Impact on businesses Essay
A very unique case that can be considered as a solution to this problem is of Mr. Zubair Kazi. Why we’ve chosen the case of Kazi Food Corp. USA is because the owner Mr. Zubair Kazi began his livelihood washing dishes in a US restaurant in 1969. Today Mr. Kazi owns more than 250 restaurants of KFC and Burger King in USA. He is also the second largest owner of KFC restaurants in USA and employs more than 5,000 people. Zubair Kazi is not a born citizen of USA. He was actually born in a sub-urban area southwest India. The poor Zubair Kazi moved to the USA at the age of 23. After struggling for a few years, he got a job at a restaurant as a cook’s helper before being promoted to the post of a manager. Under Mr. Kazi’s management, the restaurant started churning out profits.
Some years later, Mr. Kazi bought a deteriorating KFC restaurant with the help of a few loans, and fixed and cleaned the interior and exterior and improved the cooking standards. Working with extreme dedication and commitment, very soon, the restaurant was generating revenue. A year later, Mr. Kazi sold his restaurant for a profit.
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Again, he cleaned them up, improved the food, and trained the people again working in the restaurants. After some time these restaurants were making a profit, too. Then he continued to set-up new KFC and Burger King Restaurants under the Kazi Food Corp. Today, Mr. Kazi owns more than 250 restaurants which employ 5,000 people and make a US Dollars 80 million in per annum profits.
Mr. Zubair Kazi is a true example of how he did not let his status overcome his passion. Just because the local food chains are small or weak doesn’t mean that the local food business will lose money or the economy will suffer. People have a habit of changing what they eat every time. Also, no one person can happily eat one specific food for even ten days. Can anyone eat a Zinger burger for ten specific days? The answer is obviously no. Variety is therefore positive and not negative. If someone goes to a KFC restaurant in Saddar Karachi and finds a “Juada Balta” nearby, there will be a day when he will go to that “Juada Balta” to explore what’s being offered.
Zubair Kazi didn’t hit a jackpot. He played a very intelligent game through his skills, strategy and efforts. If a dishwasher in an ordinary restaurant can do it, then “Juada Balta” already has enough money to do a lot more than one can expect from it.Literature review Thousands of firms and millions of people work outside their countries of citizenship, while millions of more people work at home for companies having foreign ownership. Competition is international in scope, meaning businesses of all types face real or potential competition from foreign products or services, or from foreign-owned subsidiaries, as well as from U.S. firms that are now owned by an international entity. (Kak Anjana, 2002)
What this means is that there is “no place to hide” for business – local or multinational. Even the old assumptions, that only the biggest of firms from the most developed countries can be involved with international business, no longer hold true. No more can business “pretend” that it doesn’t have to understand and react to the global marketplace. (Kak Anjana, 2002) Two seemingly conflicting results happen because of this, although both reinforce the point that business today is international in scope.
The first is that every organization – regardless of its size, location, or scope of activity – is impacted by the varying attitudes, values, and behaviors that come from the many countries and cultures that provide its inputs, markets, and employees; and the second is that customers (individuals or businesses) and employees world-wide also now expect the same world-class products, services and treatment available in the best firms and in the most-developed countries, making firms everywhere compete on the basis of world-class speed, quality, service, and management. (Kak Anjana, 2002)
The potential of an organization’s sustainable competitive advantage depends on the rareness and imitability of its resources and capabilities. The less imitable a competitive advantage is, the more cost disadvantage is faced by the competitor in imitating these competencies. (DENNIS R. BRISCOE, Ph.D. ) As (Adam Patrick said) “We’ve taken over a lot of distressed businesses; this is nothing we can’t handle.” (Sacha Mendelsohn, 2002)
In order to enhance the competitive advantages of a global firm, its human resource professionals need to focus on developing their own international competencies. The HR function needs to shift from a purely administrative orientation to one that places primary attention on the processes of internationalization so that it can help the firm reconcile the many paradoxes that are inherent in the activities of global firms. This creates new demands on how specific HR activities are performed and sets a new agenda for HR professionals. (DENNIS R. BRISCOE, Ph.D.) As (Chris Scanlan said) “There is a culture in the Foods system that is very hands-on and customer-oriented; that leadership starts at the top”. (Susan Sunderland, 2007)
As (Steve Johnson, said),”It’s hard to get people to apply. It’s real, real tough and very competitive. We’re doing this to just give a little added bump to have people come out and give us a try”. (PBN Staff, 2006) It is essential that fast-food restaurants ensure a constant supply of high-quality basic ingredients to meet uniformity, taste and quality requirements. Ingredients usually include beef, chicken patties, french fries, orange juice and fish fillets. These form the basic menu of most fast-food restaurants. Products are imported in containers, distributed to warehouses by the restaurant chain or its importer and then processed and prepared by the restaurant into finished food products.
The independent variable is the foreign competition faced by the participants of the local markets into which the foreign businesses are entering, which is the prime issue to be addressed in this case. The dependant variables are the local fast-food businesses and the buying behaviour of the local customers in the fast-food market. Globalisation has had a profound impact on businesses as well, among almost every factor in the walk of life.
Due to it, an insurgence of businesses into foreign markets has been seen with increasing frequency. Due to this, undeclared wars have erupted everywhere to gain competitive advantage over other actors in every industrial sector and different markets. Businesses are increasingly facing competition and managers has to think harder not only from other local players but from foreign entrants as well, which is making it ever more difficult to win over customers and market share from competitors, resulting in low revenues, losses, or even outright closure of local businesses in face of the foreign competitors.
In order to influence the locally based fast-food franchises, the foreign competitors need to gain a competitive edge over them by winning over market share from them. The only possible way to do this is to attract local buyers towards their offers. If they can influence the local customers enough to be able to convince them to switch from their existing brands to the new offers, the foreigners will be able to win over market share, and consequently the market, from the local competitors and hence achieve their target; i.e., influence the local market in the intended way.