Dependency and Deepening Debt: from Three Ipe Perspectives
Furthermore, IPE also can be defined as a study of a political basis of the economic actions, which is meant that the policies of the government that effect to the market operations. Nowadays, it is hard to imagine what happened to the world without IPE. This is because it has been interaction between international politics and international economic. A part from that the action of the political of the nations or state clearly affect through the trade and the flow of the monetary. International Political Economic is always related to the managing market, monopoly, dependency and deepening debt.
The government from a big power also cannot guarantee about their economic system because of the economic conditions of the world today. The world economic today is not consistence because of the war. This is because the paradigm of critical toward the political economy is no scholars and monolith working within this tradition that is certainly claim no monopoly over warnings concerning the problems. In the other hand, we can said that the International Political Economy brings an understanding of how political economy dictates so much to the peoples in the world and how powerless refugees the benefits least from the global finance situation. . 0 AMERICAN CEO OF INTERNATIONAL TRADE ADMINISTRATION KEEPING KFC FAST FOOD CHAIN COMPETITIVE Kentucky Fried Chicken (KFC) is a great company in the world. KFC is a big franchise company and it has many branches around the world. The company also uses the name since 1991 for its signage, packaging and advertisements in the United State as a part of a new corporate program newer and remodeled restaurants will adopt the new logo and name. Nowadays, many fast food restaurants opened their new branches and they are fight together to make the business toward the country keeping competitive and success.
Dependency and Deepening Debt: from Three Ipe Perspectives Essay Example
For KFC itself, they tried to make their business success with their CEO of International Trade Administration doing some business strategy. To make the KFC keeping competitive, the CEO of International Trade Administration has already put a strategy to maintain pay a salary of a current workers. The current workers are not being asked to accept pay cuts contrary according to their company. The new employees will be engaged at a lower pay in effort to keep the company competitive. So, the workers can work with competitive and it will produce a good result for the company and the production can be increased.
Sometimes, the workers will also be working overtime and the company will get a good benefits. The CEO of International Trade Administration also doing some competitive marketing strategy. From the strategy, it is doing large scale promotion activities around the world. In the promotion, some of its products and advertising strategies positioned the brand as a premium brand and grabbed a lion’s share of the value and market especially among the chicken loving youth of India. In addition, the next strategy that already used by the CEO of International Trade Administration of KFC is location of the restaurant.
In the strategy, it needs to build restaurant at the strategic locations which is located at the centre market. If the strategy happened, the company will get a more benefit because of many people can enter to the restaurant like a shopping hubs. Next is a customer loyalty. The loyalty of the customers is very important to make sure that the company can keep compete with other fast food restaurant like Pizza Hut, Mac Donald, and Burger King. So that, customers can choose a restaurant they want to go. To find new customers is easy but to maintain regular customers is very hard.
To keep competitive in the business, the CEO of KFC also has management skills. These skills basically help the managers in a management of the company to moving with smoothly. The CEO for the KFC also has a strategic thinking. This skill is important for planning ahead and predicting what was going to happen. Next, managers also need to has a solve-complex problems and make decision. Making a decision is important in a critical situation like how to manage the market. Managers need to think fast to make sure that every problems has a solution. Furthermore, managers also need to have high personal standards in their career.
This skill is important in the managing market, monopoly, dependency, and deepening debt. Moreover, managers also need to achieve a goal to make sure that the company can keep competitive and can fight with another fast food in the world. A manager is someone described as a practical genius who is aware of the division for the organization and their company and can achieve some goals to keep compete with another company. 2. 0 A MARRYBROWN MALAYSIA KEEPING IT COMPETITIVE Marrybrown restaurant Malaysia is a restaurant that based on a fast food chain.
Marrybrown is established in 1981 and they now have over 250 outlets in Malaysia, Indonesia, China, Sri Langka, Saudi Arabia and so on serving such as Fried Chicken, Burgers, Seafood, Rice Base Products, Noodles, Porridge, Finger Foods, Desserts and Beverages. Marrybrown is a similar chicken restaurant and also locally owned. In addition, Marrybrown became the first local fast food chain to franchise its business system in Malaysia around 1980s. Marrybrown needs to compete with McDonald, KFC, and Pizza Hut to selling their product and services. A Marrybrown Malaysia can keeping competitive because of their suppliers.
This fast food restaurant is selling same product like Burger, Fried Chicken, and Beverages with KFC, Macdonald, and Pizza Hut. So, suppliers play a big role for Marrybrown in competes with a other fast food restaurant. Moreover, suppliers is a role that can give effects to Marrybrown profit because when suppliers increase the raw material prices and will have s knock on effect on the marketing mix strategy of the Marrybrown’s company. Relationship between Marrybrown and suppliers is very important for ensuring competitive and quality products for an organization.
For example, the suppliers will give a good and low price for the Marrybrown because of the relationship that have been done. In addition, if Marrybrown need an extra supply, the suppliers can also supply it with quickly. So, the relationship between Marrybrown and suppliers is an important value to keep Marrybrown Malaysia competitive with other fast food restaurant like KFC, McDonald, and Pizza Hut. Next, employees also important for Marrybrown Malaysia in compete with other fast food restaurant. The employees of Marrybrown always produce a good quality in services.
Furthermore, employing is the correct staff and keeping these motivated is an essential part of management and the strategic planning process of the Marybrown Company. A motivated employees is a staff that have a full of commitment in doing their work. Training and development also plays an essential role particular in service sector marketing to gain a competitive levels. So that, the customers will give a good feedback and impression to the company while can make the company competitive with other fast food chain. This entire thing will increase the profits of the company and will maintain the financial and economic sector of the company.
Media also give strength to Marrybrown. For instance, Marrybrown had advertised about promotions undertaken by the company in websites, newspapers, magazines, and social media profiles or any additional medium that channel news, reports and information about specific about Marrybrown. In this media, Marrybrown had been promoting their company’s goals in order to get a feedback from the customers. Furthermore, this social media are comprised in this set and also mention of Marrybrown in news articles, research, and advertising. The Marrybrown Malaysia also keeps closer with the public and customers by doing some competition.
The competition is to keep the relationship between customers and the staff of the Marrybrown. So that, the management of the Marrybrown can think to monopoly this fast food business among the fast food restaurant such as KFC, Pizza Hut, and Mcdonald. 3. 0 A CORE CEO KEEPING KFC AS MONOPOLY Monopoly can be defined as a situation of a single company controls the market for a given type of a product or services. This also would happen in the case that there is a barrier to entry into the industry that allows the single company or organization to operate without competition among them.
Furthermore, in industry structure, the producer will often produce a volume that is less than the amount which would maximize social welfare. In the contact of the Kentucky Fried Chicken (KFC), there a many branches opened all around the world. In a Malaysia, many people already synonym with KFC. It is meant that KFC is a big fast food company in Malaysia. So that, it can easily monopoly the fast food market in Malaysia and other country in the world for overcome another fast food restaurant like Mcdonald. To keeps Kentucky Fried Chicken control the market in a certain places, a core CEO needs to keep KFC as monopoly.
In fact, in 1964, KFC also has a new management when Sanders sold the KFC to the investor group headed by John Y. Brown, John Massey, and Pete Harman. From the fact, to manage a new KFC is quite hard because it needs to find a new place to make KFC can monopoly the market of the country. As a chairman and CEO, Massey tried to train Brown for the job to keeps KFC as a monopoly fast food in a world. Started from that, we can say that KFC is a one of a company that control and monopoly the world of market in a fast food restaurant.
This is because the new management had changed the style of the policy into the smoothly run corporation with all the trappings of modern management. In addition, the world business today needs a lot of strategy in marketing. The company or organization needs to puts the goals in marketing strategy to make sure that the company can compete with other company. A core CEO of KFC also tried to maintain the market as a monopoly company in a fast food restaurant. To maintain a monopoly in the world market, KFC has introduce a new system that known as a marketing mix.
The marketing mix is generally accepted as the sure and specification of the in the strategic position of a product in the marketplace and there are product, price, place, and promotion. The CEO of KFC views that to increase the monopoly in a market need to have this element. Firstly is a product. Product is important to sell it to other people because it can be offered to a market to satisfy a want or need. Furthermore, KFC primary product is known as pressure-fried pieces of chicken and it is made from an original recipe. KFC also sells its product according to geographic needs of the customers. Secondly is a price.
Price is something that amount that is needed to pay by the customers while purchasing the product. Pricing also depends on the level of the economy and the needs of the affected areas. KFC also has a pricing strategy to maintain the monopoly. The pricing strategy is focusing on the middle to lower class people to penetrate both sides of the market. Thirdly is a place. It is also known target areas. They also provide free home delivery to offices and home. In the strategy, it is due to the hectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customers a full meal quickly.
Lastly is a promotion. Promotion is important in finding new customers and to promote the company’s new menu. The CEO of KFC believes that promotion is the method used to inform and educate the chosen target audience about the organizing and its product. So, to get maintain in the monopoly marketplace, the marketing mix is important to the organization to achieve the goals. 4. 0 MCDONALD MALAYSIA HAS PENETRATED CHICKEN INDUSTRY, LOCAL CHICKEN OPERATOR ALLOWED CONTROL THE EGG McDonald Corporation was found in 1940 in California.
McDonald also a fast food restaurant. It is also known the world’s largest chain of hamburger fast food restaurant and serving around 68 million peoples in 119 countries. McDonald is one of the franchise company, an affiliate, or the corporation itself. A big company with a full of successes, McDonald also has penetrated the region of Malaysia. The people of Malaysia is familiar with the McDonald because McDonald also selling a fast food same as KFC, Pizza Hut, and Marrybrown. In fact McDonald Malaysia already penetrated the chicken industry since a long time ago.
Because of that the local chicken operators allowed control the chicken’s egg. McDonald can penetrated in a chicken industry in Malaysia because of McDonald is a great and successful organization in a franchise. They also plan the growth of McDonald in Malaysia is a business as a progressively. They also interested entrepreneurs who qualify and invited to join the big family of McDonald as a franchise and they expand the business together. McDonald does that to the entrepreneurs in Malaysia because McDonald believes that there are many Malaysian who have talent in a fast food business.
Because of that, the local entrepreneurs will have a guide line in a McDonald fast food. To expand their fast food restaurant in Malaysia, McDonald also develops the people and history of previous successes in business and life endeavors. Furthermore, McDonald’s also offering a highly potential profitable business opportunity. They also believe that they can contribute to the growth and strength of Malaysia entrepreneurs. McDonald’s also offering the opportunities to those who have an interest in McDonald. McDonald also introduces the global Halal market in their business in a Malaysia.
The CEO of McDonald already informs that the majority of the Malaysian people are a Muslim. So that, McDonald needs to taking this as a serious because to penetrated the market of Malaysia is not easy. In addition, in the program, McDonald needs to get the certificated of Halal in their product of fast food. Moreover, as one of the successful fast food restaurant among the Malaysian people, McDonald’s is now facing changes due to customers of a new tasted and nutritional concern. A part from that, the resulted is to expansion of their product range. So, it is about the health of people.
McDonald focused about the nutritional concern in their production like chicken industry because they know all people in the world including Malaysian people also think about health conscious. In addition, to produce a good product in their chicken industry, McDonald also had allowed by the local chicken operator to control the egg of chicken in Malaysia. The management of McDonald believe that to success in the international political economy, they need to control and monopoly the marketplace of the country. In fact, the management of McDonald had convinced the chicken operator that they want to control the eggs of the chicken.
They need to start to control the eggs starting from a lower level until they can produce a good chicken for a fast food business. A part from that, they need to pay some money to buy the eggs from the local chicken operator. This is a not problem for the management of McDonald because they will get a profit in a future. All this thing is important to make sure that they will maintain penetrated in a Malaysia market and also to keep monopoly in the Malaysia fast food restaurant. 5. 0 WHO FINANCES KFC HOLDING IN MALAYSIA Kentucky Fried Chicken (KFC) as we know is the most successful fast food restaurant in the world.
In Malaysia, KFC is a great franchise that needs to be involved by the Malaysia entrepreneurs. In fact, KFC Holding Malaysia is belonging to Johor’s state investment arm Johor Corp (JCorp). It is meant that JCorp is a company that finances to the KFC Holding in Malaysia. JCorp is a big company that doing business in palm oil, healthcare, food and quick service restaurant, and hospitality. The CEO of JCorp, Kamaruzzaman Abu Kassim takes care about the business that has been held by JCorp. In the food and quick service restaurant, it is also including of KFC, Pizza Hut and Ayamas.
In December 2011, JCorp announced their intention to buy food and quick service restaurant shares at RM 6. 80 each and RM 3. 97 per warrant. JCorp also offered RM 4 per KFC share and RM 1 per warrant. JCorp success in built on the foundation expansion, customer’s satisfaction and human capital development. The restaurant expansion started since was taken at 2010 due to the relative fragility of the region’s economic recovery. In addition, these foundations are reinforced, strengthening them as the group grows in size in every year. Until now, KFC Malaysia team proudly reached and moved past the milestone of 500 restaurants nationwide.
This is really hard to manage and handle if the company or organization do not have a experience in business. For JCorp and KFC Holding Malaysia, this is a fantastic achievement and one of that the Group hopes to replicate in other countries. KFC brand were strengthened in 2010. This is because the restaurant chains were expanded. Furthermore, more customers were served with an even wider range product. A group also achieve was a motivated and highly skilled workforce, ready and eager to rise to the challenges of a new decades. JCorp also is a most successes company in a human capital development.
Human capital is a something like knowledge, social and personality attributes that is including of creativity, embodied in a ability to perform labor as well as to produce a economic value that can give a more profits to the organization. Moreover, human acting likes economies which is an attempt to capture the social, biological, culture and psychological complexity. JCorp attaches a great importance to developing the abilities of its employees or staff. To achieve that, JCorp Human Resources teams across the group and its subsidiaries run a range of programmed to train their employees.
In addition, to makes sure the program is useful to the workers, they also cover every level of the workforce from a senior management to a crew members. Next is a Halal Commitment. To expend their business in a fast food restaurant, JCorp very concerned about the status and the types of food that had been produced by a company. JCorp and its subsidiary companies provide strict halal-compliance guarantees in all markets. A part from that, JCorp adhere to a stringent set of controls across the entire the entire chain of manufacturing processes.
It is started from a raw materials procurement and manufacturing to packaging, storage, transportation, and utensils. To ensure all the planning in a halal industry is doing well, JCorp also imported products and the product must be halal certified within their source country, and foreign suppliers are regularly by officials from the Shariah Advisory Council. The halal food is very important and sensitive to the Muslim people around the world including in Malaysia because majority people in Malaysia are Muslim. 6. 0 JCORP IS DEEP IN DEBT Big companies cannot run away from debt in a business.
For JCorp, to maintain better in their business with a multiple sector such as palm oil, healthcare, food and quick service restaurant, and hospitality. To manage the company is not easy because it need a big capital to mobilize the financial system in the company. JCorp always maintain their business and they also wisely manage the financial system and also avoid the high debt. In addition, JCorp also has a strategy in deep in debt. This is important to the company to avoid the financial crisis and will damage the system of the company. JCorp.
So, Jcorp doing a acquisition in a company. This acquisition will be funded via combination of cash or equity and debt. The debt that incurring is not at JCorp itself but it is at the acquisition company level. JCorp’s current debt is being resolved. For instance, JCorp sold of the palm oil plantation to Kulim. This is because they want to fulfil JCorp’s 2012 debt obligations. To overcome the debt, JCorp also decide to adopt Business Jihad because in the Business Jihad had been such a key element in its survival and turnaround. There are five solutions in a Business Jihad.
There are sources of empowerment, source of spiritual energy, a holistic solution, building bridges to address divides, and Business Jihad to prosper the world. In the sources of empowerment, a jihad causes the contact of tradition. It’s meant that it is a source of abundant energy and empowerment. In addition, a jihad call has to be met with selfless that knows no bounds and limitation with a full of submission to the will of Allah. Business Jihad’s Islamic also provide the further advantage of sustaining public trust and winning society.
Next is a source of spiritual energy. In the context of the jihad, it is called to mobilize and focus on spiritual energy. In a business, when having a crisis and only certainty about the future is uncertainty itself. Furthermore, it is vital that corporate team is able to sustain stamina to keep focused and also to continue the strengthening the bonds and glue that bind everyone together. Moreover, crisis time also is a times turbulence and unpredictability that can be emotionally challenging. Next is a holistic solution.
This solution is underlining the Business Jihad ideal is the higher aspiration to make business serve a noble cause. It is meant that they identifying one’s organization with jihad cause. This solution also demands that organizational effort and outcomes must be fully aligned with a long term interest in large society and nature. In a building bridge to address divides, this concept is about the fundamental that is avoidance of causing harm society. It is also most extremely negative outcomes of wild, unbridled capitalism have been the harsh marginalization and disenfranchisement of a larger segment of humanity.
This solution also presents no effective method of bridging gaps and divides and government efforts alone are unable to bridge this widening divide. So, JCorp think that the role of government in a keeping company and society to get closed are important. Lastly is business jihad to prosper the world. This concept is highly integrative nature of business with a profit and economic value increment as common denominators cannot but make the jihad inclusive. This is also based on the performed through an institution that is rooted in Islam, is definitely not exclusive.
Furthermore, the only difference compared with the conventional extreme capitalism in the world business today. This five elements is important for JCorp to overcome the dept in a business also it will strongly support the effort of JCorp in expand their business inside or outside Malaysia. 7. 0 WHO FINANCES MARRYBROWN As we know, Marrybrown is a product of Malaysia and many franchises in the outside of Malaysia such as UAE, Turkey, China, and many more. Marrybrown is owner and established by a marriage of couple and known as Nancy Liew and Lawrence Liew in 1981.
This couple’s managed and finances the Marrybrown. Lawrence is the Executive Chairman and Chief Executive Officer while Nancy is the Managing Director. Both of them is a hold similar capacities in Marrybrown International Fast Food Reataurant. They give a full of commitment to make Marrybrown strong as we can see today with a new branches inside and outside of Malaysia. In addition, to make people interest in franchise with Marrybrown, the management of Marrybrown also puts benefits to all peoples about the advantages of opened Marrybrown as a fast food restaurant.
In a process of the opener of Marrybrown as a new restaurant, the management of Marrybrown will give advice to support the franchisor in a starting of the launched of the restaurant. Furthermore, to make people and customers interest to come to the restaurant, the management of the Marrybrown has introduced a Halal food industry. The Halal food industry is important in Malaysia because majority of the people is a Muslim. They also needs a certificate of Halal to support their product is Halal even though the product comes from the Islamic country. 8. 0 RESOLVING MANAGEMENT CHALLENGES AND CONCLUSION
In a fast food chain, there are many challenges in a management sector such as the increased of competition, move to healthier lifestyle, unit productivity and profitability. The challenges need a good solution or to solve it, it needs a specific strategy. In increased of competition, the fast food company need to think how to overcome another company in the same business like KFC need to find a solution how to overcoming McDonald in a fast food restaurant. Next, in the context of move to healthier lifestyle, the fast food restaurant need to produce a good food because peoples and customers always talk about the importance of healthy eating.
Lastly is to resolve a problem in a unit productivity and profitability. To get a good productivity in services, the management needs to train their employees with as best as possible. This is importance because if the productivity is good, then it will give a best of profit that can bring the fast food company success in the business. In conclusion, fast food restaurant is a challenging business because this business requires strength in the field of management and their production. In addition, the fast food business also requires an experienced CEO to manage their company.
This is because, the CEO need to think how to monopoly the fast food business in a certain country. It is also need a lot of skillful and strategies to maintain and fight in a fast food business. The CEO’s of the company also need to know about the managing market, monopoly, dependency and deepening debt. All the elements is very important because if the CEO cannot manage their company with smoothly, their business will collapse and it will cause of their debt. Lastly, the management of the company needs to handle their business as best as possible if they think they want to control today’s world market.
BIBLIOGRAPHY BOOK David N. Balaam, Michael Veseth (2007) Introduction to International Political Economy Raymond C. Miller (2008) International political economy: Contrasting World Views Robert Gilpin (2002) The Challenge of Global Capitalism: The World Economy in the 21st Century INTERNET http://www . ibscdc. org/case… /Strategy_Case_Studies(Catalogue_II). pdf http://www. idosi. org/wasj/wasj12(SSTE)/1. pdf http://www. daganghalal. com/HalalInfo/WorldOfHalal. aspx http://www. jcorp. com. my/userfiles/file/annual%202009. pdf http://www. allfreepapers. com/Business/Marrybrown-Case/10039. html