Relevant Case Facts - History
Early Life of Colonel Sanders
Sander’s First Franchise in 1952
New Management/culture for Kentucky Fried
Chicken after KFC sale for $2M
Acquisition of KFC by Pepsico/Tricon Global
Heublein Makes Changes in 1970
1980’s Profit and Expansion
From $105 to 7.2 Billion
in 50 years
1952, Col. Sanders started franchising his recipe door to door financed by his$105. 00 SS Check
1964, Col Sanders had more than 600 franchised outlets in the US, INDIA and Canada.
1964, Sold his interest in his company for $2 million to a group of investors.
1966,K FC went public
1969, Listed on the NYSE
1971,K FC was acquired by Heublein Inc. for $285 million.
1982, Heublein & KFC Inc. was acquired by RJ Reynolds
1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.
1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.
2002,Tr i con changed it's corporation name to Yum! Brands, Inc. .
NOW:
Yum Brands, Inc. is the world's largest restaurant company in terms of system units with
nearly 32,500 in more than 100 countries and territories.
Yum! Brands, Inc., is a Fortune 300 company
Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.
Current Market Cap value on the NYSE is 7.2 Billion
Problem/Issue
How would KFC maintain a market
leadership in the global fast-food industry
Issue:
A competitive marketing strategy in the international market
focused on the Latin American countries
Internal Analysis
Functional Areas
Finance/Accounting
Since 2001, Yum Brands Inc. has outperformed the market
Computer Information Systems
Newly established Computer information system
Marketing
Positioning among competitors is favorable
unconventional methods of distribution
multibranding
Management
Objectives and goals are measurable and achievable
Team empowerment
Productions/Operations
Constant improvement on quality of...