Business Envirmonet

Its very common in large condescension to expand oversea tho there are a lot of factors that mode appraise to be claimed before planning to beat business enterprise in another country depending on which policies they have or what their background is as head as their stability or whether your product or business bequeath make out over there. In this assignment Im going to compare the challenges to business activities in dickens different environments, my two elect environments are the UK and the Republic of chinaware.I have chosen China and the UK as my two contrasting countries and my chosen business is KFC which is large global fast victuals chain, china is the most populated country in the sphere and is likewise has the largest economy. The Republic of China is an Asian country which is situated in east of Asia and it comes deep down the 3rd largest country in the world as well as the second largest economy in the works it also has a population of 1. 35 billion peop le.The capital city of China is capital of Red China thus far the most populated city and a global financial center is Shanghai. My chosen business is KFC (Kentucky fried chicken its an American based business which is centered all over the world and its now moving to China, I allow for look into the problems they may face in China . The two economic environments that I am going to be describing are recession and outgrowth on the business activities of KFC. Growth occurs when much nices are being produced and bought.During growth people tend spend more than money on goods and services because they have more money to spend on products and services and also businesses forget invest more and hire more staff as because there is an increase in hire for them. Recession however occurs when people running the business become more cautious with their outlay so they cut their spending and orders as well laying of some of their more disposable employees thusly making them redundant. It is said n the news that Chinas GDP growth rate has averaged out at 3. 1% In the most recent twelvemonths, Chinese business has become more efficient and Chinas is now the maiden largest Asian economy, this means that if KFC wanted to expand in china they would al lot of competitions from other favored business who offer similar products. KFC is a one of the worlds leading fast forage chain and their products are food and beverages where as Chinas is one of the worlds top producers of rice and chaff as well a livestock .This mean that if KFC wanted to expand into China and start operating(a) there, it might face challenges where the retailers and constituteumers refuse to buy food from KFC because theyve got other Chinese based fast food stores whom are just 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 nearly triple the size of the UK, this gives KFC a huge advantage because they can proclaim 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 opportunities , however there also some issues that their business be challenges with these issues are Import taxes high import 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 utile 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, b ecause lack of skills will and can affect KFC in a negative way e. g. their profits and sales will decrease or get affected because having good employees is essential for a business it creates less problems and make the business work more efficient .Growth affects the business activities for KFC because just as economy can change for a business so can the pauperism for products and both could be associated with each other. During growth you can expect to externalise a high demand for KFCs good quality 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 emp loyee with workload it could de-motivate them as well as make them fee undervalued. I will be looking into these factors which KFC may face when opening up a branch in China InflationRecession is when economy slows down, and the level of sales and production orders start to castigate 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 Statistics said. The bureau said that food prices rose 6. 1% from a year ago due to the impact of national holidays, as well as droughts and floods in some regions.Resulting in many Chinese banks such as the bank of China to raise 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 outcome to this assignment I, in my point 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 price the risk.