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______________________________________________________________________________________ ______________________________________________________________________________________ KFC-JAPAN Written Case # 2 Prepared By: Dana Pearson (906927) Prepared For: Dr. Colin Boyd Date: Nov 7, 1999 Class: MBA 828.3 ______________________________________________________________________________________ ______________________________________________________________________________________ Dick Mayer, the CEO of KFC is faced with making some tough decisions. KFC is in the midst of change. Faltering U.S operations in the late 1970's lead to the implementation of strategic planning processes. These processes proved to be very effective in turning around a potentially disastrous situation. Mayer is currently wondering if and how these strategies should be adapted to KFC's international operations, in particular KFC-Japan. Loy Weston has built KFC-Japan from the ground up. Weston is an entrepreneur by nature. This is clearly evident by his forte into airplane leasing, coffee machine sales and various other ventures. Having the characteristics of an entrepreneur, Weston savors autonomy. Accordingly, he has built KFC-Japan while playing by his own rules. Weston has taken the liberty to change layouts, product offerings and marketing styles; all without consulting head office. Opposing management philosophies have caused Weston to develop a "we-they" mindset. He is very resentful and aloof towards corporate head office. This is evident in his obvious disdain for head office visits, required reporting style and advertising styles. This has resulting in a communication breakdown between Weston and corporate headquarters. Weston views headquarters attempt to introduce a strategic planning process to the Japanese market as unnecessary. He feels that corporate headquarters has no feel for the Japanese culture or business environment, yet are trying to impose their management philosophies.
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