Read the chapter's opening case, and then answer the question.

KFC's restaurants in China are characterized by cashless stores and individualized menus fueled by artificial intelligence (AI). Based on the integration-responsiveness framework, these stores are an example of which strategic option?

A. Transnational strategy
B. Localization strategy
C. Home replication strategy
D. Global standardization strategy

Question

01-07-2024
Business

Answered

Read the chapter's opening case, and then answer the question.

KFC's restaurants in China are characterized by cashless stores and individualized menus fueled by artificial intelligence (AI). Based on the integration-responsiveness framework, these stores are an example of which strategic option?

A. Transnational strategy
B. Localization strategy
C. Home replication strategy
D. Global standardization strategy

Answer :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-01T13:32:47-04:00

Final answer:

KFC's strategy in China is an example of localization within the integration-responsiveness framework, balancing global branding with local adaptations.

Explanation:

Local Adaptation Strategy: KFC's restaurants in China exemplify a localization strategy within the integration-responsiveness framework. By offering individualized menus driven by AI and cashless stores tailored to Chinese preferences, KFC demonstrates a deep adaptation to the local market.

Regional Adaptation: Similar to companies like Nestlé and IBM, KFC balances aggregation and adaptation by tailoring its menu offerings in different countries, such as the traditional versus experimental menu items tailored to regional tastes in various markets.

Global Branding and Localization: By balancing aggregation and adaptation, KFC maximizes its global value proposition while catering to local preferences. This approach is crucial for food companies that heavily rely on branding and marketing to succeed in diverse markets.

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