Kfc Latin America

KFC

How the South will be won

Assignment Nr 1 By Anna Orlova Student Nr: 417387 Group Number: Tutor: Mr. A.J.W.P.M. Teunissen

Prelude

KFC( Kentucky Fried Chicken) was established by Harland Sandlers in corporation with Pete Harman 1952 as a franchise. His unique recipe of deep fried chicken grew out to be a great success. On December 16 1980 (Colonel) Harland Sandlers dies of leukemia. Fortunately his legacy of Kentucky Fried Chicken restaurants went on to expand in many countries over the world. Today, KFC operates in more than 80 different countries around the world, including a big US market, a presence in the European market and a big expanding Asian market. Although this looks very promising, KFC is struggling with one particular market that is yet quite attractive; South America.

The South American issues& advantages

With the 548, 5 Million counting population, South America comprises a very lucrative market. Why is KFC not taking its chance? There are several reasons: Lack of control; the distance between headquarters in Louisville, Kentucky and the Latin American region is quite big to successfully control restaurant quality and solve problems effectively. The substantial differences in markets; Apart from the fact that Latin America differs greatly from North America, it also differs greatly in political and economic situations within the 20 countries which it comprises. The widespread inequality in income, poverty, political instability, and the historical mistrust for foreign operations. Although this seems overwhelming at first glance, thorough research on the side of the company and flexibility can master these issues. This region, though not seen at first glance, also has its great advantages. For example: Low trade-barriers due to the NAFTA and Mercosur trade agreements. The economy is emerging, especially in Mexico, due to government legislation to privatize former government companies, upgrade infrastructure, modernize the tax system&...