Background and Outline to the YUM - Essay Example

This is because the company competes in a middle-size place, with competitors like McDonald’s Corp and Doctor’s Associates Inc. being considered large and small, respectively. An outstanding characteristic of YUM is that as a food provider, it has a limitless number of target markets which is partly a reason for its periodic yearly growth in revenue and net incomes, as seen in table 1 below. The company's financial success has been achieved with over 1,500,000 employees worldwide and with divisions in China and India, as well as subsidiaries including KFC and Pizza Hut (Cash, 2012).

The contribution of the restaurant industry to global economics cannot be overemphasized. Interestingly, apart from the contributions made by the industry already, it is expected to grow even further. From the figure below, it will be noted that by 2018, the industry's value is expected to reach £1,945 billion by 2018, which is 42.6% of growth since 2013. Again, according to MarketLine (2014), the industry is expected to play a key role in reducing unemployment and thus improving the global economic outlook with a volume of 69,119 thousand employees, representing a growth of 10.

8% from 2013 size.YUM, however, places a versatile role in the industry as its company dynamics represents what prevails with most other industry players (Narayan, 2013). YUM was therefore selected for its representative nature in business. Within the larger global food industry, restaurants and cafes are known to have the largest segment in terms of category segmentation. MarketLine (2014) actually estimates these two to contribute to 53.8% of the industry’s total value. This means that the growth of restaurant and cafes represent the overall growth of the restaurant or food industry.

Therefore, the research aims to find ways in which the restaurant industry can reach its forecasted growth levels through the individual global competitive growth achieved by the industry players such as YUM. The study will, therefore, not review YUM in isolation but relation to its major competitors.