Globalization Paper - Fast Food in China
Anastasia Allen, Terry Clevenger, Robert Combs, Kirk Dickerson, Cassie Sherlin
April 28, 2013
China is a country that prides themselves on history and tradition. China has possibly been the greatest country to contribute to modern day society. But not even the ever so powerful China can resist a bucket of Kentucky Fried Chicken or a juicy hamburger from Burger King. The majority of fast food began in the United States, but now has spread across the globe. Besides the United States, China is one of the biggest contributors to fast food business. The fast food market from China contributes an estimated $29 billion alone (Economist). This is big ...view middle of the document...
67). Given that China is known for many food types and great diversity in the nature of foods consumed, there is a greater market survey to be done to know which foods are consumed more. The fast foods that XYZ Corporation intends to bring into the market must not be adverse; rather, they should fully accommodate the Chinese culture. The Chinese food culture is unique and requires an in-depth understanding of the market to launch the product successfully.
A strategy that XYZ Corporation needs to incorporate during its product launch is creating a better portfolio strategy (PGDC, 2010, p. 14). Under this, the company sets out a few things; first, the market it wishes to operate in and the intended customers. In the case of this company, it is the Chinese fast foods, which mainly target the Chinese citizens. Another factor is the basis of competition in terms of value, style, and reliability among others. Having a good portfolio can help a company attain certain basic objectives upon its launch. For instance, it helps in ensuring balance in the market and utilizing all the available, yet limited resources in a responsible manner.
A good project management concept is necessary during product launch. Operating in the correct manner can help a company have a stable market stand on the launch of its product. If XYZ Corporation considers these concepts, then there is a likelihood of it achieving considerable success in terms of market entry.
Taking into account Hofstede's cultural dimensions, how should expatriate employees (American employees living in China) behave in order to fit within the respective culture? How should human resource policies in the foreign subsidiary change to mesh with local norms?
Expatriate employees will need to be aware of cultural differences before being deployed in the Chinese market. According to Geert Hofstede’s framework for assessing cultures, countries vary on five dimensions of national culture (Robbins & Coulter, 2012, p. 83). Expatriate employees should ask themselves where they differ on these five areas, and learn what changes they will need to make.
The hiring or selection process for resources assigned to the Chinese expansion project must be able to assign the proper resources to the project. A model American employee may not be a perfect fit in Chinese markets. As an example regarding obligation, Chinese relationships with other people involve reciprocal obligations, whereas Americans tend to avoid interdependent relationships and situations that might entail long-term obligations (AIEF). Another example would be social relationships. The Chinese social relationships tend to be formal, hierarchical, and they are the most comfortable in the presence of a hierarchy in which they know their position and the customs or rules for behavior in the situation (AIEF). Americans on the other hand prefer social relationships that are informal, being most comfortable with their social equals;...
