Thanks to cultural differences and Social Background influences, KFC in China faces challenges: it needs to establish a new management style.
The KFC must develop the new management style to match up Chinese habit. For example accept the commission in China is the normal phenomenon but in the West was not. The KFC must to understand the different habitual behavior in China and try to adapt it. The different management style will make a lot of conflict. Some times will make the company lost the market or suffer a setback. For example Taiwan's company was suffering a setback in China. It was a famous department store in Taiwan. It was as a leader in the department store in Taiwan. But they have a defeat in China. They lost their stock their fund in China. Their cooperation partner was absorbing their stock. The Taiwan's company was lost their managerial authority and back to Taiwan.
So the KFC might be caution in China. Although Taiwan and China have some background was the same but they still get failure in China market.
b. KFC in China would demand a huge amount of scarce managerial resources. Tony needs some management managers who can speak English and Chinese. They might be selected from Singapore or Hong Kong. Many doubts were lingering in Tony Wang's mind and he wondered if the venture should adopt a slower approach. His first concern lay with challenges in imposing Western management practices on the employees. The need supervise employees placed a particular strain in local management. Most of this team had been imported on term assignment from Singapore or Hong Kong. For these managers, Beijing was regarded as somewhat of a hardship post; most were eager to leave at the earliest possible time. A serious challenge facing Tony Wang was...