per capita in Latin America. While McDonald’s has a relatively strong position in these countries, there should still be opportunity for KFC to capitalize on. Other South American countries, such as Paraguay, and Uruguay, Have little competitive presence and a relatively low GDP. These countries may not have strategic value to the company. 2. Preliminary country screening After determining the objectives for each country, an analysis of advantages and attractiveness can be performed. To determine national competitive advantages, Porter’s diamond model is used, shown in Figure 3. Mexico, Brazil, Argentina, Colombia, and Chile stand out as the most developed Latin American countries. This indicates that advanced factor endowments such as infrastructure, skilled labor, and technology should be readily available. Demand conditions should also be most favorable in the countries with the highest GDP, as an active economy tends to increase demand for on-the-go meals. The most significant supporting industry is the poultry industry. According to the USDA, Brazil, Mexico, and Argentina have the largest poultry industries in the region. [pic] Figure 3 – National Competitive Advantage (Source: http://www. teagasc. ie/research/reports/foodprocessing/4984/eopr-4984. htm) 3. Risks in foreign markets In all Latin American countries, there is a high degree of political risk, due to the propensity of corruption and instability in governments. This is apparent even in the more developed Latin American countries. Many Latin American countries restrict the import of foreign goods, or give preferential treatment to adjacent countries. In addition, the distance from existing production and distribution channels imposes a great risk to the supply of goods to the more southern countries in the region. One of the main company factors is the shortage of skilled labor and high rate of turnover in Latin American markets. For KFC to succeed in any Latin American market, they will need to increase employee retention through training or benefits. 4. Capabilities, resources, and skills needed to succeed in foreign markets The key success factors were described in Section 3. 1. 6. It is important to note that the farther away the country is from existing trade channels, the more difficult it will be for KFC to control quality, standards, distribution, and logistics. Also, the less developed nations will be more susceptible to economic and political events that could devastate KFC’s interest in the market. 5. Fulfilling key success factors KFC’s key strength is their established dominance in Mexico. This position provides many financial and political benefits due to the NAFTA treaty. It also provides them with a strategic position to enter nearby Central American markets. They do not have established trade channels in most of South America, so it will be difficult for them to manage operations without a strong presence in at least one market. This is the main reason why Brazil is a key market to enter. Being that KFC is such a large company within an even larger conglomerate of fast-food chains, the firm should be able to withstand political or economic changes and a loss of revenue during the development stage. Overall, KFC fulfills the key success factors in Central America, but will need to establish a position in at least one major South American market in order to expand there. . Entering the target markets In determining how to enter the target markets, the level of global integration vs. national responsiveness should be assessed. Figure 4 shows the various strategies that can be employed given the appropriate level of integration and responsiveness. The markets in Latin America should be similar enough for KFC to keep menus, processes, and sta ndards consistent across all markets. Pricing and advertising may differ depending on the level of economic development and communications infrastructure in each nation. In addition, KFC would need to implement different business models depending on the proximity, size of the market, and cultural uniqueness. For this reason, KFC should implement a transnational strategy that would keep many aspects consistent, but some aspects unique between various markets. [pic] Figure 4 – Global Integration vs. National Responsiveness 7. Compare and rank targeted countries From the analysis performed, each Latin American market considered was ranked based on the variables discussed. By comparing GDP, geographic proximity, population, and relative penetration of competitors, Table 1 shows the countries scored and ranked. Economy |Competition |Proximity |Market size |Presence |Total | |Mexico |12 |12 |13 |12 |13 |62 | |Brazil |13 |13 |7 |13 |4 |50 | |Caribbean |5 |7 |11 |8 |12 |43 | |Puerto Rico |6 |11 |12 |2 |11 |42 | |Central America |3 |9 |10 |10 |9 |41 | |Colombia |10 |5 |8 |11 |6 |40 | |Argentina |11 |10 |3 |10 |4 |38 | |Venezuela |7 |8 |9 |6 |5 |35 | |C hile |9 |6 |4 |5 |8 |32 | |Peru |8 |3 |5 |7 |7 |30 | |Ecuador |4 |4 |6 |4 |10 |28 | |Paraguay |1 |2 |2 |3 |4 |12 | |Uruguay |2 |2 |1 |1 |4 |10 | |Table 1 – Results of market analysis 4. Recommendations 1. Markets to enter From the results of the analysis performed, KFC should operate company-owned units in Mexico, Puerto Rico, and the Caribbean where it already has a strong position. It should then open franchises in Central American markets to mitigate risk until a strong position can be established, at which point KFC should buy back the successful franchises. KFC should develop a wholly-owned subsidiary in Brazil and aggressively establish a strong foothold. This is not only one of the most attractive markets; it is also a critical strategic location to be the headquarters of South American operations. Once a strong position is established in Brazil, KFC should open franchises or joint-ventures in Colombia, Argentina, Venezuela, and Chile. Given the relatively low scores, KFC should not consider expanding further into Peru, Ecuador, Paraguay, or Uruguay. Although KFC already has operations in Peru and Ecuador, they are not strategically valuable and should be closed or sold if they are not consistently profitable. 2. Strategy for entry 1. Corporate strategy At the corporate level, KFC should focus on developing wholly-owned subsidiaries to act as the regional headquarters in Mexico and Brazil. This would allow KFC to centralize control over standards, quality, process, and distribution within those regions. This tiered structure would lessen the burden on KFC’s U. S. corporate management and provide more specialized attention to those local markets. To offset regional events that may affect all of Latin America, KFC should also consider entering markets in Europe and Asia. If an economic catastrophe were to hit Brazil, for instance, markets in all nearby countries would be severely impacted as well. The Yum! Corporation should also consider strategies to expand its other brands into Latin America as well to leverage KFC’s success. The multibrand strategy that has been so successful in the U. S. may prove successful in Latin America as well. 2. Business strategy At the business level, KFC should develop aggressive marketing strategies in countries where competitors have a strong presence. In Brazil, for instance, KFC will have to fiercely battle McDonald’s to gain market share. In less developed countries, KFC should enter cautiously and focus on mitigating risk. KFC should leverage their strong global brand and target the younger generation. Through internet marketing, KFC should be able to reach the young, modern generation that has a higher acceptance for the fast-food model. KFC should implement a transnational strategy in Latin America. While quality, service, and products should remain consistent throughout Latin America, KFC should develop unique strategies for marketing, pricing, and business models in each region. KFC should launch company-owned stores in high growth markets and enter the rest with franchises or joint-ventures until a strong position is established. In high growth markets, company-owned businesses would allow fixed costs to be spread across multiple restaurants, subsequently allowing for lower prices and increased margins. Franchising would leverage the expertise of local entrepreneurs with understanding of the local customs, language, and marketing strategies. This would help to mitigate the risk of entering unknown markets. 3. Functional strategy Regional franchises should interface with the wholly-owned subsidiaries in Mexico and Brazil. These subsidiaries would control management, distribution, standards, quality assurance, and advertising for their associated franchises. The Central and South American subsidiaries should focus on developing close ties with the governments in their regions. They should lobby to remove trade barriers between nations in order to streamline distribution. They should also focus on developing ties with the local communities in order to gain acceptance from local culture. KFC should develop specialized marketing campaigns for each region, depending on the similarities in culture. They should focus on targeting the young, career-minded demographic through internet marketing. Depending on the lifestyle habits of those individuals, they should also target them through appropriate media advertising. 5. Conclusion KFC is one of the dominant players in the global fast-food industry. They have sufficient resources to launch an aggressive strategy into Latin America. By leveraging their strong position in Mexico, KFC can successfully establish a strong position in Central America. By outsourcing management of Central American firms to a wholly-owned subsidiary in Mexico, KFC will be able to streamline operations and maintain control over franchisees. Although it will be difficult, establishing a foothold in Brazil is KFC’s best strategic option for entering South America. By aggressively marketing the younger demographic, KFC should be able to gain a considerable market share, even though McDonald’s maintains the dominant position. Once they have been successful in Brazil and a wholly-owned subsidiary is established, KFC can then begin to expand further into South America. By implementing this general strategy and addressing the factors and risks discussed in the analysis, KFC should be able to gain substantial market share and continue to grow the firm. How to cite Kfc and the Global Fast-Food Industry in 2003-2004, Essays

Neorealism and neoliberal institutionalism

The field of International Relation (IR) theory has been dominated by great discourse surrounding neoliberal institutionalism and neorealism. There has been great contention in the ‘neo-neo’ debate especially among most theorists dealing with International Relations. Although some differences have been noted between the two schools of thought, there are those who argue that they are typically the same.Advertising We will write a custom essay sample on Neorealism and neoliberal institutionalism specifically for you for only $16.05 $11/page Learn More One of the outstanding features of neoliberal institutionalism is that it went through theoretical minimalism for some considerable length of time. In other words, it was the subject of major research activity during the 1980s. Although neorealism was also debated and researched at length during the same period of time, the intensity and approach was completely different. The state has been noted as the key player in both neoliberal and neorealist institutions. In addition, such states are shaped by various forms of disorders. One of the problems associated with both theories is that they only focus on unique perspectives and values which the scholars opted to discuss. In addition, the myriads of social transformations and events that shaped the world politics are largely ignored when rationalism is brought on board. Hence, there is great assumption that preferences are fixed. This kind of approach has indeed hindered researchers from evaluating and comprehending how belief systems have evolved with the passage of time. On the other hand, theorists who deal with reflections often seek to understand the changes that have taken place within the political arena. The latter changes are usually observed in terms of preset ideologies or post hoc observations. Such inherent differences between neorealism and neoliberal institutionalism have indeed brought a lot of controversy and debate among International Relations scholars. There are also several assumptions that are usually associated with the two theories. For instance, the behavioral patterns of the state are well explained through the state centric approach. As a matter of fact, the latter is assumed to be a major advantage of these theories. There is a well known rational choice model through which states act. In addition, international anarchy has been brought into common understanding and therefore, all the theories that have been put forward by the two models tend to offer much insight how international institutions are organized especially in regards to their strengths and weaknesses.Advertising Looking for essay on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Lack of overarching power that rules a state in addition to the state of lawlessness is yet another defining feature of international relations as expounded by the two theories. Hence, the theories tend to create a sense of anarchy among states that have experienced lawlessness at one time or another. It is also worth to mention that one of the distinct defining lines between neorealists and neoliberals was the key agenda which both pursued and relentlessly fought for. For instance, the neoliberals were mainly interested in building the economy while the neorealists had a lot of interest in building and enhancing security platform. Although their aspirations seemed to be different at this point, it is definite that the end results were a common gain to various states that they were representing. In any case, both security and economy are dependent on each other if mutual gain is to be achieved. In a nutshell, the two theoretical models of international relations have led to the emergence of other divergent approaches and theories that view world politics in a unique way. As a result, the ability to articulately define the state of world politics and intern ational relations has been in a state of stagnation for some decades now. This essay on Neorealism and neoliberal institutionalism was written and submitted by user Davis Mccray to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Maths Coursework Trays Essays

Maths Coursework Trays Essays Maths Coursework Trays Essay Maths Coursework Trays Essay In this coursework candidates were given a task entitled Trays. The task consisted of a shopkeepers statement upon the volume of a tray which was to be made from an 1818 piece of card. The shopkeepers statement was that, When the area of the base is the same as the area of the four sides, the volume of the tray will be maximum. By saying this, the shopkeeper basically meant that when the area of the base of the tray is equal to the total area of the sides the volume of the tray will be at its highest. We were told to investigate this claim.Plan.1. I will investigate the different sizes of tray possible from an 1818 piece of card.2. After gaining my results I will then put them in a table.3. I will try to spot any patterns from my table.4. I will express any patterns or other formulae in mathematical notation.To investigate the different volumes given by different trays, I first decide to cut the corners in ascending order from 1-8. (The longest possible corner could only be 8 as after this there would be no base.) After this I worked out the formula needed to work out the volume for the various trays. For the corner size 11 the way I worked out the volume was 16x16x1 which equalled 256cm. Thus the formula to work out the volume for a tray made by an 18x18cm card is (n 2X) x X. In this formula the letter X represents the size of the corner. I tried my formula for the corner length of 2cm,(18- 2 x 2) x 2(n 2 x X) x X(n 2 x X) x XI take off two the corners from each side as the card is square.After finding out the formula I worked out the volume for the remaining trays.CornersVolume (cm)16x16x11x125614x14x22x239212x12x33x343210x10x44x44008x8x55x53206x6x66x62164x4x77x71122x2x88x832From my table I can see that the highest volume for a tray made by 18x18cm card is 432 cm this volume is reached if the corners cut are 3cm x 3cm. I can also see that the volume of the tray rises as the length of each corner rises until the corner size goes over 3. After this the volume starts to decrease as the size of the corner increases.After working out the volume for the trays I went on to work out the area of the bases of the trays along with the areas of the sides of the trays. I worked out the area of the base of the tray by finding the size of the side after the corner had been cut off and then square this number. For example to find out the area of the base of the tray where the corners were 1x1cm ,I first found out the size of the sides which were 16 and squared it. The answer was 256cm . The formula for this was (n 2x) which out would be 18 (n) minus 2 times 1(x) squared. I than proceeded to work out the area of the sides, which would be essential in proving that the shopkeeper is right. To work out the are of the sides of the tray I used the formula 4x (n- 2x). Here again the n represents the size of card 18cm. The x represents the size of the corner. You have to times your answer by four as there are four sides. To work out the area of the sides for a corner sized 1x1cm the calculations would be:4x (n 2x)4 x 1 (18 2 x 1)4 ( 16 )64cmCornersVolume cmArea of base cmArea of sides cm1x1256256642x23921961123x34321441444x44001001605x5320641606x6216361447x7112161128x832464From my results I can see that in regards to the area of the base, the area lowers as the corner size is increased. However the area of the sides increases as the size of the corner increases until the corner reaches the size 44 cm. After this the areas are repeated in reverse order.I then looked at my results to see whether any areas matched.I noticed that for the corner size of 3x3cm the areas matched as the area of the base was 144cm and the area of the sides was 144cm . I also noticed that the highest volume for a tray made from an 18 by 18cm piece of card was 432cm which also derived from the corner size 3cmX 3cm. I can thus make the conclusion that the shopkeeper is right.However to make sure that 432cm was the highest possible volum e available from an 18 by 18 piece of card I decided to use decimals. I decided on investigating corners of 2.9cm and 3.1cm . I used the same formulas.CornersVolumeArea of base cmArea of sides cm2.92.9431.636148.84141.52334321441443.13.1431.64139.24146.32From these set of results I can see that the corner size of 3cm has a higher volume than the corner 2.9cm or the corner 3.1cm. Also the areas of the sides and of the base only match when the corners cut out are equal to 3cm. I can therefore make the conclusion that to get the maximum volume from an 18cm by 18 cm card you need to have to cut out corners of three centimetres.I decided to see whether the shopkeepers theory was correct on different sized square cards. The card of which the trays would now be made will be sized 20 x 20 cm. I transferred the same formulae for the 18 x 18cm card. I recorded the following results:CornersVolume cmArea of base cmArea of sides cm1x1324324722x25122561283x35881961684x45761441925x55001002006x6364 621927x7294361688x8256161289x9162472You can see from the results that they are very similar to those which were recorded on the 18 by 18cm card. However there is one main difference, the maximum volume is not given when both the areas of the base and area of sides is equal. Thus I graphed the area of the sides against the area of the base.You can see from my graph that the two area values crossed between 3 and 4 consequently the highest value lay between these two numbers if the shopkeeper was right.CornerVolumeArea of baseArea of Sides3.05589.2905193.21169.583.1590.364190.44171.123.15591.2235187.69172.623.2591.872184.96174.083.25592.3125182.25175.53.3592.548179.56176.883.35592.5815176.89178.223.4592.416174.24179.523.45592.0545171.61180.783.5591.51691823.55590.7555166.41183.183.6589.824163.84184.323.65588.7085161.29185.423.7587.412158.76186.483.75585.9375156.25187.53.8584.288153.76188.483.85582.4665151.29189.423.9580.476148.84190.323.95578.3195146.41191.1845761441924.1570.884139.241 93.524.15568.0935136.89194.224.2565.152134.56194.884.25562.0625132.25195.54.3558.828129.96196.084.35555.4515127.69196.62I conclude from my results that the shopkeepers statement is not true on a 20x20cm card.

Origin of the Chinese Zodiac Signs

Origin of the Chinese Zodiac Signs The well-trodden (no pun intended) story of the Chinese zodiac is cute, but a bit trite. The tale usually begins with the Jade Emperor, or Buddha, depending on the teller, who summoned all the animals of the universe for a race, or a banquet, depending on the teller. The 12 animals of the zodiac all headed to the palace. The order that they came in determined the order of the zodiac. The order is as follows: Rat: (1984, 1996, 2008, add 12 years for each subsequent year)Ox: (1985, 1997, 2009)Tiger: (1986, 1998, 2010)Rabbit: (1987, 1999, 2011)Dragon: (1976, 1988, 2000)Snake: (1977, 1989, 2001)Horse: (1978, 1990, 2002)Ram: (1979, 1991, 2003)Monkey: (1980, 1992, 2004)Chicken: (1981, 1993, 2005)Dog: (1982, 1994, 2006)Pig: (1983, 1995, 2007) During the journey, however, the animals got involved in everything from high jinx to heroism. For example the rat, who won the race, only did so through guile and trickery: it jumped onto the back of the ox and won by a nose. The snake, apparently also a little sneaky, hid on the hoof of a horse in order to cross a river. When they got to the other side, it scared the horse and beat it in the contest. The dragon, however, proved to be honorable and altruistic. By all accounts, the dragon would have won the race as it could fly, but it had stopped to help villagers caught in a flooding river cross safely, or it stopped to assist the rabbit in crossing the river, or it stopped to help create rain for a drought-ridden farmland, depending on the teller. Actual History of the Zodiac The actual history behind the Chinese zodiac is much less fantastical and much harder to find. It’s known from pottery artifacts that the animals of the zodiac were popular in the Tang Dynasty (618-907 A.D.), but they were also seen much earlier from artifacts from the Warring States Period (475-221 B.C.), a period of disunity in ancient Chinese history, as differing factions fought for control. It’s been written that the animals of the zodiac were brought to China via the Silk Road, the same central Asian trade route that brought the Buddhist belief from India to China. But some scholars argue that the belief predates Buddhism and has origins in early Chinese astronomy that used the planet Jupiter as a constant, as its orbit around the earth took place every 12 years. Still, others have argued that the use of animals in astrology began with nomadic tribes in ancient China who developed a calendar based on the animals they used to hunt and gather. The scholar Christopher Cullen as written that beyond satisfying the spiritual needs of an agrarian society, the use of astronomy and astrology was also an imperative of the emperor, who had the responsibility for ensuring harmony of everything under heaven. To rule well and with prestige, one needed to be accurate in astronomical matters, Cullen wrote. Perhaps that is why the Chinese calendar, including the zodiac, became so entrenched in Chinese culture. In fact, reforming the calendar system was viewed as appropriate if political change was eminent. Zodiac Fits With Confucianism The belief that everyone and every animal has a role to play in society translates well with Confucian beliefs in a hierarchical society. Just as Confucian beliefs persist in Asia today alongside more modern social views, so does the use of the zodiac. It’s been written by Paul Yip, Joseph Lee, and Y.B. Cheung that births in Hong Kong regularly increased, bucking declining trends, to coincide with the birth of a child in a dragon year. Temporary fertility rate increases were seen in the dragon years of 1988 and 2000, they wrote. This is a relatively modern phenomenon as the same increase wasn’t seen in 1976, another dragon year. The Chinese zodiac also serves the practical purpose of figuring out a person’s age without having to ask directly and risk offending someone.

Marketing Essay Example | Topics and Well Written Essays - 3000 words - 18

Marketing - Essay Example strategies need to be formulated or optimally oriented as part of marketing orientation, so that organisation can reach maximum customers, entice them and importantly build long-term relationship, thereby retaining them. As the above mentioned country specific aspects need to be mainly analyzed in relation with the product that is going to be launched, the product’s profile should ‘fit’ with the consumer of that particular market. Although, it applies to all product range, it is of utmost importance to luxury brands including luxury handbags. A luxury brand is a lifestyle concept that is mainly designed for an exclusive consumer base, even while enticing a wider consumer base. Vickers and Renand (2003) observe that luxury goods are adapted versions of base products which are manufactured according to consumer needs and tastes, and there are three dimensions to these products, and it applies to luxury handbags as well. The three levels of luxury products are, first, the inaccessible luxury products, which are only or mainly for the elite or affluent, as the other classes will find it difficult to buy it. Then, comes the intermediate luxury products, which for the professionals who are financially equipped to buy those products and thereby fulfil their desire to attain the status of the affluent. Finally, there are accessible luxury products for the middle class, which will be set in a feasible price range. Prospective customers in each of these levels have to be enticed through level-specific marketing strategies. So, on the whole it is necessary to grasp the consumer behaviour regarding particular products, along with other environmental forces. So, from the above understanding, it is clear that, to launch the new range of luxury handbags in UK, the macro and the micro environment as well as the consumer behaviour in the UK market has to be analyzed, based on which consumer and market oriented relationship marketing strategies can be formulated. The

A critical book review 5 to 8 page paper (approximately 250 words per Research

A critical book review 5 to 8 page (approximately 250 words per page) - Research Paper Example They are Western Eastern Orthodox, Latin American, Islamic, Japanese, Chinese, Hindu and African. Samuel P. Huntington, was foreign policy aide to President Clinton, in addition to being a political scientist at Harvard University. Whenever one country interferes in other nations affairs, the cultural factor surfaces predominantly. He clearly visualizes the growing momentum in this direction. He is specific when he writes, â€Å" In the post- Cold War world, flags count and so do other symbols of cultural identity; including crosses, crescents, and even head coverings, because culture counts, and cultural identity is what is most meaningful to most people. People are discovering new but often old identities and marching under new but often old flags which lead to wars with new but often old enemies.†(20) How to meet the increasing threat of violence arising from renewed conflicts between countries and cultures that rely on traditions on religious faith and dogma? Huntingtons thesis is provocative in the sense that he gives a go the the traditional views that world is bipolar or the collection of states. He classifies them as a set of seven or eight cultural â€Å"civilizations†. Conflict will arise on account of identity of civilizations. Thus he has divided the world, without the actual geographical division! Along with this startling innovative concept, he raises some vital issues. He categorically states that modernization is not tantamount to westernization; links economic progress with the revival of religion; ethnic nationalism scores over ideology in the post-war politics, according to him. The lack of leading "core states" hampers the growth of Latin America and the world of Islam. Huntingtons views on Islam are hardcore. He points out that Muslim countries are involved in many inter-group violence as compared to