Yum India to Work Without a CEO
India: Kentucky
based Yum brand, the company that has been in India for more than 12 years,
owner of Divisions such as KFC, Pizza Hut and Taco Bell has decided to alter is
strategies in Indian and other Key markets to boost up its sales in a slow
growing consumer market for western style foods. Yum Brands owned KFC is facing
challenges in the
Competitive burger market while
its Pizza division has suffered market share loss in the Pizza Market.
Globally, the Yum brand has
decided to splits its operations to two autonomous companies. One will manage
brands KFC, Pizza Hut and Taco Bell and another will manage China Division.
Furthermore, the company has
decided to restructure its hierarchy by having different heads for its three
different divisions one each for KFC, Pizza Hut and Taco Bell.
According to TechSci Research the
Indian fast food market has a future potential to grow and with inclination of
Indian youth towards western culture and food, the scope of increasing the fast
food business in Indian Market has also increased. With an estimate of 14 per
cent increase every year in the western fast food category the company can use
this opportunity to expand their coverage.
The company’ policy of
Splitting and narrowing and by focusing on each unit as One separate business
could be a successful move to regain growth and the split will also help the company to achieve
compelling growth strategies, distinct investment characteristics and optimized
capital structures.