True or False: KFC China's parent group would not allow KFC China to localise their strategy or have local senior managers.

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In this True/False item, we evaluate what KFC China's parent group would or would not allow regarding localisation and local leadership.
Option 1: True. This claim asserts that the parent group would not permit localisation of KFC China's strategy or the presence of local senior managers. In many multinational corporations, especially in fast-moving consumer goods, global brands often balance global coherence with local adaptation. The assertion that localisation and local leadership are categorically prohibited is historically inconsistent with typical corporate practice, which frequently empowers regional units to tailor marketing, menu, and operations to local preferences. Therefore, this option runs counter to common strategies of subsidiarity and local autonomy.
Option 2: False. This statement maintains that localisation and local senior management would be allowed, or at least not categorically prohibited, by the parent group. The broader business literature and case evidence on franchise models and multinational chains show a tendency for some degree of decentralization—local teams shaping strategy to fit local tastes, regulations, supply chains, and competition. Hence, this option aligns with the plausible arrangement where local executives oversee China-specific strategy and operations while still aligning with overall brand standards.
Option 1 is based on a stronger, absolute claim about prohibition, which ignores the nuanced realities of global-to-local governance; it is more likely to be incorrect. Option 2 reflects the more plausible, flexible approach where localisation and local leadership are permissible or encouraged, given regional market differences and strategic needs.
Note that the question tests understanding of corporate governance in multinational brands: assuming a rigid, centralized model across a diverse market like China would be atypical unless constrained by extraordinary circumstances, whereas a degree of local autonomy is a common pattern in practice.

MCD2040 - T1 - 2025 Week 8 Quiz 2

True or False: KFC China's parent group would not allow KFC China to localise their strategy or have local senior managers.

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