The article I chose discusses the increasing economic success of Yum Brands, especially in China but throughout the world in general. Although labor and economy costs have risen in the weak economy, Yum Brands has utilized “international expansion” to increase their profit margins, “particularly in China where consumer confidence remains strong.” (Solsman) Yum Brands is also sensibly focusing more on their successful chains, such as Taco Bell, and distributing their weaker chains to franchisees so as to focus their attention on the aspect that will acquire more money in the long-run.
Although the economy is weaker in some places than others, there are still countries and areas where the economy is thriving and people are willing to spend money on things they don’t necessarily need, such as eating out. Yum Brands has the right idea in that they are expanding internationally to take advantage of the places that are still thriving, so that the places that are not doing as well are not lowering Yum Brands’ success as a whole. Other companies should take note of Yum Brands economic decisions in order to be successful in a weak economy.
http://online.wsj.com/article/SB10001424052748703843804575534394015216572.html?mod=WSJ_Hospitality_leftHeadlines
I particularly like the point you raise in the second paragraph, that Yum Brands is is using it's success in certain areas to balance out it's shortcomings in other areas. This is a smart economic decision on their part, and it also is a good example for other companies to take advantage of strong economies is other parts of the world.
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