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The last strategy is very suitable for the home market. The eating habit trends point to a change in the average American towards a healthier lifestyle. Yum! has a weakness point in this area as its products are not perceived as healthy. McDonalds has developed a number of products for the customers interested in a healthier died, such as salads. Other competitors, such as Wendy managed to prepare the same products with less 10 grams of fat in it. The healthy lifestyle trend opened the way to more competitors which sell quick-service healthy products, such as: Panera Bread, Subway and Quizno's.
The consumer habits change from one generation to another. The trend in the last generations is not only towards healthier products, but also for gourmet products at the expense of fast food. This is one of the reason why quick restaurants such as Panera Bread, Subway and Buffalo Wild Wings gained popularity lately. Consequently, as their popularity increased, these restaurant chains managed to produce food products of higher quality at marginally higher prices. This type of restaurants represents a threat for Yum! Brands given the current consumer habits and their success in the market.
The industry prospects are in favour of restaurant industry. Thus, according to the National Restaurant Association, consumers will spend over 53% of the budget allocated to food on food prepared away from home by 2010, an increase of over 4% from 1999.
The industry is populated by a small number of large chains that manage to achieve high economies of scale and deliver cheap products to customers. Yum! Brands is part of...
Additionally, the large size of the group enables it to develop cost-effective operating systems (e.g. superior supply chain management solutions) that create a true price advantage over competition.
The competition in the food industry is getting stronger because companies are competing globally and the strongest markets are stagnating, which forces companies to be creative to gain competitive advantages. Some develop better operating systems that drive cost efficiency, some develop new and improved products, while others explore new markets that bring home more revenue.
Reference List
Clarke, P., Hedden, S. & Olson, C. 2006. Yum! Brands - Consumer Discretionary. Krause Research Fund, vol. Fall (November).
NY Times by Tracie Rozhon. 2007. Just to Add to the Pressure, the Name Is Yum. Published October 6th, http://www.nytimes.com/2007/10/06/
The company's sales have registered a 5% to 10% YoY growth.
The growth is mainly generated by the success in emerging markets, such as China.
Source: Corporate Annual Reports
The main market remains U.S. despite its lack of growth. China offers a large potential as the Chinese consumer's purchase power increases exponentially and this is an important growth factor for Yum!
The indicators on the left hand side summarize the following: Yum! started the day with $37.09/share; did not evolve much during the day; the share's performance is lower than the same week last year; the volume of transactions was
Reference List
Clarke, P., Hedden, S. & Olson, C. 2006. Yum! Brands - Consumer Discretionary. Krause Research Fund, vol. Fall (November).
NY Times by Tracie Rozhon. 2007. Just to Add to the Pressure, the Name Is Yum. Published October 6th, http://www.nytimes.com/2007/10/06/
The company's sales have registered a 5% to 10% YoY growth.
The growth is mainly generated by the success in emerging markets, such as China.
Aspects such as weight reduction, disease reduction, and overall peak performance will be emphasized (Jeffery, 2006). Sponsoring many of Australia's more popular sporting events with the products would also be very beneficial. Placement of these products will occur within all of the Yum! Brands locations. As mentioned above, two strengths of the company are its global positioning in regards to its brand, and its overall depth of franchises (McGinley,
What is it that PETA wants the company to do to raise its ethical standards over their chicken suppliers? They have several key arguments with the reasons for them. First, they want suppliers to comply with "Animal Care Standards" in use throughout the country, which would ensure better living and growth conditions for the chickens. They want them to use another method of slaughter that would remove the ability to
Panera Bread Company operates in the restaurant industry. The company is operating in the retail bakery-cafe segment of the restaurant industry in the service sector. The company can be considered as a "fast casual restaurant" because it is a mixture of the fast food and causal dinning (Tillotson, 2003). The company is a listed company in NASDAQ as PNRA. Its stores are mostly located in suburban areas. Main competitors of
Financial Analysis of Mcdonald A financial analysis McDonald's Cor Company Overview McDonald Corporation is a global company that conducts business in 117 countries. McDonald operates 32,737 restaurants and 26,338 franchises in the highly competitive fast food industry. Since 1940, McDonald has built a loyal customer base by continuing dedicating to customer service and providing high quality fast food for customers. Presently, McDonald could boast of over 60 millions customers and the company
Net Income Year Net Income 2008 $964 million 2009 $1.0 billion 2010 $1.1 billion ("On the Ground Floor of Global Growth," 2010) The average rate growth in net income is 6.5%. The below table is illustrating the different projections over the next three years. Net Income Estimates Year Net Income 2011 $1.17 billion 2012 $1.87 billion 2013 $1.99 billion ("On the Ground Floor of Global Growth," 2010) These figures are highlighting how the net income will be consistently increasing between 2011 and 2013. Earnings Per Share Year EPS 2008 1.91 2009 2.17 2010 2.53 ("Yum Brands," 2010) ("On the Ground Floor
Strategic Management at McDonald's McDonald's Strategic Management Strategic Management at McDonald's Strategic Management at McDonald's McDonald's: Introduction Organizational Structure and Corporate Governance Industry Sector Analysis Michael Porter's Five Forces Model Key conditions in the External Operating Environment of McDonald's and its Industry The Value Proposition on McDonald's Products Financial Performance SWOT Analysis for McDonald's TOWS Matrix for Alternative Strategies BCG Growth Share Matrix for McDonald's Marketing, Financial, and Research & Development Strategies McDonald's Leadership Joint Ventures, Strategic Alliances, and Partnerships Performance Measurement Methods and Benchmarks Recommendations References Table of Contents Sr.