Levendary Café currently has 3,500 stores in United States, 23 stores in China and a partnership in Dubai. Its original plans were to expand its store coverage in China to balance out the slowing growth in the US. Despite, Levendary China’s insisting regarding complete customization to local taste Levendary Café needed to keep in mind a consistent brand image focused on offering high-quality food and comfortable environment. The first step is to define the goals in China operation. For defining goal, one needs to identify key issues faced in meeting targets in Chinese operations.
The question remains that with recent tensions between China and the U.S. many American businesses believe the Chinese government was backing the protest. However, even with the possible government intervention China still remains Starbucks number one market, outside the U.S., with close to 400 stores. Knowing the entry strategies and possible government involvement, let 's take a look at Starbucks potential future strategic factors. I believe Starbucks ' future in China is dependent on two factors, keeping the consumer interested in the Starbucks brand and sourcing their coffee from Chinese growers. The emerging Chinese coffee drinkers see Starbucks as a type of restaurant and with a cup of coffee costing as much as a days salary for many, this new trendy generation, much like the American yuppie, see these outlets as a place to show off their sophistication and hip western ways.
Since, KFC is the first fast-food chain restaurant in China which success in short period of time. After the first KFC restaurant was established in China, it has growth continuously and now, KFC is the largest western fast-food restaurant in main land of China with more than 5000 outlets while McDonald has only 2000. However, KFC would not become this large and this succeed without making good strategy planning. Tony Wang, the Vice President of Southeast Asia Division of KFC, took the advantage of being the first western restaurant so he selected Beijing to start the first outlet not only because Beijing is a political and cultural center but it is also the tourist center of China. After that, while McDonald’s ran their outlets in 4 largest city of China, KFC decided to make rapid expansion, so they start new outlets in smaller city but cover all over the country.
On the other side of coin, firms that chose to make FDI in China have been facing either benefits or challenges or both. China has been considerably successful in attracting FDI since the implementation of economic reform in 1979. Coca-Cola is a good and remarkable example for firms that have FDI in China. Coca-Cola has a presence in over 200 countries worldwide and is acknowledged as the most recognized brand in the world. Coca-Cola had its first bottling manufacture factory established in Beijing in year 1981, it was an impressive FDI and until now, there are 35 bottling companies and 29 manufacture factories for Coca-Cola existing across China, while also having more than 30,000 people working in Coca-Cola, not to mention, 99% of the staffs
The astonishing economic growth has “lifted more than 500 million people out of poverty”(). There are many factors that have contributed to China's amazing economic development, but the main one would be urbanization. “Urbanization is a crucial driver of china's economic growth.”() The migration from farms to cities has caused there to be a greater demand and supply for everything. It is truly fascinating how quickly China's economy boosted. Although the rapidly growing economy has completely flipped China upside down, the economic growth has started to slow down.
KFC did use the opportunity to enter the market. Their first store in Beijing is bigger than most stores in the US: It occupies 3 stories and has 500 seating capacity, which employed 150 staffs at the time. KFC marketed themselves not only as a fast food but rather a new sensation of taste that the Chinese never taste before. Locals called them as kuaican (快餐) which literally means fast food. To enter the market, they transformed their recipes to adjust with local taste buds.
Training adaptions of KFC in China Since KFC started its business in China in 1978, KFC in China has developed to be the largest restaurant company in China and become a separated incorporation belonged with Yum! Brands. (Backaler 1)As people all focus on the more and more profit that KFC gain , the training adaptions of KFC in China is alluded by it. Nowadays, KFC in China opens a new KFC store every day in mainland China, each of those new-opened restaurants typically employ 60 people who include a manager（Starvish )To maintain its high quality service and improve the company itself , the employees that KFC in China hires need to be ensured the quality and essential skills, while the duration will be filled with difficulties and challenges.
The Starbucks is famous for its having a large number of high loyal customers and luxury products. Strong financial picture: Earning per share, net revenues, store sales, operating income were all in a comparable high level. Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China. Market advantage: Starbucks is the world 's largest coffee store, with almost 20,000 stores in 60 countries over the world, 12,937 of which are located in the U.S.A. Weaknesses Starbucks is having a difficulty in entering Europe 's "cafe culture" because of different regional taste.
Many countries around the world have changed or modified their county policies for international companies to boost their own economy (“Pan”, 2007). Among all the developing countries china was one of the fastest and strongest economy and IKEA took that advantage and opened the first store in Shanghai. But IKEA 's policy of do-it-yourself did not work due to social differences in different countries (Anonymous, 2009). IKEA changed it policies and used the cheap labor available in China and provided its product with a free delivery and fully assembled product. After the changes in their own policy IKEA became successful in China and is now planning to open 2 more store and bringing their total to 10 in
By the year 2007, fast food restaurants represent one of the largest segments of the food industry with over 200,000 restaurants and $120 billion in sales in the U.S alone (Hoovers, 2007). Although, there was a global economic slowdown, still there has been rapid growth in the fast food industry. Many of the emerging economies experienced an expansion and the same time the markets of U.S and Europe also expanded (Lehmann & Reibstein, 2006). Many of the fast food companies have achieved success with the use of several different strategies, among them, visual exaggeration in print advertisement. Thus, with this study, the researcher will be able to provide a better understanding of visual exaggeration in fast food print advertisement specifically that of McDonald’s Malaysia.