Global Strategy Development and Implementation

Global Strategy
Development
and Implementation

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Reasons for parent companies international expansion............................................................................3
Possible strategic choices available to the parent company.....................................................................4
Reasons for choice of location for the subsidiary....................................................................................6
Strategic methods of entry and the possible consequences......................................................................7
The potential organizational and managerial problems for the subsidiary operating in the new
international environment........................................................................................................................9
Strategic advice for the subsidiary to overcome the problems highlighted............................................10
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................10

INTRODUCTION
Global strategy is the action for taking the business cross border for expanding it. It is
used to make company grow internationally through a strategy and plan. It comprises three
strategies viz. international, multinational and global. It involves a detail plan prepared for the
business to grow in other countries other than its home country. It is possible for large business
organizations to increase its presence in such countries where it can make huge profit and
provide its services or products to the target people. This report is about KFC which has its
headquarters in Lousiville, United States. It is an American multinational fast food company
which is also known as second largest restaurant around the world. The support report includes
critical evaluation of reasons for parents companies international expansion, probable strategic
choices, reasons for choice of location for the subsidiary, strategic methods of entry along with
possible outcomes, potential organizational and managerial problems and Lastly, strategic advice
to overcome such challenges. The chosen international company will be expanding its businesses
in Finland.
MAIN BODY
Reasons for parent companies international expansion.
Historical performance
KFC is a large multinational company which focuses on its performance in order to
achieve its vision and provide good quality products to the end users. It has seen many
fluctuations and its share price through which the performance of a company is measured. It was
mentioned by the CEO of KFC in the press conferences held in the year 2019 that it has achieved
to leave global foot prints with an increase of 17% unlike McDonalds or any other competitors
who had growth at 9% only. Every company suffered from losses during pandemic situation and
KFC was no exception. In fact, it has suffered huge losses because of being in the food industry
as there was lockdown and people stopped eating out. Before coronavirus, the company has
performed really well in the previous years because of its effective policies and strategies also it
believe in providing quality goods to the customer. There are a number of strategies used by

KFC over the past five years for its growth such as it has invested in developing new products
with new taste and flavor for adding them into the menu. Also, it has installed new improved and
innovative technology in making the food for reducing the overall cost and increase the
production. It even changed its name for expanding the business into different nations and
making a name in the world with its superior quality food items. It also tried to incorporate the
changes as suggested by the customers. It employed 40% capital in the growth markets for the
purpose of research and development in current technologies and to build strong customer
relationships through growth and premium brands.
Product/service range
It provides a number of products such as burgers, wraps, cold drinks, shakes etc. to target
customer all over the world. It has apart from this, it provides some other food items as well
according to the taste, flavor and preferences that exist in the specific country in which it is
operating. These are its prime products and services which are provided in UK as well as other
parts of the world.
Share of the market
As per the reports of 2019, it was said to be the 2nd largest food chain company based on
the sales. Furthermore, it has reached by bringing its business into more than 150 countries
around the globe. Furthermore, there are many countries such as Germany, Netherlands, Poland,
Switzerland, hungry and many more countries in which it has presence. It owns some other
company as well such as Pizza hut, Taco Bell and WingStreet. It is growing at a rapid speed in
the world making it successful in the Food industry.
Competitive position within the industry
KFC is one of the fastest growing fast food companies in the world. Its competitive
position is as strong as compared to other competitors. Some of the competitors McDonalds,
Dominos etc. If we consider the proposed country Finland, then it has America’s Pizza,
Hensburger, Rolls, Snacky and some other entities in the same line. It provides diversified
flavored products through its competitive capabilities which make it stand among the other
strong competitors in UK. However, KFC is not influenced by the government policies and
changes because of its strong position in the world.