International Business Challenges

Every company also has the same objective in business plan which is to push their own business into international business or global marketing. International business is not only opening company in foreign country but also included commercial, trading, services from one homeland to other foreign country.

In global markets, the business must be suitable or adaptable to the country due to many challenges of the international business. One of the challenges is Strategy, in order to make the business exist in long-term. The business needs a prepared strategy for long-term run in foreign country. The company have to take some research in the target country before open new business in foreign country.

Political also became another challenge in

This included religious, living-style and the way people think. Different countries will have different cultures. In some countries, they are very beware of the foreign country which has different religious. The businesses would survive in these situations if and only if they are highly active in adapting their own business into these cultures. The conservative or unadaptable businesses will be vanished later.

In 1987, KFC became first restaurant in China with the first branch in Tiananmen Square, Beijing. At that time western fast-food restaurants were unfamiliar in China.

At first, KFC came with the original taste and the original menu from America which are not suit to the Chinese people tasting. According to differences in living style and taste style of Chinese people, it is hard to operate KFC in China with the unadaptable business. KFC faced the challenges about differences in cultural such as the culture of working time of employee, the relationship between employer and employee. The tasting of Chinese people are different from American. According to these culture differences, KFC have to face many challenges during the early-time business. At first, KFC choose to use the original old-fashioned style. But, they changed

Everything that affect China also affect the world, especially in Asia. The impact of KFC in China and the impact of China to KFC also changed the way of international business in KFC. KFC become one of the success in global markets with adaption and become a part of local community.

KFC succeeded in China both because it was not McDonald’s and because in many ways it decided it wouldn’t be KFC either. 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. But there are also some problems they had face when they served the same recipe at every