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

  • Best Essays

    Jet2 stakeholders

    • 2343 Words
    • 10 Pages

    PESTEL analysis: This tool will select the vital influences on the company's future development, which factors are most likely to change and which ones will have the greatest impact on the company.( Oxford University Press, 2007)…

    • 2343 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Marketing Final Paper

    • 3768 Words
    • 16 Pages

    "Yum Brands Expects 2012 Profit Growth." Business & Financial News, Breaking US & International News | Reuters.com. 05 Dec. 2011. Web. 7 Dec. 2011. <http://www.reuters.com/article/2011/12/05/us-yum-idUSTRE7B40YN20111205>.…

    • 3768 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    The benefit of a PESTLE analysis is that it allows you to complete a basic audit on an organisations position in relation to the macro environment It can then go to influence a number of business decisions within the organisation . I would also use this tool to complete the strength and weaknesses of a SWOT analysis which I believe sits well alongside this tool.…

    • 424 Words
    • 2 Pages
    Satisfactory 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
  • Good Essays

    Dr. Pepper Snapple Group

    • 788 Words
    • 4 Pages

    Not only did the economy influence confidence, the recession significantly increased commodity prices. Specific to the beverage industry, the prices for aluminum, natural gas, resins, corn, pulp and all other commodities increased. These types of commodities are used in the production of beverages, exerting a considerable amount of pressure on industry…

    • 788 Words
    • 4 Pages
    Good 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
  • 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
  • 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
  • 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

    Kraft Food Inc

    • 2547 Words
    • 11 Pages

    Consumer confidence fell to a two year low as well when it fell from 87.5 in September to 85 in October, the lowest it has been since October 2003. While this may be a large decrease, some economists say that it may not matter much because people seem to be borrowing and spending more money no matter how little confidence they have in the economy.…

    • 2547 Words
    • 11 Pages
    Better Essays
  • Satisfactory Essays

    PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration.…

    • 398 Words
    • 2 Pages
    Satisfactory 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
  • 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
  • Satisfactory Essays

    pestle swot

    • 1067 Words
    • 4 Pages

    A PESTLE analysis is a framework used to evaluate an organisations external macro-environment. 1When used, a business will analyse the multiple factors that are out of their control. By doing this a business can be aware and prepared for future changes.…

    • 1067 Words
    • 4 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

Related Topics