Analysis of the Company Yum! Brands, Inc

Analysis of the Company Yum! Brands, Inc

1. Introduction

In the module strategic hospitality management an analysis of the company YUM! Brands, Inc. will be made. The second week of the module especially focuses on the internal analysis of YUM!. In order to understand the internal analysis process, books are red on the topic. This will be done in order to define the strengths and weaknesses, resources, capabilities and the development of competitive and strategic advantages. The lectures and workshops provided important information and contributed to the learning outcomes of this week. These outcomes together will be related to YUM!.

The internal environment will be analysed by discovering the vision, mission goals and strategies of YUM!. These aspects together will be discussed in the first chapter. In the second chapter a financial analysis will be given. In order to make the analysis reliable different results and relevant ratios will be used. Finally the internal factor analysis summary will be made. Next to that the weaknesses and competitive liabilities of YUM! will be discussed. To make this analysis an IFAS figure will be used with justifications for assigned weight and rating.

2. Business model, vision, mission, goals and strategies

Business model

A description of a business model (Johnson, 2008) ‘Describes the structure of product, service and information flows and the roles of the participating parties'. This contains the resources and capabilities of YUM! Brand Inc. The capabilities for YUM! Brands are:

- Leading market position built on a portfolio of strong brands with high level of consumer acceptance

- Different store concepts catering to a diverse customer base

-Consistently strong results even though economic and macro environment

Resources:

- 5 different brands (Pizza Hut, Taco Bell, Long John Silver's, A&W, KFC)

- A total revenue of 11.343 million dollars, A net income of 1.158 million dollars

-More than 37.000 restaurant divided over 100 countries

Vision

YUM! Brands are committed to continuing this success realized during our first ten years. Our success has only just begun as we look forward to the future, one which promises a long runway for growth, especially on an international level.

Mission

‘A mission is a general expression of the overall purpose of the organization, which, ideally, is in line with the values and expectations of major stakeholders and concerned with the scope and boundaries of the organization. It is sometimes referred to in terms of the apparently simple but challenging question: ‘What business are we in?' (Johnson G, 2008)‘Our mission, as a restaurant company, is to put a YUM! on people's faces around the world, satisfying customers every time they eat our food and doing it better than any other restaurant company'.

Goals

‘If the word goal is used, it usually means a general aim in line with the mission. It may well be qualitative in nature.' (Johnson, 2008)

‘We maintain a consistent commitment to deliver at least 10% EPS growth annually, to be the best in the world at building great brands and running great restaurants. Our main goal is to build a quality long term business the right way.

Strategies

‘A strategy is defined as the long term direction of the organization'. ‘It is likely to be expressed in broad statements both about the direction the organization should be taking and the types of action required to achieve the objectives.' (Johnson G, 2008)

YUM! Brands wants to build a vibrant global business, this can be done by focusing on four main growth strategies.

1. Build leading brands across China in every significant category

2. Drive aggressive international expansion and build strong brands everywhere

3. Dramatically improve U.S. brand positions, consistency and returns

4. Drive industry leading, long-term shareholder and franchisee value

Congruence

The five indicators as mentioned above are all in congruence with each other. The vision of a company is there in order to get an image of the business. The vision is made in order to set up the