The Structural and Design Analysis of Yum Brands, Inc.
An Integrative Paper Following the Guidelines of BUSI 522
Columbia College, Columbia, Mo.
This work contains a brief look at Yum! Brands Inc. structure and strategy. Being the biggest restaurant chain in the world has its drawbacks. What is found with-in the confines of Yum! is a sincere desire to dominate the restaurant business globally with what they refer to as The Big 3 KFC, Pizza Hut and Taco Bell. That desire appears to be an obsession with the upper levels of management, especially with the CEO David Novak. I will show that the strategy of Yum as dictated by Novak is one of great promise for the China market and other world markets. After all 70% of the income for Yum! comes from foreign markets. But, what about the US? Does the current strategy and structure provide an equal “shot” for stores in the ‘States? Has Novak’s zeal to be the world’s largest restaurant chain allowed, and in some cases even demanded that, attention be focused on new global markets with little consideration being given to the US market? This paper attempts to answer these questions by taking a glimpse at others are saying and writing about Yum! and compare it to the text and teachings of this course.
Organizational Theory Literature Review
Prusak, L. (1997) Knowledge of Organizations. Newton, MA. Butterworth-Heinemann
Prusak writes that an organization’s knowledge has always been critical to its competitive success. He goes on to say there was not much emphasis on the management of knowledge until globalization came into play. Product innovations are the result “of a group’s knowledge of un-served markets and/or new technical possibilities.” Efficient operations come from the knowledge of how things work through the organization. “Market share grows with better knowledge of customers and how to serve them.” Prusak states about change that, “Things have changed. What are...