The YUM brands Essay Example | Topics and Well Written Essays - 1250 words

The YUM brands - Essay Example Yum! Brand is one of the new developed companies worldwide. For instance, in 2010, the Company opened more than 500 restaurants in the mainland China. The main aim of the company is to be a leader in every significant food service category in China. KFC was the first restaurant chain to enter China in 1987 with quick services. It was also the first to bring franchising to China in 1992. KFC is still the number one quick-service restaurant brand in China.   Furthermore, it is the largest and fastest developing restaurant in the country with about 3,500 restaurants in different cities. Pizza Hut company was the first restaurant in the chain to introduce pizza and the western food-style to China in 1990 and was also the first to introduce the delivery of pizza to China in 2001. Pizza Hut has therefore emerged to be the number one casual dining brand in China with more than 560 Pizza Hut dining restaurants in many cities (Nunes et al 2010). The improvement of KFC in China is a clear in dication that knowing a business environment is very important. This is because the KFC brands have great force in China as they strive to achieve their goal and increase the business performance. The core part of improving the business is by understanding the STEP analysis. STEP analysis of business is an environmental model that stands for Social, Technological, Economic and Political factors. STEP is also used to represent the decision and frame work of macro-environment factors that are used in scanning. Other models such as SWOT, Mintizberg, and transformation model can also be used to describe the business environment.   In order to achieve the proposed goals, the business should consider various environmental factors both external and internal. When doing market search, the company is required to take into consideration various external factors that would help to know the progress of the business performance. Environmental analysis is relatively qualitative and involves the identification analysis of environmental variables, which influence the business performance. SWOT analysis and PESTEL analysis are some of the environmental analysis frameworks that have been given much attention in the world of business management literature (  Leo 1999). The international differences in habits, value, tastes and demographics, age structure, lifestyle, and income of the local people are some of the social factors that illustrate what contributed to the success of KFC in China which has the greatest number of populations. The main social factors that affect KFC store include demographic issues explaining the extent of the diverse population that contribute to the large number of its diverse consumers. For KFC to succeed in China, its managers made every effort in order to ensure that the company appeared as part of the community. In addition, demographics are in the same category with the values that are held by that particular community so as to reflect on thei r lifestyle or way of life. Most KFC customers are presented to be in the same age structure of population, class, and the structure of income of the local population (Qin, Prybutok,& Zhao, 2010). For instance, in the corner grocery shop, most customers are people living nearby, the families, the people of same age groups, and the immigrants of the area. Business environmental analysis looks at the intrinsic factors in the business envi