Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?

Question

Quizplus · Accepted Answer

Yum Brands' strategy of acquiring multiple fast-food firms suggests that a multidivisional design would be most appropriate. This design allows for each acquired company to operate independently under Yum Brands' umbrella, while also sharing resources and achieving economies of scale.

Yum Brands Began with Three Businesses: Pizza Hut, Taco Bell