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Abstract
In the 1980s, with the gradual opening, many multinational companies came to
China to invest and achieved unprecedented development. China’s market has
become the biggest source of their profits. However, due to difference in culture,
multinationals became to realize the large profit “localization” produced.
Multinational catering companies regard the localization strategy as the magic
weapon of success in China. Research on localization strategy of multinational
catering companies has both theoretical and practical significance. With the
promotion of “go out” policy, localization strategy of multinational catering
companies will be a guide for Chinese catering companies.
This paper mainly studies the localization strategy of multinational catering
companies. Firstly, analyze the motivations of localization strategy from three
aspects :resource allocation, cultural differences, and market demand. Secondly, the
article focuses on the environmental analysis and implementation of localization
strategy of Yum, a representative legendary multinational catering company. As to the
environmental analysis, the paper uses the PEST model and enterprise resource
capacity analysis. This paper analyzes the The specific implementation of the
localization strategy of Yum from multiple dimensions, such as procurement, product,
marketing, operations, personnel, and culture. The paper uses the “Union Model” to
analyze the cultural localization, which is a new thing. Finally, uses the diamond
model to analyze the international competitiveness of Chinas catering industry, and
offer som
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