in 1931s, Harland Sanders, who was born in Indiana, USA, invented a secret recipe for cooking chicken: coating the chicken with a mixture of over 11 herbs and spices, and then frying it under high pressure. Senders also named this popular "southern fried chicken" KFC fried chicken. Due to the construction of expressway, the original location of Senders Fried Chicken Store was closed. In 1951, Sundance decided to make a profit by licensing others to use this novel secret recipe. By 1963, he had sold 711 concessions. This is the beginning of catering franchise in the world. In 1964, 74-year-old Harland Sanders finally agreed to sell his business for $2 million with a lifetime salary. The buyers are john brown, a lawyer in Kentucky, and Jack Marshall, his financial supporter. They guarantee that in the new joint venture, Senders can play an active role in product sales and quality. With the rapid development of American fast food industry, KFC fried chicken has developed at an amazing speed with the joining of enterprising new managers. By 1976, it reached $211 million, and in the same year, nearly 1111 new branches were opened, most of which were franchised. As a part of American cultural export in 1971s, KFC established its first branch in Osaka, Japan in 1971. By 1973, KFC had established 64 branches in Japan, mainly in Tokyo. At the same time, it quickly entered Hong Kong, and by 1973, it had opened 15 branches in Hong Kong. In 1971, Brown and Marshall resold KFC to Heublein for $275 million. Headquartered in Farmington, Connecticut, Huber Lane Company deals in all kinds of packaged foods, mainly selling "Smimov" brand vodka, Canadian black velvet whisky, gray pet mustard and "El" steak sauce. Challenges at home and abroad Shortly after the acquisition of KFC, Huberline merged the international personnel of KFC into its huge international group in Grand Connecticut. Although Hubelaine Company strives to strictly control KFC's operation, managers all over the world are deeply confused about applying American-style store design, menu and sales methods to other countries with great cultural differences. The resistance to corporate control has deepened, and many overseas branches have begun to design their own menus, such as fried fish and smoked chicken in Japan, hamburgers in South Africa and roast chicken in Australia. After suffering huge profit losses, KFC completely withdrew from the Hong Kong market in 1975, and its branches in Japan were also at a loss for most of the 1971s. The relationship between managers in various countries and company managers is tense. In the 1971s, KFC also faced a more severe market environment in the United States. With the emergence of Qiao Qi fried chicken franchise chain stores nationwide and the participation of several other powerful local competitors, the competition in the fast food industry is becoming more and more fierce. The increasing market share of McDonald's hamburgers is also impacting KFC. From the early 1971s to 1976, KFC's sales decreased by 8% every year, and its profit decreased by 26% every year. To make matters worse, the rapid expansion has brought about unstable quality and poor sanitary conditions, and quickly produced a large number of disgusting franchisees, whose sales account for 81% of KFC's total sales. Business Transition With the rapid deterioration of domestic and international business, Huberline Company appointed Michael Miles to save this chain enterprise in the autumn of 1975. Although he has little experience in international business, he is well-known in strategic planning. His main task at the end of 1975 was to improve the stability of international operation by increasing the company's support rate and strengthening control. One of his first decisions was to move KFC International Department back to Louisville to have some autonomy. Miles is required to complete the global management transition within 18 months, including the United States. The basic point of Miles's strategy is to return to the previous basic position in menu selection and commitment to quality, service and cleanliness, so as to maintain the good reputation of the company in its early days. This regression strategy foresees training a series of new employees, random inspection of all stores and franchise branches of the company, and a new advertisement of "Our chicken nuggets are great". The purpose of this strategy is to make consumers pay attention to a more nutritious and customer-centered KFC company, and the quality of its products-chicken nuggets is unmatched by any competitor. Dramatic changes have taken place as a result of the transition strategy. By 1982, KFC had become the fastest growing department of Huberline Company, with an actual growth rate of 2.3%. From 1978 to 1982, the sales of its own stores increased by 73% on average. The sales of franchise stores increased by almost 45% on average. The growth mainly comes from KFC's international operation, and the number of its overseas branches even exceeds that of McDonald's. By 1982, KFC had nearly 411 branches in Japan and 23 franchise branches in Singapore. International expansion Although KFC has made amazing progress, its further expansion has been hindered by the strict capital expansion of Huberline Company. Most of the profits made by KFC were used to resume the production of hard liquor by Huberline Company. That's their own product, and they are facing the threat of poor sales and intensified competition. In 1982, KFC only had an annual expansion fund of $51 million, while McDonald's invested $411 million every year to expand reproduction. The ratio of KFC's own branches to its franchise branches is also the lowest in this industry. Many franchise stores are slow to update equipment, and the main part of the investment has to be used to ensure the integrity of the entire KFC network. At the end of the summer of 1982, Winston Slim's company, Relos Company, acquired Huberline Company for $1.4 billion. The support of huge funds from Reros Company promoted the further development of KFC. Relos believes that health-conscious customers will consume more chicken meat, so it has made an ambitious global expansion plan and decided to inject $1 billion in five years. The focus of the expansion plan is outside the United States. Like domestic operation, franchising has played an important role in the international expansion of KFC. In many areas with high political risks and serious cultural separation, franchising has become the first choice for many markets. Another advantage of franchising is to ensure a stable income with little investment, which has leveraged the existing operating conditions.