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.