Factors affecting the success of localization strategy of fast food companies in Asian countries - Literature review Example

Download file to see previous pages Integrating national economy to the global economy calls for sustainable developmental approaches through efficient use of local resources with the underlying cause of welfare to the society with environment friendly processes. According to Bruntland report “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” is called as sustainable development (Business Dictionary.com). This paper seeks to study and analyze the issue with reference to the following questions: 1. Why localization strategy is important for fast food industry in Asian countries?  2. How to use the localization strategy for fast food industry in Asian countries?  3. What are the key factors affecting the success of localization strategy of fast food companies in Asian countries?  Localization strategy in Asian countries Asian markets are highly heterogeneous in nature, especially in the case of food industry with different ethnic groups, languages, vast cultural differences and divergent climatic conditions. The religious mix varies from region to region with a very long history. Food security and alleviation of poverty are the major concerns for the most of the Asian countries which are heavily populated compared to European or American countries. The government policies are oriented towards building a sustainable food economy. Therefore, a successful localization strategy for a sustainable growth has to be in line with the basic objectives of the State taking into account the income levels, local spending choices, nutrition and health, rural bias of the economy, urbanization process at various stages in different countries, employment generation, educational and technological developments of the regions, the use of agricultural lands, climatic conditions, efficient utilization of natural resources and its environmental impact. Business Monitor International (2011, p. 6) states “Health and hygiene scares continue to be a major concern in China’s food industry, with the government implementing crackdowns on chemical additives in food products”. Adoption of the best industrial and commercial practices by the fast food companies is essential for the desired effect in reshaping the food system and food habits in the communities. Localization efforts go beyond menus and the organization needs to integrate itself with the cultural mainstream of the host country to strike a chord with the consumers. Lee, M. et al (2011) state, “Yum’s cultural flexibility doesn’t end with the localized menu. While fast-food restaurants in the West often host kids’ birthday parties, KFCs in Urumqi, capital of the Xinjiang autonomous region that’s home to the Muslim Uyghur people, advertise parties for the families of boys who have just undergone the religious ritual of circumcision”.  The Asian markets hold potential for growth in future on account of growing population which provides a huge market coupled with high growth in economy over the period of time in the past which is expected to continue in future. Davies, R. (1996, p. 2) states “The interest in Asian management is primarily a recent phenomenon, facilitated by the growth in Asian markets within the global economy, and a realization in the West that Asia is both a region that will be central to any serious global business, and also a region that can offer the West much wisdom in management techniques”. The subsequent developments in the continent have justified this ...Download file to see next pagesRead More