KFC operation in China
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Research on KFC operation in China then answer the following questions:
1. How big of a risk was it for KFC to enter the Chinese market? What could have gone wrong?
2. What would be your major concerns if you were the Chief Financial Officer of KFC and you were asked to find financing for further expansion into China?
3. How would the financing strategy of a China subsidiary of a large multinational food chain such as McDonald or Starbuck be affected by the perception of the 'political risk' for these companies in China
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Foreign Direct Investment - KFC operation in China
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Research on KFC operation in China then answer the following questions:
1. How big of a risk was it for KFC to enter the Chinese market? What could have gone wrong?
It was a huge risk for KFC to enter the Chinese market. Several things could have gone wrong. Local competition and low prices could have driven KFC out of the Chinese market. In addition, KFC could have faced low demand because KFC products did not appeal to the tastes of the Chinese people. Further, local taxes could have been levied on KFC making it very costly to compete or enter the Chinese market. That apart the government could have objected to the user of certain ingredients in KFC products.
The other problems that KFC could have faced to enter the Chinese market include the availability of well located outlets at very high real estate prices, low impact of marketing communication, and ...
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