...largest casual dining restaurant company who has a variety of dining brands to choose from. Their mission is to be “The best, now and for generations... and a place where people can achieve their dreams” (Darden 10K, 2012). According to their most recent 10-K report (2012), there are many key points for review. “Of the 1,961 restaurants across the United States & Canada none of them are franchised” (Nation’s Restaurant News, 2012, p.1). Domestically Darden doesn’t offer franchise opportunities. However, they do have 28 restaurants outside of the United States operated and independent to third parties. Other key points are company sales and stocks. The total company started out in 1970 with 3.5 million in sales ending with 7,998.7 million, with 9.5% attributing to alcohol, in 2012, showing significant growth. Stock prices were at a high 55.84, low 40.69, and closed at 53.06 per share as of May 27, 2012. Ford Equity research (2013) projects that Darden will perform in line with the market over the next 6-12 months based on key factors such as earnings strength, relative valuation, and recent price movement (para. 1). “To support future growth, they are striving to change in two important ways: modifying their organizational structure to better leverage their existing experience and expertise, and they are adding new expertise in additional areas that are critical to future success” (Darden 10K, 2012). Five key executives who are most responsible for moving this...
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...1.0 Introduction Kentucky Fried Chicken is one of the well-known fast food restaurants in the world. Kentucky Fried Chicken (KFC) Corporation, based in Louisville, Kentucky, is the world's most widespread chicken restaurant chain offering services to more than 12 million customers in 109 countries all around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC was founded by Harland Sanders (Sanders) in the early 1930s. He started cooking and serving food for hungry travelers who stopped by his service station in Corbin, Kentucky, US. KFC has been a brand and operating segment, of Yum Brands since 1997 when that company was acquired from PepsiCo as Tricon Global Restaurants Inc. Background of the Ethical Issue : Recently KFC faced accusation from non government organizations like PETA and Greenpeace regarding unethical practices from KFC’s supply chain such as Pilgrim’s Pride and Cargill.KFC was accused of ill-treatment towards its chicken by PETA and Greenpeace blamed KFC for its role in the destruction of the Amazon rainforest. This case study discusses these ethical issues in detail and concludes with suggestions and recommendations from the case study team, on how similar issues could be avoided or tackled. Objectives Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country. Which are: Appreciate the need for protecting animal...
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...Yum! Gets Global Image for Pizza Hut Early in 2007, Yum! Restaurants International engaged Jump to work with them to create global alignment and a new design image for their Pizza Hut asset base. As an international brand with thousands of restaurants around the world, managing the brand at the individual restaurant design level is an enormous task that requires understanding, cooperation, and a strict, but flexible set of guidelines that defines the Pizza Hut image moving forward, yet provides latitude for regional variation and influence. Working closely with the corporate teams out of Kentucky and Dallas, and in consultation with regional managers on 5 different continents, Jump worked first to understand and discover challenges and successes within the current asset base. Researching the existing assets uncovered wide regional differences in approach, interpretation, and execution, and allowed us to craft identifiable and reachable objectives for all parties within the new program. Defining current best practices on both the exterior and interior of the design image while flushing out regional concerns arrived at a set of guidelines for the new asset image that accommodated regional variances. After exploring conceptual work on the restaurant exterior, we shifted our focus to exploring design options for the interior of the restaurant, creating multiple tiers with different materials and finishes based on regional demand. We also developed artwork packages for each...
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...the their first franchise in Topeka. By 1966, Pizza Hut established a large home office in Wichita to help oversee the 145 Pizza Hut franchise restaurants that were established. It didn't take long for Pizza Hut to become the No. 1 pizza restaurant chain in the world. In 1971, only 13 years after the Carney brothers started their first Pizza Hut, Pizza Hut became the world's most successful pizza restaurant in terms of sales as well as in the number of restaurants around the world. Pizza Hut has aggressively sought out franchise owners. It has made itself more attractive to franchise owners is by aligning itself with other restaurants such as Taco Bell, Kentucky Fried Chicken and Long John Silvers (ultimately all becoming a part of the Yum! Franchising group). One of the more unique items of note, Pizza Hut sets itself apart from a lot of its competitors because it allows Franchisee's autonomy in deciding some of the items they will carry on their menus such as being free to use different kinds of toppings from different suppliers. While there are differences in ingredients, the basic elements in each pizza are the same. This allows consumers to get the familiar taste they love, but also allows franchise owners to branch out. Pizza Hut Franchise Submarine Sandwiches and Salads Company Website: www.pizzahut.com 2012 Rank (Entrepreneur.com): 9 2011/2010/2009 Rank (Entrepreneur.com): 13 / 15 / 7 Total Investment: $295,000 - $3,000,000 (variation due to size and location...
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...media into its business plan Yum! Brands is a global company that operates in 41 different countries and territories with approximately 41,000 restaurants. The company was formed in 1997 as a spin-off of PepsiCo and has become a leader in international retail development, opening an average of five restaurants per day outside the U.S. Yum! Currently owns 3 different concepts: KFC, Taco Bell and Pizza Hut. Colonel Harland Sanders is the founder of Kentucky Fried Chicken and is proven to be a great American success story. He began frying chicken in the early 1930’s at a travelers’ service station in Corbin, KY and after perfecting his 11 herbs and spices and frying technique that is still used today, the Colonel began franchising in 1955. 10 years later there were over 600 restaurants in the U.S. and Canada. The Benefits of using social media and the internet The benefits in using social media and the internet for any business is to increase exposure, gain traffic and connect with people. A business needs to create strategies that link the customer experience with the technologies and systems required to deliver the right content at the right time. (Hisaka, 2012, para. 1) KFC has to stay relevant to its customers and followers because it’s a brand that everyone knows and has been around since the 1950’s. Interacting with customers and asking for their opinion allows them to form a bond with the company and build trust with the brand. Using social media sites like...
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...Al-Qaeda making comeback in Iraq, officials say BAGHDAD (AP) — Al-Qaeda is rebuilding in Iraq and has set up training camps for insurgents in the nation's western deserts as the extremist group seizes on regional instability and government security failures to regain strength, officials say. / Iraq has seen a jump in al-Qaeda attacks over the last 10 weeks, and officials believe most of the fighters are former prisoners who have either escaped from jail or were released by Iraqi authorities for lack of evidence after the U.S. military withdrawal last December. Many are said to be Saudi or from Sunni-dominated Gulf states. Teenage School Activist Survives Attack by Taliban At the age of 11, Malala Yousafzai took on the Taliban by giving voice to her dreams. As turbaned fighters swept through her town in northwestern Pakistan in 2009, the tiny schoolgirl spoke out about her passion for education — she wanted to become a doctor, she said — and became a symbol of defiance against Taliban subjugation. / On Tuesday, masked Taliban gunmen answered Ms. Yousafzai’s courage with bullets, singling out the 14-year-old on a bus filled with terrified schoolchildren, then shooting her in the head and neck. Two other girls were also wounded in the attack. All three survived, but late on Tuesday doctors said that Ms. Yousafzai was in critical condition at a hospital in Peshawar, with a bullet possibly lodged close to her brain. Israel's Benjamin Netanyahu calls for early elections JERUSALEM...
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...VRIO Framework of KFC VRIO framework use to find out the core competencies or sustainable competitive advantages which are helping firm to operate profitably in long term. For KFC, we try to find out its competitive advantage where we used four key components which help to identify in what KFC have competitive advantage compare to its competitors. Resources Valuable Rare Inimitable Exploited by the Organization Brand Recipe Experience X X Location X X Price X X Advertisement X X X Through the use of VRIO framework we have found that brand value and the recipe of making food in KFC are its competitive advantages. The reason behind these- Brand: The brand or the logo of Kentucky Fried Chicken, the KFC, is a registered trademark for their company which is a part of Yum! Brand. As it is registered it is inimitable and thus it is rare, as only the company it is franchised to gets the right to use this logo. The logo acts as a brand name, with Colonel Sanders with his signature string tie, wearing a red apron, and with this uniqueness they have become very famous and this individuality has made it easier for people to recognize it, making it a very valuable essential for the company. And since the beginning of the KFC it has been exploited by the company thoroughly, first by Colonel Sanders himself, and then by the companies that owned it. Recipe: The secret recipe that was used by Colonel Sanders since 1940 has been invariably one of the...
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...A. Introduction to Legal Section Should the underprivileged have help from the government? Should the underprivileged have rights to use these benefits on fast food? Would it change your opinion if the underprivileged were specifically the “elderly”, “disabled” or “homeless?” Under the law people have these opportunities, even though everyone may not agree with it. The general concern is the “unhealthiness” that fast food brings to America; obesity and diabetes is already a concern and the government using American tax dollars to promote unhealthy eating doesn’t help. B. Statement of Relevant Legal Principles and Rules of Law Food Stamps Act of 1977 Under the Food Stamp Act of 1977 eligible households may be issued coupons with which to purchase from approved food stores. It was enacted to promote the general welfare by permitting low-income households to obtain a nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for participation. Under this Act, the Secretary of Agriculture is authorized to formulate and administer a food stamp program under which eligible households will be provided with the opportunity to obtain a more nutritious diet through the issuance of coupons. These coupons are to be used solely to purchase food from retail stores which have been approved for the participation on the program. (3 C. J.S. Agriculture § 36) The Secretary of Agriculture will propose allowable amounts...
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...years later, KFC has established its presence in virtually every larger Chinese city and has developed its localization to an astonishing degree. KFC’s performance in the Chinese market significantly outgrew the brand’s performance in its home market in terms of revenue and outlet numbers. With more than 4.500 outlets, KFC China generates more than half of its yearly revenue for the Kentucky based Yum! Brands. There is no doubt that KFC China has written an impressive page in the history of western brands succeeding in the Chinese market. The aim of our case study was to answer three questions: what made KFC so successful in China? Which challenges and opportunities does the company face today? And which strategies are and/or should be in place? To answer the first question, standard macro-analysis tools were used and a detailed look at the market environment at the time of market entry was taken as well as the measures KFC undertook by then. The following are the factors that we believe contributed to KFC China’s success: Reposition: KFC’s reposition into a Chinese style western brand enabled KFC to catch the market trend when it entered the Chinese market. Localization: KFC used localized food to attract customers and employed local management to gain insights of Chinese market. Rapid expansion: KFC China took rapid expansion to garner and repeat first mover advantages,...
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...known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising. Kentucky Fried Chicken could be considered a global organization...
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...in the US. They currently do not have a time line. They say that they want to be involved with something that is already growing. Their currently operation in the US has been very profitable with a growing 9.9 % in 2013. Their long term plan is to have continuous store expansions and acquisitions of several more brands abroad and to be number one in Asia. McDonalds on the other hand plans to continue to expand in China. They plan to increase from 300 to 2000 stores on the mainland this year. With the increase that McDonalds is planning, increasing their employees in the world’s second largest economy by 83 %. Yum! Brands is extremely large and has over 40,000 restaurants and in more than 125 countries and territories. Yums has been around much longer that McDonalds and Jollibee and have several restaurant brands like KFC, Pizza Hut and Taco Bell. 1. Which of these companies seems best positioned in Southeast Asia? Based on what I have read, I believe the Asian based companies are in a better position. Jollibee base their products on what the culture is and has made an impact on slowing other companies. 2. What advantages might a “local” brand like Jollibee have over the global companies? What advantages to the global MNCs have? Local companies are locally owned and cater to the foods that the people eat in that country given them a much larger advantage over the other companies. MNC’s have an advantage as well. International growth has dramatically...
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...Approach to China The Factors Behind Their Success Westernized fast food chains are steadily growing in foreign countries. Kentucky Fried Chicken is one of the leading U.S. fast food chains currently in China. There are several factors that have contributed to KFC’s rapid expansion and success in China. The story of KFC in China is one of great success on an economic level, as well as a great example of international business. There are many factors behind KFC’s success in China which include, five competitive advantages: infusing a Western brand with Chinese characteristics, expanding rapidly, developing a logistics network, training employees in service, and focusing on ownership rather than franchising. KFC is part of the Yum! Brand, which also owns Pizza Hut and Taco Bell. KFC China’s success in the international market has all been due to its five competitive advantages. The first of these advantages is infusing a Western brand with Chinese characteristics. KFC China makes sure that even though it is a US chain and restaurant it has worked hard to assimilate into the Chinese culture. They have done this by offering a variety of menu choices that cater to the local cuisine. They have also expanded their kitchens and their workforce to be able to produce and accommodate for the additional menu options. Extended families are a big part of Chinese culture; KFC China has acknowledged this by increasing the square footage of their establishments in China. Another advantage...
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...Future Expansion Pizza Hut came to Pakistan in somewhat the same way it began in America; it was Dan Carney who approached Manzar Riaz with proposition of bringing the chain to Pakistan. Along with its flagship restaurant in Clifton it has three more operational units functioning in Karachi, while one is functioning in Gulberg, Lahore. It is called “RED ROOF”, with seating capacity of 350, which makes it the largest in the sub-continent. Pizza Hut being the first international Franchisee in Pakistan got an over whelming response when we opened up. * There is a strong untapped market across Pakistan for the introduction of Pizzas, Therefore consumers will be attracted towards the introduction of Pizza Hut across Pakistan. * Consumption pattern is more in Karachi Most importantly the food industry is attractive for the entrants, so, Pizza Hut will reap huge benefits out of pursuing this strategy. * Eating out” is the main source of entertainment in Pakistan .Pizza hut is soon to open new outlets in Gawadar port because there is new potential for new market. Have an opportunity to open an outlet in an emerging market * Soon to have outlets at Airport and Port Grand because eating Pizza is a rising trend of Pakistani society. * Pizza Hut has an opportunity to target new segments of class “C” customer base as they are currently targeting “A” and “B” class customers i.e. income groups of 50,000 & above respectively Recommendation Strategy: 1 Pizza Hut...
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...INTRODUCTION This project puts in perspective the multinational company called Yum!Brands, which is an American company in the fast-food industry. We will be discussing about some aspects of this company generally, but we intend to give more details on the company Kentucky Fried Chicken(KFC) which is one of the Strategic Business Units (SBU) of Yum!Brands. We will give the profile of Yum!Brands and KFC, and also analyze the strategy of the company, its internal and external environment, its position vis-à-vis its competitors, its competitive advantage and how far it has come/how well it is doing today. We intend to focus on one local market, so in this project we are taking KFC China as our case study. We decided to choose Yum!Brands and specifically KFC as our project case study because we have noticed the rapid growth of the fast-food industry. Fast-food is a typical American trend which reflects the American eating culture of “grabbing a quick bite” so to speak. Today people are very busy, not only in America but all over the world. People have less time to sit and eat a home cooked meal, especially at lunch time when almost everyone is out of the house and working. The most convenient thing to do is to go for a “fast-food”. We noticed that this trend has even moved from being just a lunch-time substitute for home cooked meals to being a fun time meal between friends, colleagues and family. Some corporate bodies even order fast-food for meetings or corporate get-togethers...
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...Healthy Fast Food? Women Are Buzzing About McDonald’s Jan. 27 2011 - 1:24 pm | 3,391 views | 0 recommendations | 3 comments By JENNA GOUDREAU While many may deem “healthy fast food” an oxymoron, a recent report finds that fast food and sugary brands with new health initiatives are gaining women’s approval. Marketing research group Women at NBCU tracks the top 500 brands that are most important to women each month by following what they search for and talk about online. In the last six months, several fast food brands shot up in the rankings. Burger-and-fries chain McDonald’s climbed 10 places to become the 14th most popular brand among women. The surge comes after a partnership with social game FarmVille, likely an effort to align the brand with fresh farm produce. Meanwhile, fast-food company Wendy’s ascended into the top 100 brands, taking the No. 96 spot, after rolling out four new salad options. Domino’s Pizza leaped up 140 notches in December alone following a major ad push about its fresh ingredients, like farm-grown tomatoes and real cheese. Chocolate-maker Nestle and syrupy soda Sierra Mist also shot up the index after announcing new health initiatives. “With the national obesity crisis at an all-time high, women are clearly taking notice,” said Melissa Lavigne-Delville, VP of trends and strategic insights for Women at NBCU, in a statement. The news comes on the heels of this week’s release by The National Academy of Sciences that links obesity with America’s...
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