Yum Brands China Business Strategy Research Paper

Yum Brands China Business Strategy - Research Paper Example Yum Brands Inc. entered the Chinese market in 1987, considering the fact that during this period, the Chinese economy had rapidly grown after its liberalization. The company was one of the early players in the Chinese restaurants’ business, which has enabled it to establish its operations in the Chinese market firmly. The company’s entry into China has provided Chinese consumers with a new and unique dining experience, where they get customized and clean ambiance service. The Yum Brand Inc. business strategies have focused on menus that include both western and local consumables, with focus being directed towards offering customer preferences in each province. Business Strategies The business strategy of Yum Brand Inc. in China encompasses providing a variety of consumables, customer preferences, franchise relationships, and employing locals to key positions of the company. The company focused on strategies of employing locals in its key positions alongside delivering s ervices according to customer preferences, which vary from one province to another. The company also has established franchise relationships and built its own logistics and distributions network. Moreover, the company has been keen on its business strategy of developing new markets through establishing widespread restaurant chains in China division to increase its market share. Apparently, mainland China is Yum Brands’ leading market according to worldwide restaurant development (Enz, 2010, p.945). Internationally, the company has built a vibrant global entity by focusing on key business strategies such as establishing leading brands all over the Chinese market, driving aggressive expansion of the international market, and building franchise value and long-term shareholders for industry needs. The Company has built a unique business culture that is filled with exciting opportunities and energy for both employees and customers. According to executives, the company believes in the people, encourages ideas from all and sundry, and trusts in positive intentions of its people. Through this, the company has been able to bring about diversity in style in its business operations and consumables, considering that customer needs and preferences can be best met through diversity. In a bid to establish a huge market for base in the Chinese market, Yum Brands Inc. in Beijing sought to take over the Little Sheep Group limited, which operates a popular chain in China. This move is among the many global business growth strategies, which have seen the company penetrating and establishing its groping in the largest Chinese market. The Chinese market of casual dining was seen to grow expansively, which befits the Yum Brands move to grow beyond the chicken and Pizza market being concentrated on by Pizza Hut outlets and KFC. The company’s stake holdings in the Little Sheep limited operations have enable massive growth on foodservice operators’ growth. Mergers and take over strategies being put in place by the company have propelled its market penetration in China to greater heights, although government regulatory measures have limited its international bid. The Little Sheep Company has contributed to Yum Brand Inc’s great leap forward in winning in China market due to its widespread operations of the cuisine where patrons are able to cook meat and vegetables themselves. China’s great market embraced such kind of an idea with enthusiasm, and thus enabling Yum Brand Inc. to take root into the market. The market has since grown tremendously, with the company adding up its popularity by introducing consumables such as seafood-topped pizza and fried