2. Objective
 Be the best in the world at building great restaurant
brands.
 Defining a global company that feeds the world.
 How  Differentiation

3. Growth Strategies
• Build leading brands in China in Every Significant category.
• Drive aggressive, international expansion and build strong brands
everywhere.
• Dramatically improve US brand positions, consistencies and
returns.
• Drive industry leading, long term shareholder and franchise value.

4. First Strategy
“Build leading brands in China in every significant
category.”
 Main goal is to expand and grow regardless of all weaknesses and threats.
 The strategy will accomplish the expectation because it is specific to
China. Since, it is transitioning to a consumer based economy thus giving
rise to the middle class segment which is the company’s main customer
base.
 How?
by opening more branches in China.

5. Second Strategy
“Drive aggressive, international expansion and build strong
brands everywhere.”
 4 divisions: YRI (Yum Restaurants International), China Division, US
Division, India Division.
 To establish a strong brand recognition along with even more branches.
 Implementation:
India: Treated as a separate division due to expected future forecasts of
India being the largest consumer market in 2030.
Russia: Bought Rostik’s business (Russia’s leading chicken chain)
Africa: First-mover advantage.

6. Third Strategy
“Dramatically improve US brand positions, consistencies and
returns.”
Reversed negative same-store sales of KFC by investing in
product innovation and Improving franchise relations.
Implementation:
Expand Taco Bell branches from 5,000 to 8,000 units and
Pizza Hut from 6,000 to 8,000 units.

7. Fourth Strategy
“Drive industry leading, long term shareholder and
franchise value.”
High Cash from operations
High return
Consistent dividend yield
Implementation:
Reducing ownership in highly penetrated markets (UK & US)
and increasing their ownership in international markets.
Maintain strong social responsibility.

8. Management Key
Assumptions
India will be the highest consumption country in the
world by 2030
Applying the same strategy followed for the past 10
years will increase sales
More branches means more profit
Getting back on their feet under any external threats
such as disease from poultry.

9. Policy Alternative
 Fast Grow:
Aggressive growth strategy, pursue larger market
share or a stronger position in untapped markets

10. SWOT Analysis

11. Strengths
 Management
 Adapted favorable cost structure
 Efficient same-store sales.
 Geographic diversification
 Quick responds to shifts in demand
 Strong brand recognition

12.  Pending litigation, lawsuits
 Underperformance and slowing of U.S. sales specifically with KFC
and Pizza Hut brands
 Suffer a setback in China following an investigation into KFC
China’s poultry supply which resulted in a sharp decline in sales.
 Relatively small market share in oversaturated U.S. fast food
industry
 Older U.S. restaurant units losing sales annually
Weaknesses

13.  Increase and maintain growth in rapidly expanding China market
 Invest in India market
 food options coinciding with religious beliefs
 Penetrate other new growth markets before competitors
 Target international youth consumer to build up brand awareness
 Increase number of health conscious menu options
Opportunities

14.  Food safety- animal diseases arising
 Nutritional value concerns
 High reliance on China allows the company to be subject to any
relevant changes in the Chinese market
 Changes in foreign currency exchange rates affect sales and
profit
 Modifications in foreign government regulation
 Farmers raising prices
Threats

15. Abell Model
How? (Approaches):
•Quick service restaurant
•Menu customized to
countries
Who?(Customers):
Non-health conscious
Middle-class segment
What?(Needs):
•Hunger
•Open appetite
•Quick food

16. Porter Model
Rivalry among
competitors
• Large number of
competitors
• Industry growth rate
• Product differentiation
• Prices
Buyers
• Cleanliness
• Speed of
delivery
• Hospitality
• Customizati
on
• Price
sensitivity
Suppliers
• Raw
material
• Labor
• Delivery
cars
• Gas
• Equipment
Barriers to Entry:
Government regulations to
control health standards
Initial capital requirements
Threat of Substitutes:
• Healthier alternative
• Ready made food
• Street booths

17. Strategic Position
Emerging Growth Mature Aging
Dominant
Strong
Favorable
Tenable
Weak

18. Basis of Competition
McDonald’s Burger
King
Papa Johns
Price 0 0 +
Cleanliness - - -
Location 0 + +
Depth of Line 0 + +
Speed - 0 +
Delivery - 0 0

19. Industry Maturity
Emerging Growth Mature Aging
Growth rate *
Industry
Potential
*
Product line *
Number of
competitors
*
Market share
stability
*
Purchasing
patterns
*
Ease of entry *
Technology *
Overall ***

20. Risk Assessment of
Strategy
Low Medium High
Industry *
Maturity *
Competitive
position
*
Strategy *
Assumptions *
Past Performance
-of unit
-of management
*
*
Level of future
performance
*

21. Conclusion
Looking forward, Yum! Brands is in a strong position to
maintain foreign expansion and capture a large share of
the international market. Despite certain challenges it
faces in the domestic market, the company is financially
healthy and should be able to sustain a
stable position within the global fast
food industry.