KFC EXPLOSIVE GROWTH IN

CHINA

Juli Hibler

Luke Garrison

Homogenization / Noitazinegomoh The rapid globalization

of fast food restaurants is due to homogenization (making them all exactly the same)

Yum brands growth in China is due to its lack of homogenization, adapting to individual regional cultures

Yum! China Growth Then = 1987 1 KFC Now = 3,000 stores,

650 cities Family oriented

College student, skip class

Chinese ManagementU.S. = Power / China =

Divide power

GOING LOCAL

WORKFORCE

SUPPLIES

MENU

Workforce

College StudentsMost time first job

Skip Class

Video Game Breaks

Employee/ManagementLike Family

Supplies Supply Chain

Ground upMultiple

vendorsSend

farmers overseas

First KFCDark Meat

Menu Chinese style of eating

Many people sharing dishes

Healthy Choices Eliminated Supersize

Items Reduced number of

Combo meals Support exercise

programs Kids Employees

http://www.youtube.com/watch?v=R9lJR5J2GSM&feature=related

HOFSTEDE’S Cultural Differences

Hofstede’s 5 Dimensions China and US

o Decision Making Poweroo Hiring Local Managers

o Humble

Sam Su’s leadership success

A KFC MARKETING MISHAP http://www.youtube.com/watch?v=iTyOPc8M

Gbw

Sources

http://knowledge.insead.edu/KFCinChina090323.cfm?vid=195

http://chinabevnews.wordpress.com/2011/11/19/kfcs-radical-approach-to-china/

http://topthinkest.wordpress.com/2011/07/18/be-aware-chinese-culture-in-business/

http://money.cnn.com/2011/01/19/news/companies/thebuzz/index.htm