Cultural Differences, Strengths, Weaknesses and Challenges of Kentucky Fried Chicken (KFC) -A Comparison between United Kingdom (UK) and Malaysia

Table of contents

1. Introduction a) Organizational Part

2. i. History

In the mid of 1930, Harland Sanders opened his first restaurant in the front of a gas station. Sanders serves as a station operator, chief cook, and cashier and name the dining area as "Sanders Court & Cafe." The brand "KFC" has been established for over 45 years in the United Kingdom. KFC opened its first restaurant in Preston, Lancashire in 1965. Today there are more than 842 outlets in the United Kingdom, and the company employs 24,000 people. KFC opened its first restaurant in Malaysia, in 1973. Today, there are more than 700 restaurants nationwide in Malaysia. KFC is the synonym of great tasting chicken. KFC accomplished "Great place to eat, Great place to work" award in 2010.

As the dominant chicken retailer in the fast food segment, KFC has accepted the challenge. They are adapting their consumer offerings by targeting the large and growing market for family meals, broadening their menu and offering attractive meal bundles a compelling value.

3. b) Introduction to the study i. Problem Statement

In this research, the core focus is the impact of cross-cultural interaction on KFC corporate culture in different countries. Key focus for KFC is, what type of potential challenges it faces for doing their business in abroad with a new culture? What strategies KFC implement to solve these problems? How can KFC deal with different barriers when it operates business in a different country? Here, researcher has tried to show the cultural difference of UK and Malaysia and its effects in KFC's corporate culture.

4. ii. Scope and limitations of the research

The scope of this research is limited to the overall description of the culture of two countries (UK & Malaysia) and KFC operations of those two countries and their corporate structure. The study is limited to organizational setup based on different culture functions and performances. By measuring the outcomes of this article, KFC and several multinational firms can understand the cultural impact of UK and Malaysia and the activity and effectiveness of their corporate culture from the perspective of national culture.

5. iii. Limitations of the research

? Secondary data sources mostly used in this study.

? The research only covers the cultural impact of Malaysia and the United Kingdom. ? Up to date information was not published in several cases.

FC is known as the world's second-largest popular fried chicken restaurant chain after McDonald's. Kentucky fried chicken (KFC) was an extraordinary achievement for a concept of fried chicken as fast food (restaurant chain) and it was started in a remote rural town in Kentucky, the USA in the 1950s. There are more than 21,000 KFC outlets in 130 countries and territories around the world serving more or less 15 million customers each day.

? Derived information was incredibly limited.

? Satisfactory relevant papers and documents were not available.

6. iv. Objective of the study

7. General Objective

The broad-spectrum objective of this research is to understand the impact of cross-cultural interaction on KFC's corporate culture in different countries.

8. Specific Objective

1. What is the role of culture in making the business a successful one in the different country? 2. What type of challenges do KFC face to run their business in a new culture? 3. How KFC overcome the cultural barriers in global business?

v. Methodology of the report Several types of research-based study have conducted to achieve the optimal results from this study. Each face of the research work will incorporate a different approach and methodology.

9. ? Type of research

In this study, the researcher tried to conduct exploratory research to gain insights and understanding of the overall cross-cultural functions of corporate culture and also to determine some of the significant factors of the Malaysian and United Kingdom culture. After that, a comprehensive conclusive research was taken to fulfill the focal purpose of the study.

10. ? Exploratory research

Exploratory research was conducted to explore through the various aspects of national and corporate culture and to provide insights and understandings of the overall global business environment. In this phase of research, several journals on cultures and cross-cultural interactions in corporate culture were inspected to determine the significant cultural factors. Then several journals on KFC corporate operations and article were scrutinized to understand the overall situation.

11. vi. Sources of information Secondary data:

Understanding and analysis of the data from secondary sources is the base for the whole research work. For this reason, the researcher elaborated different types of secondary data in this research work. All the secondary sources of information can be defined as follows:

12. c) Literature Review

Objective: Reaffirming the impact of national culture on corporate culture is the purpose of this review, despite apparent trends towards globalization. If truth be told, studies noted that globalization succeeded in making individuals more aware of their own national culture.

Defining Culture: Culture needs to be delineated and put into perspective with the current management literature, with the intention of drawing implications for the field of management. To define "culture", it is still noticed that the terms "values," and "assumptions," are sometimes used interchangeably (Schein, 2001). Culture is also what can be termed, "practices," "conventions," "habits," "mores," "traditions," and "usages" (Hofstede, 1990). Schein (2001, p.45) suggested a model that would define culture at three levels: "(1) Manifest, visible, feel able artifacts that are easy to experience but hard to decipher; (2) espoused values and ideologies that are put forth as the explicit reasons why things are done the way they are; and (3) shared, tacit assumptions about how things are and should be" (p. 45). Thus, culture is understood as encompassing concepts.

13. i. Cross-cultural impact on organizational culture

This research mainly focused on the crosscultural interaction of world's most recognized restaurant KFC in two different countries and for this, researcher has gone through Hofstead and trompenuers cross-cultural analysis and discussed cross-cultural interaction theory.

ii. Cross-Cultural interaction Situational Issues: Situational cues determine the extent to which the situation evokes a pre-existing behavioral sequence q script. If a screenplay does not exist for the state, the person will give more thought as to how to behave and how such behavior might be perceived. Behavior: Behavior may vary from country to country through cultural characters and expectations. Malaysia has different cultural plays band expectations. Whereas the UK also has some different cultural scripts and expectations as well, this may differ from time to time. Expectations categorize behavior automatically. Identification of Behavior: Cross-cultural interaction is based on selective perception and also another part of it. Culturally based expectations influenced the attribution of the behavior that the perceiver has for members of the other culture.

Attributed Behavior: Finally the perceiver's attitude and behavioral response depend on how the behavior was attributed. To the extent the behavior is ascribed to a familiar cause, the response behavior itself can be scripted. If the existing behavior is not accepted, the person may invent a new one to communicate and this starts another interaction sequence.

Market opportunities: Both the United Kingdom and Malaysia have a lot of market opportunities. The UK is a developed country with a large population of different cultures and religions. Whereas Malaysia is a developing country with a large population of and a large portion of the population is Muslim. But still, there is a lot of market opportunity.

National Cultural Differences: National culture always differs from country to country. There are a lot of differences in a national culture like in the UK, most of the people have no time to cook at home, and they always manage their food from different restaurants. But in Malaysia the foremost people of the population is religious, and they handle their food at home, and occasionally they visit the restaurants.

iii. Diffuseness-Oriented cultures different activities take place in shared settings in Malaysia.

Achievement vs. Ascription: A person's status depends on their individual accomplishments. In the UK the culture of achieved status, social position is seen as a reward for one's successes, while in ascribed status cultures, social position depends on external factors.

14. II.

15. Discussion

16. Corporate Culture Difference

Corporate culture is the field to do something with the people of the organization, their relations, their activities, and views. So when an MNC wants to establish a business in a new region, they need to bring some changes in their corporate culture. In the study, researcher has focused on how the corporate culture of KFC differs in the UK and Malaysia. ( In Britain, we usually experience a very diverse staff mix in every organization. They are different in style, language, literacy level, ethnicity, so it is really complicated to make them understand everything in English. And that's why, ? In Britain management has developed a unique poster system to transfer all significant information through visual means instead of text-heavy documents. ? Notice boards were also used to display messages in a purpose-designed format.

Masculinity is significantly low in the United Kingdom. So in all KFC, is nearly the same percentage of male and female staffs. Female are taking part in the different section of the organization as well as male.

In the UK the employees are bound to do their service. So they are less motivated and not inspired enough to do their work happily. The minimum salary starts at 17,433 pounds per annum while a minimum wage start at 6.30 pound per hour.

In the UK the work uniform for every employee is the same in design and color. Both the male and female staffs are using caps with the KFC logo as a part of their homogeneous.

Because of multi-nationality of employees the cultural conflict is more in the UK, and for this, the employees couldn't rely on each other and the understanding, and loyalty is comparatively low.

The multicultural employees always follow to the mix cultural conflict and so they have more opportunity to learn from the management, and they can gain more skills.

Christianity is the main religion in the UK. So especially for Christmas, the company provides a bonus to an employee in the form of a retail voucher. Additionally, company also arranges a exceptional Christmas party every year for all staffs.

Employers of KFC are always looking at a new and innovative way of developing training for employees. They named the training program as 'Star System' the word STAR stands for Store, Training, and Reading. This system consists of several consecutive attention-grabbing parts. (KFC EMPLOYEE TRAINING, 2010). These parts are:

? Orientation ? Skill training ? Operation menu ? Study guide ? Voucher book ? Films stripe ? Star track ? Customer service series ? Operation series ? Food service series ? Sanitation series b) Corporate culture of KFC, Malaysia

KFC is the first multinational first food chain in Malaysia. To manage a business in a new environment as well as with new workforce, KFC brought significant changes in their corporate culture. (KFC HOLDINGS (MALAYSIA) BHD). That's why they become a very successful company in Malaysia.

In the place of work, management always has an emphasis on collaboration. ? Maintain the diversity within the organization. ? Continue to keep focusing on teaching employee something new. ? Organized the unity in the place of work. ? Emphasis on building harmony in the relationship between employee and customer. Communication is a way of promoting good collaborate relationship between management and employees. KFC in Malaysia operates a cascade process to reach its worker in the organization. It involves information being passed down from upper management to area manager to restaurant managers, who pass on messages to team members.

Performance assessment of employees is more than a nice thing to do for them. It works as a great mental motivation for staffs. Appreciation of doing a good job is also very essential to be a successful organization. ? In Malaysia, KFC uses straight ranking method through which the staffs are positioned from best to the poorest by senior employees. Because according to Malay culture, managerial authority determines by patronage or age seniority. ? On the base of unique performance, the company provides future promotion to employees. Malaysia is predominantly an Islamic country. Other religions are practiced there like Buddhism, Christian and that's why KFC had to bring some changes in their corporate sector and in operation.

Employees get extended break times on Friday which is the "Jumma" day for the Muslim world. Break times are relaxed for prayers.

In Malaysia, mechanical slaughter is sturdily not allowed. They can only use Halal chicken for production, which means all the chickens are slaughtered by personal certified by Jabatan Agama Islam.

In Malaysia, all KFC employees achieve a monthly remuneration regardless of their position within the organization. In a year, a casual staff paid average 9500 pound which is quite a bit less than the United Kingdom.

In Malaysia, there has more loyalty to employees and managers. Because most of them are from their local staff and so the understanding and devotion is more than the UK.

In Malaysia, there are slightly different between male and female employee uniforms.

Male's dress code is the same as the UK wearing shirt, trouser, and shoe but for there as conservativeness in dress code for female. Most of the female worker also uses a scarf to cover their head as a part of their pious values.

The gender difference is comparatively high in Malaysia. Though Females are significantly working in the deferent sector in Malaysia, however in KFC still now the number of female workers is less than the male worker.

17. Product Differentiation:

UK MALAYSIA

18. Summary of Findings

In the United Kingdom, the employees get performance award no matter how senior they are and which country they are from. ? All employees enjoyed a bonus through a range of schemes. ? Masculinity significantly low in the United Kingdom. ? In the UK the work uniform for every employee is same in design and in color. ? Christianity is the main religion in the UK. So especially for Christmas Company provide a bonus to an employee in the form of a retail voucher. ? Almost 10163 talent employees are working in different KFC at the United Kingdom. Maintain the diversity within the organization. Continue to keep focusing on teaching employee something new. In Malaysia, there is more emphasis on building harmony in the relationship between employee and customer. ? The management of KFC in Malaysia communicates staffs to know what they can do to improve talent. ? KFC in Malaysia operates a cascade process to reach its worker in the organization. ? Performance assessment of employees is more than a nice thing to do for them. ? In Malaysia, KFC uses straight ranking method through which the staffs are graded from the best to the poorest by senior employees.

? In Malaysia, all KFC employees achieve a monthly remuneration despite their position within the organization. ? In Malaysia, there are somewhat differences between male and female employee uniforms.

IV.

19. Conclusion

There are lots of differences and similarities between KFC in the United Kingdom, and in Malaysia regarding national Culture, corporate culture, operations, strengths, weaknesses, and challenges have presented in this research. KFC has overcome all the barriers and managed the cross-cultural issues and not only but also operating their business in the abovementioned countries smoothly with good profit and maintaining steady growth in international company. (Word Count: 3161) Bibliography

Figure 1.
Training included:
1. Work book.
2. Quizzes.
3. On the job competency based training.
? All the employees are encouraged to work as a
team member by the leaders.
? Try to develop potentiality of staffs to maintain brand
name.
? Management is committed of making the job
enjoyable and easy for the worker.

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Date: 2019-01-15