The document discusses Taco Bell's strategies and challenges over time. In 1983, Taco Bell faced challenges including an inability to forecast customer demand in a maturing fast food industry. Taco Bell took actions between 1983-1994 to remodel restaurants, introduce new menus, and implement new processes and training programs. By 1994, Taco Bell had implemented information systems and empowered employees to continuously improve. The strategies helped Taco Bell adapt to challenges and achieve growth.

1. Jutarat Limsila (5350380) | Nutthida Chaiwangrat (5350382) |
Thanaporn Sawangrungruengkit (5350386) | Wanpinit Krisanavanit (5350393)
13B (MS), College of Management, Mahidol University

2. Agenda
 Getting to know ‘Taco’
 Taco Bell background & events wrap up
 1983 & 1994 Challenges & highlighted actions
 Speed and magnitude of change
 Taco Bell’s strategy
 Taco Bell’s goal & achievement(s)
 Key Learning

3. Taco Bell Advertising
http://www.youtube.com/watch?v=nqbQ0AdvMk4
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4. Taco Bell Products

5. Yum! Brands
Yum! Brands Inc. operates the Taco Bell, Pizza Hut, KFC, Long John Silver's,
and A&W chains. The company is the largest quick-service restaurant concern
in the world in terms of units with approximately 34,000 locations in over 100
countries across the globe. Taco Bell, Pizza Hut, and KFC were part of PepsiCo
Inc.'s restaurant group until 1997 Tricon changed its name to Yum! in 2002,
the same year that Long John Silver's and A&W were added to its holdings.

6. Yum! Brands

7. Taco Bell History
1970’s 1990’s 2010’s
1978 1991 2010
Glen sold Taco Bell Taco Bell launches new The new Tacobell.com
restaurants to PepsiCo express business to serve site launches! From
Inc. , and became a hungry people on-the-go. food to jobs to store
location , everything
PepsiCo shareholder. you want to know
about Taco Bell is now
just a click way!
1960 1970 1980 1990 2000 2010
1960’s 1980’s 2000’s
1962 1984 2001
Glen Bell opens his first Taco Bell replaces its Taco Bell unveils a new
Taco Bell restaurant in original mission-style advertising slogan urging
Downey , CA , serving restaurants. consumers to “Think
what his customers called 1988 Outside The Bun.”
“tay Kohs” Drive-thru windows are
1967 also installed
Taco Bell’s 100th
restaurant opens at 400
south Brookhurst in
Anaheim.

8. Taco Bell Generations

9. Taco Bell’s Situation in 1983
Strong growth in the 1960s and 1970s came to
a halt in the early 1980s as the fast food
industry began showing signs of maturity.
Unable to forecast
To deal with the potential threat customer demand
of a maturing business.
Unclear company vision.
Unable taste of food
Self centric (Focus on self department, but not
focus on organization)
Q1: Describe challenges facing Taco Bell in 1983

10. Taco Bell’s Action taken at Situation in 1983
Remodeling Double
the Midwest assembly
restaurant line
New Menu Southeast
New
Northeast
Outfitting
Q2: Critically analyze the actions taken by Taco Bell between 1983 and 1994

11. Taco Bell’s Situation in 1994
1998 - 1991-
1991 1994
Recession in fast-
Value pricing food industry,
strategy becomes single – digit
dominant growth

12. Summary of Changes at Taco Bell
1988-1991 1991-1994
Strategic initiatives Information-enabled business Create an empowered learning
transformation organization
Customer value orientation Extend brand through acquisitions
and retail
Process FACT studies K-Minus and SOS Dramatically extend POAs
Increased kitchen capacity enhances Team-base processes replace
non-eat-in sales assembly line
Operational innovations
People Recruit more skilled RGMs Crew member trained to manage
New training program for leadership stores in teams
skill Experiment with shared incentive
New compensation and nonmonetary systems
rewards
Information and communication TACO system provides communication TACO II extends access to
and information infrastructure information and communication
infrastructure to TMUs
Intellectual network
Voice mail and computer
conferencing complement e-mail
Q2: Critically analyze the actions taken by Taco Bell between 1983 and 1994

13. Advice given to John Martin in 1994
 Behavior
 Price
 Clean
 Location
 Promotion
Q6: What advice would you have given John Martin in 1994?

14. Strategic initiatives
Phase 1 Phase 2 Phase 3
1983-1988 1988-1991 1991-1994
• Incremental process • Information-enabled • Create an empowered
redesign business transformation learning org.
• Customer value • Continuous
orientation improvement
• Extend brand through
acquisitions & retail
Q4: Can Taco Bell’s major competitors copy the Taco Bell strategy? (why or why not)

15. Business Process Reengineering
“the act of fundamentally changing core processes.”
Reference: The Journal of public inquiry, A publication of the inspectors general of the United States, Hatching new ideas!, Spring 1996

16. Safety Nets
Process and
Infrastructure Empower Employee
Improvement
Marketing survey for mgr’s
Customer Complaint through Mystery shopping for quality
performance & market
toll free tel. number & performance improvement
checking
Measurement of customer satisfaction
Q3: Given the speed and magnitude of change, why didn’t Taco Bell go “out of control”?

17. Service-Profit Chain
Q4: Can Taco Bell’s major competitors copy the Taco Bell strategy? (why or why not)
Reference: Harvard Business Review, Putting the Service-Profit Chain to Work by James L.Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl
Sasser, Jr., and Leonard A. Schlesinger

19. Taco Bell’s current position
Goal : Growth to $25 billion in sale and Expand 200,000 POAs by the year 2000
• Multi Brand
• Convenient food business
•Taco Bell restaurant
•Taco Bell New Concepts
•Taco Bell International
•Taco Bell supermarket retail
Q5: Is Taco Bell positioned to achieve its goals? Please explain.

20. Key Learning
K Minus
People
POS System
• Safety Nets  Maintain standard / Ensure adherence
to company policies & value system

21. Appendix

22. Appendix

23. Appendix