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There is an alternative to the relatively expensive process of socializing a new manager from the host or some third country to the value system of the organization; the MNC can simply transfer a pre-socialized member from the parent organization to the subsidiary--the expatriate manager (Boyacigiller, 1990). This practice is held to assure that the subsidiary operates within the overall strategic direction set by the parent, and not in accordance with the behavior patterns dictated by the host cultural context. While there may be many other reasons favoring the assignment of an expatriate over a host country national (HCN) manager, this increased control stemming from the values shared by the expatriate and the parent organization is among the most often cited in both research and textbook publications (Boyacigiller, 1990; Dowling, Schuler, & Welch, 1994; Phatak, 1997).
KFC Latin-America Strategy
Case Study
October 2000
INTRODUCTION
KFC operates in 74 countries and territories throughout the world. It was founded in Corbin, Kentucky by Colonel Harland D. Sanders. By 1964, the Colonel decided to sell the business to two Louisville businessmen. In 1966 they took KFC public and the company was listed on the New York Stock Exchange. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public relations and goodwill ambassador) and Heublein management over quality control issues and restaurant cleanliness. In 1977 a "back-to-the-basics" strategy was successfully implemented. By the time KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600 units in 55 countries and territories. Due to strategic reasons, in 1 ...