Jhonah Joyce Lumba

ACCBP100 (963)

For this case, kindly answer these questions:

1. What are the opportunities and risks of China at the time of the case?

Business opportunities in China were indeed a great source of profit in the

case. It was indicated in the case that China was a huge, high profile market and
would demand precious managerial resources, that’s the opportunities, but along
with these big opportunities, there is also a risk. With the limited information Wang
had, the risks that are widely seen from city to city, Wang also had a hard time
evaluating the suitable location for the business Wang concluded that it is too risky
for him and for his company. The challenge faced by KFC is the great complexity of
growth and sales in China. Business. Market. The interest of customers in China is a
significant question mark. Management and Management Employees are therefore
at great risk and they will need to be fully skilled on how to do so. High and not
possible since it can differ from location to location, depending on the location where
the KFC is established.

2. What are KFC’s competencies and deficiencies?

The competencies of KFC is their chicken is known by many to be the best

friend chicken. Smart, clever, and knowledgeable people in the top management of
smart company decisions to increase sales and company growth. The biggest
deficiency for KFC is the lack of risk-taking activity that might help the organization.
Lastly, the constant change in management is also one of its deficiencies.

3. Argue where the company should go first: Beijing, Shanghai, or Guangzhou.

For me, KFC should set up its subsequent operations in Beijing, as Beijing is
the second most populous city, which means more future buyers. Schools and
colleges in the city that can enable KFC to attract students. More population means
more chances of producing higher sales of RMB. No real problem threat is involved
in addition to the likelihood of political involvement. Shanghai is at risk of attracting
new buyers due to noise and Guangzhou lacks a sufficient supply of chicken.
4. Also, a brief SWOT/PESTEL analysis, an alternative, and a recommendation.

The KFC SWOT analysis listed in this case illustrated the core strengths of
the company, which derive from its significant multinational existence, steady growth
over the years, good financial stability, a variety of menu options, superior
competition, a strong consumer base, and its unique recipes.
The maturation of the restaurant industry raises competition, making it
impossible for a business to manage prices. Customers are also not priced sensitive
due to the variety of alternatives available to them. It will be challenging for KFC (or
any other restaurant) to defend higher prices. There are almost no switching charges
to consumers. This is counterproductive to sustainability because consumer
expectations will raise the expense of a business. Restaurants will not be able to
push the expense on to the consumer, again because of high rivalry and alternatives.
For eg, after McDonald launched the sandwich, KFC was compelled to raise
awareness of its chicken sandwich. This was applied to the expense of the KFC, and
as late arrival, they had to cancel their sandwich due to poor sales and profit. The
danger of substitute goods.
As of today, there's a brand new menu for all restaurants in all cities.
Introduce all new products to the menu simultaneously. And re-launching iterations of
the customer's classics. Make brand-new marketing techniques. This includes
redesigned food packaging, an improved business model, improved staff uniforms, a
new retail design, and digital innovations, including a new mobile app, an E-menu,
and a prepaid take-out option and will encourage famous Chinese celebrities to
promote the KFC brand and raise business reputation.