Sunday, May 03, 2009

Yum: A Yummy Brand

I received an e-mail today about Yum Brands. So that I won't mess up their position on the matter of Yum, I'll share a little from the e-mail.

"They are usually recognized as one of the best citizen/community based companies by Fortune, and I believe they have also been recognized as one of the best companies for diversity by other publications on multiple occasions. Considering their size, their turnover is also unusally low. There is also a book out there "Customer Mania" that tells the story of Yum Brands and their company culture. Most interesting to me is the concept of the fast food giant sponsoring the derby. I think initially everyone thinks commercial spots! If you really think about, they get double the result. The derby audience or viewer (based on what I've read) usually has an annual household income of $100,000 or greater.....I'm sure very fitting of the ideal investor profile. So, commercials and sponsorship= new customers and investors, yes?"

Many of you may not know, but I'm a big fan of companies that are aggressively taking on the global market - especially American companies. After all, the marketplace of the future will be void of boundaries and other obstacles factored into today's business models.

I have to say, I totally agree with my friend's point. Yum Brands is an outstanding company, with a product arsenal that is well-positioned to succeed in the future. I have a flaw in my valuation process for a company. I normally fail to account for the company's efforts to be socially responsible or proactively involved in socioeconomic public policy. Yum, from what I can tell, has gone far beyond my requirements for excellence. Obviously, the new marketplace doesn't have to be void of social responsibility.

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