Why Did Yum Brands Spin Off Its China Division? An In-Depth Look

Yum Brands, owner of popular fast food chains KFC, Pizza Hut and Taco Bell, made a pivotal strategic decision in 2016 to spin off its highly valuable China business into an independent, publicly-traded company called Yum China Holdings. This article will examine Yum‘s impressive China success story, why the spin-off occurred, how it was enacted, and the performance and benefits realized by both companies since separating.

Yum‘s Rapid China Expansion

Yum Brands began its expansion into China back in 1987 by opening a KFC restaurant in Beijing, marking the first major American fast food chain to enter the region. Over the next few decades, Yum aggressively grew its restaurant footprint by opening new KFC and Pizza Hut locations at a rapid pace.

According to Yum‘s 2015 annual filing, the company was opening approximately 6 new restaurants per day in China. Through both company-owned stores and franchises, Yum‘s restaurant count and sales in China consistently grew by double-digit percentages year-over-year.

By 2016, Yum‘s China division had over 7,100 restaurants and was generating more than $6.9 billion in sales revenue annually. To put this in perspective, Yum‘s China business accounted for $1 out of every $3 of Yum‘s global revenue, while USA revenue was only $1.2 billion.

Clearly, China was the most significant growth market and profit driver for Yum Brands in the years leading up to the spin-off.

Strategic Rationale for the Spin-Off

In October 2016, Yum finally decided to spin-off their entire China operations into a separate, independently publicly-traded company called Yum China Holdings. This strategic move was undertaken for several key reasons:

Gain Capital for Reinvestment and Growth

Becoming an independent entity allowed Yum China to raise its own capital by being publicly listed, rather than being part of Yum. This provided access to crucial new funds that can be used to accelerate expansion and gain market share in the rapidly growing China restaurant industry.

According to Credit Suisse analysts, the spin-off could enable Yum China to open up to 15,000 new restaurants in China, while it was only able add 1,000 stores annually as part of Yum.

Optimize the China Business Model

As a standalone business, Yum China can be more flexible and competitive against local restaurant chains rather than being weighed down as part of a large, global conglomerate. Yum China is free to modify its menus, branding, and marketing specifically to cater to Chinese consumers instead of conforming to Yum‘s global requirements. Its management team can also be fully localized.

According to Rutgers Business School Professor Sue S. Cha, "their success did not come from headquarters in the U.S. It really came from the ground efforts in China. This move recognizes that."

Corporate Governance and Management Focus

By separating the China division, both companies can focus on corporate governance practices tailored for their markets. Yum China now has an independent board of directors and executives solely focused on Chinese operations and no longer has to compete for attention with Yum‘s other global business units.

Optimize Tax Structure

The spin-off allows Yum China to implement the optimal tax planning strategies for doing business in China and escape the higher corporate tax rate in the U.S. This provides major financial savings that can be funneled back into the business.

"Tax benefit was another consideration that further made the spin-off appealing," says Cha.

How the Spin-Off Was Structured

The spin-off was executed through a pro-rata distribution of Yum China‘s stock to existing shareholders of Yum Brands. For every share of Yum stock held, Yum shareholders received one share of Yum China stock.

This enabled a tax-free spin-off for investors. Yum China began trading on the New York Stock Exchange under the ticker symbol "YUMC."

Yum China took ownership of Yum‘s China assets including all KFC, Pizza Hut and Taco Bell brands and locations in mainland China and Tibet. Yum China is headquartered in Shanghai.

Despite the separation into independent companies, Yum Brands still owns 4% of Yum China‘s shares and receives royalty fees from Yum China for licensing its brands.

Performance Since the Spin-Off

In the few years since the spin-off, Yum China has shown the strategic rationale behind the separation to be sound. The company has achieved rapid growth and strong financial performance as it focuses in on the Chinese market. A few highlights:

  • Grown from over 7,000 stores in 2016 to over 9,400 stores today, making it the largest restaurant company in China
  • Same-store sales growth of 4% in 2019, on top of a 5% increase in 2018
  • Total revenues increased 9% in 2019 to over $8.4 billion
  • Opened over 1,000 new stores in 2019 alone
  • Digital sales mix reached 15% of sales in 2019, from less than 5% pre-spinoff

Yum China has used capital raised to invest in digital innovation, supply chain logistics, exciting new retail concepts and menu offerings tailored specifically to Chinese consumers.

Meanwhile, the spin-off has also allowed Yum Brands to focus more wholly on emerging markets like Africa as well as growing its Taco Bell, KFC and Pizza Hut brands globally outside China.

Both companies credit the spin-off with fueling their growth.

The China Growth Story Continues

Since becoming independent in 2016, Yum China has continued its rapid ascent, establishing itself as the undisputed restaurant leader in China while benefiting from being a locally-focused company. Yum China plans to reach 20,000 locations by 2022 and potentially triple the size of the iconic KFC brand within China, showing plenty of room for growth remains.

As Julien Lagubeau, Chief Operating Officer of Yum China stated, “We are focused on the long term with confidence in the continued growth runway of the China market.”

The spin-off has been praised by analysts and appears to have unlocked value, performance gains and long-term growth trajectories for both Yum Brands and Yum China Holdings as they intensify their focus on their core markets.

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KFC’s Explosive Growth in China

Homogenization has made it easy for fast-food joints to circle the globe, spitting out carbon copies of themselves, their burgers, and their fries along the way. But in the most populous country in the world, a fast-food giant stepped off the conveyor belt and found unprecedented success by being different, not by being the same.

In the Harvard Business School case "Yum! China," professor David E. Bell and Agribusiness Program director and senior researcher Mary Shelman examine how Yum! Brands , the parent company of KFC and Pizza Hut, outperformed McDonald's and became the largest restaurant company in mainland China.

The case describes how Yum! China succeeded and expanded by staying local on many levels. It keeps close ties to the Chinese government, hires local management, sources food from within the country, and changes the menu to suit Chinese tastes and style of eating.

KFC in Xiamen, China

A Matter Of Scale

One key issue the case examines is "how to implement the rollout of a fast-food chain involving so many stores across such a vast—and regionally different—country," says Bell, who teaches the case in the School's annual Agribusiness Seminar .

Both KFC and Pizza Hut restaurants in China differ markedly in many ways from their Western counterparts. And while Pizza Hut has done very well for itself with nearly 500 restaurants in 120 cities (as of December 2010), KFC's performance has been finger-lickin' incredible. Since the first piece of fried chicken (available in dark meat only, to the disappointment of many an American tourist) was served at a Beijing KFC in 1987, the number of KFCs in China has grown to over 3,000, in 650 cities, with one new restaurant opened a day.

"If I could have written any case in the world, this would have been the one I would have picked," says Shelman, a Kentucky native with more than a passing interest in Colonel Sanders. "Not only is this the story of a successful entry into China by a Western company, this case provides a glimpse of how quickly Chinese diets are changing as incomes improve. Because China is so big this has a huge impact on the rest of the global food system. What happens in China, what Chinese people eat, impacts what you and I pay for food."

What happened in China with Yum! Brands, and with KFC in particular, had a lot to do with China division chairman and CEO Sam Su. "He really flexed the model," says Shelman. This was in part due to KFC being owned by PepsiCo when it first came to China. PepsiCo was not a fast-food company, so Su was given more managerial freedom.

Along with being lucky, Su is smart, driven, and visionary—a classic entrepreneur. But he's also humble. "There's no room for ego," Su explained in the case. "China doesn't have the same culture of individualism that is present in the United States."

Su's strategy was that KFC "would not be seen as a foreign presence but as part of the local community… Our opportunity was to take the best ideas from the US fast-food model and adapt them to serve the needs of the Chinese consumer."

Initially this involved hiring the right people. For Su this meant Chinese managers who read and spoke the language, who understood the restaurant business and the Chinese consumer, but who also had experience in the Western way of doing business. "It was a foot in both worlds," Shelman says. "They knew firsthand the Western model but they also understood the challenges of operating in this Chinese, very traditional, very evolving market."

The people Su brought on board were also close in a way Shelman found surprising when she spent time with them when researching the case.

"There was huge camaraderie evident in the way that the top management team interacted with each other … they bantered back and forth and poked fun at each other," Shelman says. "They'd be walking down the hall jostling, pushing, laughing. This is a group that has worked together a long time—unusual in a country where experienced management talent is at a premium ."

It turns out that unusual employee interactions, at least in comparison with Western business decorum, are the norm at Yum! Brands, something Shelman experienced when she accompanied then-COO Mark Chu to one of KFC's Shanghai locations. "You walk into a restaurant and not only do [the employees] recognize him, but they love him as well."

And so the employer-employee relationship has more a feel of family. "In the United States, if you don't show up at work, what happens? You get fired," says Shelman. "In China, where many of the company's 250,000 employees are college students working their first job, it's like, 'Oh we understand that sometimes you feel like skipping class. If you decide to skip work—please call in and let us know, so we can make sure your job is covered.'"

Trained labor, it turns out, is a very valuable asset even in a land of 1.3 billion-plus people.

"Chu's acceptance and appreciation for these young employees is exceptional for Western companies to see," says Shelman. Younger employees, for example, are encouraged to socialize over company-provided video games on their breaks. This practice serves several purposes: It eases the minds of parents anxious about sending their children out into the world, provides crucial social skills for young adults who grew up in single-child households, creates lifelong Yum! Brands customers, and develops a culture of customer service in a country where there was none.

The restaurant management program is similarly focused. "You're a college graduate," says Shelman. "You're recruited for that position. You're very carefully developed to be able to do all these different jobs in the restaurant. And it's perceived as something that you would do your entire life."

Along with training and retaining quality employees, another key factor in KFC's success was Su's early decision to downsize his own career. Originally hired to cover the northern Asia-Pacific region, he departed from the usual managerial growth path of taking on larger geographic assignments and instead argued that he should focus exclusively on China. Early on, he decided that Yum! should develop a national footprint—supported by a company-owned distribution system since third-party suppliers didn't exist—instead of growing in geographic chunks through franchising.

Su sourced products from within China whenever possible. This was no easy feat early on as the supply chain for chicken, for example, included multiple vendors providing a handful of birds each. Food safety is a big concern for Chinese consumers, and it was Su's decision to build the supply chain from the ground to help ensure quality. "We work with our suppliers to build their capabilities. We stress the importance of knowledge transfer, and even arrange for them to go overseas to learn," Su said in the case.

The Chinese Way

"One of the lessons I take away from this case is that to do China, you have to do China," says Shelman. "It's a large, complex, and dynamic market that deserves single-minded attention." That attitude extends from the boardroom of Yum! Brands to the menus in KFC restaurants. A small number of items would be familiar to Western visitors—mashed potatoes, corn on the cob, fried bone-in chicken—but most would not. The Chinese KFC menu may include fried dough sticks, egg tarts (which Shelman raves are "to die for"), shrimp burgers, and soymilk drinks, as well as foods tailored to the tastes of specific regions within China.

The large selection of menu items is meant to appeal to the Chinese style of eating, in which groups of people share several dishes. But it's also part of the "New Fast Food" initiative Su developed in 2005 in response to concerns about the role of fast-food restaurants in the obesity epidemic—concerns that he shares and takes responsibility for. "We have been too greedy, too shortsighted," Su said, referring to the traditional high- volume, low-choice fast-food model.

Su believes that offering a wider variety of foods will help patrons make healthier choices. The KFCs in China have also limited the amount of money saved on combo meals, and have completely eliminated supersized items. Exercise is actively promoted inside the chain; as of 2010 the youth programs and competition it sponsored had over 260,000 participants in 438 cities.

KFC succeeded in China both because it was not McDonald's and because in many ways it decided it wouldn't be KFC either—which brings up another key question. "With the benefit of 20/20 hindsight…how do you avoid the mistakes of the American fast-food model?" asks Bell. "Put another way, if McDonald's and KFC were to start over in the United States knowing what they know now, how would their model differ?"

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By: David E. Bell, Mary Shelman

Since the first KFC opened in China in 1987, Yum--under Sam Su's leadership--had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past…

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  • Publication Date: Dec 16, 2010
  • Discipline: General Management
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Since the first KFC opened in China in 1987, Yum--under Sam Su's leadership--had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time and many analysts expected that Yum's China business--driven by a rapidly growing middle class--would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West.

Learning Objectives

Understand the fast food business by considering best practice in China.

Dec 16, 2010 (Revised: Feb 14, 2012)

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General Management

Geographies:

Industries:

Agriculture sector, Food industry

Harvard Business School

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Yum! Is a tasty success story in China

BizTimes Staff

Having cited the pitfalls and minutia of operating in the middle kingdom, let’s look at a company who is making it work.

If you are wondering what it takes to find success in the world’s second-largest country by population, one of the best case studies to read is David Bell and Mary Shelman’s Dec. 6, 2010, Harvard Business School’s, Yum! Brands case study. For a look go to www.ifama.org/events/conferences/2011/cmsdocs/YumChina.pdf .

Yum! Brands is also cited for its prowess by James McGregor, author of “One Billion Customers: Lessons From the Front Lines of Doing Business in China” (Free Press, 2005). It’s well worth the reading. He states “Yum has become the most successful foreign company in China … They got in early, they adapted the product, they expanded aggressively and they gave their Chinese managers real decision-making power.”

The following is included to give you a taste of the report and its lessons.

Kentucky-based Yum! Brands’ China group operates KFC, Pizza Hut and Taco Bell restaurants in China.

The story begins in 1987 with one restaurant in Beijing that was built to seat 500 and ends up doing an average of 9,000 customers a day. The total investment is recouped in one year. In 1989, Sam Su who grew up in Taiwan, takes over the four existing stores in China. He realizes that sales are due, not to the taste of the food, but the novelty of their bright, shiny, clean shops, which let millions of Chinese customers experience their first taste of the West. He steps down from his regional duties to concentrate on the Chinese market and spends a large amount of time putting together a team of Chinese-speaking staffers who have international experience in Western fast food.

In 1992, after Deng Xiao Ping makes his “opening up” speech, the phone starts ringing. Suddenly, instead of offering obstacles, China’s cities are clamoring for shops. McDonald’s decides on a “big four” strategy that concentrates on China’s four largest cities. In response, Yum! decides to pursue a national strategy that begins with 16 beachhead cities. With its Chinese speaking staff, Yum! is able to make this transition quickly and begins work on creating a vertically integrated supply chain, which starts with animal feed and fertilizer and feeds into a state-of-the art national logistics system, described today as being second only to the People Liberation Army’s.

Computerized tracking, e-mail ordering by individual stores, 11 full service logistics facilities and extensive and ongoing contingency planning now supply over 3,200 KFC’s and 500 Pizza Huts in over 650 cities throughout China.

China has more than over 500 cities with populations of more than 500,000 people, which means KFC has penetrated beyond the 400,000 population mark, the largest and most comprehensive private penetration of the Chinese market by any company to date. Yum! now opens a new restaurant every 18 hours; each one costs less and produces more revenues than their U.S. counterparts.

The result, in the third quarter of 2010 China’s 3,700 restaurants brought in more revenue and profits than Yum!’s 20,000 U.S. stores. In terms of profits alone China contributed over half of the entire Yum! global brand 2010 profits.

It is the largest restaurant chain in China, has the most recognized global brand among urban residents and its fast food market share is 40 percent, compared with McDonalds’ 16 percent.

What is different about a KFC in China is that you will find 50 menu items instead of the 29 you would find in U.S. stores. Although you can still find a number of the standards you would expect to see, the rest of the offerings have been adjusted to Chinese tastes, including congee (rice porridge), shrimp burgers and chicken wraps, offering varied and healthier options for frequent diners. KFC has proactively responded to concerns about the health effects of “junk food” by offering healthier and more varied selections, doing away with supersizing, making fruit juices standard with kid’s meals and sponsoring children’s athletic leagues.

At the same time, Yum! has increased profits by becoming the country’s largest food delivery business, opening up for breakfast and switching from a franchise to a company store model (90 percent of the operations in China are owned by the company as compared to 15 percent in the US and 12 percent internationally).

What are the lessons? Yum! succeeded because its management was allowed to make local decisions about how to run the business, which allowed them to act quickly as the opportunities and challenges arose. Perhaps this is a lesson worth learning for those companies that believe that they can conquer the Chinese market from their corporate offices outside of China.

What is the future? Yum! has their sites on 20,000 stores which at current revenue levels would produce $6 billion in profits. So what’s your plan?

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Having cited the pitfalls and minutia of operating in the middle kingdom, let's look at a company who is making it work.

If you are wondering what it takes to find success in the world's second-largest country by population, one of the best case studies to read is David Bell and Mary Shelman's Dec. 6, 2010, Harvard Business School's, Yum! Brands case study. For a look go to www.ifama.org/events/conferences/2011/cmsdocs/YumChina.pdf .

Yum! Brands is also cited for its prowess by James McGregor, author of "One Billion Customers: Lessons From the Front Lines of Doing Business in China" (Free Press, 2005). It's well worth the reading. He states "Yum has become the most successful foreign company in China … They got in early, they adapted the product, they expanded aggressively and they gave their Chinese managers real decision-making power."

Kentucky-based Yum! Brands' China group operates KFC, Pizza Hut and Taco Bell restaurants in China.

In 1992, after Deng Xiao Ping makes his "opening up" speech, the phone starts ringing. Suddenly, instead of offering obstacles, China's cities are clamoring for shops. McDonald's decides on a "big four" strategy that concentrates on China's four largest cities. In response, Yum! decides to pursue a national strategy that begins with 16 beachhead cities. With its Chinese speaking staff, Yum! is able to make this transition quickly and begins work on creating a vertically integrated supply chain, which starts with animal feed and fertilizer and feeds into a state-of-the art national logistics system, described today as being second only to the People Liberation Army's.

Computerized tracking, e-mail ordering by individual stores, 11 full service logistics facilities and extensive and ongoing contingency planning now supply over 3,200 KFC's and 500 Pizza Huts in over 650 cities throughout China.

The result, in the third quarter of 2010 China's 3,700 restaurants brought in more revenue and profits than Yum!'s 20,000 U.S. stores. In terms of profits alone China contributed over half of the entire Yum! global brand 2010 profits.

It is the largest restaurant chain in China, has the most recognized global brand among urban residents and its fast food market share is 40 percent, compared with McDonalds' 16 percent.

What is different about a KFC in China is that you will find 50 menu items instead of the 29 you would find in U.S. stores. Although you can still find a number of the standards you would expect to see, the rest of the offerings have been adjusted to Chinese tastes, including congee (rice porridge), shrimp burgers and chicken wraps, offering varied and healthier options for frequent diners. KFC has proactively responded to concerns about the health effects of "junk food" by offering healthier and more varied selections, doing away with supersizing, making fruit juices standard with kid's meals and sponsoring children's athletic leagues.

At the same time, Yum! has increased profits by becoming the country's largest food delivery business, opening up for breakfast and switching from a franchise to a company store model (90 percent of the operations in China are owned by the company as compared to 15 percent in the US and 12 percent internationally).

What is the future? Yum! has their sites on 20,000 stores which at current revenue levels would produce $6 billion in profits. So what's your plan?

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Marketing Cases from Emerging Markets pp 17–23 Cite as

Case Study 2: KFC in China

  • Hsiao-Pei (Sophie) Yang 4  
  • First Online: 01 January 2013

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In China, Yum! Brands, the parent company of Kentucky Fried Chicken (KFC), are opening a KFC store every day. Utilising a different strategy compared to other Western fast service counterparts, KFC has become the largest restaurant company in mainland China. KFC outpaced its nearest competitor, McDonald’s, by more than 1,000 restaurants in China and is outpacing its development by a roughly three to one. The US chicken giant adapts its Western business model in Chinese market through acknowledging the social and cultural differences. KFC realised that the US fast food model needs to be adapted because China’s culture is not individualistic which is the characteristic of the US culture. Therefore, it is necessary to combine the US fast food business model and adapted them to serve the needs of Chinese consumers.

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Reuters (2012). KFC parent Yum sees more China price hikes in 2012. http://www.reuters.com/article/2012/02/07/yum-idUSL2E8D77CY20120207 . Accessed 31 Aug 2012.

Euromonitor International (2011). Fast food in China. http://www.euromonitor.com/fast-food-in-china/report . Accessed 31 Aug 2012.

Wang, P. (2011). How KFC make a stride in China’s QSR market. http://blog.caijing.com.cn/expert_article-151538-15237.shtml . Accessed 31 Aug 2012.

Jargon, J. (2011). Asia delivers for McDonald’s. http://online.wsj.com/article/SB10001424052970204397704577074982151549316.html . Accessed 31 Aug 2012.

Wang, P. (2011). Two men’s race: McDonalds and KFC in China. http://blog.caijing.com.cn/expert_article-151538-15237.shtml . Accessed 31 Aug 2012.

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Yang, HP.(. (2014). Case Study 2: KFC in China. In: Mutum, D., Roy, S., Kipnis, E. (eds) Marketing Cases from Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36861-5_4

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yum china case study

Good morning, Broadsheet readers! Karlie Kloss and Joshua Kushner acquire Life magazine, Vice President Kamala Harris unveiled new AI rules for government agencies, and four female CEOs discuss issues affecting women in Asia at the Fortune Innovation Forum. – Top takeaways . While the number of female CEOs slowly but steadily inch upward in the U.S., the Asia-Pacific region is also home to more and more influential female business leaders.

Many of my Fortune colleagues spent the past few days hearing from several of those CEOs at the Fortune Innovation Forum in Hong Kong. Below are some key takeaways from the gathering of top global executives.

– Jane Sun is CEO of Trip.com, the Shanghai-based travel service provider behind Skyscanner, Ctrip, and its eponymous website. Running a business with $6.2 billion in annual revenue makes Sun one of the few female chiefs in China Big Tech.

At the Fortune Innovation Forum, she told attendees how when she first joined the company almost two decades ago, she had a young baby at home. Today, Trip.com offers employee benefits such as stipends for new parents, taxi rides for pregnant workers, birthday gifts up to $1,400 for children until the age of 5, and egg-freezing—all relatively unusual (and in the case of egg-freezing, sometimes controversial ) in China, where much government attention is on the country’s falling birth rate . “If you don’t like it, you don’t need to use it,” Sun said of her company’s benefits.

– Joey Wat , the CEO of KFC and Taco Bell operator Yum China, joined Sun for this conversation. Yum China’s most impactful benefit, she said, has been allowing employees to add their parents to their health insurance plans. “A lot of women are responsible not only for their children but for their parents. It’s very challenging,” Wat explained.

yum china case study

– Bonnie Chan is the CEO of stock exchange HKEX. The exchange instituted a rule that listed companies must not have single-gender boards by the end of 2024. With the deadline approaching, HKEX hasn’t decided whether or how to punish firms that don’t meet the requirement yet. But Chan suggested that Hong Kong lagging behind other major financial hubs on this issue could be attributed to the number of family-owned businesses. “In Chinese tradition, we always favor the son,” Chan said .

– Walmart International CEO Kathryn McLay also joined the Fortune Innovation Forum group in Hong Kong. She talked about Walmart’s continued adoption of generative AI and its application to different growth markets—more in digital-native India than in Mexico, where the retailer is building in-store kiosks for consumers who don’t have internet access. In China, 48% of transactions are now digital compared to less than 5% in 2019. “Customers can expect a more delightful experience in retail,” she said. “We’re just only on the cusp of that now.”

Emma Hinchliffe [email protected]

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- Back to Life. Bedford Media, the media group cofounded by Karlie Kloss and her husband Joshua Kushner, acquired Life magazine and plans on resuscitating the publication more than 20 years after it was shut down. Kloss, who also oversaw Bedford's acquisition of i-D Magazine from Vice Media last year, said that she and her husband “see Life as an uplifting and unifying voice in a chaotic media landscape.”  The Hollywood Reporter

- Agency protection. Vice President Kamala Harris announced on Thursday that government agencies using AI tools now must prove by December that those tools "do not endanger the rights and safety of the American people." The new rule also requires that these agencies hire chief AI officers to oversee their AI use and keep a yearly record of their AI systems and any possible risks. Fortune

- Whiff of acquisition. Glossier, founded by Emily Weiss and led by CEO Kyle Leahy, is reportedly in “deep” talks with fashion conglomerate LVMH as it looks for a potential acquirer. Sources who spoke to Puck News say that the owner of Dior and Louis Vuitton is particularly interested in Glossier’s wildly successful fragrance line. Puck News

- Drinking problems. Women who drink eight or more alcoholic beverages a week are as much as 51% more likely to develop coronary heart disease than those who have one or two drinks per week, according to a new study by Kaiser Permanente Northern California. Those who had three or more alcoholic beverages per day, however, were 68% more likely to develop the disease than those who had just one per day.  The Washington Post

- Sold short. A group of women retail executives spoke to ModernRetail about why more women are leaving their CEO roles, saying they're left burdened with higher expectations and less control than their male counterparts. Tokki founder and CEO and former Julep cosmetics CEO Jane Park described how the women executives she knows do not receive the same second chances that men do and are often left without support when their company hits a rough patch. Denise Conroy, a former C-suite exec who now coaches executives, described her own experiences with investors who didn't take her seriously and board members who wanted her to ask their permission for otherwise normal decisions. ModernRetail

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Since the first KFC opened in China in 1987, Yum--under Sam Su's leadership--had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time and many analysts expected that Yum's China business--driven by a rapidly growing middle class--would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West.

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yum china case study

From the first KFC opened in China in 1987, Yum - led by Sam Su - its largest restaurant company to date in China. On average, one new restaurant opening day in the last five years , in 2010, Yum ran over 3,600 restaurants in 650 cities and employed more than 250,000 people, many of them students in their first jobs. In the third quarter of 2010, revenues Yum China surpassed U.S. revenues for the first time, and many analysts expect Yum's China business - due to the rapidly growing middle class - would be twice as much of its business in the U.S. for five years. But before I jumped to open more than a thousand stores, Su Interestingly, the company has to do to prevent some of the problems plaguing the fast food industry in the West. To enhance their effectiveness, color cases should be printed in color. "Hide by David E. Bell, Mary Shelman Source: Harvard Business School 37 pages. Publication Date: December 16, 2010. Prod. #: 511040-PDF-ENG

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Yum! Brands SWOT and PESTLE Analysis

Company profile - yum brands, business sector : restaurants and food, operating geography : north america, about yum brands :, yum brands revenue :, ownership / major shareholders :.

  • PRICE T ROWE ASSOCIATES INC /MD/- 9.95%
  • VANGUARD GROUP INC- 6.97%
  • BLACKROCK INC.- 6.12%
  • MAGELLAN ASSET MANAGEMENT LTD- 4.84%
  • STATE STREET CORP- 4.17%

Competitive Analysis of Yum! Brands

The SWOT / TOWS analysis of Yum! Brands gives insights about the key factors like the strength, weakness, opportunity and threat of the company. The internal analysis of Yum Brands clearly states that the major strength of YUM Company is its subsidiaries, the 3 big brands under yum namely, KFC, Pizza Hut and Taco bell which has built a strong global presence for the parent company. The kind of food, Yum Brandsoffers under its subsidiary brands is unbeatable in taste and pricing has helped in building a strong consumer base. The yum china case study analysis, shows that due to intense demand and popularity of yum brands food in Chinese market, Yum! decided to develop a separate entity which operates as Yum China Holdings Inc, as a licensee of Yum! Brands in Mainland China from Nov 2016.

A strong management team, unique and exceptional food style, unbeatable recipes, strong financial positioning, multi branding along with global presence are some of the niche strengths of Yum! Brands. These also lend Yum a competitive advantage over its competitors. Some of Yum! brands key success factors are quick service, huge array of diversified food products and brand loyalty. One of the weakness of the company, especially under KFC brand is quality issue and inconsistent taste in different outlets, majorly because the supply chain is not meeting the increasing demands of all outlets.

More franchises in emerging markets, with some new dishes to hit the taste buds of consumers, palpably with proper research and development presents a great opportunity for yum brands. Intense competition from McDonalds to KFC and Dominos to pizza hut, is a major threat to Yum!'s cash cows.

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yum china case study

Detailed SWOT Analysis of Yum! Brands

1. Focus on emerging markets: Yum! Brands, backed by its KFC and Pizza Hut brands, focus on emerging markets such as China, India is a major competitive edge for the company. US fast-food market is almost saturated with low growth rate of ~2.5% and hence, capitalizing on the growth potential of these untapped markets has been a boon for the company. Yum! Brands even exploited the first-mover advantage in China. 60% of KFC’s volumes and profits and 33% of Pizza Hut’s volumes and profits accrue from the emerging markets , which is testimony to the substantial growth the company has achieved in these markets.

2. Robust Supply Chain operations: Yum! Brands has establisheda strong and strategic supply chain which is rare, sustainable and inimitable core competency. Yum! Brands partners with Restaurant Supply Chain Solutions to provide supply chain services and also deploys proprietary purchasing processes to ensure that minimum quality standards are met at the lowest prices. The company also emphasises that they have strict controls on suppliers via the Supplier Code of Conduct and diverse suppliers to reduce dependencies and leverage multiple perspectives.

3. Localisation and strong decentralised management: The aggressive expansion strategy of the company has been possible due to its internal focus on ‘localisation’ and building a ‘strong decentralized management’. The local management has a better knowledge of the market conditions and thus gives Yum!the freedom to effectively tailor its menu according to the customers’ preferences. It also gives this huge company agility, flexibility and time-responsiveness. It gives the firm a competitive advantage hard to replicate for Yum!has managed to decentralize yet ensure that it provides the highest quality products.

4. Brand Equity and Umbrella Brand: Yum! Brands is a huge company with three of the most popular fast-food chains (Pizza Hut, KFC, Taco) under its umbrella. It has a tremendously high market cap of USD 26 billion. Such massive dominance and presence coupled with the popularity the brands enjoy, it becomes incredibly difficult for any smaller player to compete with the company. This competitive edge provides scalability and expansionary advantage to the company.

This section is available only in the 'Complete Report' on purchase.

Opportunity

The PESTLE/ STEEPL/ PEST analysis report of Yum Company gives detailed information about the impact of micro environment on the company. The external analysis is utilized to understand how all the six external factors, namely, political, economical, technological, legal and environmental affect Yum! Brands. The PESTEL analysis OF Yum! Brands is a tool to understand how current trends impact the restaurant business at large and Yum in particular. Political factors play a vital role in foreseeing the performance of any business in terms of profit and economic growth in a country. Before setting up its franchises in any country it is very important for Yum! Brands to see the impact of political factors like Bureaucracy and government interference in food industry, Taxation and pricing laws, employee benefits and wages, foreign trade policies and more. One of the economic factors that creates a huge difference for Yum! brands is availability of skilled labor in restaurant industry, as unskilled labor will blemish the brand value.For a brand that operates in the food industry, health is one of the key social factors, as the major question that arises in the consumer’s mind is the quality of food, thus to be a sustainable business, it’s imperative that Yum Brand continues to be consistent with quality.

KFC the star brand of Yum!is not only the market leader in its industry but also a socially responsible brand. An instance of this can be recognized from the fact that KFC India, motivates its consumers to contribute Rs.5 on their bill towards social causes like providing meals to poor children, and by 2020 they aim to provide 2 crore meals to poor children.

Detailed Pestle Analysis of Yum! Brands

1. Political Setting and Policies: Yum! Brands will be affected by the political setting and instability in its domestic market U.S and other emerging markets of its operations. The political party in power in each country determines the extent of influence and restriction it places on the retail food industry and the fiscal policies/ tariffs it levies.US elections, fervently contested by Hillary Clinton and Donald trump, was the biggest political instability YUM! was dealing with in its own country. Additionally, the policies of subsidies, tax credit, low-cost loans also affect the business of Yum! Brands. It is reported that ~USD 653,000 was disbursed to the company in the form of direct subsidies from the governments between the period 2004-present. For instance: the implementation of GST regime in India will affect the taxation decisions of Yum! Brands for its companies in India. Also, knowledge about the new tax policy becomes crucial not only for the company but also its supply node partners to allow for effective input tax-credit.

2. Political Lobbying: The company and all the stakeholders of the company such as employees, franchisee partners are subject to the national, state as well as local laws making it imperative for the company to participate in the political processes of the country(specifically, US where corporate lobbying plays a huge role in framing the public policies). To be a part of the political discourse, Yum! Brands makes political contributions, takes part in advocacy actions, supports advocacy groups/trade associations to impact the resulting regulations in its favour. Through this the company seeks to ensure that its position and the impact of any law on its employees, partners are carefully measured before formulating any law. Priority issues for the company are food & nutrition, health & safety and regulation of food service industry.Yum! Brands also has a Political Action Committee that supports candidates contesting the US elections. This lobbying in the US becomes paramount given the lobbying of health activists propagating the ban of fast foods.

3. Geo-Political Nature of the Country and Political Stability: Staying aware of the happenings around the globe can help companies avoid costly surprises as the political stability and safety of a country is a prerequisite to establish stable business operations for Yum! Brands.Yum! Brands will need to carefully assess and evaluate the political stability and the propensity of riots and activism in countries before choosing to expand into that country. Another complication in the geo-political scenario to be kept in mind is the relationship of US (Yum!’s home country) with the foreign country as adversarial relationships could lead to laws damaging to American corporations. Political implications of an event differ from sector to sector. For example, beef ban in India or the pork ban in Middle East would adversely change the dynamics of the fast food industry but positively impact the poultry business. Hence, factoring such long-term and short-term implications in the holistic risk assessment is extremely important for Yum! Brands while venturing into a new geographical market.

Technological

Environmental, major competitors :, major brands :, key business segments / diversification :, recent acquisition / mergers / alliance / joint ventures / divestitures :, why buy this report, table of contents, delivery and format, why choose us.

  • Complete and comprehensive internal analysis of the company detailing Yum's strengths and weaknesses.
  • Intelligence into the external analysis of the Company highlighting major opportunities and threats for Yum! Brands.
  • A brief about Yum! Brands' history, Yum! subsidiaries, revenue jumps, ownership stakes, key business segments etc., major brands and competitors.
  • Gain understanding of the the core competitive advantages Yum! enjoys over its competitors.
  • Overview about KFC, Pizza hut and Taco bell- the star brands of Yum!
  • A discussion on Yum! Brands' case study in detail and a peek into its marketing and business strategy.
  • Pestle analysis of Yum Brands touching upon specific trends and factors that impact the food industry and restaurant business at large.
  • Knowledge on specific partnerships, mergers and acquisitions, Yum Brands has undertaken.
  • Competitive analysis about its competitors and threats they pose on Yum! brands
  • Strategic intelligence on growth opportunities Yum brands has in emerging markets.
  • Global and local market position of Yum! Brands and its subsidiary brands

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References used in yum brands swot & pestle analysis report.

1. https://www.Yum!.com/annualreport/pdf/2016-Yum!-AR.pdf

2. https://www.nasdaq.com/article/Yum!-brands-Yum!-rides-on-strategic-efforts-risks-stay-cm881933

3. https://www.Yum!.com/annualreport/pdf/2016-Yum!-AR.pdf

4. https://www.Yum!.com/company/

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Yum! China Case Study Solution Analysis

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Yum! China Case Study Solution Analysis. Get Yum! China Case Study Analysis Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Yum! China Case Solution, Case Analysis, Case Study Solution. David E. Bell, Mary Shelman

Yum! China Case Study Solution Analysis. Get Yum! China Case Study Analysis Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Yum! China Case Solution, Case Analysis, Case Study Solution. David E. Bell, Mary Shelman Less

Email us for Any Case Solution at: [email protected] Yum! China Case Study Solution Analysis Yum! China Case Study Solution Analysis. Our tutors are available 24/7 to assist in your academic stuff, Our Professional writers are ready to serve you in services you need. Every Case Study Solution & Analysis is prepared from scratch, top quality, plagiarism free. Authors: David E. Bell, Mary Shelman Get Case Study Solution and Analysis of Yum! China in a FAIR PRICE!! Steps for Case Study Solution Analysis: 1. Introduction of Yum! China Case Solution The Yum! China case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Yum! China case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Yum! China case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. The case solution first identifies the central issue to the Yum! China case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved. 2. Problem Identification of Yum! China Case Solution Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Yum! China is identified through reading Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 3. Analysis of the Yum! China HBR Case Study The objective of the case should be focused on. This is doing the Yum! China Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. 4. SWOT analysis of Yum! China An important tool that helps in addressing the central issue of the case and coming up with Yum! China HBR case solution is the SWOT analysis. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Yum! China Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue. Therefore, the SWOT analysis is a helpful tool in coming up with the Yum! China Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. 5. Porter Five Forces Analysis for Yum! China Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Yum! China operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. • These are the threats that the industry faces due to new entrants. • It includes the threat of substitute products. • It includes the bargaining power of buyers in the industry. • It includes the bargaining power of suppliers in an industry. • Lastly, the overall rivalry or competition within the industry is analysed This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective. 6. PESTEL Analysis of Yum! China Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 7. VRIO Analysis of Yum! China This is an analysis carried out to know about the internal strengths and capabilities of Yum! China . Under the VRIO analysis, the following steps are carried out: • The internal resources of Yum! China are listed down. • Each of these resources are assessed in terms of the value it brings to the organization. • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors. • Each resource is assessed whether it could be imitated by competition easily or not. • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] • The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage. 8. Value Chain Analysis of Yum! China The Value chain analysis of Yum! China helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows: • The firm’s primary and support activities are listed down. • Identifying the importance of these activities in the cost of the product and the differentiation they produce. • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Recognizing value creating activities and enhancing the value that they create allow Yum! China to increase its competitive advantage. 9. BCG Matrix of Yum! China The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows: • Identify the relative market share of each strategic business unit. • Identify the market growth of each strategic business unit. • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate. • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. The strategies identified from the Yum! China BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] 10. Ansoff Matrix of Yum! China Ansoff Matrix is an important strategic tool to come up with future strategies for Yum! China in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy. • The organization can develop new products for the existing market. This is known as product development strategy. • The organization can enter new markets with its existing products. This is known as market development strategy. • The organization can enter into new markets with new products. This is known as a diversification strategy. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. 11. Marketing Mix of Yum! China Yum! China needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. • Analyse the company’s products and devise strategies to improve the product offering of the company. • Analyse the company’s price points and devise strategies that could be based on competition, value or cost. • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements. • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products. 12. Yum! China Strategy The strategies devised and included in the Yum! China case memo should have a strategy. A strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 13. Competitors analysis of Yum! China Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Yum! China looks at the direct and indirect competitors within the industry that it operates in. • This involves a detailed analysis of their actions and how these would affect the future strategies of Yum! China . • It involves looking at the current market share of the company and its competitors. • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. • It also should look at the potential opportunities and threats that these competitors pose on the company. 14. Organisation of the Analysis into Yum! China Case Study Solution Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Yum! China case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] advantage as a corporate level strategy, then it can't be recommended for the Yum! China Case Study Solution that the business unit should focus on costs. • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The case study analysis and solution, and Yum! China case answers should be written down in the Yum! China case memo, clearly identifying which part shows what. The Yum! China case should be in a professional format, presenting points clearly that are well understood by the reader. 15. Alternate solution to the Yum! China HBR case study It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Yum! China is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. 16. Implementation of Yum! China Case Solution The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process. • A proper implementation framework shows that one has clearly understood the case study and the main issue within it. • It shows that one has been clarified with the HBR fundamentals on the topic. • It shows that the details provided in the case have been properly analysed. • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Yum! China Harvard case is complete and properly answered. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] 17. Recommendations and Action Plan for Yum! China case analysis For Yum! China, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: • Yum! China should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. • Yum! China should enhance the value creating activities within its value chain. • Yum! China should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

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Subjects Covered Learning organization Localization Management philosophy Strategy

by David E. Bell, Mary Shelman

Source: Harvard Business School

37 pages. Publication Date: Dec 16, 2010. Prod. #: 511040-PDF-ENG

Yum! China Harvard Case Study Solution and HBR and HBS Case Analysis

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    Mia Vander Hoff 4/10/22 Yum was the largest restaurant company in the world in terms of number of units. Its brand includes KFC, Pizza Hut, and Taco Bell. KFC became the first of its brands and any other Western fast-food restaurants to enter the mainland of China. KFC's management became interested in China in the mid-1980s.

  23. Calaméo

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