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Essay / Research Paper Abstract
This 5 page paper provides an overview of items that a business would want to consider when expanding to China. The paper focuses on education and human capital. Suggestions are provided. Bibliography lists 4 sources.
Page Count:
5 pages (~225 words per page)
File: RT13_SA142ch.rtf
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business would want to consider when expanding to China. The paper focuses on education and human capital. Suggestions are provided. Bibliography lists 4 sources. SA142ch.rtf
When establishing a business in China, there are many things to consider. This is particularly true
when expanding an American company. The culture is different as is the language. One has to be cognizant of a variety of factors. For example when KFC decided to open
its doors in China, it not only had marketing considerations, the company realized that doing business in China would be difficult under communist rule. Also, China was expected to
demand a huge amount of scarce managerial resources and the primary constraint had been the limited number of Chinese-speaking KFC managers (Morrison, 2000). This fact may apply to any business.
When a company locates to China, language is a factor. Also, the fact that managerial resources are scarce suggests that a company will have to either import its own executives
or train Chinese residents. Indeed, there are practical considerations that are at the top of any list in terms of what would have
to be done to expand a business to China. Thus, the learning curve would include finding ways to train Chinese executives or export more Chinese-speaking executives to the country. Another
problem encountered by KFC had to do with brushes with the government. For example, Beijing KFC had been slapped with a fine, albeit small, as part of what the government
described as unreported staff wages for the store ("KFCs," 1994). This is just one example of the problems faced when expanding to a country with a different type of
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