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Firstly, they establish that the fundamental mission of all firms is to make a profit. KFC is to locate in China because there are large prospective economic gains. In 00, China had a Gross Domestic Product of over 1. trillion dollars (US) growing at a steady boom of 8% from last year. These incredible numbers are even more promising when one realizes that most of this growth is from a private investment binge and robust consumer spending on cars and houses. According to the state development and planning commission China's outstanding growth will make it one of the World's largest economies by 00 with a forecasted GDP of 5 trillion dollars . Also, China's population is over one billion, and invariably people will enjoy the taste of fried chicken. Simply put, there is money to be made right now.
Secondly, China's recent membership into the World Trade Organization (000) proves that it is ready to become trade partners with other countries. Belonging to the WTO tells the world that they are becoming more sensitive in accepting other countries products, policies, and belief systems. This may include an issue such as management hired can be from other countries such as the USA. China is becoming more cooperative with global regulations, so it is time to expand there.Buy custom Teenage Pregnancy term paper
Thirdly, KFC should expand to China because of its large demand for chicken products. Fresh chicken is a high priority for families each and every day. One other important strength of KFC is the speed at which they can provide for this necessity. The Chinese love to move fast. As well, the Chinese are not just demanding chicken but they are grasping for a new identity. Mr. Yuan, special commissioner in foreign ministry in China, says, "The Americans are not just selling products but a culture… and it is a culture that many Chinese want." As you can see, all of these factors point to the reason why them the Asian Assassins recommend entry into the Chinese market today.
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