According to David Novak, the Chairman of Yum! Brands, the company objective is to become a global enterprise. Unlike 1997 where 80% of profit was from the United States, by 2011, 70% of its profit was from out of the United States. This step is in line with the concept of global expansion, profitability, and growth in profit. Global venture holds the possibility of a tremendous breakthrough in business. For instance Yum! Investment in China resulted to more gain in the long run compared to U.S.However, introducing products to a different part of the world require brand modification to suit the particular cultural norms, economic status, and government regulations. As pointed out by Carucci” People are not used to Mexican food globally. We intend to stay true to the of the brand, but allow some experimentation” Different brand do well in different parts of the world, Yum! Deals in KFC, Taco Bell, and Pizza Hut. Products that seem to be globally accepted include fried chicken and pizza.
Firms productivity globally require customisation and innovation. KFC Prospered in China by adding a variety of product in their menu as well as design them for the Chinese customers. For instance, it incorporated traditional Chinese foods on the list. Also, the menu included low price items and as well as select products to cater for every budget. Yum! has continually become diverse by introducing Western dining concept in their list. Besides, it started take-outs and delivery services which accounted for 70% of the Pizza Hut venture in U.S. Local employees play a role in designing the product to suit the market while the management applies such innovations. Therefore, it is about standardising products to fit in the local market. Additionally, KFC trains employees to handle customers similarly across the globe and rewards good performance. The central concept of global expansion is the adaptation to different markets basing on their variation economically, culturally and politically.
Jordan Siegel, Christopher Poliquin. (2012, October 5). Yum! Brands. Harvard Business School.