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Business Analysis of Yum Brands

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Yum brands, a franchise business has been a successful company thus far. By putting the focus on a global aspect of business, Yum brands continue to enter into the global market world, and introduce country’s to the franchise. Yum Brand has four key growth strategies that has made this company successful in the global market. The first key strategy is to build leading brands in China. In 2012 Yum Brands had 889 new restaurants opened. As stated by David Novak, “ Our single biggest advantage in China is we have the finest operating and development teams in the world.

China is known be the biggest manufacturing country and by opening Yum Brand franchises in China it proves to be an advantage for Yum Brands, because its in the center of the happenings. The chairman say’s that they are committed to regaining consumer confidence and rebuilding sales. This motivation from Yum Brands is what makes it such a success in China. The seconded key strategy is to drive aggressive, international expansion and building strong brands everywhere.

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Yum Brands is not only putting the focus on China for expansion but also expanding towards other major country’s.

Yum brands expanded to India, where they are focusing on a “growing middle class and youth looking for aspirational, affordable and innovative experiences. ” Yum Brand states that “India is forecasted to have the largest consuming class in the world… by 2030. ” By doing their research Yum Brands is making a successful comeback in the global industry. Yum Brands bought Rostik’s, a business in Russia, and the customers response to KFC products was overwhelming. In Africa there are more than 1000 restaurants opened. Yum Brands continues its expansion by going into France and Germany.

KFC is recognized enough in Germany to have “televised advertising. ” By going global, and expanding in popular places, the company has succeeded in appealing to the people. The third strategy is to dramatically improve U. S. brand positions, consistency and returns. By offering new products to their menu, it turns the negative feedback into positive by adding products that people love to eat; for example: Taco Bell’s launch of “Doritos Locos Taco”, which is a Frito-Lay’s popular Nacho Cheese Doritos. By providing food that the U. S. loves it will create a bigger customer base, and therefore, draw in more consumers.

The last key strategy is to drive industry-leading, long-term shareholder and franchisee value. Yum Brands is improving returns by “executing our strategy of reducing ownership in highly penetrated markets… and increasing our exposure in emerging and under-penetrated markets. ” By putting their attention on marketplaces that are under-penetrated they could help those markets succeed more in the global market. But the company also gives back to local communities. Yum Brands is committed to demonstrate that they are a company with a huge heart.

They want to move those less fortunate from hunger to hope. By being socially responsible and expanding into the global marketplace smartly, the company is growing bigger and more successful. They are not just expanding to make it a profit but they are also expanding to help those less fortunate. By making wise decisions’ like focusing on the under-penetrated markets, they are giving those troubled Yum brands restaurants a chance to survive. By making these restaurants teenage friendly, a place where teenagers can go and just enjoy a place to hangout with friends, makes them successful.

Cite this Business Analysis of Yum Brands

Business Analysis of Yum Brands. (2016, Oct 29). Retrieved from https://graduateway.com/yum-brands-2/

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