Jovan Belkhu Zahida Khan 06/03/2021
Unit 5: International Business
E: Examine the strategic and operational approaches to developing international trade
Introduction
In this assignment I will be examining the strategic and operational approaches to
developing international trade for KFC. This particular business operates in 145 countries
with 24,000 outlets round the world, however in some countries this famous brand has not
appeared. I will be discussing what international trade strategies KFC can use to expand in
Sweden whilst reviewing their success in a few other countries round the globe.
5/E. P8 Explain how products and processes have to be adapted for international markets
by a selected business.
While it is critical to consider various expansion models when choosing to enter a new sector,
region, or even geographical area of the world, it is also critical to consider the needs and desires of
consumers in those regions. There are differences and changes that may be made across the globe in
order to meet local preferences and needs. Businesses who trade on a global scale should
understand the effects of these adaptations and the degree to which they need to improve. Changes
may cause additional costs that are required to trade in a new market. Adapting a goods to satisfy
the demands of an international consumer is a significant task and would almost certainly
necessitate a significant expenditure of time and resources. Car manufacturing companies are
outstanding examples of re-engineering a vehicle when certain nations have left-hand drive vehicles
and others, such as the United Kingdom, have right-hand drive cars. In order to make an appropriate
vehicle, a car maker in the United Kingdom will need to re-engineer their vehicles. Another example
is that some agricultural colours, dyes, or products are not allowed in certain nations, and it is
important that modifications are made for local consumers. As a result, when introducing a
commodity into a global market, companies may use a common marketing mix or adjust the
marketing mix to fit the nation in which they are doing business. Basic marketing principles warn us
that if we try to satisfy the demands of our target customers, we will sell more of the commodity. In
foreign markets, this would include taking into account a variety of considerations such as
consumers' cultural identities, religion, purchasing preferences, and amounts of personal disposable
income. In certain instances, a company's commodity and promotion combination plan must be
tailored to satisfy local "needs and desires" that cannot be modified. KFC is a prime illustration of
this. They are a well-known multinational brand, but their burgers are tailored to local tastes. In
India, where cows are revered, burgers are made with chicken or fish rather than beef. KFC burgers
in Mexico come with chilli sauce. This explains why KFC is so popular around the globe; they respond
to their consumers' desires in any region of the world, which is why the brand has such a strong
influence and growth in the foreign sector.
Like for multinational advertising choices, an organization's sales approach and message may be
tailored or standardised. Advertising messages in different countries can need to be changed due to
differences in vocabulary, political environment, societal beliefs, and religious traditions. For
example, a promotional campaign in one country could offend people in another, causing
resentment among those in that country. The use of colour is one illustration of an advertising detail
that would necessitate testing and preparation. Many organizations tailor their promotion
campaigns to local markets and ethnic contexts and traditions influence what customers find
appealing. The position component of the marketing mix is concerned with delivering a good or
, Jovan Belkhu Zahida Khan 06/03/2021
service to the consumer at the right place and right time. In national markets such as the United
Kingdom, products would most likely be transported in a chain from the seller to wholesalers and
then to supermarkets for customers to purchase from. However, there would be more parties
interested with an international sector where the products would be transported across a global
market where industry activities will vary from those in domestic markets. In Japan, for example,
there are about five distinct categories of wholesalers participating in the distribution chain.
Businesses would need to examine delivery chains in each nation in which they plan to work. They
would still need to research who they choose to market their goods and services to, such as
companies, stores, and consumers.
KFC relocated/offered 450 workers from the United Kingdom to India. KFC have outsourced and now
are used to conduct different tasks such as operating the payroll system, generating accounts and
call centres, as well as promotions and research and development for the firm. KFC will achieve its
strategic goals and stay focused on what needs to be achieved through outsourcing. For example,
through outsourcing call centres and promotions, KFC will increase its sales volume and income for
the provided goods and services while also being able to deliver on their core mission, which is to
provide high-quality products at a low cost. There are several benefits of outsourcing, such as
increasing KFC versatility and providing access to people with expert and specialized expertise on the
suggested job positions, but still promoting cost-effectiveness so expenses are held under check by
the given contracts and agreements. Furthermore, outsourcing is less expensive since they are
experienced individuals/businesses that are trusted, in addition to getting a contract arrangement
with KFC. As a result, all of the assigned tasks are in capable hands and can be completed without
the risk of bad execution or legal ramifications. However, there are risks of utilizing outsourcing since
KFC is relying on a third party, and the corporation could be bound up to the third party, meaning
that seeking another business to outsource to may be challenging. Furthermore, since KFC would be
unable to track and oversee the third party, there is a risk of a loss of control, which may have a
detrimental impact on the consistency of their results. Aside from efficiency problems, there are
often hidden costs to consider, such as the expense of unplanned and unexpected threats. KFC
chooses outsourcing as a strategy for international expansion because of its many advantages to the
company; nevertheless, there are places to analyse to determine if the chosen strategy is
appropriate for KFC business expansion. The pace at which operations are developed KFC would
have a long-term business strategy due to many opportunities such when higher sales as India has
1.324 billion, implying that growing and outsourcing in India would increase their opportunity to
enhance sales and profit, and also increase branding and perhaps, get a percentage of the market
share.
India is
a cultural
society
with a fluid
societal
order distinguished by various cultural, linguistic, and religious distinctions. The KFC Youth
Foundation is now accessible. Organizational culture refers to the common views, customs,
practices, and ideals of the organization's participants. It mainly sells meat, with a focus on Original
Recipe, Extra Crispy, Kentucky Grilled Chicken, and Original Recipe Strips, as well as home-style sides,
Honey BBQ Wings, and freshly prepared chicken sandwiches. Finger Lickin' Fine Fried Chicken,
