Due to the firm recognize the China market, for the development of business in China, Yum Brands in China was built in Shanghai 1993, and it was in the international department of Yum Brands. With the continuous expansion of its business, in early 2005, the Chinese Yum Yum China eventually promoted to division, is a global restaurant group Yum Division 5 which is one of the largest restaurant group. At the end of 2010, the Yum in China brands has more than 2000KFC, more than 300Pizza Hut, more than 40 Pizza Hut home delivery restaurants. 10 Oriental white and five Taco Bell restaurant in more than 400 cities, and more than 150,000 employees, the company was named in the first place in the China’s catering business for many years. Yum Restaurants Group is the global growth rate in some of the most rapidly. Actually the YUM has long recognize the important market of China, since it entered into the China, it considers as the one of the five divisions of group, In 2009, the China Division achieved revenues of $3.7 billion and Operating Profit of $602 million. The operation profit of China accounting to the 37.86% of the total operation profit, the revenues of China accounting to the 34.14% of revenues. So the China division is not only provide the largest revenues and profit to the YUM, but also it has a largest market shares in China. Particularly the consumer power of China become more and more larger, the dining will have a good future, so it may become more and more important to the YUM. So the YUM took investment strategic, to achieve the strategy of YUM in China, the financial objective is: Firstly, China operating profit growth of 15%, driven primarily by: Secondly, double-digit percentage growth in units; thirdly, system sales growth of at least 12%; fourthly, same-store-sales growth of at least 4% ; fifthly, moderate G&A leverage. In this paper, I will mainly research the above strategy objective and financial objective of Yum’s strategy investment in China, and its impact to the shareholders, staffs, customers and social environment
1.2The objective and aim of paper
1.3Context and structure of paper |