Abstract

    Localization refers to corporate efforts to adapt to a specific international market, for example in terms of staffing, production, marketing and R&D. It’s considered as an intrinsic part of the economic globalization process. The essence of localization is multinational companies making their productions, marketing, management and human resource and all the other elements of management into the process of host country’s economy. It also undertakes the due obligations of host country, and makes the corporate culture root in the mode of host country.  Obviously, Kentucky’s localization strategy is very successful. Thus, many Chinese multinational companies can learn a lot from the experience of KFC.

Key Words: KFC   Localization Strategy   STP    Experience

 摘 要

“本土化”，是指跨国公司的海外子公司在东道国从事生产和经营活动过程中,为迅速适应东道国的经济、文化、政治环境,淡化企业的母国色彩,在人员、资金、产品零部件的来源、技术开发等方面都实施当地化策略,使其成为地道的当地公司。因此,“本土化”的实质是跨国公司将生产、营销、管理、人事等经营诸方面全方位融入东道国经济中的过程，并将企业文化融入和植根于当地文化模式的过程。肯德基在中国市场的成功经营与其本土化策略是分不开的，本研究以肯德基为研究对象，以其本土化经营策略为研究内容，探讨肯德基在中国市场成功的因素，并为中国企业的海外发展、经营提供参考。

关键词：   肯德基    本土化战略  市场细分    经验

1 Introduction
    Since the 1980s, China has gradually become one of the most popular destinations for foreign direct investment (FDI) because of its low labour cost,   large market size, favorable investment policies, and continuous improvement of infrastructures. This reality has been little influenced by the current worldwide financial tsunami. While major traditional economies were dragged into severe recession (in the fourth quarter of 2008, the US, EU and Japanese GDP fell 6.3%, 5.9% and 12.7% respectively) . Cultural difference, regional economic disparity, insufficient managerial talent, and distinct consumer behaviors can be obstacles for the success of MNCs in this specific market. Management localization is one of the solutions to these challenges. As a matter of fact, in recent years, more and more expatriate managerial positions have been transferred to local Chinese managers. Management localization is not a recent phenomenon. This trend  started several years ago. While the increasing flows in direct foreign investments and the proliferating number of foreign transactions in China are pushing up the absolute number of expatriate employees, the relative ratio of expatriates to local managers is declining noticeably and steadily. Most foreign companies, in effect, do not plan to increase the percentage of expatriates in the next five years (Tian, 2004). In some areas, the localization phenomenon is even more pronounced. A survey conducted by Consulting Hudson shows that 87% of companies based in Shanghai are not planning on integrating new foreigners. Local talents are beginning to assume top management posts.