Business Model Yum Brands

Topics: Fast food, KFC, Balance sheet Pages: 19 (6465 words) Published: November 29, 2012
YUM! Inc Internal Analysis|
The Strategic Management Process|


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Submitted in Partial Fulfilment for the Requirements of the degree Programme Bachelor of Business Administration

November, 2012

Table of Contents
Chapter 1: Business Model, Vision, Mission, Goals and Strategies3
Concept Definitions3
Yum! Inc Evaluation3
Yum! Inc Correlation Business Strategies and Current Business Model4
Chapter 2: Yum! Inc Financial Analysis6
Chapter 3: Weaknesses and/or Competitive Liabilities8
Chapter 4: Internal Factor Analysis8
Reference List12

An internal organizational analysis aims to investigate a company`s business model, its mission, vision, goals, resources, competencies and undertaken strategies to compete on the market. It gives an overview of the organizations strengths, weaknesses, opportunities and consequently threats. By conducting a proper internal analysis a company can identify its competitive advantage over its competitors and use the outcomes to derive new scope of strategies and possibly effectively direct the organization on the long run. There are several major and crucial areas companies audit internally, that is to say organizations value chain, cultural web, business model, capabilities assessment. After conducting such analysis companies identify possible areas where immediate action is needed for improvement, its threshold capabilities, core competencies by which they gain competitive advantage. Essentially, organizations can decide which resources and activities are of significant importance to the company and must be kept internally and which can be outsourced. Additionally, possible strategies for the future can be established. However, the internal analysis cannot solely be a ground for new strategies, an organization has to conduct an external analysis before forming its final strategies.(Johnson & Scoles, 2008). Chapter 1: Business Model, Vision, Mission, Goals and Strategies Concept Definitions

Before analyzing Yum! Inc, several concepts have to be defined. Firstly, Business Model refers to all products, services and information an organization owns and how they flow between participating parties. Vision refers to what an organization aspires to become in the future. A Mission statement captures the emblematic purpose of an organization to conduct business in line with the values of it`s stakeholders. Organizational goals are general statements for aims and purposes whereas objectives are narrowed down to quantifiable results. Finally, organizational strategies are its long-term directions. (Johnson&Scoles,2008). Yum! Brands, Inc Evaluation

Yum! Brands, Inc is a global operator of franchisees and licensees a chain restaurant brands like KFC, Pizza Hut, and Taco Bell. The business model of Yum! Brands, Inc will be analyzed by the use of Canvas Model further in this chapter. According to the Annual Report (AR) 2011, the company`s Mission Statement is implied under its future-back vision statement: “Be The Defining Global Company that Feeds the World”. Moreover, it`s Vision Statement is: “Be the Best in The World at Building Great Restaurant Brands”. After a deeper analysis of the company, it has been identified that Yum! Brands, Inc has the following core business related long-term goals: ” 1. Build leading brands in China in every significant category; 2. Drive aggressive international expansion and build strong...
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