Tuesday, September 10, 2019

Do Contrast in the Long-term Financing and Ownership of Business Essay

Do Contrast in the Long-term Financing and Ownership of Business Explain National Differences in the Governance and Management of Firms, and Fundamentally Account for the Success of Major Economies - Essay Example In the paper, the case of KFC in the UK, US, Japan, and China will be compared and contrast in terms of the nature of ownership, governance, business strategy, corporate objectives, power/authority of management, nature of strategic decision-making, nature of decisions on building corporate capabilities, the long-term and short-term investment in technology, investment in plant and machinery in relation to productivity, and management of people. Eventually, a comparison will be made in the four countries’ degree of relationship between performance and finance systems, forces of convergence, and internationalization before and after 1990. Prior to a conclusion, the extent to which the crisis of 2008 has transformed the nature of the debate about the financial system and types of capitalism will be tackled in details. KFC was first established in the US and was eventually sold to PepsiCo back in 1986 and eventually became a subsidiary of YUM!. As part of its globalization strate gy, KFC entered the UK market via 60% franchised + 40% equity, Japan via the joint venture (JV) through the franchise with Mitsubishi Corporation (62%), and China through franchising. Since the Chinese government did not recognize the term â€Å"franchising† back in the 1990s, most of the first few KFC stores in China were company-owned. Governance is all about having the best and most legal and ethical system that can be used in directing or controlling the business. In most cases, corporate governance aims to regulate the corporate conduct by creating a balance between the internal and external stakeholders, the government, and the local communities. Aside from being able to fulfill the Board’s responsibilities to its shareholders, the top management of KFC strongly believes that the process of creating good corporate governance is one of the key factors that will make their business a success.

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