Yum! China Case Study Analysis
Mar 30, 2015
Yum! China Case Study Analysis
IntroductionYum was the parent company of
several restaurant chains including KFC, Pizza Hut, and Taco Bell, which improves them and expand in more area in China.
Sam Su is the Chairman and CEO of Yum! Brands China Division and Vice-Chairman of Yum!
Yum was the largest restaurant company in the world in terms of the number of units.
Introduction (cont.)
Introduction (cont.)
Yum’s GoalTo become the best restaurant
company not only in China but the world
Increase market share by opening up whole country
Source from China whenever possible
ConstraintsFast food industry is associated
with obesity, and China’s obesity problem is growing swiftly
Not enough supply capability exists to cover business needs completely
Infrastructure problems: The roads in China are in poor condition during winter months.
Work Force
Main Problemmajor problem is that food
production in China is still highly variable, and there is inconsistency within the supply chain.
Lack of supply for Dairy Product.Obesity is Yet another potential
problem.
AlternativesInvest in a small number of large
sources.
Invest in many different sources based on the tier system that Yum has established.
A third alternative would be outsourcing most of Yum’s supply needs.
ImplementationSteps to implement the best
alternative:
◦ splitting up the supply chain into regions
◦hiring consulting teams for each region
◦continue building a better storage system to aid in transportation of supply.
ConclusionYum! China have all the right
direction towards their goal, only the supply constraints are cutting the way. However, the restaurants led by Yum! Are growing rapidly and out growing other competitors in China. In the Future, Yum! Planning to reach 800 million by 2025 in economic standing.