Assessing International Business Opportunities and Risk with reference to KFCs operations in India - Case Study Example

Social Factors influencing the decision: Primarily India is religious country where people believe in tradition and religion. Also by nature a majority of the people are vegetarians who have the habit of eating an occasional snack of non vegetarian food. Hence the entry of a Multi national company into India just to supply chicken infuriated them, also the methods used to kill the chicken were thought of as cruel by Animal Protection activists like PETA. Many popular people who support vegetarianism like Anoushka Shankar, daughter of popular sitarist Pandit Ravi Shankar, John Abraham, A movie star, Raveena Tandon, Model and movie star etc.

The social conditions in India actually are loaded in favor of KFC, what was lacking is the social setting which is totally against them initially. This is due to KFC’s inability to adapt to the cultural settings of Asian countries like India. Technological factors: Traditionally Indians prefer food made at home or in the traditional setting with a minimum of technology. So when KFC came into with all its international name and latest equipment then it is bound to disappoint any traditional India.

Moreover Indian food is served hot and never preserved. They believe that food stored for periods will lose its nutritious values. So when KFC started to use a flavor enhancing agent PETA started agitations against that. The moral of the story is that technology in it self is not the bane. The application of which has to be limited in certain contexts and placed like cooking in India Result: Not in favor of KFC. Environmental factors: If there is one thing that lured KFC to India it is the changing entire Asian markets are opening up and India is cornering all the glory in this context.

Because of the globalization the environment is fast changing In India and this is a huge plus for KFC