Question

3. Study the case below and answer the questions given at the end:

KFC, a fast-food operator, faced immense resistance from some politically active
consumer groups when it opened its operations in India. One group proclaimed that
opening KFC outlets in the country would propagate a "junk-food" ulture. Others
proclaimed that this way " the return of imperialistic powers" and was an attempt to
"Westernize the eating habits" of Pakistanis Overzealous local authorities in the city of
Lahore used a city law restricting the use of MSG (a food additive used in the chicken
served by KFC) over a certain amount as a pretext for temporarily closing down the
outlet, despite the fact that the authorities did not even have the equipment to measure the
MSG content in the proportions stated in law. In the capacity city of Lahore a KFC outlet
was temporarily closed down because the food inspector found a "house-fly" in the
restaurant. Both of these issues got resolved through hectic consultations with these
consumer groups and through legal orders issued protecting the interests of the outlets.
(a) In view of the above situation, critically examine the impact of social and political
environment on a firm's operation in international markets.
(b) After completion of your MBA, suppose you have been appointed Country Manager
(Pakistan Operations) in KFC, what steps would you take to cope up with the situation?

Answer 1

Answer:

a he chicken

served by KFC) over a certain amount as a pretext for b b temporarily closing down the

outlet, despite the fact that the authorities did not even have the equipment to measure the

MSG content in the proportions stated in law. In the capacity city of Lahore a KFC