Business Model and Political Risks of KFC - Case Study Example

            Business model:  KFC is US-based but has branches worldwide; it has franchised its operations hence making it profitable. To ensure competitiveness it spends approximately 5% of its sales on advertising, advertising is done on local TV is to capture the local market. In its operation, it incurs costs of leasing, stock purchases, training wages, and insurance among others.

            Political risk: After the NATO bombing of the Chinese embassy in Belgrade in 1997 there were demonstrations in China. The Chinese protestors attacked KFC since it is US-based; KFC is hence faced with political risks in its operations in overseas countries.

            Adoption strategy: KFC has been able to adapt to changes in customer tastes and to suit new environments. It has changed its menus to suits the Chinese tastes and eating styles; it has close ties with the Chinese government, hires local managers, and also sources for food within the country. To suit the Chinese culture of eating in groups it has introduced large sharing dishes.