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Kentucky Fried Chicken in China (C)

Reference: IVEY-9A90G003-E
Year: 1988
Number of pages: 10
Geographic Setting: China
Publication Date: Jan 1, 1990
Fecha de edición: May 29, 2003
Source: Ivey Business School (Canada)
Type of Document: Case
Industry Setting: Accommodation & Food Services

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Description

This case presents the start-up of operations in Beijing and discusses the difficulties Kentucky Fried Chicken (KFC) is having with its local partners. By March 1988, KFC has established its largest restaurant in the world in Beijing with sales that are booming and showing no sign of slowing down. Nevertheless, the extent of operational problems and the shortage of hard currency profits is raising concerns over whether further expansion is warranted. Previous cases Kentucky Fried Chicken in China (A) and Kentucky Fried Chicken in China (B) are available.

Learning Objective

To address the problem of maintaining joint ventures in the face of changing partner priorities.To highlight the importance of balancing the success of a particular project with the effectiveness of the entire organization.To drive home the point that larger firms have significant advantages in doing business in markets such as China.

Keywords

China Currency International business Joint ventures Risk analysis