ASSIGNMENT 1/ MIDTERM
1. KFC, a fast-food operator, faced immense resistance from some politically active
consumer groups when it opened its operations in India. One group proclaimed that
opening KFC outlets in the country would propagate a “junk-food‟ culture. Others
proclaimed that this was “the return of imperialistic powers” and was an attempt To
Westernize the eating habits of Indians. Local authorities in the city of Bangalore
used city law restricting the use of MSG (a food additive used in the chicken served
by KFC) over a certain amount as a pretext for temporarily closing down the outlet,
despite the fact that the authorities did not have the equipment to measure the MSG
content in the proportions stated in the law. In New Delhi, a KFC outlet was
temporarily closed because the food inspector found a “house fly” in the restaurant.
Although both of these issues were resolved through hectic consultations with these
consumer groups and through legal orders issued protecting the interests of the
outlets, they do reflect how the political and social concerns of even a small segment
of the population can adversely affect the operations of organizations in foreign
markets. If you were the country manager of KFC in India, what steps would you
have taken to avoid these problems.
KFC is one of the most popular fast-food restaurant all over the world. It caters so many
people locally and internationally and it captivates the taste of their consumer despite of
being different from the usual food they eat. In the facts given, KFC outlets in India face
immense resistance from some political active consumer groups. This kind of situation is
a threat to KFC’s business operations to survive in this country-India. That is why as a
manager of KFC in India, the steps that I would do to avoid this problem are:
a. Follow their rules and guidelines about food quality and preferences prescribed by the
food authority in India, especially about putting MSG on every food they eat, in order
to keep the local activist to put under control.
b. Do a research for Indians taste and preferences for food. By doing this, you will be able
to give them satisfaction for a diversified menu you are offering. The combination of
foreign and local taste and presentation is a good way of making your consumer being
feel at home and will not be afraid to try and crave for more.
c. Understand their culture and embrace it. Since India is known to be a festive country,
it would be a big help if the architectural design and interior design of the KFC’s
physical stores are inspired by their culture and local architecture design.
d. Make sure that the foods are certified Halal since most of their populations are Muslims
who strictly follows Islamic practice including eating only Halal foods.
e. Use an effective marketing strategy. Use the social media as a platform to easily
connect with Indian consumer. In this way, it’s like hitting two birds in one stone
because you are not only promoting your products and services but also it will give you
some expectations and feedbacks through the comment sections regarding their
concerns. You can also use other marketing strategy that will make Indians aware that
your restaurant is following the rules and regulations of your country, so they don’t
have to worry.
2. What is culture and why is it important in global business? Use examples to show
your understanding of culture ‘s complexities.
According to Zimmerman (2018), “Culture is the characteristics and knowledge of
a particular group of people, encompassing language, religion, cuisine, social habits, music
and arts.” In other words, people are considered unique because of their culture. And most
of the time we recognize the nationality of each person depending on the culture they are
showing. But as time goes by, as a lot of people explore to different countries and meet
different people, cultures are being diversified that make each other’s culture being mixed
or combined. Same goes in the global business. Businesses do not stay one place. It grows
and expand its market.
Culture is important to consider in businesses because culture is one factor that may
affect the global businesses. As stated, “business grows and expand its market” this is
because of the internalization. And internalization is a way for businesses to go global. In
business, in order to survive you need to consider a lot of factors and culture is one of those.
As business go global, you need to understand their culture, taste and preferences,
traditions, etc. because it will give you the analysis of making the right choices and decision
for your business. For example, in music, in the Philippines, Filipinos are known to be
good in singing and have passion in making songs and music. Filipinos are known as a
balladeer. In USA, the genre Hiphop and Rnb were originated and most of the popular
singers are from that country. In South Korea, Koreans are also hardworking when in come
to producing music. And now, their music industry brings popularity in all over the world
which is known as KPOP. If you notice, these music genres are influencing other countries
as well to produce good music despite that each country has different languages and music
styles. Just like the KPOP music that are being loved by a lot of people. The Korean music
industry surely studied how to capture the international market. An example of this is their
unique fashion styles that is a combination of Korean-US style, Korean-Japanese style,
Korean- Chinese style, etc. Their unique genre KPOP which also has a combination of
different languages and genres from other countries really captivates the ears and hearts of
music lover despite of us having different cultures-language, styles, norms, religion, social
habits, music and arts.
But sometimes, culture complexities occur. Example, in fashion, In US they are
liberated in a way that their fashion styles are too sexy for girls. Sleeveless, shorts, skirts
and crop tops are very in demand. This fashion styles are also used by a lot of people in
different country but in some cases, Muslim people are not allowed to wear that kind of
clothes because of their rules, beliefs and traditions. If you are going to put up a clothing
line business which sells sleeveless, shorts, skirts, and a like in the country with most of
the populations are Muslims, there is a possibility that your business will not succeed.
That’s why in business, you should understand first the culture and then embrace and
respect it for you to succeed.