'Business Envirmonet\r'

'It’s precise common in large lineage to inflate abroad; however there ar a administrate of factors that rescue to be considered before plan to suck in vexation in an almost other(prenominal) countrified depending on which policies they bind or what their background is as salubrious as their stability or whether your intersection point or byplay allow sell everyplace there. In this assignment I’m qualifying to compare the challenges to vocation activities in two diametrical environments, my two chosen environments are the UK and the Republic of mainland chinaware.I require chosen china and the UK as my two severalize countries and my chosen business is KFC which is large global unfalteringing food chain, china is the most populated field in the human being and is also has the largest parsimoniousness. The Republic of China is an Asian country which is situated in eastern United States of Asia and it comes within 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 citizenry.The capital urban center of China is Beijing however the most populated city and a global financial center is Shanghai. My chosen business is KFC (Kentucky fried chicken it’s an Ameri derriere based business which is centered all over the world and it’s instantly moving to China, I will look into the problems they may face in China . The two economic environments that I am going to be describing are recession and exploitation on the business activities of KFC. Growth occurs when more right-hand(a)s are being produced and bought.During step-up people tend slip by more silver on goods and operate because they have more money to spend on crossways and helpings and also businesses will invest more and conduct more faculty as because there is an adjoin in demand for them. Recession however occurs when people running the business become more timid with their spending so they cut their spending and orders as well laying of several(prenominal) of their more useable employees thus making them redundant.It is said n the word of honor that Chinas GDP growth rate has averaged out at 3. 1% In the most recent years, Chinese business has become more streamlined and Chinas is now the 1st largest Asian economy, this means that if KFC wanted to put out in china they would al lot of competitions from other successful business who offer similar products. KFC is a one of the world’s leading agile food chain and their products are food and beverages where as Chinas is one of the world’s top producers of strain and wheat as well a gunstock .This mean that if KFC wanted to diffuse into China and kale operating there, it might face challenges where the retailers and costumers refuse to purchase food from KFC because they’ve got other Chinese based refrain food stores whom are just as good or they’d rather go to a nonher major fast food chain e. g. McDonalds. save Chinas media industry is very big and there TV networks have more that billon subscribers or which is nearly three the size of the UK, this gives KFC a huge advantage because they candid fire advertise 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 more opportunities , however there also some issues that their business be challenges with these issues are; Import taxes in highschool spirits moderate taxes are a barrier to many business, in particular business like KFC because they have import some of their products, this cost them allot of money, this is one the reason why it’s not responsible for KFC to expand in China, however they could negotiate with China on exchanging goods for a lower import tax but that’s is a high risk to take. Lack of skills its much cheaper for KFC to plight and local labour, it might not be as effective because the workers may lack appropriate skills much(prenominal) as language skills or education. So KFC has to introductory consider this before they begin to operate in China, because lack of skills will and croup affect KFC in a negative way e. g. their profits and sales will decrease or get touched because having good employees is essential for a business it creates slight 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 demand for products and both could be associated with each other. During growth you can expect to see a high demand for KFC’s good quality products so customers as well as potential customers would spoil more during this time because customers are freer and relaxed over money spending compared to when it’s in a layover of recession.Most ly you could see KFC looking into recruiting more workers as since product demand can subjoin a lot during the growth environment they’ll need more workers to scattering out the job vitiate for their employees because if they didn’t occupy 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 fee undervalued. I will be looking into these factors which KFC may face when possible action up a branch in China InflationRecession is when economy slows down, and the level of sales and production orders start to decline Inflation is the prices opposite 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 well at the lump rate as it could have a big effect on the business and because if the inflation rate increases there could be less(prenominal) sales as the prices of the goods will be high and the customers will spend less on goods and run as the prices will increase.Looking at the current inflation rate in China the rate has reached to 3. 1%. â€Å"Prices rose 3. 1% during the month, from a year earlier, up from 2. 6% in August, the National Bureau of Statistics said. The self-confidence said that food prices rose 6. 1% from a year ago due to the impact of subject area holidays, as well as droughts and floods in some regions.”Resulting in many Chinese banks such as â€Å"the bank of China” to raise their interest grade 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 teeming money or breaking even on their monthly bases to afford many employees and also gift 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 poin t of fewer I don’t this its reasonable for KFC to expand I idea because there are al lot of challenges they may face and it’s not worth the risk.\r\n'