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Yum Brands - Research Paper Example

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This report has presented a small snapshot of the YUM brands vast international business operations and has tried to understand the reasons behind the firm’s success in the global QSR (Quick Service Restaurants) market…
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Yum Brands
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Download file to see previous pages Being the world’s largest food chain, with 47% of its 37,000 stores located internationally (outside of USA), YUM consists of six operating segments: KFC-U.S., Pizza Hut-U.S., Taco Bell-U.S., LJS/A&W-U.S., YUM Restaurants International (“YRI” or “International Division”) and YUM Restaurants China (“China Division”). The following report presents an analysis of YUM’s international operations and takes a closer look at why the brand is so successful in the international market.
In the year 2009, when most multinationals in the world were bracing themselves for another tough year in the global economic trade market, YUM brands were set to open another 1,400 new restaurants in the international market, 500 of these restaurants being in China (<<<). The fact that YUM is expanding successfully despite the current economic conditions has its basis in the organization’s solid foundation and intelligent business processes. Two factors have contributed in a major way to make YUM a success, first and foremost is the strength of the firm’s existing brand names and secondly and most importantly, the proven ability of the brands to adapt to the tastes of the people of any market that it penetrates.
YUM’s operations in China Division, which is spread over the entire mainland, has become a huge success, and this China Division is now contributing along with YRI and Taco Bell U.S to approximately 85% of the overall profits of the company. YUM has developed its KFC and Pizza Hut brands in the country as quick service and casual dining restaurants which are adept at establishing themselves as the local favorites because of their ability to take up the local flavor, instead of just selling the American Flavor. Some of the items on the Pizza Hut’s China menu are tuna fish pizza, zesty shrimp soup and roasted squid, clear-cut examples of exactly why the YUM brands are so popular internationally, even at a time when other MNC’s are failing at what they once did best. ...Download file to see next pages Read More
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