KFC and McDonald’s — a model of blended culture Essay Example
The group Tricon Global Restaurants, the parent company of KFC and Pizza Hut in America, is promoting the Traditional Peking Chicken Roll at their Shanghai-based KFC outlet. At present, China houses more than 1,000 branches of KFC with an average yearly growth rate of 200 outlets. This implies a new establishment approximately every two days. Western rival McDonald's is also on a steady expansion course since its debut in mainland China during the early 1990s. The fast-food giant has launched over 600 restaurants across nearly 100 cities.
Despite witnessing a decline in the number of outlets in its home country, America, for the past two years, McDonald's has experienced significant expansion in China. On average, approximately 100 new stores are launched every year. As it stands now, China's fast-food sector generates total earnings of 180 billion yuan RMB, with KFC and McDonald's
...accounting for eight percent of this amount. So how do they achieve such impressive success and maintain high growth rates in China? Besides their constant operational strategies, their excellent cross-cultural management plays a crucial role. Western Fast Food infused with Chinese characteristics remarkably attracts discerning consumers – a hurdle that each foreign fast food chain must leap over.
The novelty factor of these fast-food restaurants initially attracted a large customer base. Even though these establishments were economical and ubiquitous in America, the recent enactment of China's open-door policy made fast food a uniquely foreign concept that piqued the interest of Chinese citizens towards the outside world. Taking advantage of this curiosity, managers set prices at 10 yuan for a hamburger and 5 yuan for a Coca-Cola. By the mid-90s, around 100 such restaurants had sprung
up around Beijing. Their convenience, effective service, cozy ambiance, enjoyable music, and friendly atmosphere gained popularity.
Office employees relished quick meals during their commute, and companions cherished their leisure time over a soda. Nonetheless, certain perceptive managers observed that some individuals never visited when they were nearby. A number of customers conveyed their dissatisfaction about the fast food not matching up to their traditional Chinese dishes and lacking diversity. Chains like McDonald's and KFC witnessed thinning crowds during celebrating events like Spring Festival and Mid-autumn Festival, meanwhile Chinese eateries were bustling with visitors. The underlying factor? Cultural disparities. Fast food joints such as KFC and McDonald's embody American brands. These disparities between China and US in regards to political scene, economy, societal progress and ideologies act as hindrances to international ventures in China. The company culture couldn't be comprehended or accepted here, predominantly in the food industry where culture holds a pivotal role. McDonald's profusely thriving on Huangpu River served as an eye-opener that adaptation was necessary: when in foreign terrain, follow local customs. Deeply ingrained in the Chinese ethos is their traditional culture that values diversification in color, smell, taste of their food and beverage . They simply found the concept of fast food inequivalent. With fading novelty, people reverted to their elaborate traditional meals.
In such conditions, the only solution was to merge the two distinct cultures. Fast food establishments have been incorporating aspects of Chinese culture into their practices. Starting from the summer of 2001, KFC has added numerous Chinese dishes to their menu. The Sichuan Pickle and Shredded Pork Soup was among the initial introductions. Customers believed their customs were being honored
when they had the possibility to enjoy Chinese food at an international restaurant. The soup was well-received, leading to the addition of Mushroom Rice, Tomato and Egg Soup, and Traditional Peking Chicken Roll to the offerings.
KFC is known for offering Happy French Fry Shakes, which feature components of beef, orange, and Uygur barbecue seasonings. Similarly, McDonald's doesn't stay behind, having launched their Vegetable and Seafood Soup along with Corn Soup, while also modifying the layout of their outlets. On Beijing's Wangfujing Street, during the 2004 Spring Festival, McDonald's grabbed attention by adopting a traditional Chinese aesthetic and embellishing their restaurant interiors with paper-cut designs of the Chinese character Fu (representing happiness), magpies and twin fishes - symbols of prosperity. Inter-cultural Management Approach
Both KFC and McDonald's have successfully incorporated elements of respect, acknowledgment, comprehension, assimilation, and integration from Chinese culture while maintaining the essential features of Western culture namely efficiency, liberty, democracy, equality, and humanism. Such an inter-cultural management approach where American business culture takes the central position complemented by Chinese traditional culture serves as an invaluable model for international firms striving to adapt, enrich and revamp their corporate culture in order to boost their adaptability in local markets.
Certain prerequisites are vital for the effective functioning of inter-cultural management. From an objective viewpoint, the presence of environmental similarities is key for establishing a connection and alignment between two cultures. The fast-paced nature of modern life is reflected in the operations of McDonald's and KFC: these are key manifestations of progress and a thriving market economy. The major benefit they bring, in terms of speed and effectiveness, can only be realized in nations with a market
economy. China's accelerated economic growth provided the necessary environment for the infusion of fast-food culture.
Fast food establishments acknowledge the importance of liberty, a pivotal American value, while also reflecting the Chinese perspective's yearning to understand and experience Western habits. The intersection of these two cultures demonstrates a desire to connect, assimilate and integrate. As part of their localization strategies, KFC and McDonald's effectively adapt American business norms by integrating significant elements from traditional Chinese culture, while keeping standardized managerial procedures in place.
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