1. Yum! Brands is the result of a spin-off by PepsiCo, where it sold its fast-food chains...
Question:
1. Yum! Brands is the result of a spin-off by PepsiCo, where it sold its fast-food chains KFC, Taco Bell, and Pizza Hut. Do you consider this spin-off successful? Why or why not? Explain.
2. Why is Yum! Brands so much more successful in China than in the U.S., its home country?
3. Why was Yum! Brands KFC so successful in China, while other U.S. fast food companies—such as Pizza Hut (also owned by Yum!), McDonald’s, and Burger King—were much less successful?
4. Given Yum! Brand’s recent challenges in China, do you consider this to be a temporary problem or a harbinger of losing its competitive advantage?
5. What recommendations would you give David Novak, Yum! Brands CEO, to overcome the company’s current challenges in China?
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1 A spinoff involves the voluntary divestment of a corporations assets where a firms existing shareholders become new owners of a separate business It has tax advantages over a sale of assets and the ...View the full answer
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