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  • 4 Growth Strategy Involvement in Local Communities: Mode of Entry

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    The company pursued a 4th growth strategy of involving local communities through franchising and joint ventures while hiring locals for top management. This provided opportunities for local employment and sourcing raw materials. The company also supported social causes, boosted women's employment, and trained employees and farmers. However, it faced some challenges like protests over competition, unhealthy food concerns, and claims of not being local enough.

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    The company pursued a 4th growth strategy of involving local communities through franchising and joint ventures while hiring locals for top management. This provided opportunities for local employment and sourcing raw materials. The company also supported social causes, boosted women's employment, and trained employees and farmers. However, it faced some challenges like protests over competition, unhealthy food concerns, and claims of not being local enough.

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    38 views4 pages

    4 Growth Strategy Involvement in Local Communities: Mode of Entry

    Uploaded by

    bansalakshit
    The company pursued a 4th growth strategy of involving local communities through franchising and joint ventures while hiring locals for top management. This provided opportunities for local employment and sourcing raw materials. The company also supported social causes, boosted women's employment, and trained employees and farmers. However, it faced some challenges like protests over competition, unhealthy food concerns, and claims of not being local enough.

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    of 4

    4Th Growth Strategy

    Involvement In Local Communities


    ●
    Franchise (80%)
    Mode Of Entry ●

    ●
    Join Venture
    Hiring Locals For Top Management

    Opportunity To Local ●

    ●
    Employment Opportunities
    Raw Materials From Local Suppliers
    Community ●
    Expertise To Train Employees and Farmers

    Corporate Social ●
    Supported Social Causes & Gave Financial Aid
    Boosting Women Employment
    Responsibility
    ●
    Challenges Along The Way

    Protests
    Competition
    Unhealthy Food – Analyst Review
    Yum! Brands – KFC,
    Heart Diseases , Greedy
    Pizza Hut, Taco Bell,
    Obesity multinational – NOT
    Long John Silver
    French Farmers – TRUE
    KFC -2300 Stores In
    Death Of Local Low Margins ,
    500 Cites , Pizza Hut
    Cuisine & Culture Providing
    400 in 100 Cites
    Us Invasion Of Employment &
    Yum Bell Had
    Afganistan & Iraq – Expertise
    Deeper Penetration
    Boycotting & Bombs
    Impressive Stats
    Income
    ●
    11% Increase -> USD 1.19 Billion
    ●
    Domestic Growth - 9%
    ●
    European Growth – 23%
    ●
    Asia, Middle East, Africa – 28%

    Gross Margins

    ●
    Improved from 25.6% to 29.1%

    Sales (2008)
    ●
    Global Sales – 7.7% Rise
    ●
    USA Sales – 4.5% Rise
    ●
    Europe Sales – 7.8% Rise
    ●
    APMEA Sales – 13.2% Rise
    Reasons
    2008 Slump In The Market
    -> Consumers Preferred
    Moderately Priced Diners or
    Cheap Alternative

    Multi-Dimensional Approach
    Convenient Locations
    Extended Hours
    Outstanding Quality Of Food

    Strategy Of Re-Emphasizing The Basics ->


    Improving Customer Service
    Healthier & Tastier Foods
    Better Visual Merchandising
    Refurbishing Stores Which Was More
    Noticeable

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