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Taco Bell Analysis

Introduction In our fast paced world, fast food restaurants are very popular and fit right in. People enjoy the fact that they can get prepared food fast and at a reasonable price. There are a lot of fast food restaurants that offer you the option of buying a hamburger and French fries. So when Taco Bell came along and introduced to the fast food world Mexican food, it received a warm welcome. Taco Bell became an instant success. From the origination in 1954 to the present Taco Bell has been allowing their customers the opportunity to choose a variety of Mexican food.
The organization and all subsidiaries/strategic business units Taco Bell is a subsidiary of Yum! Brands. In May of 2002, Tricon Global Restaurants Inc. changes its name to Yum! Brands, Inc. Yum! also operates or licenses Pizza Hut, KFC, and WingStreet. Prior to 2011 Yum! also owned Long John Silver’s and A&W Restaurants. It is based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units---more than 39,000 restaurants around the world in over 125 countries. In 2011, Yum!’s global sales totaled more than $12 billion. Taco Bell alone serves more than 36.8 million consumers each week in more than 6,000 restaurants in the U.S.
Historical perspective on the organization. In 1954, Glen Bell opened the doors to his first Mexican food restaurant called “Taco Tia.” He drove around in an old bread truck handing out sombreros to everyone in the town. He also hired Mariachis to stage a colorful fiesta outside his restaurant. Since Mr. Bell had almost no marketing budget, this was a great idea to get recognition for his restaurant. Taco Tia became an instant success. At only nineteen cents a taco, the restaurant grossed eighteen thousand dollars in its first month. Later, Mr. Bell sold his share of Taco Tia to his partner and moved to Los Angeles and started “El Taco” with a group of celebrity partners. One of Mr. Bell’s friends suggested that he combine his name with his passion and call his new Mexican restaurant that he wanted to open in a different area “Taco Bell.” Mr. Bell loved the name and opened up the first Taco Bell location in Downey, Calif. This restaurant was an immediate hit. Mr. Bell began to open more restaurants and wanted to have the restaurants resemble the architecture of California’s historic Missions. “In 1964, with the help of architect Robert McKay, Glen opened the first of what would become the eventual standard for all Taco Bell restaurants: An inviting, central stone fire-pit housed by adobe-like tan brick exterior walls, a red clay-tile roof and a brown back drop, in front of a simple, Mission-style bell.” Mr. Bell wanted others to benefit from his success, so he began the franchising of Taco Bell. Only five years after opening his first Taco Bell, Glen’s little food stand was ready to become a national corporation. After a major Wall Street bidding war, PepsiCo won the right to keep Glen Bell’s legacy alive. In 2010 Mr. Bell passed away but his legacy lives on. It lives on in Taco Bell’s 6,000 U.S. restaurants, 360 franchisees, and over 160,000 employees.
Scope of the business & products/services provided Taco Bell Corp., a subsidiary of Yum! Brands, Inc., (NYSE: YUM), is the nation's leading Mexican-inspired quick service restaurant. Taco Bell serves made to order and customizable tacos, burritos, and specialties such as the exclusive Doritos® Locos Tacos, gourmet inspired Cantina Bell® Menu and lower calorie Fresco Menu. Taco Bell strives to achieve cost savings as it increases the variety of goods or services produced. The company encourages customers to “Live Más,” both through its food and in ways such as its Feed the Beat® music program and nonprofit organization, the Taco Bell Foundation for Teens. Taco Bell and its more than 350 franchise organization have nearly 6,000 restaurants across the United States that proudly serve more than 36 million customers every week.
Scope of market distribution - Global or Regional etc. There are over 6,000 Taco Bell restaurants in the US. Taco Bell wants to increase the amount of restaurants overseas. The restaurant opened up at a massive Dubai shopping mall. This is the chains first location in the Middle East. Yum wants to build Taco Bell into a global brand with locations across the world. While Yum has struggled to increase sales in its nearly 20,000-location U.S. restaurant division, the company's international results have been far better. To expand Taco Bell, which has been the company's most profitable U.S. brand, Yum plans to put the chain in Spain by the beginning of next year and in India by April. Right now, there are about 240 Taco Bells in 10 countries outside the U.S., with the majority in Canada and Puerto Rico. The challenge will be going to countries where Mexican food isn't popular and persuading customers to try the Americanized version sold at Taco Bell. Yum has tweaked the Taco Bell menu to adapt to local tastes but says it wants to keep it mostly the same as in the U.S. In Dubai, food is prepared so it is Halal, or ritually fit according to Islamic law. In India, Taco Bell won't serve beef, and the menu will use more potatoes and other vegetarian ingredients. So far, Taco Bell has made some missteps overseas. In Costa Rica and Guatemala, the chain struggled because it priced its food too high. Taco Bell has since lowered prices and moved toward a pricing structure that's more similar to its U.S. menu. Taco Bell opened a location in Mexico last year. The transactions in Mexico are not yet where they want them to be. However, Taco Bell’s track record of winning over customers overseas and the lack of competition show that Taco Bell has global potential.
Leadership and management structure/individuals The CEO of Taco Bell is Greg Creed. Taco Bell's Chief Marketing and Innovation Officer Brian Niccol has been promoted to president of the chain. Chris Brandt, a Taco Bell marketing executive, is now the chain's chief marketing officer. Mr. Brandt will lead brand marketing, media and brand sponsorships, consumer insights and digital marketing. Other corporate positions available within the Taco Bell company are: Finance, Food innovation & quality, Human resource, Legal, Marketing, Operations, and Restaurant support center. The positions that are available within the Taco Bell restaurants are: Team leader, Shift leader, Assistant manager, Restaurant general manager, and District manager.
Issues that may affect the future of the organization There are several issues that may affect the future of Taco Bell. With there being such a strong emphasis placed on the obesity rate in America, it is extremely important that Taco Bell tries to offer food that is low fat, low calorie and as healthy as possible. If there are other fast food restaurants that are offering healthy alternatives for parents and their children, it will be quite easy for them to choose to dine at one of those other healthier options. In the UK it was discovered that they were using horsemeat at Taco Bell. If Taco Bell doesn’t take the time to make sure that their European suppliers are following all of the rules and guidelines to ensure that they are providing 100% percent beef, it could result in all of their consumers losing trust in the company. When situations like this occur it can ruin Taco Bell’s chances of being successful with expanding globally as well as hurt their US reputation. There has also been many employees that have sued Taco Bell because they claim that the company refuse’s to pay them their overtime. If Taco Bell begins to be known as a company that treats their employees unfair and/or being unethical it can have a negative affect on the company. There are many issues that can arise for Taco Bell in the future but if the company operates ethically and remembers their social responsibility, things should run a little more smoothly.

References
Adamy, J. (2008). Yum brands bets on taco bell to win over customers overseas.
Retrieved on May 16, 2013 from http://online.wsj.com/article/SB1227056
32904339487.html

Morrison, M. (2013). Taco bell names marketing chief brian niccol president, announces New cmo. Retrieved on May 16, 2013 from http://www.ivytech.edu/shared/shared
_librstatewidecc/pdf-

Taco bell: Live mas- company information. (2012). Retrieved on May 14, 2013 from http://www.tacobell.com/Company

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