SWOT Analysis of YUM! Brands

adam August 6, 2011 Restaurant 1 Comment

Introduction

Yum Brands is the world’s largest restaurant owned by PepsiCo with its headquarters situated in Louisville, Kentucky, United States. The company is a public restaurant founded on 7 Oct, 1997 as Tricon Global Restaurant, Inc. It is organized by President Scott Bergen, Chairman David C Novak and Vice chairman Samuel Sue. Presently the company operations are regulating 36000 restaurants across the world.

Strength

• The bond of the company with PepsiCo has been enhanced with the extension of business ties with the other companies associated with PepsiCo.

• World wide services are being paid by the brand.

• According the recent statistical data the company holds the assets of US$8.32 Billion.

• A hybrid combo unit was launched by Yum in 2003, which proved to be a turning point as it then amalgamated with pasta bravo for $5million.

• The Kentucky Derby services provided by the company are remarkable since its launch in 2006.

• The company owns the strong management team that makes the wise utilization of the resources available to the company.

• Portfolio of the yum brands is strong enough to invite the competition with others service providers in this respect.

• No one is compatible with the quality of a product maintained by yum as their dealers provide the material of that specified standard to the Yum Restaurants only.

• The managerial functions operates by the brand are very much strong with the special focus on team work lying on the principles of division of labor.

• Financial arrangements of the company are efficiently maintained.

• The customers of the brand are leveraged for the brand, promoting it positively and maintaining the strong consumer’s base.

• Commodities produced by the brand are unique and second to none in standard which maintained by the quality control department.

Weaknesses

• The liquidation position of yum brand is weak as the cash flow with in the company is not strong enough to be quoted.

• The commodities produced by the brand are mostly damaged as are shipped across to the specific destinations.

• Domestic markets if not treated according to the local demands of the customers become the reason of slower growth.

• In January 2011, Company suffered set backs because of ill managed expansion in Canada and America.

• Supply chain of the brand is not up to the mark.

• Somehow miscommunication occurs in delivering the product especially in the case of web marketing.

• Economical position of the brand doesn’t meet the scale.

• Innovative ideas are not very welcomed by the company’s maintaining authorities rendering the slow growth of the brand.

• Shares in the market of the brand are comparatively low.

Opportunities

• The demand for beverages is growing rapidly, so the PepsiCo affiliation can do well in this perspective by introducing more and acceptable innovative products.

• It can be visited by its customers online through its website yum.com for placement of orders and for the feed back as well.

• It has a greater potential for exceeding business in china because of its population growth.

• The changing trends of the customers are very appropriate for the growth of the company.

• It’s the opportunity for the company to increase the money market through debts which also makes its financial position better.

• Yum Brands can increase the online services for success in future.

Threats

• Sudden increase in the prices of different goods makes a bad impact.

• Company is facing intense competition across the world.

• Compulsion to follow the government rules and regulations to be secure in the near future.

• Substitution of the product is a major problem.

• It’s the need of the brand to enhance the services and the products.

• Use of cheaper technology falls down the level of product.

References

• Official Website. Yum.com. Retrieved on August 5, 2011.
• Cyrek, Christopher (October 20, 2009). “Pizza Hut going after wings market”. Dallas Business Journal (Dallas, Texas: American City Business Journals, Inc.).
• Fast food’s yummy secret: America’s second-biggest fast-food group is as successful as it is little known Special report in The Economist (August 27, 2005) on Yum! Brands.

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