- The company incursion and entry into the Chinese market was an ethnocentric move and measure. It was because at this point, the Chinese state and society by extension had banned potato imports. And thus it was virtually impossible for a business to introduce the potato chips at that point in time. The above stems from the fact that culture from the definition implies that way in which people live their lives such as what is permissible to eat or not. Thus, this was an ethnocentric move because it factored in the demands and the restrictions that the government had put in place (Roberts, Edward Baer, and Charles A. Berry, 9).
Similarly, the tastes and preference of the people living in the different parts of China also had to be considered. For instance, it was found that the people who lived in the parts of Shanghai preferred sweeter food while those in the northern parts had a liking for meaty foods.
- In my submission and respectful submission, I do not believe that the company the acts in an ethical or socially responsible manner. The above is because the company is fully aware of the low nutritional value of the foods that they sell to the public. Secondly, Frito-Lay as a company knows that the food that they sell bears very huge and large prospects of affecting its consumers in the long run. It goes without saying that potato chips are oily, and the oil is then deposited into the arteries and veins of the consumer. If the veins are clogged, then the consumer is at a very high risk of suffering from heart diseases, obesity and other lifestyle related diseases. I cannot overlook the fact that the company is fully aware of the dangers that of the food that it sells, but still goes ahead to diversify to newer markets (Gersick, 11). Thus, the line of business that Frito-Lay has pursued may be profitable, but it does not help to note that the consumers and the customers are exposing to a great ring of health problems. In retrospect, I do not believe that the actions of the company are socially responsible or sound.
- The move and incursion of Frito-Lay Company into the Chinese markets shows that before a company ventures into new markets, then it is imperative and critical that it understand the social and cultural aspects of that place. For instance, the Chinese society and market by extension are different from the others because the tastes of the people are unique. During the summer for instance, the people prefer to eat what they consider to be hot food. Potato chips in the conventional manner and sense fall in this category. Thus, the company has been forced to improvise on ways and means in which it would penetrate into the market.
Similarly, it is possible for the consumers to force the sellers of unhealthy food and coerce them to resort to healthier meals and foods. The above comes in the wake of the fact that due to public outcry and demand, Pepsi as a partner with the Frito-Lay company has resorted to healthier meals and foods. It is to say that it is not enough for social commentaries to admonish and complain about the unhealthy nature of food, but in the background, they buy and consume them. s
Work Cited
Gersick, Connie JG. "Pacing strategic change: The case of a new venture." Academy of management journal 37.1 (1994): 9-45.
Roberts, Edward Baer, and Charles A. Berry. "Entering new businesses: selecting strategies for success." (1984).
