In global business strategy, KFC is categorized as which type of firm?

KFC is best categorized as a franchiser in the context of global business strategy. This classification reflects KFC's operational model, where it partners with independent entrepreneurs around the world who make investments in local operations and pay a fee to KFC in return for the rights to use its brand, product offerings, and business model. This approach not only allows KFC to expand rapidly into diverse markets but also enables local franchisees to adapt the product offerings to better suit local tastes and preferences while maintaining the core brand identity.

Franchising has several advantages, such as reduced capital expenditure for expansion on the franchiser’s side, local market knowledge from franchisees, and rapid scaling of operations. Other types of firms mentioned, such as multinational or transnational firms, often involve direct ownership and management of foreign operations. Domestic exporters focus primarily on selling goods and services outside their home country but do not typically involve the localized adaptations central to franchising. Thus, considering the way KFC operates on a global scale, franchising accurately describes its strategic approach to international business.