Scenario 9.2 Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product.
Refer to Scenario 9.2. KFC's establishment of international production/processing facilities is an example of
A) direct ownership.
B) franchising.
C) strategic alliance.
D) outsourcing.
E) a trading company.

Question

Quizplus · Accepted Answer

KFC's establishment of its own processing plants in different countries to ensure quality control is an example of direct ownership.