Why did KFC leave Norway? How can it reenter the Norwegian market?

1. Setting Up Business Abroad
KFC In Norway
BY Abu Huzaifa (18570),

2. CONTENT
1. Introduction
2. Organizational Predisposition
3. SWOT Analysis
4. Corporate Culture
5. Cultural Environment
6. Strategic Environment
7. International Political Environment.
8. Economic Integration
9. Effect of COVID 19 on International
Business
10. Strategic Analysis (Porter’s
Diamond Model)
11. International Strategy
12. Conclusion

3. INTRODUCTION (HISTORY OR BACKGROUND)
● Colonel Harland Sanders, an entrepreneur and the founder of KFC, started his
career by selling fried chicken from his roadside restaurant in Corbin, Kentucky.
● the first Kentucky Fried Chicken (KFC) was opened in Utah in 1952.
● Sanders sold it to a group of investors led by John Y. Brown Jr. and Jack C.
Massey in 1964.
● it’s headquartered in Louisville, Kentucky.
● It's the world second largest fast food chain after McDonald's with 25000
franchises located globally in 145 countries.
● In 1987, it became the first western restaurant chain in China.

4. MISSION STATEMENT
“Focusing on maximizing the profits as
well as the improving values for
everyone and serving the viable
growth in future”
“To leading the unified food services
by delivering the quality products
groups in ASEAN region, cater their
needs as well as building trust by
focusing to satisfy customers”
VISION STATEMENT

5. ORGANIZATIONAL PREDISPOSITION
● KFC’s strategic use has always been demographic, KFC try to attract an entire family
group rather than a specific member of a family.
● KFC culture is largely based on the approach to kernel management.
● KFC has six levels in its organizational structure, the board of director (CEO, CFO),
followed by general managers, assistant GMs, unit managers, team members and finally
workers.
● Workers are allowed to comment and raise complaints directly to the General Manager
through the KFC portal.
● KFC uses a variety of training methods for training and staff development, to make sure
their product remains consistent and to ensure that well trained staff is working to avoid
any mishap which can put staff at risk.

6. SWOT ANALYSIS
STRENGTHS:
1. The best-known pivot
Operating and 145 countries, with 25000 outlets
and many menu choices for everyone.
1. Association supporting KFC
KFC is owned by company owners who also own
Pizza Hut, Taco bell, and other famous restaurants
chains.
1. Non-meat choice
Despite the charm of the finger-licking chicken.
KFC also provides its customers vegetarians food.
WEAKNESS:
1. Unhealthy food
KFC food is high in fats and calories, which is
making public question their choice to eat from
KFC.
1. Questionable management system
KFC follows a franchise management system; it
means everyone should manage things individually.
It's not common for 1 KFC to possess high reviews
whereas another, simply down the road, is
assembling is unhealthy press.

7. SWOT ANALYSIS
OPPORTUNITIES:
1. Cheap Menu Folks Love
KFC offers hefty portions for an inexpensive
value, individuals can continuously grab
something distinctive every time they visit KFC.
1. Vegetarians Meals
Vegan choices can improve the link between
KFC and health-conscious customers. By
making a new section in menu for customers,
KFC can see a rise in its goodwill.
THREATS:
1. Competition
Precede food brands share a typical threat that is
competition. In spite of its fame, KFC is not the
leader in precooked food.
1. High Prices
If KFC desires to stay competitive. It must
maintain the quality. Without increasing the cost.

8. CORPORATE CULTURE
● KFC’s culture describes its vision and its values which is generating profits and
achieving long-term success. They create an attractive and comfortable work
environment that attracts, and engages the employees.
● KFC culture is flexible it provides flexible working hours to their employees. Also,
KFC gives accommodation, time off to their workers for exams, extra/makeup
classes, sports, and other family events.
● KFC offers different variety of food choices as per the different cultures of different
countries and a high amount of cultural diversity exists at KFC.
● KFC maintains its cultural values everywhere.

9. Cultural Strong Values
● They believe that their employees can do their best.
● They are always looking for recognition to their employees for their achievements to
say thank you which means a lot to them.
● They do things in the right way even someone looking or not, they are very
passionate about their food.
● They support and help their workers and work together as a family.
● Build know-how, more knowledge, and more learning and share with others too.
● KFC always tries to strive for the best and make things better.

10. CULTURAL ENVIRONMENT OF NORWAY
It is very important to understand the organizational culture because, in today’s
competitive market environment, organizational culture is playing a vital role in gaining a
competitive advantage and makes it easy to enter a new market.
In Norway, people give importance to some of the values like respect, tolerance, and
equality. Norwegians of all ages would like to go outside and they love to do hike, fish,
and barbecue.
Norwegian families are small in size and most people believe to grow their children
independently, and KFC can bring them together as it targets the family as customers.

11. Why it is important to KFC to understand the cultural environment?
● To know about their language and their values, it is important to expand any business
internationally.
● They need to understand Norwegians cultural values first and then plan their
operations.
● KFC corporate culture is very flexible so when they know they can adopt Norwegian
culture and open a franchise in Norway.
● workers have a good understanding about Norwegian language and culture which
helps them in dealing and other things.
● Knowing the culture will help them modify their menu according to the preference of
people, like people in norway like fish, and meat so, KFC can add those to their
menu.

12. EFFECT OF CULTURE ON STRATEGIC MANAGEMENT
As the Norwegian culture suggest that the people there prefere fish, and vegetable meals
more. Expanding Franchise in Norway will have negative effect if coming up with the
existing strategies.So, to coup with that KFC will have to do as follows.
1. KFC has to use the “Push Strategy” to help them create awareness among the
customer.
2. KFC will have to start to creating a different types of menus for the people of
Norway.
3. KFC use important strategy that has contributed to their global success called local
cultural strategy.

13. INTERNATIONAL POLITICAL ENVIRONMENT
● Political environment includes how government intervenes in the economy. It
includes tax policy, labor law, environmental laws, tariffs and political stability.
● Norway is included in European Free Trade Association (EFTA), which can be
beneficial for KFC as Norway already trades with UK, Germany etc. which include
free trade. Secondly labor cost is not very high which a plus point for the expansion
is.
● Looking at the political environment of Norway, it is politically stable and
prospering. Its political landscape shows it is suitable for expanding a franchise.
● Norway Fast food industry is competitive thus, for the survival of KFC, it needs to
expand with a different taste to make it space and attract customers.

14. ECONOMIC INTEGRATION
● Economic integration is an arrangement among nations that typically includes the
reduction or elimination of trade barriers and the coordination of monetary and fiscal
policies.
● Economic integration aims to reduce costs for both consumers and producers and to
increase trade between the countries involved in the agreement.
● Economic integration is sometimes referred to as regional integration as it often
occurs among neighboring nations.

15. IMPACT OF COVID ON NORWAY
● Due to the Covid in 2020, numerous Norwegian organizations expressed that they
have encountered lower interest and are treated as non-existence.
● In March 2020, 68 percent experienced lower interest or undoing.
● These numbers were down to 52 percent as of March 2021.
● Furthermore, 14 percent of the studied organizations encountered a considerable
danger of liquidation that month.

16. IMPACT OF COVID ON KFC
Just like other food chains KFC also faces losses. Some store deals fell 9% over the
course of the year, and income fell 6% from $8.78 billion to $8.26 billion.
Franchisor Yum China Said
"2020 was an uncommon year that tried our kin, frameworks and capacities,"
"The Covid-19 pandemic built up our assurance to care for our representatives and
endeavor to be a mindful corporate resident, an exertion that is perceived by our industry."
Despite losses Yum China hopes to open around 1,000 new stores in 2021 – subsequent to
opening 1,165 every year.

17. KFC AND NORWAY
Norway shut its solitary Kentucky Fried Chicken area during the 1980s and hasn't had a
presence in the country since.
Norway is a serious market for cheap food foundations, which may give some knowledge
into KFC's absence of quality there.
Norway showed up the reasons of absence of the food giant in December of 2016, and no
news of opening of KFC there anytime soon.

18. INTERNATIONAL BUSINESS STRATEGY
International business strategy refers to plan that guides commercial transactions taking
place between entities in different countries.
Typically, international business strategy refers to the plans and actions of private
companies rather than governments.
The goal is to increase profit.
Understanding of cultural and linguistic barriers political and legal systems and the many
complexities of international trade is essential to commercial success.
Successful expansion into new foreign markets demands that companies adopt
international business strategies that best fit their needs and capabilities.

19. STRATEGIC ANALYSIS ON THE BASIS OF PORTER’S DIAMOND
MODEL
Porter Diamond Model is also known as
Theory of National Advantage which is
used for improving and developing on the
basis of competitive advantage.
For KFC, we used Diamond Model
framework and the factors of this model are
interconnected with each other.

20. 1. FACTOR CONDITIONS
Factor Conditions are the most important aspects of competitive advantage to the firm,
Factor conditions for KFC Expansion in Norway are as follows,
1. Natural Resources
2. Capital Resources
3. Human Resources
4. Scientific Knowledge & Technological Innovation
5. Infrastructure

21. 2. RELATED AND SUPPORTING INDUSTRIES
● Presence of Related Industries
The presence of related industries in the market provides competition which helps to
boost their level of performance than the other industries
● Presence of Supporting Industries
The presences of supporting industries are available in domestic level as well as
international markets which help KFC for growth and expansion in Norway rapidly

22. 3. STRATEGY, STRUCTURE, & RIVALRY
● Company Strategy
In this sub factor KFC growth in Norway’s strategy provide high quality of goods and services provided by
the company to fulfill the customer requirement and meet their expectation level.
● Structure
KFC is the flatter organization that emphasis on ease of communication with their customers. KFC will be
very open to their customer in Norway to provide the best services to their customers and answer their queries
about the recipe.
● Competition with Global Players and Rivals
KFC in Norway will face pressure and challenges from the rivals which will help them and keep them tight in
operational management to work properly and efficiently.

23. 4. DEMAND CONDITION
This one of the important factors for KFC for growth and expansion in Norway because KFC is a big
brand and they emphasis on the demand condition of their customers.
Generally, Domestic consumer and their behaviors are very important for predicting and anticipating
the behavior and demand of the customers in their markets.
There are many beneficial government policies which helps KFC growth and expansion in Norway,
like their pacts with other countries, trade relations, somewhat low labour cost etc.
KFC would be very influential firm for their consumer behavior in one market based on the basis of
response they have received in many markets

24. International Business Strategy Of KFC
● KFC focused on international expansion after been dominant in the U.S market.
● KFC carved out a niche and eventually drove other competitors out.
● KFC’s strategy is to focus on the international franchising by dominating the global
market.
● They can capture the global QSR market with their alliance with local suppliers of
their raw materials this gives KFC competitive edge.
● KFC also need stronger connection with the millennial and the Gen Z who tends to be
more inclined with the fast food industry.

25. Multi-Domestic Strategy
In order for a business to adopt a multidomestic business strategy, it must invest in
establishing its presence in a foreign market and tailor its products or services to the local
customer base.
Multi-domestic strategies are largely adopted by food and beverage companies so they can
coup with the local needs of the country they are in.
For Example: KFC used its multi domestic strategy in China by using a different menu and
marketing strategy to fit in China’s fast food industry. The highly localized menu includes
Chinese-style porridge, Beijing Chicken Roll served with scallion and seafood sauce, spicy
chicken wings resembling a popular Sichuan-style dish.

26. CONCLUSION
● KFC is a well-known and strong fast food restaurant.
● It’s a second largest fast food after the MCDonald's, its targeting mostly middle and
upper class people.
● KFC specialized in chicken and no one can beat him until now.
● Its spread everywhere and more than 25000 restaurants exist now all over the world.
● KFC becoming now a leader of fast food chain industry menu card has different
variety choices for people as per the culture
● Norwegians are more prefer fish than chicken which means KFC will have to change
their menu so its multi domestic strategy for all countries that increase its market.

27. Any Questions?