Kfc Japan Essay examples

2064 Words Jan 25th, 2012 9 Pages
Case Study – KFC Japan

INTRODUCTION
Kentucky Fried Chicken (KFC) was set up by Harland Sanders. In the first decades of the enterprise there were no management systems or strategic controls. However, it worked fine in the beginning, mainly because for launching new franchises an entrepreneurial spark was fundamental.
Nevertheless, the company grew and after suffering declines in sales and profits the implementation of strategic planning, which was introduced by Michael Miles in late 1975, seemed to be an adequate measure to solve the problems. By 1979, the various programs of the strategic planning progress were beginning to show results.
Anyhow, some foreign subsidiaries resisted and didn’t want to adopt these
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Moreover, there is the high desire of KFC headquarter to standardize its menu on a global basis and eliminate great differences between countries.
Furthermore, another main problem can be identified. A great number of KFC’s subsidiaries are resisting the implementation of new corporate standards and rules. This attitude probably derives from earlier years when country managers had been left totally on their own, receiving only financial assistance from the headquarter. Nowadays country managers often feel passed over when management tells them what to do.
Food items offered by KFC stores differed widely. Management wanted to implement the standardization of its menu and food items offered on a global basis. Additionally, deviations from this product line should be eliminated.

ALTERNATIVES

Alternative 1- relocate Loy Weston within the company
By this measure influence and power of Mr. Weston in the Asian market would be reduced drastically. Furthermore Mr. Mayer could solve the problem of adhering to company policy by naming a professional manager vice president for the North Pacific, who most likely will fulfill headquarter’s expectations regarding acceptance of administrative controls - as for example writing proper management reports or to enquire for approval when implementation of new decisions is necessary. In addition, a professional manager could ease the process of standardizing the menus an eliminating variations like the fish…

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