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KFC (Kentucky Fried Chicken)

KFC (Kentucky Fried Chicken) is the world's largest chain of fried chicken fast food
restaurants, headquartered in Louisville, Kentucky in the United States. An "American icon", it
is the second largest restaurant chain after McDonald's, with over 17,000 outlets in 105 countries
and territories (December 2011). It was founded by Colonel Harland Sanders, who began selling
fried chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression.
Type :- Subsidiary Industry Restaurants

Founded :- 1930 (original) (North Corbin, Kentucky)
1952 (franchise)

Founder :- Harland Sanders

Headquarters :- 1441 Gardiner Lane, Louisville, Kentucky, United States (Operational
Headquarters) Delaware, United States (Incorporation)

Number of locations :- 17,000 (2012)

Key people :- David C. Novak, Chairman and CEO of Yum! Brands.

Products :- Fried chicken grilled chicken chicken burger (chicken sandwich [US]) Potato
wedges soft drinks salads desserts breakfast
Revenue US$ 9.2 billion (2011)

Employees 455,000 (2010)
Parent Yum! Brands
Website www.KFC.com

Kentucky Fried Chicken (KFC)- one of the most known fast food chains
in the world started in the early 1930's by Kernel Sanders in the
Southern USA as a small franchise operation. Colonel Sanders has
become a well known personality throughout thousands of KFC
restaurants World wide. Quality, service and cleanliness
(QSC)represents the most critical success factors to KFC's global
The China business mode of KFC is joint venture .Because of Chinas
risky business strategy KFC choose Their Join Venture Business mode
to enter the country and reduce the risks.
There are three Entry option for KFC by through KFC entrt its business
in a country.They are:-
1.Franchising / Licensing
2.Wholly Owned Subsidiary
3.Joint Venture

In Bangladesh KFC is using franchising ,do you recommend some other
entry mode options for KFC in Bangladesh market ? Describe your
reasoning ?
KFC right now in Franchising business mode in Bangladesh.At this time
KFC has there entries mode.Another two modes are Wholly owned
subsidiary and Joint Venture.
Well I will not recommend Wholly owned subsidiary because it needs
high investment so high risk involve here but They can try out Joint
Venture mode in bangladesh.To become more risk free in business as
the business will divide into 50/50.

Question .2
In bangladesh ,if KFC wants to expand more,Which entry mode wil be
morebeneficial for KFC and why ?
In Bangladesh if KFC wants to expand their business more then I will
suggest Join Venture Mode.Lets Find Out why I am suggesting This:-
Access Larger Markets :- If KFC chooses Joint Venture business with
any other company in Bangladesh they will have a large market so they
can expand their market in bangladesh.
Longer Marketing Reach :-Not only can KFC gain access to larger and
new markets, but also KFC can extend our marketing reach. KFC may
not need to have the budget for advertisements in national magazines,
but a strategic joint venture can provide them with new marketing
channels and geographic scopes. Additionally, a joint venture strategy
may give them more direct access to decision makers.
Access to Technology :- KFC can use the recources,Technology by
choosing Joint Venture Business entry mode in bangladesh.
So I Think by choosing the Joint Venture mode KFC can enjoy all the
benefits mentioned above.

Question .3
What are the reasons for choosing Joint Venture in China ?
Choosing Joint Venture in China was recommended. The potential size
and growth of the market in association with improving political
stability makes the Chinese market very attractive. As KFC has been
able to successfully expand into the Pacific Basin, and its popularity in
the region (large portion of the population is Chinese), the people in
China will most certainly find KFC's products attractive. In addition, the
ready access of quality poultry in the major metropolitan areas and host
government emphasis on modernization of this industry can ensure a
reliable supply of supplies. a joint venture agreement commonly produce
goodwill and commitment between the host government and the foreign
investor. In such a relationship, the foreign investor is not seen as trying
to take advantage of the nation for profit purposes, but rather show
willingness to share. Maintaining good relations with the host
government is a critical success factor as government policy impacts
intensely upon business activities.
KFC is the largest company which has some business mode and they
are using their comfortable mode in various country.
KFc should try joint Venture Mode if they want to expand their business
in Bangladesh as they are now using Franchising mode.
There are lots of advantages using Joint Venture mode like Access
Larger Markets, Longer Marketing Reach, Access to Technology.