Name: Penus, Queen Ivy J. Date of Accomplishment: Oct.

26, 2020
Subject and Section: TQM ALM 2102

1. Summarize VM 7.

Factual approach means that your organization decision is based on the analysis of
data and information. is Effective decision come from the factual available data that will
improve the understanding to the whole marketplace. Implementing this principle will
give a bright and clear decisions that will help your organization. Decision making is not
always through experience and intuition. Using the Factual approach it will leads to the
accuracy and reliability of the data, accessibility of the facts, valid analysis method and
actual analysis with experience. This will benefit the organization for the formulation of
the policy and the strategy, setting goal and target, for good operation in the
management and for better human resource management. KPI or Key Performance
Indicator is a measurable value that demonstrates how effectively a company is
achieving key business objectives. Organizations use KPIs at multiple levels to evaluate
their success at reaching targets. High-level KPIs may focus on the overall performance
of the business, while low-level KPIs may focus on processes in departments such as
sales, marketing, HR, support and others. Quality KPIs often have to do with the quality
of service or products. These performance indicators also have direct bearing on
aspects of overhead, profit, and cost. For instance, the cost of poor quality can include
work incidents that result in breakage, loss, and tasks that need to be redone. Quality
KPI can deal with customer retention or satisfaction and customer service. It can also
involve employee training and other aspects of delivering quality services. The
Balanced Scorecard, referred to as the BSC, is a framework to implement and manage
strategy. It links a vision to strategic objectives, measures, targets, and initiatives. It
balances financial measures with performance measures and objectives related to all
other parts of the organization. It is a business performance management tool.

Number of words: 302 words

2.Present a case study

They’ve focus on Pizza Hut Korea

Pizza Hut Korea
the a fact‐based, has become a
(PHK) to come out
of a nine‐year
data‐driven successful global
decline in sales and decision‐making company in Korea
profits. process

Case study of Pizza Hut Illustration

Problem: Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their
hometown of Wichita, Kansas. After several years, they’ve decided to have a franchise
abroad and it is in Korea. Pizza Hut Korea Ltd. provides fast food services. The
Company focuses on sub-franchise of a pizza delivery brand. Pizza Hut Korea
manufactures frozen food specialties such as pizza, poultry, pasta, and deserts. Pizza
Hut Korea (PHK) to come out of a nine‐year decline in sales and profits. Pizza Hut
Korea wanted to delve deeper into the concept of return on marketing as applied to the
turnaround of Pizza Hut Korea, using customer lifetime value (LTV) and the related
return on marketing investment (ROMI) principles that were instrumental in turning
around the business.

Solution: Turning around a business that has been in decline for a long time requires
not just keen consumer insight and excellent marketing tactics, it is a combination of
changing the culture of the company and mindset of the leaders along with instilling
disciplined financial processes and driving consumer insight driven strategies. In
particular, this study focuses on the role of quantified marketing investment return
model that helped to drive a fact‐based, data‐driven decision‐making process that,
combined with strategic insight, helped to turn the business around. The lifetime value
and return on marketing investment model employed by Pizza Hut Korea provides a
starting framework for analyzing marketing investment returns that can be adapted by
many other companies.

Result: Pizza Hut Korea has become a successful global company in Korea, where
many leading international firms have failed to gain a foothold. Since Pizza Hut started
its premium dining restaurant, it has decided to separate existing customers seeking
delivery pizzas from those coming to the restaurant. Pizza Hut Korea has already began
implementing different marketing strategies for each target customer group. Its major
customers are still young females in their 20s who are willing to come to stores, as well
as young housewives in their 30s who usually order pizza for their families. The key to
their success in Korea is the factual approach and the implementation of localization.
They have a local laboratory, which invents tailored menu items. For example, Korean
people tend to eat plain, so we reduced the salt content in our pizza," the managing
director said. "In addition, they initiated digital marketing in order to target tech-savvy
customers.
Number of Words: 441 words
Total Number of Words: 752 words
References:
Lee (2013), Return on marketing investment: Pizza Hut Korea's case,
https://www.emerald.com/insight/content/doi/10.1108/00251741211266741/full/html?ski
pTracking=true
Wagner (2015), Pizza Hut Case Study,
https://sydneydee.files.wordpress.com/2018/01/pizza-hut-case-study.pdf

Duran(2019), Principle 7 Factual Approach to Decision Making,

https://www.youtube.com/watch?v=WYldS-KVWdc&feature=emb_logo