Real World Challenge (RWC) Proposal - Yum China

Background: With licenses for internationally famous brands including KFC, Pizza Hut, and Taco Bell, Yum China Holdings, Inc. is a well-known and significant fast-food restaurant company in China. It has led the charge in bringing Western-style fast food to the Chinese market since its founding in 1987, solidifying its position as a significant player in the sector.

Challenges:

Yum China faces fierce rivalry competitionfrom a wide range of domestic and internationalcompanies, including industry behemoths like McDonald's and KFC, which provide a range of comparable goods and services. Strategic maneuvering is required due to the intense rivalry, along with pricing constraints brought on byboth customers and rivals. Additionally, the business struggles with the increased weight of labour expenditures brought on by rising minimum salaries and related charges. Vigilance has increased in response to recent cases of food safety issues, including salmonella outbreaks and E. coli infections.

limited resources make investing in cutting-edge product development and powerful marketing campaigns difficult. The complexities of the supply chain, resulting from the need to get materials from different sources, have been a cause of dispute. The market's dynamic nature, characterized by rapid adjustments in consumer tastes, emerging technologies, and regulatory environments, necessitates an adaptable strategy. Addressing the desires of health-conscious customers is critical for long-term competitiveness. Furthermore, the organization operates under the ongoing scrutiny of a vigilant social media environment, needing a proactive approach to reputation management.

Organizational Behaviour Perspective.

Yum China must strategically exploit digital technology in the aftermath of the COVID-19 outbreak to smooth the shift to online distribution methods and strengthen its digital presence, maintaining its competitiveness in the changing economic landscape. Prioritizing sustainability necessitates a complete approach that spans from source to consumption, with an emphasis on food waste reduction and energy efficiency. Yum China must develop an integrated, digitally-driven strategy that celebrates innovative goods and services and is supported by savvy data analysis and a keen awareness of customer preferences. It is critical to embrace Corporate Social Responsibility (CSR) programs that align with the brand's basic values and have a beneficial influence on the communities in which they operate. Supplier risk management requires vigilance, which necessitates a complex approach that includes contingency planning, rigorous audits, and supplier diversity.

Questions for Discussion:

1. How can Yum China change its organizational structure and culture to better suit the Chinese market's specific problems and opportunities? (How can it be adjusted to accord with market dynamics given its hierarchical structure and customer-centric culture?)
2. What measures may be used to improve collaboration between corporate headquarters and specific restaurant locations? (How might communication channels be enhanced for greater coordination, with a focus on cross-functional cooperation and decentralized decision-making?)
3. How can Yum China ensure that responsibilities are distributed effectively across various teams to streamline operations and maintain quality standards? (Taking into account the inclusive approach and decentralized decision-making, how can roles and responsibilities be clarified and optimized for efficiency?)
4. What leadership styles and practices should Yum China's executives apply to ensure that expectations are conveyed effectively to employees at all levels? (Given the significance of clear communication, how can leadership styles be improved to successfully communicate expectations?)
5. How can technology and communication platforms be used to improve communication and expectation alignment within the organization? (How might digital technology and communication technologies be used to improve transparency and information flow?)

Yum China can negotiate the obstacles it encounters and develop a culture of adaptation, cooperation, and innovation while retaining brand integrity by addressing these topics from an organizational behaviour viewpoint. This strategy will allow the firm to prosper in China's dynamic fast-food market.

Write a final consulting report on your own challenge case, in APA or MLA format, and no less than five pages with proper citations. The Paper is due by Monday night at 11:59 pm of week 8. When you submit your case, name it your last name. First name. Topic (e.g., Hou.Ning.SCSU Employee Motivation).

A recommended structure of the report should include: an executive summary, background, statement of problems, proposed solutions (theoretical and empirical support)

with theoretical and practical support, conclusion/final recommendation.

Check out here for instructions on citations and references.

Assignment Rationale: Application of the course knowledge and/or practice of your critical thinking in the research area.