The Question: YUM has just branched out of China into Tibet. Good, Bad, Indiffer

Question

The Question: YUM has just branched out of China into Tibet. Good, Bad, Indifferent? Explore the possible impact on Tibet.

Information to go with the question: YUM! BRANDS’ STRATEGY FOR BECOMING THE LEADING FOOD SERVICE BRAND IN CHINA

In 2013, Yum! Brands operated more than 38,000 restaurants in more than 117 countries. Its best-known brands were KFC, Taco Bell, Pizza Hut, A&W, and Long John Silver’s. In 2012, its fastest growth in revenues came from its 5,700-plus restaurants in China, which recorded operating profits of $963 million during the year. KFC was the largest quick-service chain in China, with 4,260 units in 2012, while Pizza Hut was the largest casual-dining chain, with 987 units. Yum! Brands planned to open at least 700 new restaurant locations annually in China, including new Little Sheep units and East Dawning units, which had menus offering traditional Chinese food. All Yum! Brands menu items for China were developed in its R&D facility in Shanghai.

In addition to adapting its menu to local tastes and adding new units at a rapid pace, Yum! Brands adapted the restaurant ambience and decor to appeal to local consumer preferences and behavior. The company changed its KFC store formats to provide educational displays that supported parents’ priorities for their children and to make KFC a fun place for children to visit. The typical KFC outlet in China averaged two birthday parties per day.

Explanation / Answer

Like China, Tibet is a country run on culture. Now KFC was not famous on taste when it opened its first Tiananmen Square. But it brought a feeling of American culture with it. A different feeling when compared to other restaurents in China. But in Tibet, being a smaller region may have a different effect as it is advised by their spritiual leader Dalai lama who is staunch believer in vegeterianism. There are several right group which are opposing KFC opening in Tibet. But overall there is people in Tibet who want a chain like KFC and is strongly supported by China so i will consider it a good business move,

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