Yum! Brands Case Report

Table of Contents

Executive Summary_______________________________________________1

Situation Analysis_________________________________________________2

Problems Found in Situational Analysis______________________________12

Strategic Alternatives for Solving Problems___________________________18

Selection of Strategic Alternative____________________________________21

Appendix________________________________________________________23

Works Cited_____________________________________________________27

Executive Summary

Yum! Brands is one of the top fast food companies in the world hosting global brands such as Pizza Hut, Taco Bell, KFC, Long John Silvers, and A&W. In 2003, four of these brands (Pizza Hut, KFC, Long John Silvers, and Taco Bell), were the market leaders in their chosen food type segments. In recent years, the fast-food industry in the United States has become saturated and reaching levels of maturity, which is threatening to businesses such as Yum! Brands. In order to stimulate corporate growth and expand on the companies branding, Yum! has been pursuing expansion in international markets around the world. Although these newer markets have high growth potential, Yum! is faced with the challenge of strengthening its position in core international markets while also developing operations in markets where brand awareness is weak. Along with the task of overcoming this challenge, Yum! most overcome the underlying problems associated with internationalization including: industry maturation, health-conscious consumers, changing consumer tastes, and political risks.

Due to the saturation and maturity of the fast-food market, sales at sit-sown restaurants saw an increase in sales .6% higher than fast-food chains. Fast-food chains also saw an increase in the cost of goods as a result of maturity. Growing concerns for human diets and healthy eating habits also has become widespread, hurting the reputation of fast-food brands all over the...