Mini-case KFC

Question 1 What are the relative advantages and disadvantages of offering the standard American KFC menu in China versus adapting the KFC menu in China to include items more familiar to Chinese consumers? 1. Advantages: * Offering the standard American KFC menu in China will make it easy for KFC to benefit from economies of scale. KFC can buy their resources from their suppliers in bigger quantities. Furthermore, KFC can produce larger quantities of products they are already …

…these advantages, the disadvantages may have a bigger weight in the decision. These disadvantages are that management control is out of KFC's hands and profits might almost disappear. From the above aspects of the different types of ownership it was not really clear for us to know which one to choose as the optimal entering strategy for a KFC, since we do not know the main objectives KFC takes into account when considering their objectives.