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Kfc Japan Case Study

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Kfc Japan

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 measurements.

PROBLEM STATEMENT
One of the main problems KFC was facing, was that foreign subsidiaries were not willing to adapt standards – like strategic planning - imposed by the headquarter. Especially KFC-J has been strongly resisting the implementation of administrative operational controls and systems. Should the headquarters be prepared to accept operational variations? Moreover, it had to be clarified what was an appropriate level of performance expectations for overseas units. Even though it was obvious that KFC had to maintain its drive for aggressive growth, there was incertitude about how to ensure the continuance of such growth.
Additionally, there was the issue of how to expand into new markets and countries successfully. KFC had very limited positions in Korea, Thailand, Taiwan and Hong Kong, four countries with high potential. They had been under the responsibility of Loy Weston for the past four years, what were the reasons for the slowly progress. Moreover, Mayer was questioning himself what he should do concerning Weston. What would be the right strategy in order to handle this entrepreneurial man who was an

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