Finance 4 Essay Example | Topics and Well Written Essays - 750 words

Finance 4 - Essay Example The main hurdle in the establishment of the enterprise was the maintenance of the quality of the fast food and the regular supply of the high quality poultry and other raw food material. The other important factors being the disciplined and trained labor, instilling confidence in its Chinese partners and American counterparts regarding the vast potential for fast food chain, strategic market location for its outlet in an area that would not only attract local population but would also provide foreign tourists with quality American fast food. Last but not the least important factor was creating interest in the new concept of fast food which was hitherto an unknown culture among the Chinese populace. Emerging markets are crucial in the era of globalization and can be defined as the new area with high income and where the demand for the product can be created with relative success. Cases of developing economies like China and India are prime examples that have huge potential for developing markets. China, with its fast developing economy, is a strong emerging market that has tremendous scope for the multinational companies. In the recent findings by Sheer (2000), it is seen that several factors like international trading culture, Chinese values and China’s economical, political and managerial environment are the main proponents of conflicts in business negotiations with China. As Chief Financial Officer of KFC, major concern for financing expansion of our interests in China would mainly comprise of finding appropriate partnership with local agents who have strong foothold in Chinese market. Efforts would be made to build trust and understanding among its counterparts by creating extensive awareness and interest in the streets for fast food so that entering into strategic partnership with prospective agents and entrepreneurs becomes easier. Efforts would also be made to involve local entrepreneurs into long-term