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Kentucky Fried Chicken (Japan) Limited Case Solution & Answer

Kentucky Fried Chicken (Japan) Limited Case Solution

Introduction

This case discusses the issues and concerns related to the internationalization and KFC’s entry into Japan. As KFC is a long business chain and headquarter office management is concerned about international operations and standards.  Mayer, the Chief Executive Officer was concerned about KFC’s international operations and the challenges that international businesses face. Loy Weston, the president of KFC Japan, thoughtthat although it was a successful joint venture; Weston was still facing several issues in establishing the business. Weston was ignoring the policies by headquarter and Mayer was also upset about his behavior, because it was about KFC and its reputation. Weston was upset because headquarter had more control than it was necessary, which was constraining Weston’s freedom. Furthermore, we discussed few questions related to the Weston and Mayer’s position and what decisions are necessary for the company.

Problem statement

Weston is the president of KFC japan and he was upset because of the intense interference of headquarter. Though KFC japan was a successful business,but along with that Weston was not focusing on the policies and rules of the headquarter. Weston had a problem with the sophisticated coordination and planning of the headquarter, because it was restricting him from doing the business his way.

Dick Mayer & Loy Weston (Termination issue)

Evaluation of this issue is very sensitive because, no doubt Weston is a talented and competent entrepreneur and has enough experience in the market and in handling the business. His knowledge and skills are worth appreciation. Dick Mayer had to think about the options very carefully, so we will discuss those in details below:

The first option Dick Mayer had, was to terminate Loy Weston and get rid of all the problems directly, without any further destruction. This option will save Mayer’s time and the issue will be settled down easily. But the negative aspect of this decision is also on the list, i.e. Mr. Weston can join any other competitor after his termination and he will use the knowledge which he has aboutthe company and will give tough competition to KFC as rival. KFC international organization will lose such a talented person who has enough knowledge and skills and KFC Japan was successful due to his strategic efforts. KFC is an international organization and terminating a senior manager is not a small task.Dick Mayer has to support and justify his decision and also he also has to compensate the cost of terminating such a talented senior manager.  There are chances that Mr. Westoncan demand any financial compensation against his termination. Dick Mayer would have to justify his decision and ask for the support of the higher management.

Another option which Dick Mayer has is to relocate Mr. Weston. By relocation, Mr. Weston would have fewer authorities and the influence of top management will increase in the international business. But it is a bit difficult task for Mayer to evaluate the job and to assign him a job where Weston’sen entrepreneurial skills and knowledge can be utilized effectively. Mayer should make sure that Weston should feel his importance in the organization and this relocation should send a positive impression to Mr. Weston. The negative aspects that are associated which this option is that Mr. Weston can deny the particular position which can also affect the performance of Mr. Weston. His relocation can make him more stubborn and he can still be a nightmare for the company.

Mr. Mayer can send another employee from headquarters to the international KFC office in Japan, to work with Mr. Weston and to maintain the same level of organizational control. They could work closely as a team where both entrepreneurial and bureaucratic skills can benefit the company and its sustainability. The company can get benefits from the combination of entrepreneurial and head control systems. It would be a challenge for Mr. Mayer to find a person who can complement Mr. Weston’sskills. The negative aspects are also correlated with this option, i.e. Weston may not be comfortable with having a horizontal level team member. Mr. Weston can deny cooperating………………………

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