Main structure 1. Why internationalization 2. Multinational strategy 3. How expansion 4. Culture and society (need specific theory) 5. Regulation (need specific theory) （make use of relevant theories and concepts including those discussed during module lectures/seminars） The report should move beyond description and employ critical analysis skills in blending the academic context with the analysis of retail strategy. Why move to internationalization market? KFC The home market saturated domestic market and strong competitors Wendy's, Burger King, McDonald， Subway and other non-burger brand such as Starbucks, Taco Bell, Dunkin Donuts, Pizza Hut and Domino's Pizza, their birthplace are same as KFC --- North America. These brands split KFC’s market share. Sales in US As we can see, KFC is not the best fast-food brand in North America. It faces to strong competitions in US. The host markets For these markets KFC is new and they do not have fast-food before, so KFC have more opportunities to get market share. For example, in 1987 KFC became the first genuinely global restaurant to enter into China with its first store in Beijing. Unsaturated market and less competitors are matching KFC needs. McDonald's Reasons for Internationalization -home market: market saturation, competitors: KFC, Subway, Burger King. -host market: fast food market has not rise; the supply cost lower; not much competitors KFC--- multinational strategy Variety products range in different countries: bulgogi taste chicken(Korea), double fillets burger(Japan), laobeijing chicken roll(China) Entry mode--- Franchising KFC Franchising is an organizational form based on a legal agreement between a parent organization (the franchisor) and a local partner (the franchisee) to sell a product or service, using a brand name and process that have been developed and are owned by the franchisor (Doherty and Quinn, 1999). Franchising is used in order to spread a brand or corporate image around the world, so the franchisee must follow certain rules and guidelines established by the franchisor, which are usually formalized in a so called Franchise Disclosure Document. That is why many customers perceive that even the smell of a KFC or McDonald's restaurant is the same worldwide, as historically franchises make up roughly 80% of most fast-food company's international restaurant bases and are probably the reason why the global fast-food industry has a “distinctly American flavor”. Retail Strategy -multinational strategy Product range vary from country to country: McKroket(Netherlands), Matcha Oreo McFlurry (Japan), Black and White Burger (HongKong, China) Price Police: consider the competitors' price; local supply cost, consumer response Rapid turnover: choose the stable collaboration suppliers that makes McDonald's cost from 40% reduce to 30%. Local mangement: March, 2016, McDonald's announce sell the franchise rights in China(including main land China and HongKong), McDonald's consider give more decision rights to local managers because they more realize the local people's demand.