Preview

YUM Brand

Best Essays
Open Document
Open Document
4307 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
YUM Brand
YUM Brands

SWOT, PESTEL and Porter’s 5 Forces Analyses

Antonio Annicchiarico

INDEX

pag.

Index 1

Introduction 2

1. Company Overview 3

2. PESTEL Analysis 4

3. SWOT Analysis 7

4. Porter 's 5 Forces Analysis 9

5. Value Chain Analysis 12

6. Conclusions 13

7. References 14

INTRODUCTION
PESTEL, SWOT and Porter’s 5 Forces analyses of Yum Brands
(15 October 2013, 2957 words)

This work analyse Yum Brands, one of the major and leading companies in the global quick service restaurant (QSR) industry. Through some tools the author has examined deeply this fast food firm regarding the internal situation (SWOT), the external environment (PESTEL) and the stakeholders involved in the industry (Porter’s 5 Forces)

key words: Yum Brands, PESTLE, SWOT, Porter’s 5 Forces, QSR, fast food, China

1. COMPANY OVERVIEW
Yum Brands, Inc. is a U.S. company headquartered in Louisville (Kentucky), and is a world leader in the quick service restaurant (QSR) industry with more than 39.000 stores in over 130 countries (YUM, 2013a). Yum was created on 7 October 1997 , under the name Tricon Global Restaurants after the split from PepsiCo. In March 2002, they acquired the Yorkshire Global Restaurants, based in Lexington (Kentucky), bringing into the family also Long John Silver 's and A&W Restaurants. The acquisition of Yorkshire is effective on 7 May 2002 and next 16 May, the group formally changed its name in Yum Brands, Inc. In 2004 the company founded the chain East Dawning selling products of Chinese cuisine with the business model of fast food. The group owns the following restaurant chains: Pizza Hut, Kentucky Fried Chicken, Taco Bell, East Dawning and Wing Street (Reuters, 2013a).

2. PESTLE ANALYSIS
A PESTLE analysis is a tool to review the macro environment or external forces, outside the company’s control, that can affect the business plans and future projects. PESTLE stands for



References: PESTEL, SWOT and Porter’s 5 Forces analyses of Yum Brands (15 October 2013, 2957 words) Economic Although consumer confidence had been badly influenced by the recession of 2008, the number of the customers and their average expenditure in the Yum and its competitors are increased due to low prices (The Economist, 2010)

You May Also Find These Documents Helpful

  • Powerful Essays

    YUM! Brands, Inc. is based in Louisville, Ky., and is the world’s largest restaurant company in terms of system units with more than 39,000 restaurants in more than 125…

    • 1513 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    A PESTLE analysis is used in business to assess the industry which an organisation is in. The PESTLE analysis looks specifically at factors which are external to the organisation which will impact on the business. This is with a view to determining the current role and status of the organisation in relation to its competitors and can be used as a marketing tool.…

    • 709 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Yum Brands

    • 690 Words
    • 3 Pages

    Latin America was appealing to Yum brands because of its close proximity to the United States, language and cultural similarities, and the North America free Trade Agreement eliminated tariffs on goods traded between the United States. Performing a country analysis was an important part of the strategic decision making process. Yum Brands had to accurately assesses the risks of doing business in other countries and regions in order to make good choices about where to invest. Expanding to a foreign market was attractive because of their large customer bases and comparatively little competition. Having a separate subsidiary in Dallas, Yum brands international, managed the international activities of all five brands. KFC and Pizza Hut accounted for almost all of the firm’s international restaurants. By Yum brands to expanding further in Latin American countries they advantage of franchising, which allows firms to expand more quickly minimizing capital expenditures and maximize return on invested capital. This helps because the owners have a deep understanding of local language, culture, customs, law, financial markets, and marketing characteristics. Yum Brands also have a fix cost that could be spread over a large number of units and the company coordinates purchasing, recruiting, training, financing, and advertising. Company owned restaurants also allowed the company to maintain tighter control over product quality and customer service. Yum Brands knew that KFC could have a large success because chicken is a traditional dish in their country.…

    • 690 Words
    • 3 Pages
    Good Essays
  • Good Essays

    On the other hand, Yum! Brands are specialized in fast food - or quick service restaurant chains by offering ready- or nearly readymade tasty food for cheap price in convenient locations around the world. Their customers are usually looking for fast snack, and have no desire to look for healthier or more traditional options for dining. Customers are generally younger people with lower income or people in urgent need for fast snack, eq. energy for shopping. Furthermore, families with low income can have affordable food for whole family. Thus, major factors for…

    • 1028 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The purpose of a PESTEL analysis is mainly involved with studying all the external factors of a business that can directly or indirectly impact the firm’s future long, medium and short term strategies. By doing this a business can plan for the future and analyse their strengths of the business, weaknesses of the business, opportunities that could help for growth and profit and threats from competitors. You can use your opportunities, threats, strengths and weaknesses to turn into tasks for a project plan for example how a business can use its strengths to take advantage of its opportunities. PESTEL is the first letters of five words which stand for Political e.g. business law and regulation, Economical e.g. interest rates, Social e.g. Culture and religion, Technological e.g. new technology’s, Legal e.g. laws such as discrimination and Environment e.g. Climate and climate change. A pestle analysis is best used for mainly business and strategic planning, marketing planning and product development. These factors determine the success and failure of a business. The results of a PESTLE analysis are used to inform a SWOT (strengths, weaknesses, opportunities and threats) analysis which will identify the factors that may emerge or impact our strategy.…

    • 1546 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    PESTLE is a concept in the marketing principles. This concept is used as a tool by companies to record the environment they’re operating in or are planning to launch a new project/product/service etc.…

    • 718 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Yum Brands Overview

    • 532 Words
    • 3 Pages

    Yum Brands Incorporated (YUM), incorporated in 1997, is a quick service restaurant (QSR) with over 34,000 units in more than 100 countries and territories. Yum consists of six operating segments: KF C, Pizza Hut, Taco Bell, Long John Silvers (LJS), A&W all American Food Restaurants (A&W)and YUM Restaurants International ( YRI). (Rueter, 2007)…

    • 532 Words
    • 3 Pages
    Good Essays
  • Better Essays

    In-N-Out Burger is a regional chain of fast food restaurants with locations in the American Southwest, and it serves coolest shakes, hottest fries, and freshest burgers. In-N-Out Burger was founded in 1948 by Harry Snyder and his wife Esther, and the first In-N-Out Burger was in Baldwin Park, California. In addition, In-N-Out Burger was the first drive-thru hamburger stand in California, and letting drivers to place orders through a two-way speaker system. The first appearance of the iconic In-N-Out arrow took the place of the original “No Delay” sign in 1954. In-N-Out Burger has slowly expanded outside Southern California into the rest of the state, such as, Nevada, Arizona, Texas, and Utah. Currently, Lynsi Snyder is the owner, and she is the only grandchild of the Snyder.…

    • 1774 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    The fast food and quick service restaurant industry consisted of about 945,000 restaurants representing approximately $552 billion in annual sales. The industry is highly fragmented, with the top 50 companies holding about 25% of industry sales and is intensely competitive with respect to food quality, price, service, convenience, location and concept (Hoovers 2009). The major companies of the industry include McDonald’s, Burger King, Subway, Domino’s Pizza, Dairy Queen and the Yum Brands restaurant companies. Quick service restaurants are often affected by changes in consumer tastes; national, regional or local economic conditions; currency fluctuations; demographic trends; traffic patterns; the type, number and location of competing food retailers and products (Yum! Brands website, 2009). The profitability of individual companies within the industry depends on efficient operations, effective marketing and ingenious business strategy (Hoovers 2009).…

    • 4246 Words
    • 17 Pages
    Satisfactory Essays
  • Better Essays

    Fast Food Industry Leaders

    • 2140 Words
    • 9 Pages

    The quick service restaurant (QSR) industry, also known as the fast food industry, consists of a large variety of restaurant types, including but not limited to ice cream parlors, fast food restaurants, pizza parlors, coffee shops. With all of these different types of eateries, the QSR industry makes up a massive section of small businesses in America. This means that the market size is large, and that there are not restrictive barriers to entry. Some of the giants in the fast food industry are McDonald’s (MCD), Starbucks (SBUX), and Yum Brands (YUM). While McDonald’s and Starbucks operate under only one brand name, Yum Brands consists of multiple fast food restaurant brands such as KFC, Taco Bell, Pizza Hut, and WingStreet. In order to compare how these industry leaders compare to one another, performance metrics be used. Due to the nature of the fast food industry, the metrics that are most used to measure are Food Cost, Labor Cost, Weekly Sales, Average Order per Customer and Employee Turnover. To further analyze this market we must understand how some of these key metrics works.…

    • 2140 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Pestle For Londis

    • 1163 Words
    • 5 Pages

    A PESTLE analysis is method for reviewing the macro environment factors that affect a business. It stands for: Political, Economic, Sociological, Technological, Legal, And Environmental. This analysis technique contributes towards the decision making that businesses are faced with. The analysis gives an insight into some of the potential risks and uncertainties the business or company may face; it also helps them to examine the future as well as current circumstances.…

    • 1163 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Utilization of cost leadership strategy in addition to SWOT analysis has allowed Kraft Foods to enhance their strengths, develop their weaknesses, determine and capitalize on opportunities and recognize threats in order to remain successful. Capitalizing on their strong reputation to develop new innovative products will help their overall financial portfolio, allowing for new machinery and warehouses to be purchased and research and development to be conducted. Expanding into foreign markets is an opportunity that will enable Kraft Foods to become more competitive, generate higher revenues, enhance reputation and continue to remain a top brand in the industry. Examining and researching the threat of substitute products will enable Kraft Foods to adapt to the changing industry and produce products consumers demand.…

    • 2237 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    7-Eleven, Inc. Case

    • 1201 Words
    • 4 Pages

    Posing to be a successful division of the organization, the Big Eats Deli sandwiches at 7-Eleven, Inc. were pleased with the continued progress this sector offered (Bell & Hagan, 2012). Utilizing a strategy determined in a cross-cultural market, 7-Eleven CEO James Keyes found it to be intriguing and challenging to implement such a plan in the United States. However due to strong competition amongst convenience stores in the United States and different eating habits of consumers, this proved to be a more difficult task than anticipated (Bell & Hagan, 2012).…

    • 1201 Words
    • 4 Pages
    Better Essays
  • Best Essays

    In the long run the measures that Target Corporation will utilize would be useful to the association in light of the fact that it chops down the organization 's uses. An alternate variable that would influence the outer environment of Target is the US financial development; the quick or moderate development may have a positive or negative effect on the business. On the off chance that the development is quick then purchasers will have higher buying force, then again, if the economy is moderate then it will additionally have an impact on the disposition towards acquiring items. An alternate is the ease ends sourcing; it will either influence the economy absolutely or contrarily. Positive, in the sense wherein the organization will have more customers on account of the less expensive items advertised. Then again, the neighborhood suppliers would be influenced in light of the fact that the organization favors outsourced…

    • 4633 Words
    • 19 Pages
    Best Essays
  • Better Essays

    Restaurants are, and will continue to be, an extremely profitable business. As a result, shareholders who have interest in brands such as McDonalds and Starbucks need not to worry about negative implications for the food giants compared to more risky industries. One company in particular, Yum! Brands (YUM), is another brand investors should become familiar with. Consumers may recognize the more specific stores the company owns such as Taco Bell and Pizza Hut, but investors should realize the sales and earnings growth associated with this organization. In addition, while there are many companies in the restaurant industry, Yum not only rings familiar with consumers like Starbucks, but Yum engenders excellent financial news at a level above its competitors.…

    • 1430 Words
    • 6 Pages
    Better Essays