1. Introduction.
This professional business report provides a concise analysis of Yum! Brands history, development and growth. With how the organization’s strategic Vision, Mission Statement, Aims and Objectives have been effective to their strategic planning. Bennett (1999) defines strategy as “a proposed series of actions intended to beat the competition”. A plan or a timescale of targets, now according to Mitzberg (1994) he has a more simplistic view on strategy emphasizing it’s “a direction, a guide or a course of action into the future a path to get from here to there.” The purpose of both definitions is to consider the process from getting where you are now to where you want to be; the whole process integrating decisions. Fred’s (1988) model (appendix 1) shows the simplest view and how it’s a step by step process with clear goals to achieve the next step.
2. History
Yum! Brands, Inc. a giant quick service restaurant company. It occupies and franchises and licenses a chain of restaurant brands including KFC, Pizza Hut and Taco Bell. The company has over 39,000 restaurants in more than 130 countries in 2012. It is headquarters in Louisville, Kentucky, and employs 523,000 People. The Company recorded revenues of 13,633 million dollars during this financial year which ended December 2012, a total increase of 8% over 2011. The operating profit of the company was 2,294 million dollars. (Appendices 2) Yum! Brands, originally known as Tricon Global Restaurants, was formed in 1997, a byproduct from PepsiCo, which owned, and franchised the KFC, Pizza Hut, and Taco Bell brands worldwide. Tricon Global Restaurants changed its name to Yum! Brands in 2002, Yum brands are massive in all business contexts. (Appendices 3).
3. Vision mission values and objectives
3.1 Vision
Vision is the picture of where you ultimately want your work to lead you. Tiffany, Peterson, Barlow (2010) explain that it should be “a well-crafted set of words announcing where your company wants to go or painting a picture what your company wants to become” Yum do this, (appendices 4) as they have given two time periods ‘the last 10 years and the future’ also explaining what they want ‘long run away growth’ they are specific wanting it on an ‘international level’. Thompson (2010) reiterates this as a vision should be “a reflection of a company’s future state, which ideally the organization will achieve” Yum reflect, praising themselves for the past ‘10 years’ however they are not so clear on where there going apart from achieving the ‘same success’. Organizations don’t seem to have clear visions and elements in where the organization is committed, Yum do this by using the word ‘Promise’ as it indicts trust to staff, investors and the customer.
3.2 Mission
According to Tiffany, Peterson, Barlow (2010) a mission statement is of “your company’s purpose, establishing and what it does.” Yum are really direct explaining what they want to do by being a leading brand, (Appendices 3) however they don’t explain to the consumer who they really are, there is not mention of their services. According to Wheelen and Hunger (2012) a narrow mission statement states the ‘primary businesses’. The mission statement seems narrow, though it has some generic words which give it a more broad approach, comparing to their vision statement which gives intent and direction. Nevertheless it does tell us what the company is providing. Wheelen and Hunger (2012) also mention that it should be ‘fundamental and unique’ by looking at the mission statement it doesn’t resemble personal identity.
3.3 Values
Tiffany, Peterson, Barlow (2010) describe a value statement as “the set of beliefs and principles that guide your companies actions and activities” values should be a company’s distinctive core belief. What the company believes in and how it should strive towards in the future. Yum does not have a clear value statement (Appendices 3) however this is something everyone has but applied to a company, this should resemble how people see you as a company, unfortunately as said above it really focuses on the financials not taking into account how they want to ‘maintain high customer service standards’ and how they want to ‘remain a brand leader’. Not showing all interests of shareholders, employees and customers. These values seem to be specific to their company needs and they do put an action in their as they want to see 13% EPS growth annually. Their values seem set out for ‘expansion’ and growth’
3.4 Objectives
Wheelen and Hunger (2012) describe objectives as “the end results of planned activity, they should be stated as action verbs and tell you what is accomplished by when you quantified if possible.” it’s the targets you are set out to connect your mission to your vision, and are long term, continuous strategic areas that get you moving. Yum has 4 major objectives (Appendices 4). Linked in with a SMART model (Appendices 5). They seem generic, giving us an objective of what they want to do but not giving us a timescale to be achieved, it states where they want to improve e.g. china. But no indication to what is realistic; these are very open objectives.
4. Conclusion
These statements give a company good strategy which should be a complete master plan on how they will achieve and succeed. Fundamentally they are there to fulfill every stakeholder/shareholder need. Analyzing their statements, Yum seem to be clear in where they want to see there selves going mainly focusing on their finance and the development of growth especially in China. In context with a power matrix this would be considered to be ranked there main stakeholder/shareholder objective. Growth and expansion is their main goal, and as for investors, employees and customers they see growth as an attractive prospect, indicating success and promoting an exciting, thrusting atmosphere with in the organization by making these prospects attractive Yums objective as well as other major companies is to have long term investment and by showing profit and growth these are what investors are looking for.
Appendices
1
2.
3.
4.
Vision
“Committed to continuing the success realized during our first ten years. Our success has only just begun as we look forward to the future, one which promises a long runway for growth, especially on an international level” Mission
“To build a vibrant global business focusing on being driven to succeed, investing in the expansion and improvement of the company and the surrounding communities, and being a leading brand throughout the globe.”
Values
“We maintain a consistent commitment to deliver at least 10% EPS growth annually. With more than 39,000 restaurants in over 130 countries and territories, Yum! Brands’ international growth sees no signs of stopping as we continue to enter international markets, introducing people around the world to our winning brands.”
Objectives
1. Build leading brands in China in every significant category. 2. Drive aggressive, International expansion and build strong brands everywhere 3. Dramatically improve U.S. brand positions, consistency and returns 4. Drive industry-leading, long-term shareholder and franchisee value.
Description 1
Description
Goal
Achieved
Specific
Who, what where, how, who
‘Leading brands in china’
Yes
Measurable
How much or how many?
Doesn’t give any figures
No
Achievable
Description of result
In every significant way
Depending on scale
Realistic
Realistic and relevance to the business
No relevance
No
Timely
By when
No time given
No
5
Description 2
Description
Goal
Achieved
Specific
Who, what where, how, who
International expansion
Yes
Measurable
How much or how many
Doesn’t give any figures
No
Achievable
Description of result
Everywhere
Depending on scale
Realistic
Realistic and relevance to the business
No relevance
No
Timely
By when
No timescale given
No
Description 3
Description
Goal
Achieved
Specific
Who, what where, how, who
Improve US brands
Yes
Measurable
How much or how many
Just in US
Yes
Achievable
Description of result
Just looking for consistency
Yes
Realistic
Realistic and relevance to the business
Dramatically
Depending on how dramatic
Timely
By when
No timescale given
No
Description 4
Description
Goal
Achieved
Specific
Who, what where, how, who
Shareholders and franchise
Yes
Measurable
How much or how many
Long Term
Yes
Achievable
Description of result
No specific description
No
Realistic
Realistic and relevance to the business
No
No
Timely
By when
No timescale
No
References
Bennett, Rodger (1999). Corporate Strategy. 2nd ed. Harlow: Pearson Education. p4. Fred R. David (1988), “How companies define their mission,” Long Range Planning 22. No, 3 p40. Mintzberg, Henry (1994). The Rise and Fall of Strategic planning. Hertfordshire: Prentice Hall International. p23. Thompson, John L (2001). Understanding corporate Strategy. London: Gray Publishing. p80. Tiffany, P; Peterson, S; Barrow, C (2010). Business plans for Dummies. 2nd ed. Chinchester: John Wiley & sons, Ltd. p50- 55 Wheelen, Thomas; Hunger, David (2012). Concepts in Strategic Management and Business Policy. 13th ed. USA: Pearson. p41-45 Yum! Brands. (2012). Vision and Strategy. Available: http://yum.com/investors/vision_strategy.asp. Last accessed 18th Oct 2013.
