Yum! Brands Inc.’s Strategic Management

Vision and Mission of the Organization

Yum! Brands Mission

Yum! Brands, Inc’s mission is in the statement of building the world’s most loved, fastest, and trusted growing restaurant brands. The company is set to evolve KFC, Taco Bell, and pizza hut into distinctive, iconic, and relevant global brands.

Vision Statement

Yum! Brands’ company vision is being committed to continuing their successes. Yum!’s success has been realized from the forecast seen to be appreciated in the future. The future of the company promises a long growth runway on international levels.

A Summary of Its Historic Performance

An American fast-food firm, Yum! Brands Inc. has its roots in a company called Tricon Global Restaurants. The corporation owns 2,859 restaurants, while 40,758 are franchised in 135 countries and territories. (Company, n.d.). YUM is recognized for running such fast-food giants as KFC Pizza Hut, Taco Bell, The Habit Burger Grill, and Wing Street in addition to KFC (Company, n.d.). As one can see, Yum Brands is one of the world’s biggest fast-food companies.

Yum! In the fast-food industry, it is a company that has developed a menu of reasonably inexpensive cuisine for customers throughout the globe. Each piece of information provided by the firm focuses entirely on the capacity lists of menu items and the preparation of food, utilizing various materials, recipes, and timely seasoning to promote excellent and appetizing food and seasonings (Feldman, 2020). There are non-delivery units that operate in malls, railway stations, and licensed campuses and offer a flexible limited menu.

The firm is striving to win the global market competition by enhancing the quality of its brands. The Pizza Hut brand makes it easier to buy pre-made pizza. The Taco Bell brand specializes in Mexican-inspired meals. As a result, Yum! brands have a safe, competitive edge in the food industry. The company also aims to provide its consumers with a reduced menu in a non-traditional fashion (Kim et al., 2020). Customers in the United States rely on its fast food outlets, high-end brands, and client deliveries.

An Evaluation of Its Internal and External Environment

Internal Analysis


  • Yum Brands is well-known because of its large local and global client bases. Customer satisfaction with the company’s services has lasted for a long time. Thus, clients have shown their appreciation for the company’s assistance. Additionally, clients are pleased with the quality of service they get. As a result, the firm has established a strong brand identity and is steadily gaining worldwide acclaim.
  • Customers may expect high-quality and competitively priced products from Yum! Brands Company brands. Using new and traditional services strategically has resulted in client satisfaction across all market areas (Yum!, 2020). They are promoting their eateries to get a foothold in the international market. Communication between consumers and Yum Brands has been streamlined thanks to a new platform. Customers throughout the globe have found the company’s online accessibility to be convenient.


  • Ineffective and inefficient financial planning is a problem for Yum Brands. The company’s capacity to employ cash transactions rather than liquid transactions is shown by the asset and liquid ratios variations.
  • Research and development expenditures are anticipated to be below par in relation to the company’s growth.

External Analysis


It is expected that Yum’s market operation would benefit from the new tax regime by saving monetary resources. Increased product consumption rates are a sign of a brand’s profitability. Lower shipping costs will also help the firm save money on transportation. As a result of lower pricing, Yum! Brands will be able to make required adjustments to consumer benefits and win a competitive share in the sector. The company’s reliable sectors will provide an investment opportunity if the company’s cash flows are stable and free (Sheng et al., 2017). It will be simpler for the corporation to invest in technology. Yum! Brands’ goods will have access to a broader market, resulting in increased sales.


  • Seasonal variation is used to keep the high-profit items fresh. As a result, a tiny blip during the peak season might hurt the company’s profits. The effects, on the other hand, may only last for a brief time.
  • Product liability lawsuits may arise from a variety of Yum Brands’ products. Liability rules vary from country to country where Yum has opened eateries. As a result of strong distributors and suppliers, Yum! Brands Company’s marketability advantage will be lessened, which brings additional obstacles to the firm in gaining profit from its goods.

Rising raw material costs threaten Yum! Brands’ product profitability.

SWOT Analysis: Conclusion and Implications

With so much competition out there, Yum Brands Company has to step up its game. The company’s product will be more marketable if it participates in highly competitive tactics. The spread of Yum! Brands’ policies to its goods are essential. In countries where the firm operates restaurants, liability rules should be examined to avoid earnings losses due to different market practices. Additionally, the organization should prepare ahead to minimize misappropriation of wealth from important participants by establishing correct financial planning procedures in the first place. It means the firm will have access to all financial information on the company’s most important stakeholders.

A Description of Its Key Strategies and Initiatives

Yum! Business strategies are divided into four growth important actors. Repeatable models and plans are used to help the company’s brands grow faster. At the new shops they open, customers are wowed by the variety of fresh offerings (Lovallo & Sibony, 2018). As a result, despite their higher prices than their competitors, their goods are competitive.

The Implementation Challenges Ahead

Since its beginning, Yum! Brands Company has performed very well. Profitability has been achieved in the face of international market rivalry. Because of this, Yum Brands is a holding corporation. Despite these shortcomings, the organization has made significant progress in its endeavors. Brands and product profitability are in danger due to poor financial planning. Additionally, the competitive morbidity of the plans put out by the company’s primary competitors is reduced. If you have to sell or acquire a firm, Yum Brands is a good example. Buyers are more likely to purchase a firm that has a long history of producing. Even if the firm is viable, the drawing competition may outweigh it. Therefore, it is best to sell the company during its peak season.

Financial Metrics (Yum! Brands, Inc. (YUM), n.d.).

2011 2012 2013
Revenue $2,269,548 $2,731,224 $3,214,591
EPS 6.76 8.75 10.47
Net Income $241,945 $278,000 $327,438
P/E Ratio 52.86 33.58 54.20

The Measure of Strategic Success Showing How the Strategy Will Be Evaluated

To maximize profits, Yum! Brands’ business plan focuses on four main growth factors. Repeatable models and procedures are used to help the company’s brands grow faster. Customers are wowed by the variety of fresh offerings when a new shop opens. As a result, despite their higher prices than their competitors, their goods are favorable. YUM brands’ SCA strategy is based on the company’s ability to provide consumers with rapid and efficient service and to compete in an aggressive market environment. Since its founding, Yum Brands has maintained its high standards of service and high-quality brands.

Branded items are available to consumers of Yum! Brands Company. The company’s current central direction is to increase customer service and quality. Customer loyalty has been boosted through high-quality items and excellent customer service. The company’s goods have become more profitable because of its loyal clientele. Because of this, Yum! Brands have had a favorable competitive market and have risen to the top of the market.


Company. (n.d.). Yum! Brands. Web.

Feldman, E. R. (2020). Corporate strategy: Past, present, and future. Strategic Management Review, 1(1), 179-206. Web.

Kim, M., Yin, X., & Lee, G. (2020). The effect of CSR on corporate image, customer citizenship behaviors, and customers’ long-term relationship orientation. International Journal of Hospitality Management, 88, 1-8. Web.

Lovallo, D., & Sibony, O. (2018). Broadening the frame: How behavioral strategy redefines strategic decisions. Strategy Science, 3(4), 658-667. Web.

Sheng, D., Li, Z. C., Fu, X., & Gillen, D. (2017). Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition. Transportation Research Part E: Logistics and Transportation Review, 101, 99-114. Web.

Yum! Brands, Inc. (YUM). (n.d.). Yahoo! Finance. Web.

Yum! Brands mission, vision & values. (2020). Comparably. Web.

Cite this paper

Select style


BusinessEssay. (2023, January 14). Yum! Brands Inc.'s Strategic Management. Retrieved from https://business-essay.com/yum-brands-inc-s-strategic-management/


BusinessEssay. (2023, January 14). Yum! Brands Inc.'s Strategic Management. https://business-essay.com/yum-brands-inc-s-strategic-management/

Work Cited

"Yum! Brands Inc.'s Strategic Management." BusinessEssay, 14 Jan. 2023, business-essay.com/yum-brands-inc-s-strategic-management/.


BusinessEssay. (2023) 'Yum! Brands Inc.'s Strategic Management'. 14 January.


BusinessEssay. 2023. "Yum! Brands Inc.'s Strategic Management." January 14, 2023. https://business-essay.com/yum-brands-inc-s-strategic-management/.

1. BusinessEssay. "Yum! Brands Inc.'s Strategic Management." January 14, 2023. https://business-essay.com/yum-brands-inc-s-strategic-management/.


BusinessEssay. "Yum! Brands Inc.'s Strategic Management." January 14, 2023. https://business-essay.com/yum-brands-inc-s-strategic-management/.