Do Contrast in the Long-term Financing and Ownership of Business Essay

Do Contrast in the Long-term Financing and Ownership of Business Explain National Differences in the Governance and Management of Firms, and fundamentally Account for the Success of Major Economies - Essay ExampleIn the paper, the case of KFC in the UK, US, Japan, and China will be compared and contrast in terms of the character of ownership, governance, business strategy, corporate objectives, power/authority of management, nature of strategic decision-making, nature of decisions on building corporate capabilities, the long-term and short-term investiture in technology, investment in plant and machinery in relation to productivity, and management of people. Eventually, a comparison will be made in the four countries degree of relationship amid performance and finance systems, forces of convergence, and internationalization before and after 1990. Prior to a conclusion, the extent to which the crisis of 2008 has transformed the nature of the debate about the financial system and typ es of capitalist economy will be tackled in details. KFC was first established in the US and was eventually sold to PepsiCo back in 1986 and eventually became a subsidiary of YUM. As part of its globalization strategy, KFC entered the UK market via 60% franchised + 40% equity, Japan via the joint venture (JV) through the franchise with Mitsubishi Corporation (62%), and China through franchising. Since the Chinese disposal did not recognize the term franchising back in the 1990s, more or less of the first few KFC stores in China were company-owned. Governance is all about having the best and most legal and ethical system that can be used in directing or controlling the business. In most cases, corporate governance aims to prescribe the corporate conduct by creating a balance between the internal and external stakeholders, the government, and the local communities. Aside from being able to fulfill the Boards responsibilities to its shareholders, the top management of KFC strongly b elieves that the process of creating good corporate governance is one of the key factors that will make their business a success.