paper - Where should a multinational company draw the line...

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“Where should a multinational company draw the line between global standardization in order to drive brand consistency and global economic efficiency on one hand, and local adaptations in order to better meet local market needs on the other? In China, as elsewhere, the optimal choice is seldom one or the other. Instead, it is a question of degree and mix; and it is situation dependent.” That means as a multinational company, KFC used Economic globalization and world market to enter China. From the immemorial time, China is a market that has a few thousand years of recorded history and a deeply entrenched culture. The way that the market operates is quite different from the West. Whatever the Western company selling a product or service wants to affect and touch upon China’s culture roots – such as food products, it must consider a lot of programs of localization unless it is content to stay within a niche market segment. In this circumstance, while the degree of localization required depends partly on the characteristics of a product or a service, the actual extent of the localization depends on a company’s willingness to localize – reflecting elements of its flexibility and adaptability. The business model for the fast food industry like KFC is a “cookie cutter” business model. Namely, in order to appear a consistent consumer experience and brand image around the world, every restaurant need to conform to a common set of operating
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This note was uploaded on 03/08/2012 for the course ECON 305 taught by Professor Rogers,w during the Spring '12 term at Winthrop.

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paper - Where should a multinational company draw the line...

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