Yum! Brands Inc. in china

            
 
Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR266
Case Length : 23 Pages
Period : 1987-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Yum! Brands Inc.
Industry : Fast Food
Countries : China

To download Yum! Brands Inc. in china case study (Case Code: BSTR266) click on the button below, and select the case from the list of available cases:


OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here

Price:

For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts Contd...

Joint Ventures and Franchises

When Yum entered China, it entered into partnerships with local Chinese companies, as several cities in which it planned to operate were not allowed to provide licenses to restaurants that were wholly owned by foreign companies. Another reason the company opted for joint ventures was to address the bureaucratic issues. The local partners were better equipped to handle these, and they also helped the company with issues related to supply and distribution...

Sourcing and Distribution

Yum sourced most of the ingredients locally. The suppliers of chicken were located in Shandong and Shanghai. The company relied on several suppliers to meet its requirements. The products that were imported from the US included cheese, corn, some desserts, and French fries. In order to ensure the quality of the locally sourced products, teams from the BMUs visited the suppliers to check if they were adhering to the standards. If it was found that quality levels were not being maintained, the suppliers were replaced...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Localization

Food habits in China varied widely from one province to another . In the northern part of the country, meat was widely consumed, and sea food less so. The cuisine in Harbin had strong and dense flavors, and had large amounts of fresh vegetables, soy sauce, flour based food and dumplings. People in Sichuan used red peppers extensively, giving the food a very hot taste and flavor. Beef was popular in Cantonese cuisine and sea food was popular in Guangzhou (Refer Exhibit VI for Dining Habits in China)...

The Challenges

Yum had a few problems in China especially on the promotional and HR front. One of the company's advertisements featured a Tao priest holding a chicken burger; this came in for criticism from the media, experts and the general public. The advertisement based on the movie Seven Swords , featured Taoist Fu Qingzhu, a historical figure, who was said to have defended Central China from the attacks of ethnic groups during Ming and Qing dynasties. As Taoists were vegetarians and killing animals was against their faith, the advertisement showing a Tao priest holding a chicken burger and calling it a masterpiece, was deemed particularly insensitive...

Exhibits

Exhibit I: Fast Food in China
Exhibit II: KFC Logos
Exhibit III: Yum Brands - Operating Companies
Exhibit IV: Yum Brands - Growth Strategies
Exhibit V: Franchising in China
Exhibit VI: Dining Habits in China
Exhibit VII: Mcdonald's in China


Custom Search



Case Studies in Business Strategy Volume VI
Case Volume - Rs. 750
ICMR Case Volume Collection


 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Volumes.