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What is your evaluation of the way KFC is managing its international operations?
KFC had a peculiar way of running its business in the middle of the twentieth century. The head of the company, Harland Sanders, believed the franchisees could operate their restaurants without any control. Loy Weston had the same standpoint and he was against strict control over subsidiaries and restaurants in the region which were assigned to him. Admittedly, operating globally requires a certain amount of flexibility due to differences in mindsets. However, as far as the fast-food chain is concerned, it is quite crucial to stick to certain values and specific standards. The major point of any chain is to introduce the touch of the chain into another country. It is essential to get control over such vital aspects like product quality, service quality, human resources policies, brand management strategies, etc. Therefore, the recent chase for standardization and stricter control over overseas subsidiaries is a good trend for KFC.
What changes (if any) should Dick Mayer make? Specifically, what should he do about Loy Weston?
Dick Mayer has to make several changes to improve the situation in the region. In the first place, he should make Weston visit several subsidiaries in other regions. Weston should see that other subsidiaries are doing better and follow the rules introduced by the headquarters. It is crucial to implement some research as this will help identify major reasons for the Japanese subsidiaries’ problems. If Weston does not accept the new strategy, he has to leave as his inability to adjust to the changes suggests that he cannot be a successful manager. Of course, headquarters should also be more flexible as it is impossible to dictate rules without understanding the peculiarities of the region.
Prepare a specific action program for Mayer to help him deal with
The need for continued growth in Japan
One of the first steps to make is to carry out comprehensive research of the Japanese market and the KFC history in the region. This will help to identify the mistakes made. More so, the data will be crucial for working out specific strategies to address the existing issues. It is better to increase control over the operations in the region. The restaurants should be more similar to those in the USA as the chain should have its loyal customers who can be sure of its quality in any region and every part of the globe. A new wide advertising campaign is also necessary as it will help to boost the interest to the chain. It is time to expand and set up restaurants in different cities in Japan.
The need to expand into Korea, Taiwan, Thailand, and Hong Kong
As far as the expansion to such countries as Korea, Taiwan, Thailand, and Hong Kong, it is necessary to start with thorough research of the market: opportunities, threats, possible rivals, etc. The experience in Japan is of paramount importance for the expansion in the region. The company should also launch an advertising campaign to promote the restaurants. The major theme of the campaign may be the focus on the pace of contemporary life. KFC is a company that can stand for flexibility and the ability of modern people to succeed in everything in the high-speed life. Finally, it is vital to start operating in the area properly. In other words, high-profile US managers can be assigned, but they should also work with those who have experience in operating in the region. It is important to get control over major aspects of the business. Nonetheless, the company should also remain flexible and consider possible changes if they are expected to be beneficial for the business.
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