Assignment on Yum Business Analysis

Running head: YUM! BUSINESS ANALYSIS
YUM! BUSINESS ANALYSIS
Name of the Student
Name of the University
Author note

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YUM! BUSINESS ANALYSIS
Table of Contents
Part 1................................................................................................................................................2
Question 1....................................................................................................................................2
Question 2....................................................................................................................................4
Question 3....................................................................................................................................6
Part B...............................................................................................................................................8
Part C...............................................................................................................................................9
References......................................................................................................................................10

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YUM! BUSINESS ANALYSIS
Part 1
Question 1
Threat 1
The threats that are present in the operational process of Yum!’s can be well diversified
in 3 main categories. Competition among the business organization is considered as one of the
major threat that is present in the system. As there is a continuous competition with the brand of
McDonalds, high competition is present in the business processing.
Threat 2
Another threat that is present in the operational process is namely taxation. It can be
stated that there is a difference in between the taxation process of different countries. This might
be affecting the cost that is incurred in the operational process. This is one of the main reason
that quality of the product might be getting affected in a negative manner in order to maintain the
profit margin of the operational process.
Threat 3
Another major threat that is present in the operational process of Yum! is that the
accounting system have been prone to high changes. This section includes the fact that there
have been constant change in the accounting laws of the country and the legislation is to be
bought. Yum! might fail in the operational process. This might lead to legal issues that are
present in the system.
Models that can be used for elimination of these issues are as follows: -

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YUM! BUSINESS ANALYSIS
 Usage of Porter Five forces model can be implemented in the process. With the help of
Porter Five forces model, proper understanding of the marketing competitiveness and
understanding the market attractiveness (Porter, 1980). This model analyzes the direct
industry competitors, Suppliers, buyers, potential entrants and the substitute goods and
services.
 Usage of contingent model of accounting change can be used for elimination of the issues
that are created due to accounting changes that are brought in. the entire model is
diversified in 6 stages. The stages are namely State of equilibrium, Financial
scandal/significant economic change (financial reporting that is proven to be faulty).
After this stage, search of consensus as to how to resolve the issue. After this stage, new
regulation is patched and put into rules (Haller and Walton, 2003). After this again stage
of equilibrium arises and unintended consequences takes place. However, it can be stated
that regulations often fails to see the side effects.
Opportunity 1
The 3 main opportunities that are to be considered in the process includes that there is a
huge market in China to explore and the potential of the market is estimated to be high. One
aspect that is to be considered is that Yum! have been gaining positives form the market form the
very beginning with US based products and brands, namely KFC and Pizza Hut. Now they have
been focusing on developing Chinese food brand. They have been working on the same with the
name of east Dawning. High acceptance of this trial is expected to be high.
Opportunity 2