inese workers would have problems working under the KFC guidelines, and time-consuming, expensive training programs would be a necessary requirement. As well large capital outlays would be needed to find and negotiate a partnership, to sign a lease and gain operating permits. Wang began to thoroughly research the Chinese market. The first item that he began to look at was location. The reason that this was so important was because the location would have dramatic impact on the profitability, future expansion to the rest of China, and the managerial resources commitments. Four cities were selected as potential locations for the first store: Tianjin, Shanghai, Guangzhou, and Beijing. Tianjin - One of the major advantages of Tianjin was the established contacts that Wang had there. As well, it was only one of three municipal governments in China that were not controlled by the Central Government in Beijing. The major problem with Tianjin was it lacked a convenient supply of grain-fed chickens. Local chickens were fed using fish meal fed chickens. This presented a problem given that the Chinese place great emphasis on freshness and taste. Tianjin also was not a very popular tourist location. Wang expected most profits to be in Renminbi, but some foreign currency would be needed for profit repatriation and purchasing needed supplies, which could only be purchased outside of China. Shanghai - Shanghai has over 11 million people, and is regarded as China's most prosperous business centre. Shanghai is home to a large variety of Western hotels, business facilities and tourists, however it also is not a very popular tourist spot, because of the pollution and loud noise. The investment could not be justified if it did not supply an adequate amount of foreign currency. Shanghai did, however, contain several feed mills and the largest poultry supplier in China. Gangzhou - Gangzhou is located in Southeast China only a short distance from Hong K...
