Yum! Brands Inc. in china
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Yum's Foray into China
Before entering China, Pizza Hut and KFC had met with success in Thailand, which became one of the company's top ten markets. Pizza Hut was launched in Thailand in 1980, when neither pizza nor cheese was popular; but by the end of the decade, it had made its mark in the Thai fast food market. The company was also successful in Japan. In the early 1980s, Ta Tung Wang (Wang) was appointed as the Vice-president of the South-east Asian region of KFC. In 1986, RJR asked Wang to explore the opportunities for American-style fast food in the country...
Introducing and developing a western concept in an oriental country was a challenging task. Su was of the view that it required people who had an understanding of the eastern culture as well as complete knowledge about the business practices of the west. This led him to recruit personnel from Taiwan, as they had exposure to Chinese culture as well as the Western world. They were aware of the intricacies of the market and were very cost conscious...