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What method and system of business process integration might be effective for Yu

ID: 385625 • Letter: W

Question

What method and system of business process integration might be effective for Yum! Brands, Inc., a publicly traded company?

YUM! Brands, Inc., incorporated on May 30, 1997, is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world. Through its KFC, Pizza Hut and Taco Bell Concepts, the Company develops, operates or franchises a system of restaurants, which prepare, package and sell a menu of priced food items.

KFC

As of December 26, 2016, KFC operated in 128 countries and territories throughout the world. KFC restaurants across the world offer fried and non-fried chicken products, such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products marketed under a range of names. KFC restaurants also offer a range of entrees and side items suited to local preferences and tastes. As of December 26, 2016, KFC had 20,604 units.

Pizza Hut

Pizza Hut is a restaurant chain specialized in the sale of ready-to-eat pizza products. As of December 26, 2016, Pizza Hut operated in 103 countries and territories throughout the world. Pizza Hut operates in the delivery, carryout and casual dining segments around the world. Pizza Hut features a range of pizzas, which are marketed under varying names. Each of these pizzas is offered with a range of different toppings suited to local preferences and tastes. Pizza Huts also offer pasta and chicken wings under the brand WingStreet in the United States. Outside the United States, Pizza Hut casual dining restaurants offer a range of core menu products other than pizza, which are typically suited to local preferences and tastes. As of December 26, 2016, Pizza Hut had 16,409 units.

Taco Bell

As of December 26, 2016, Taco Bell operated in 22 countries and territories throughout the world. Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, quesadillas, salads, nachos and other related items. Taco Bell offers breakfast items in the United States stores. As of December 26, 2016, Taco Bell had 6,604 units.

Explanation / Answer

Yum! should operate with strategy of related diversification . It should analyze each business as a seprate profit center whether Taco bell, Pizza hut or KFC. It might integrate its actvities across the three organization with the help of value chain analysis technique.  

It should integrate its both primary and secondary actvities to achieve value delivery to the customers .

The primary activities like inbound logistics, operations, outbound logistics , sales and marketing and after sale service . These activities will lead to value addition if properly integrated via software.

The support activities like procurement of raw material , infrastructure, technology and human resource management must be designed in such a way which provides competitive advantage in the race of competition. For example : All the three brand should utilize HR policies for its employees which will give value addition as well as integrated source of competitiveness.

It must adhere to modern technology like SAP and ERP to manage its successful business operations and retain the satisfied customers.

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