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Global Expansion: Yum Brands

External Influences

Management must conduct a SWOTT analysis to understand how to effectively compete in the food and beverage industry. The external environment signifies the opportunities, threats and trends of the SWOTT analysis. In order to rapidly increase in sales and share holder value management would have to consider the following external influences such as:

? Customers-segments, motivations, unmet needs.

? Competition-identify completely, incorporate strategic groups used to evaluate performances of the completion.

? Market analysis- overall size, projected growth, profitability, entry barriers, cost structure, distribution system, trends, key success factors.

? Environmental Analysis-Identify external opportunities, threats, trends and strategic uncertainties. Technological, governmental, economic, cultural, demographic scenarios (Wheelen, 2008).

Create Value

Business groups today, by and large play a vital role in the Indian economy. Corporate India, as seen today, was nurtured by many business groups that had left a strong imprint on the country's economy. In the context, it is highly interesting to explore the underpinnings of a business groups ability to create value for its shareholders (Sindhuja, P.N. 2009). Value creation happens in all three stages of investment process-identification, investment, and monitoring. In the Indian context, high levels of investor involvement in the investee companies play a significant role in value creation. In some instances, venture investors give credibility to not just the investee company but to the sector as a whole. Venture investors have de-risked IPO investments by reducing both immature business models and fly-by-night operators (Thillair, 2010).

Solution Preview

External Influences

Management must conduct a SWOTT analysis to understand how to effectively compete in the food and beverage industry. The external environment signifies the opportunities, threats and trends of the SWOTT analysis. In order to rapidly increase in sales and share holder value management would have to consider the following external influences such as:

? Customers-segments, motivations, unmet needs.

? Competition-identify completely, incorporate strategic groups used to evaluate performances of the completion.

? Market analysis- overall size, projected growth, profitability, entry barriers, cost structure, distribution system, trends, key success factors.

? Environmental Analysis-Identify external opportunities, threats, trends and strategic uncertainties. Technological, ...

Solution Summary

Globalization, aided by rapid technological innovation, is changing the basis of completion in today's business scenario. Sourcing in the traditional meaning was limited to functional activity, but today it has acquired strategic implications. In order to make Yum Brand's value chain more elastic and organizations more flexible, they must conduct a comprehensive analysis and evaluate their core capabilities and redefine how and where to source every single key activity in the value chain. Outsourcing has become strategic in the sense that core functions like design, manufacturing, HR, R&D, marketing, logistics are moved offshore so that companies achieve a competitive edge in the market place (Mookherjee, 2010). Strategic sourcing helps a business enterprise to achieve process improvements, faster-to-market, and create long-term value to its customers, thereby dramatically improving its competitive position in the market place.

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