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yum china.doc

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York University
Administrative Studies
ADMS 1000
Hernan Humana

SWOT Analysis – notes for Will Strengths: - Designed menus to suit the local public tastes - The CEO has hired the right people in the company (previous restaurant experience, write and speak Chinese, understand Chinese consumer, had experience in the Western way of doing business) - would not be seen as a foreign presence but as part of the local community - Pizza Hut wants to capture more students to consume: offer discount cars given to college students and lower price snack items - The CEO is able to combine Chinese and Western characteristics to operate the company - Offer Western culture into China: organized activities such as teaching English songs and Western dance - Having the most advanced and integrated cold-chain system and distribution system in China - developed “New Fast Food” concept that focuses on variety, quality, taste, cooking platform and eating occasion that involved in Chinese characters Weaknesses: - Hard to find vertical integrated suppliers to work with - Innovation is difficult to apply in China Opportunities: - Take the best ideas from the US fast-food model and adapt them to serve the needs of the Chinese consumer - Persuade parents to let their young children to work for Yum as part-time employees Threats: - Food safety PEST Political - As a foreign company, Yum China has to operate with a local partner before entering into China. Therefore, the first KFC and Pizza Hut had to own through local joint venture partners. - In concerning the issue of children’s health, Yum China lobbied Chinese government to take obesity seriously and pushed them in promoting education; moreover, the marketing group worked on nutrition campaigns through the Ministry of Health Economic - Yum opened 300 stores in 1999, and estimated that over 2 million Chinese consumed in its stores every day Social - Chinese consumers are willing to try Western food, and they enjoy and expect more variety on the menu - Chinese consumers also concern more about health problem; this led Yum began to introduce more vegetable dishes on the menus; developed youth basketball competitions and sponsored gymnastic dance programs in sch
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