Business Envirmonet

Its rattling common in large worry to expand foreign respectable thither argon a lot of factors that take hold to be considered before planning to start employment in some other res publica depending on which policies they have or what their background is as wholesome as their stability or whether your growth or business will shell out over there. In this assignment Im going to equivalence the challenges to business activities in two different milieus, my two chosen environments are the UK and the majority rule of chinaware.I have chosen chinaware and the UK as my two incompatible countries and my chosen business is KFC which is large global fast nutrition chain, mainland China is the most populated country in the world and is also has the largest economy. The Republic of China is an Asian country which is situated in east of Asia and it comes inside the 3rd largest country in the world as well as the second largest economy in the works it also has a creation of 1 . 35 billion people.The capital city of China is Beijing however the most populated city and a global financial mall is Shanghai. My chosen business is KFC (Kentucky fried chicken its an Ameri sens establish business which is centered all over the world and its right off moving to China, I will look into the problems they may appear in China . The two economic environments that I am going to be describing are recession and growth on the business activities of KFC. Growth occurs when ofttimes goods are being produced and bought.During growth people tend occur much than m unrivalledy on goods and services because they have more property to spend on products and services and also businesses will invest more and affiance more ply as because there is an increase in collect for them. Recession however occurs when people running the business flummox more cautious with their using up so they cut their spending and orders as well laying of some of their more disposable employe es thus making them redundant.It is verbalise n the news that Chinas GDP growth prescribe has averaged out at 3. 1% In the most recent years, Chinese business has become more efficient and Chinas is now the 1st largest Asian economy, this misbegottens that if KFC wanted to expand in china they would al lot of competitions from other self-made business who offer similar products. KFC is a one of the worlds leading fast aliment chain and their products are food and beverages where as Chinas is one of the worlds top producers of rice and wheat as well a livestock .This mean that if KFC wanted to expand into China and start operating there, it might face challenges where the retailers and costumers refuse to buy food from KFC because theyve got other Chinese based fast food stores whom are righteous as good or theyd rather go to another major fast food chain e. g. McDonalds. However Chinas media industry is very big and there TV networks have more that billon subscribers or which is close triple the size of the UK, this gives KFC a huge advantage because they can circulate their company through the media, this gives KFC a major opportunity to advertise as well as sell their beverages online.If KFC do decide to expand their business into operating in China, they will be provided with many another(prenominal) opportunities , however there also some issues that their business be challenges with these issues are Import taxes high-pitched consequence taxes are a barrier to many business, especially business like KFC because they have import some of their products, this cost them allot of money, this is one the reason why its not responsible for KFC to expand in China, however they could negotiate with China on exchanging goods for a lower import tax but thats is a high risk to take.Lack of skills its much cheaper for KFC to hire and local labour, it might not be as stiff because the workers may lack appropriate skills such as language skills or education. So KFC has to first consider this before they begin to operate in China, because lack of skills will and can affect KFC in a proscribe way e. g. their profits and sales will decrease or belong affected because having good employees is essential for a business it creates less problems and manufacture the business work more efficient .Growth affects the business activities for KFC because just as economy can change for a business so can the demand for products and both could be associated with each other. During growth you can ask to see a high demand for KFCs good caliber products so customers as well as potential customers would buy more during this time because customers are freer and relaxed over money spending compared to when its in a period of recession.Mostly you could see KFC looking into recruiting more workers as since product demand can increase a lot during the growth environment theyll need more workers to spread out the job load for their employees because if they didnt hire more staff To ease the job load and they just overloaded an employee with workload it could de-motivate them as well as make them requital undervalued. I will be looking into these factors which KFC may face when go-ahead up a branch in China InflationRecession is when economy slows down, and the train of sales and production orders start to decline Inflation is the prices different of goods or service may vary they can either increase or decrease over time in the economy. Most businesses in the UK and China, by looking closely at the inflation rate as it could have a big effect on the business and because if the inflation rate increases there could be less sales as the prices of the goods will be high and the customers will spend less on goods and services as the prices will increase.Looking at the current inflation rate in China the rate has reached to 3. 1%. Prices rose 3. 1% during the month, from a year earlier, up from 2. 6% in August, the National Bureau of Stat istics said. The bureau said that food prices rose 6. 1% from a year ago due to the encroachment of national holidays, as well as droughts and floods in some regions.Resulting in many Chinese banks such as the bank of China to levy their interest rates this will have an effect on as inflation rate goes high this will result on the customers spending less on fast food stores such as KFC and this would mean that the business will not be making enough money or breaking even on their monthly bases to afford many employees and also pay the bills and taxes so they need to lay down staff or close up their business and open up in either a different countries.In conclusion to this assignment I, in my superman of few I dont this its reasonable for KFC to expand I idea because there are al lot of challenges they may face and its not worth the risk.