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Its’ political risks are both macro and micro (Mastovich, 2010. Attack of its’ outlets by the Chinese in retaliation was unanticipated and politically motivated. This is a macro-political risk for the firm, and its origins are outside the countries where the firms are physically located, arising from a chain of causation of conflicts and influences. KFC does not face any micro-political risk, which arises from environmental and economic changes for outlets in foreign countries. Micro risks are inherent in the United States
Adaption strategy of KFC
KFC's adaptation strategy involves the adaptation of Chinese culture. This is observed in its involvement with Chinese governing bodies, and the hiring of local staff in its operation. Its goes further to incorporate Chinese food in its Menu, a rare feature and valuable strategy for business to thrive and survive. It strives to identify itself with locals in all processes, though it is an entity situated in a foreign land.
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