UNIVERSITY OF BOHOL

City of Tagbilaran
COLLEGE OF BUSINESS AND ACCOUNTANCY

Name: JULLIE CARMELLE CHATTO Year & Course: BSA-II

INTERNATIONAL BUSINESS AND TRADE – PERFORMANCE TASK

Title of the Case: KFC in China

Time Context: January 2022 

Perspective: Vice Chairman of Yum Brands

Central Issue: When KFC originally launched in China, the majority of its customers
were foreigners residing in the country. Consumers from the surrounding area couldn't
afford to buy there. They soon learned that relying on a well-known international brand
name is insufficient to secure development. As a result, KFC has altered its menu by
including several Chinese-familiar foods. Their sales in China have risen year on year;
it was the first Western fast-food firm to enter China. Fast food was regarded as
unusual, and Chinese consumers were intrigued. KFC took advantage of the situation
initially, charging rather high rates. Many fast food outlets sprung up across Beijing
over time. It rapidly became clear that the market was not expanding quickly enough,
as many people considered that the meal was inferior to their Chinese cuisine. Fast
food cannot compete with the Chinese traditional food and beverage culture. When
the novelty of the new fast food outlets wore off, Chinese people reverted to their
traditional cuisine. KFC has often stated that its kind of fast food is significantly
healthier than other fast food choices that’s why it managed to succeed in entering
China’s food industry. As with any foreign product or service, there is always the issue
of cultural imperialism, and Western-style fast food might be viewed as an invisible
cultural invasion attempting to supplant traditional Chinese culture. The Chinese were
especially concerned about fast food's effects on the young and if it would effectively
remove the young from their cultural heritage. KFC is an excellent illustration of how
its convenience fits into Chinese culture and how it has adapted to the quick pace of
modern Chinese life. Understandably, there have been health worries, and in China,
there was a widespread perception that eating too much fast food would lead to
obesity and other health issues. So far, KFC has attempted to alleviate any specific
challenges related to health issues by focusing on nutritional content. KFC's success
in China has surely resulted from a thorough grasp of the nation and its culture. The
corporation has understood that the host culture is crucial and cannot be
overshadowed by uniform worldwide marketing and promotion. KFC's quick-service
chicken brand adjusted its messaging to beat the likes of McDonald's. For KFC to
become China's most preferred fast food restaurant, with the emerging competitors
from around the world, they must consistently innovate and remain dominant in the
face of the nation's shifting preferences.
  Statement of Objectives:
1.    To acquire a competitor's market dominance
2.    To remain significant to its target market

 Areas of Consideration:
1.    Popularity: KFC has many competitors in China, including other fast-food
restaurants and Chinese cuisines.
2.    Market Share: With the emerging competitors of KFC, the company will likely have
difficulties in acquiring a larger market share.

 Alternative Courses of Action:

1. Child-Friendly Strategy.
2. Collaborate with a firm that provides healthy food products.
 
 
Decision Matrix:
 

Alternative
Variables
Child-Friendly Strategy Healthy Food Menu

Risks 2 4

Costs 3 4

Benefits 5 5

Ease of Implementation 2 2

Total 12 15 (highest)
 
 
Conclusion: Without a doubt, KFC is the most well-known multinational brand in
China. If competitor brands follow their prior methods, the situation will worsen. Its
biggest issue is its popularity, which is followed by its difficulty in gaining market
share. A modest alteration or addition to the firm's menu will undoubtedly help the
company gain popularity, and then gradually gain market domination. As a result, this
concern will necessitate critical analysis and decision-making for the company to
continue its growth efforts on the international market.
 
  
Recommendation: Yum! Brands should expand their product range for health-
conscious consumers. This means they should consider prioritizing the addition of
nutritious food choices to the KFC menu. As a result, the firm will be able to cater to
and accommodate the demands and desires of the Chinese inhabitants. KFC may
integrate fruits and green and leafy vegetables into their menu as a result of this. This
campaign will not only influence residents' perceptions of the brand but will also
position the brand as a place where people can dine without worrying about their
calorie intake. This method will provide KFC an advantage and will undoubtedly
increase its popularity among Chinese people and other Asian countries.
 

 
 
Action Plan: Healthy Food Menu
 

Activities Objectives Division Persons Costs Time

Responsible

Conduct To study the Research Market Estimat 2

research on the culture, and Researchers ed Mos
preference of preferences, Developme   ₱ .
the Chinese and demands nt Product  150,000
citizens. of the Department development 
  customers   Leaders
Evaluate   Operation 
existing To determine Department
products to  existing
review and be products to
amended modify and 
specialize
 Produce and To innovate Production  Design Estimat 9
innovate  products that  Department Council ed Mos
products suited fit consumer   ₱8 .
for the  preference  Product Million+
Chinese, and culture Manager
following  the  
customer Production
preferences  Committee
and the
present-day
demands

Launch the To launch the Sales and Launch Estimat 2

new items on new set of Marketing manager ed week
the menu fitting product Department Sales and  ₱1 s
to the demands menu Marketing Million
of the market. Team

Perform social To identify Research Team Estimat 1

listening to the reaction and Leaders ed ₱ week
gauge and criticisms Developme 100,000
consumer of the newly nt
acceptance of launched Departmen
the new menu. menu. t
 
Customer
Service
Departmen
t
 
 
 
 
 
Gantt Chart Year 2022

Activities Ja Fe Ma Ap Ma Ju Ju Au Sep Oc No De
n b r r y n l g t t v c
Conduct x x                    
research on the
preference of
the Chinese
citizens.
 
Evaluate
existing
products to 
review and be
amended

Produce and     x x x x x x x x  x  
innovate 
products suited
for the  Chinese,
following  the
customer
preferences 
and the present-
day demands

Launch the new                      

items on the x
menu  fitting to
the demands of
the market.
Perform social                       x
listening to
gauge consumer
acceptance of
the new menu.