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Pizza Hurt Assignment
Pizza Hurt Assignment
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Table Contents Of Pizza Hu
t
Pizza Hut Vision Statement.............................................................................................................
Introduction................................................................................................................................
Strategic Planning............................................................................................................................
SWOT............................................................................................................................................
Competitive Advantage.................................................................................................................
BCG Matrix...................................................................................................................................
Organizational Straucture................................................................................................................
Leadership Styles:...........................................................................................................................
ACKNOWLEDGEMENT ............................................................................................................
F.....................................................................................................................................................
Self-Impact....................................................................................................................................
Strengths................................................................................................................................
Weakness...............................................................................................................................
Opportunities.........................................................................................................................
Threats...................................................................................................................................
Company Behavior........................................................................................................................
Introduction................................................................................................................................
2. Mission Statement.................................................................................................................
3. Marketing Strategy................................................................................................................
4. References..............................................................................................................................
Business Environment...................................................................................................................
Political Factors:........................................................................................................................
Economic Factors:.....................................................................................................................
Social Factors:...........................................................................................................................
Technological Factors:...............................................................................................................
Legal Factors:............................................................................................................................
Environmental Factors:..............................................................................................................
Domino’s Pizza..........................................................................................................................
McDonald’s...................................................................................................................................
KFC:..............................................................................................................................................
Subway:.........................................................................................................................................
Financial Highlights:............................................................................................................
Market Share:.................................................................................................................................
The vision of the PIZZA HUT is that reach on the top of the peak to provide best service
and taste & To see Yum on customer s face
To make the people know that for all the eating items they desire to eat can be made
available in minimum time without much effort and
To improve the well – being of our customer, community and people connected to our
enterprise. “RUN GREAT RESTURANTS
3. Management History Of Pizza Hut:
The first Pizza Hut Restaurant in Pakistan was opened in December 1993 and took the
culinary scene by surprise. From that time onwards, the brand has contributed heavily
towards the development of society as a whole. It is responsible for creating job opportunities
for the youth of the country both directly as well as indirectly. Furthermore, Pizza Hut during
the core of its existence has gradually aided in the development of various local suppliers
who as a requirement have to supply food staff equivalent in quality to the international food
standards. In this regard, our restaurant chain has proved to be a major contributor towards
the progress of the Pakistani food industry as a whole by bringing it to a point where they can
now look forward to supplying their items to other chains as well as the international market.
Pizza Hut, being the first International franchise to enter the Pakistani market has set new
standards of dine-in restaurants and quick delivery of oven-hot pizzas and has since then
enjoyed tremendous brand loyalty from its customers.
History of Pizza Hut
About pizza, some will tell you Italy, that wrong. What do you know as pizza came into
Vogue around the time of Napoleon & the French revolution. Italians known to be lovers of
fine food & wines perfected and imported this terrific dish to America, from here it quickly
endeared itself to mass production & re-export to the rest of the world. Bon Appetite!
The word pizza may be a derivative of the Latin word “picea” a roman word use to describe
the blackening of bread in an oven. The word “pizza”, in its current spelling emerged
sometime in the Middle Ages. It was use to describe both the sweet and salty pies that were
becoming popular among Italian aristocracy. Pizza is basically a meal prepared in a plate
made of bread. There are four main components of a basic pizza pie. They are crust, sauce,
cheese and toppings.
Introduction & History of Pizza Hut
Pizza hut story start in 1958, Frank and Dan Camay had an idea for a great local pizza
restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the
sign… the building looked like a hut… so ‘pizza hut’ was born!
Fifteen years later, we opened the first UK restaurant and since then we’ve become the
biggest pizza Company on the planet, let see listen Pizza Hut story from them!
• 1958 Frank and Dan Camay open the first pizza hut in Wichita, Kansas.
• 1972 1000 restaurants are open throughout the USA.
• 1973 Pizza Hut went international with restaurants in japan, Canada & England
The first UK Pizza Hut opened in is Islington, London.
• 1977 PepsiCo bought Pizza Hut.
• 1980 Pan Pizza was introduced.
• 1982 The UK joint venture stated between PepsiCo and Whitbread.
• 1984 Over 50 restaurants so far in the UK.
• 1986 By now, there were 100 restaurants in the UK and 5000 worldwide.
• 1987 An average of one restaurant opened each week in the UK.
• 1988 The UK’s First Delivery unit was opened in Kingsbury, London.
• 1992 There were 9000 restaurants in 84 countries.
• 1993 There were 300 restaurants and delivery stores in UK.
• 1994 10,000 Pizza Hut Were Open for business.
• 1997 PepsiCo decided to focus on their drinks business. As a result, Tricon global restaurant
was born, creating the largest restaurant brand in the world.
Tricon became the partner company with Whitbread.
• 1999 Pizza Hut had over 400 restaurants employing 14000 people.
• 2002 Tricon Global become YUM! Brands 1nc.
• 2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd
was now 100% owned by Yum!
• 2008 we bought God father’s pizza in Ireland with 28 stores.
. 2018 Pizza Hut becomes the official Pizza sponsor of the NFL
. 2020 Pizza hut becomes the first national pizza company to bring a plant-based meat pizza
coast-to-coast.
. Now Pizza hut has been in existence for over 60 years. With around 50,000 restaurants in
150 countries.
It was December 1993 when Manzar Riaz merged with Cortney, as a result of this association
MCR Pvt Ltd, gives birth to pizza Hut Pakistan. The 1st outlet of Pizza Hut Pakistan was
opened in Karachi (The Biggest city of Pakistan at Board Basin Clifton. Second was at Tariq
Road and after that it’s all history.
With 74 outlets operational countrywide, Pizza Hut become the first-food chain in the county
to go public and our need target is to take Pizza Hut to all districts of the country. Yum!
They are growing day by day even the have big competition in the Market.
3. Strategic Planning:
Pizza hut is an American restaurant chain and international franchise that offers different
styles of pizza along with side dishes including salad, pasta, buffalo wings, breadsticks,
garlic bread and desserts, pizza hurt parent company is PepsiCo.
Pizza hut at many times introduced new products in order to shoe its presently during the
times when other brands are fighting in the race of providing various offers. So instead of
giving only offers, the company launches new product and then releases promotional offers
(Wu, C. T., Tsai, Y. H., & Peng, J. Y. , 2013) as well.
Like when pizza hut introduced a new product called ‘The Extreme’, a brief idea into the
history of the company was given and even the analysis of the company was provided in
order to engage people and attract new customers. This act bind people emotionally which
eventually led to more customers and hence increase in sales.
All these ideas are results of the SWOT analysis performed by the experts which is carried
out in order to know about the strengths, weaknesses, opportunities, and threats of the
company. So ‘Extreme Pizza’ was introduced by first describing it because it was to be made
sure that its specialty should be focused more which was its largest size among all the pizzas
present in the market and the double amount of cheese and toppings as well.
All the age groups were targeted. It was seen that this segment had already been a success
even before elaborating the meaning of ‘extreme’ which was to be explained again. So now it
was time to focus on distribution channels which were using the direct channel of
distribution. And the product will be available through all the mediums of their services
which even included home delivery with special packaging without even charging extra for it.
Cleanliness Hospitality
Accuracy Maintenance
Product Speed
Their Human Resources provide training & development within the company, a recruitment
team, and Compensation & benefits.
Using the YUM! Brand & PepsiCo they hold their suppliers to a Suppliers Code of
Conduct
They also build a rapport to maintain a friendly atmosphere and they are eager to
work with their suppliers.
Pizza Hut's locations
Located in busy tourist areas, mall- food courts, Target stores, and high traffic, easy to
access locations
Our local Pizza Hut is located on the edge of town and is extremely busy especially
during summer tourist season
Analysis of Pizza Hut covers the company’s competitive landscape as well as the factors
affecting its sector. The analysis focuses on measuring the company’s position based on
forces like threat of new entrants, threat of substitutes, bargaining power of buyers,
bargaining power of suppliers and competitive rivalry.
Pizza Hut Five Forces analysis helps to analyze its current position in the market based on
multiple internal and external factors like competitors, customers, suppliers (vendors and
partners), financial strength, future scope & alternate solutions
The threat of new entrants in the Pizza Hut Porter Five Forces Analysis can be explained as
follows:
Pizza Hut is a leading fast food chain present globally. Threat of new entrants would be low
for Pizza Hut. Firstly, a high capital amount is required to make a streamlined Pizza process
and expand it internationally. This capital is difficult to arrange for a new business. Many
companies have tried to enter into this business, but they were unable to take it to an
international level and were restricted to a local level only. Economies of scale also work for
Pizza Hut, which helps it keep its price lower compared to the local shops. Brand value also
plays its part here. As it is a well-known brand, customers prefer to visit Pizza Hut for their
food. They can expect a standard product in whichever store they visit. The company also has
well established inbound logistics in all the locations it is present. A new entrant has to face
the difficulty of establishing a supply chain before starting, which is always tricky for a new
business. Pizza Hut also has a lot of patents on Pizza making technology. This also restricts a
new entrant from using that technology for their pizza production.
Threat of Substitutes:
Below are the threats of substitute products of Porter’s Five Forces analysis of Pizza Hut:
Threat of substitutes should be high for Pizza Hut. Pizzas comes in a fast food category, and
customers have many options in this category. Apart from burgers, sandwiches, and chicken,
customers also can consume local food. These items are sold by food chains like
McDonald’s, KFC, Burger King, and local food chains and shops. Thus consumers can
choose from ranging at every price, quality, taste, and quantity. With increasing health
consciousness, people have started preferring home cooked food or at least a healthier
alternative than a pizza. Homemade pizza is also an alternative that people look for. Pizza is a
type of food that people eat during occasions, and it cannot be included in their regular diet.
Packaged food can also be a substitute that people consider when they want a quick snack.
The time taken to prepare pizza is one of the disadvantages that packaged food solves.
The bargaining power of suppliers in the case of Pizza Hut is low. This is mainly because
most of the raw materials in Pizza making business are readily available commodities in the
market. Though Pizza Hut needs to maintain a relationship with its suppliers to maintain its
supply chain, it still has many suppliers to choose from if a supplier does not work in its
terms. So here, the suppliers are the ones who are weak, and they try to maintain a long term
relationship with Pizza Hut. Moreover, the brand owns Supply Chain Services, a subsidiary
that provides raw materials like ingredients, equipment, etc., to the shops under Pizza Hut and
its franchisees. This supply chain helps the brand to maintain standardization and cater to any
price fluctuation in the market. This system allows the brand to be in a strong position with
its suppliers. The supply chain is also one of the most significant contributors to Pizza Hut’s
revenue stream.
The impact of key competitors in the Pizza Hut Porter Five Forces Analysis is as follows:
Pizza Hut faces high competition in its pizza business. Domino’s Pizza, Papa Jones, and
Olive Garden are some of its major competitors in the international market. When it comes to
the local market, local pizza players also give a tough competition to Pizza Hut. If we
compare the brand with Domino’s, which is its biggest competitor, Pizza Hut pizzas are
considered to be more price to that of Domino’s, and Pizza Hut provides a competitive
service than Domino’s because Domino’s has self-service system. The brand also gives a
restaurant feel in its outlets, which is missing in Domino’s. Thus, Pizza Hut differentiates
itself from its competitors by catering to customers who can afford a pricy pizza and want a
restaurant experience with their pizzas. This also helps Pizza Hut differentiate itself from the
local outlets.
BCG Matrix of Pizza Hut:
The BCG Matrix for Pizza Hut will help Pizza Hut in implementing the business level
strategies for its business units. The analysis will first identify where the strategic business
units of Pizza Hut fall within the BCG Matrix for Pizza Hut
.
Stars
The financial services strategic business unit is a star in the BCG matrix of Pizza Hut.
It operates in a market that shows potential in the future. Pizza Hut earns a significant
amount of its income from this SBU. Pizza Hut should vertically integrate by
acquiring other firms in the supply chain. This will help it in earning more profits as
this Strategic business unit has potential.
The Number 1 brand Strategic business unit is a star in the BCG matrix of Pizza Hut,
and this is also the product that generates the greatest sales amongst its product
portfolio. The potential within this market is also high as consumers are demanding
this and similar types of products. Pizza Hut should undergo a product development
strategy for this SBU, where it develops innovative features on this product through
research and development. This will help Pizza Hut by attracting more customers and
increases its sales.
distributions that will help in reaching out to untapped areas. This will help increase
the sales of Pizza Hut.
The Number 2 brand Strategic business unit is a star in the BCG matrix of Pizza Hut as Pizza
Hut has a 20% market share in this category. It also the market leader in this category. The
overall category is expected to grow at 5% in the next 5 years, which shows that the market
growth rate is expected to remain high. Pizza Hut should use its current products to penetrate
the market. This could be done by improving its
Cash Cow
The supplier management service strategic business unit is a cash cow in the BCG
matrix of Pizza Hut. This has been in operation for over decades and has earned Pizza
Hut a significant amount in revenue. The market share for Pizza Hut is high, but the
overall market is declining as companies manage their supplier themselves rather than
outsourcing it. The recommended strategy for Pizza Hut is to stop further investment
in this business and keep operating this strategic business unit as long as its profitable.
The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Pizza
Hut. This is an innovative product that has a market share of 25% in its category.
Pizza Hut is also the market leader in this category. The overall category has been
declining slowly in the past few years. Pizza Hut has the power to influence the
market as well in this category. It should, therefore, invest in research and
development so that the brand could be innovated. This will help the category grow
and will turn this cash cow into a star. The overall benefit would be an increase in
sales of Pizza Hut.
The international food strategic business unit is a cash cow in the BCG matrix for
Pizza Hut. This business unit has a high market share of 30% within its category, but
people are now inclined less towards international food. This change in trends has led
to a decline in the growth rate of the market. The recommended strategy for Pizza Hut
is to invest enough to keep this strategic business unit under operations. If it no longer
remains profitable and turns into a dog, then Pizza Hut should divest this strategic
business unit.
Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Pizza
Hut. The recent trends within the market show that consumers are focusing more
towards local foods. Therefore, this market is showing a high market growth rate.
However, Pizza Hut has a low market share in this segment. The recommended
strategy for Pizza Hut is to invest in research and development to come up with
innovative features. This product development strategy will ensure that this strategic
business unit turns into a cash cow and brings profits for the company in the future.
The Number 4 brand strategic business unit is a question mark in the BCG matrix for
Pizza Hut. This strategic business unit is a part of a market that is rapidly growing.
However, this strategic business unit has been incurring losses in the past few years. It
has also failed in the attempts made at innovation by research and development teams.
The recommended strategy for Pizza Hut is to divest and prevent any future losses
from occurring.
The confectionery strategic business unit is a question mark in the BCG matrix for
Pizza Hut. The confectionery market is an attractive market that is growing over the
years. However, Pizza Hut has a low market share in this attractive market. The low
sales are as a result of low reach and poor distribution of Pizza Hut in this segment.
The recommended strategy for Pizza Hut is to undergo market penetration, where it
pushes to make its product present on more outlets. This will ensure increased sales
for Pizza Hut and convert this strategic business unit into a cash cow.
DOGS:
The plastic bags strategic business unit is a dog in the BCG matrix of Pizza Hut. This
strategic business unit has been in the loss for the last 5 years. It also operates in a market that
is declining due to greater environmental concerns. The recommended strategy for Pizza Hut
is to divest this strategic business unit and minimize its losses.
The Number 5 brand strategic business unit is a dog in the BCG matrix for Pizza Hut.
This is operating in a market segment that is declining in the past 5 years. The
company also has negative profits for this strategic business unit. However, it is
expected that the market will grow in the future with environmental changes that are
occurring. The recommended strategy for Pizza Hut is to invest in the business
enough to convert into a cash cow. This will ensure profits for Pizza Hut if the market
starts growing again in the future.
The synthetic fibre products strategic business unit is a dog in the BCG matrix of
Pizza Hut. The market for such products has been declining, and as a result of this
decline, Pizza Hut has been facing a loss in the past 3 years. The market share for it is
also less than 5%. The recommended strategy for Pizza Hut is to divest this strategic
business unit to minimize any further losses.
The artificially flavored products strategic business unit is a dog in the BCG matrix
for Pizza Hut. These products were launched recently, with the prediction that this
segment would grow. However, with increasing health consciousness, people are now
refraining from consumption of artificial flavors. The market is shrinking, and Pizza
Hut has no significant market share. The recommended strategy for Pizza Hut is to
call back this product.
Pizza Hut and Papa John's are nimble competitors and will likely continue to find ways to
add more value for the consumer to the delivery process. There's an important lesson here
for entrepreneurs or anyone in business. When things aren't going well, there can be no
sacred cows. You have to understand the market dynamics, your strengths, what's
working for you, and where the most potential lies and not be afraid to pivot. It might
mean going back to something you know that works. It might be something that flies in
the face of what you've been doing. But stasis won't help.
“To build a business understanding and target customers. Recognize mission and develop
marketing strategy.
Implementing different strategies to attract customer like, high quality offering discounts
and deals & delivery service.
To tackle competition in market and gain maximum share
Company should follow the current trend with advance technology”
Organizational structure:
Departmentalization in Pizza Hut are such as; role of Human Resource department,
role of Marketing department and role of Finance department. Through these
departments, all the job specifications are more focused.
i) Role of Human Resource Department
Heath field (2015) states that Human Resource Department is the department that is
formed to organize people, reporting relationships, and work in a way that best
supports the accomplishment of the organization’s goals. Every job of hiring and
laying off employees is the job of the Human Resource department. It is also the same
for Pizza Hut. Besides handling the hiring and laying off of employees, the Human
Resource department
There are four (4) P’s that are always the focused one in marketing. The first P is
Product. Product is an item that we need or desire. For Pizza Hut, the product they
focus on is the products which are preferred by their customers, such as of course
pizza, wings and pasta. Besides, focusing on only their products which are preferred
by their customers, Pizza Hut also focus on products that need improvements based
on their consumers’ demand. The second P is Price states that pricing of a product or
service plays an important role in the marketing role because price is the source of
income and the profit of the company. Pizza Hut offers deals of affordability, where
they have many types of deals they offer such as meal for 2 or meal for 4 at a cheaper
price. Besides giving packaging deals, they also give deals on pizza and others that
could attract customers. Pizza Hut also offers deals during celebrations such as
Valentine’s Day and other celebratory occasions. The third P in the marketing mix is
Place. Based on place is where the process of moving products from the producer to
the intended user happen. Pizza Hut usually chooses a place where consumers can
easily find and go. Besides that, Pizza Hut will also find places where there are no
tough competitors nearby. This is to easily attract their loyal customers. The last P is
Promotion. In view, promotion is where all activities that involves communicating
with the consumer about the product and what benefit it has and also the features of
the products that could differ from other product. Besides that, they also have an
official website where it offers online services which are more convenient for their
employees.
Shift LEAD program combines online learning with live in-person workshops and on-
the-job guided practice. According to a company release, the blended approach
provides a consistent training experience while allowing trainees to work at their own
pace based on a personalized training plan. my co-workers were fun, cool, friendly
people. I got along with everyone! The hardest part was the end dealing with my new
store managers disagreements, and changes on the job. The most enjoyable thing was
driving to different customer’s houses, and delivering their pizza(s) to them! it’s about
being independent and having fun, making new friends and earning extra cash. As a
Pizza Hut team member, you can be the smiling face behind the counter that greets
and serves the customers or a cook who makes things happen in the kitchen.
Qualifications: – Three years’ management experience in the restaurant industry. –
Strong Leadership skills; demonstrated ability to lead people and get results through
others is required. According to Hill and Hill (2011), product design is involved with
the conversion of ideas into reality (p.28). Pizza Hut has to design, develop and
introduce new pizzas as a survival and growth strategy. Designing and developing
new products is the biggest issue faced by the operations managers in many
organizations including Pizza Hut.
DECISION MAKING STYLES
Here are the four decision-making styles with examples of how they might be used in the
workplace:
1. Directive
The directive decision-making style uses quick, decisive thinking to come to a solution. A
directive decision-maker has a low tolerance for unclear or ambiguous ideas. They're focused
on the task and will use their own knowledge and judgment to come to a conclusion with
selective input from other individuals. Directive decision-makers excel at verbal
communication. They're rational and logical in their decision-making. When the team or
organization needs a fast decision, a directive-style decision-maker can effectively make a
choice. Their style is valuable for making short-term decisions.
Example: Pizza Hut stockholders have voted to expand their 401(k) option to all current
employees and new employees after they complete a 90-day trial period. The CEO must now
decide if the company will provide matching funds for employees who give to their 401(k)
fund. She thinks about how this might help to attract top talent for their team.
The CEO looks at the budget projections she has just prepared and thinks about how funds
that are allocated for another project could be used to match employee contributions. She
decides that employees who contribute to their funds will be matched 4% by the company.
2. Analytical
Analytical decision-makers carefully analyze data to come up with a solution. They're careful
and adaptable thinkers. They will invest time to glean information to form a conclusion.
These decision-makers are task-oriented but have a high tolerance for ambiguity. Analytical
decision-makers take time to compile data and evidence before they come to a conclusion.
When they do make a decision, they have looked at all the details and formed what they
believe is the best possible solution.
Example: The marketing team of a Pizza Hut company is tasked to identify how they can
reach a wider audience with their current ad campaign. The marketing manager asks each
team leader to submit a report from their portion of the campaign including the numbers of
each audience demographic. They read each report then meet with the team leads. After the
meeting, the marketing manager decides to purchase more add space on social media
websites for the next 30 days.
3. Conceptual
Those who make decisions with a conceptual style are big picture thinkers who are willing to
take risks. They evaluate different options and possibilities with a high tolerance to
ambiguity. They're social-oriented and take the time to consider big ideas and creative
solutions. Conceptual decision-makers look forward to what could happen if the decision is
made. Their conclusions come from visualizing different opportunities and outcomes for the
future. They're strong in making long-term decisions.
Example: Pizza Hut company is performing well during their first year. He thinks about how
the company can open outlets or Pizza restaurants nationwide in the next five years. When a
new shopping development begins construction in a nearby big city, he decides to open a new
Pizza restaurant at the site. Although it's a risk to open this new store, Pizza hut CEO is
confident his team will be successful, and this will help launch their brand nationally.
4. Behavioral
A behavioral style of decision-making focuses on relationships more than the task. It
evaluates the feelings of others as part of their decision-making process. Behavior decision-
makers have a low tolerance for ambiguity and a social focus as they evaluate solutions.
These decision-makers rely on information from others to guide what they choose. They are
persuasive communicators who value decisions based on a team consensus. Their decisions
are often based on how the choice will impact relationships.
Example: As HR manager of Pizza Hut, Shah Zeb has been asked to decide which week
employees should get as a bonus paid vacation days before the end of the year. She sends out
an email survey to see how employees feel about three possible dates. After she reads the
survey responses, she asks her coworkers for input over a lunch break. Later in the afternoon,
she walks through the office chatting with several more employees. When she decides which
week the majority of coworkers want, she talks to several employees who will not get the
choice they hoped for, making sure they're feeling alright about the decision. At the end of
the day, she notifies the management and the employees which week will be a bonus paid
vacation time.
LEADERSHIP STYLES
Everyone is considered to be the leader at Pizza hut as well as they are accountable for their
performances and leading the duties carefully and responsibly.
The different leadership styles are used by the company in following manner:
Autocratic style- The leaders in the company give commands and expect the
positive reaction from the employees. For this, leaders specially create a easy and
approachable environment in order to ease the operations.
In this style the manager alone uses decision making and authority to implement the
policies across the staff members and a good example of such style is managers
working in Pizza Hutt. It’s good for the staff members to be under autocratic style, so
that they can perform the tasks on time. The style allows manager to have good
control on employees to achieve short term results. The new employees also need
specific instructions and use of this management style will allow teaching them their
tasks appropriately. The autocratic leaders are well trained to handle work pressure
and perform different tasks. In this style of leadership, the employees are more
leader’s dependent.
Bureaucratic style- The leaders of the stores fix the monthly duties of the
employees and in return the employees get rewards for performing effectively like
employee of the month, etc.
In this style the manager enforces rules on employees to complete the tasks. There are
two main elements of this style first of all management is well structures in hierarchal
structure and secondly there are set rules and regulations to be followed to perform
tasks.
Democratic style- These style allows the manager of the store to give the goals
to be accomplished in a specific time by the employees. The managers even involve
the employees in decision making process many times whenever required.
The manager allows the employees to be more involved in decision making and share
views on ways of doing work. The communication is extensive from managers to
employees and from employees to managers.
Laissez-faire style- According to this style, employees and colleagues get the
complete freedom to make decisions on their behalf for their own and even resolve
some issues according to their understanding. The entrepreneurial team in Pizza Hutt
responsible for innovating the products use this style of management to have more
ideas for new products.
Pizza Hut leader choose autocratic style to manage its business. It centralizes their
organization which means all decision-making are from only one point of the organization.
To keep their decision and many outlet, also they want to ensure that the needs of customers
are consistence. For example, in 1958, The Carney brothers (Dan and Frank) played a
significant role to put Pizza Hut into mass-market for mainstream food factor, they operate
people with hard-working, dedicated, long-tenured restaurant.
ORGANIZATIONAL CULTURE
Then, in mid of 1990, Pizza Hut was successful in brand powerful with 8000 restaurant
branches in the US approximately 5 billion US dollar in system wide sale (Mike B. John W.
and Slocum JR., 2003).
Strategic thinking
Pizza hut has been planning strategically (Kang, H. , 2016) since its inception which has
always resulted in better results and growth of the company. While introducing new products
in the menu management has kept several things in consideration and then only has taken the
step. Introduction of the new item takes place after many surveys, one on one interviews,
door to door surveys, voting manually and electronically. The company’s decisions are result
of their strategic thinking.
Emotional intelligence
Understanding the emotions of the employees by the manager affects the behaviour and the
effectiveness of the employees directly or indirectly sometimes. Therefore providing that
security to them by the managers means a lot to them and sometimes becomes one of the
reasons for joining the job. Emotional intelligence in Pizza hut (Fry, L. W. J., &
Wigglesworth, C. G. , 2013) is related to realm of intelligence to a great extent because it
refers to the typical behaviour of the employees rather than getting maximum performance
from them sometimes.
Employees are mostly concerned about their self-esteem, a trait which concerns them to an
extent that they could even leave their job if not satisfied. So when the employees see that
they are worthy and valuable and still not respected then they could act negatively.
Decision making
Recently Pizza hut chose and started making use of two different softwares namely: APT’s
Test & Learn (Yang, X., Han, J., Pokharel, S. K., Manandhar, C., Parsons, R. L.,
Leshchinsky, D., & Halahmi, I. (2012) and Menu Analyzer (Bruemmer, B., Krieger, J.,
Saelens, B. E., & Chan, N. , 2012). These softwares will help in improving the decision
making process across all the restaurants easy while taking decisions for investment issues,
pricing policy, promotion of employees, marketing techniques and various other operations.
By taking this step Pizza hut has joined the league of other restaurants like Costa, Subway,
Starbucks, Wendy’s, and Dunkin’ Donuts. All these restaurants have used APT’s software
which is cloud based (Leetaru, K. H. , 2015) for improving their guest’s experiences and their
own profitability. It was observed that Pizza hut has already started using the software in
order to optimise and enhance as well as improve their menu and hence remodel their
programs.
Pizza Hut is a leading pizza restaurant brand and has expanded its reach all over the world.
From United States to third world states in Asia, it is critical for businesses to take various
political factors into account. The actions of the government and the policies framed by them
define the success of the business and determine the ease with which business can be carried
out without any hindrances. If the government is supportive towards the increase in the
number of outlets of Pizza Hut, then that would further increase employment opportunities in
the area. The entertainment facilities would also increase for the local people. The particular
laws such as the contract law, that the government enforces define the long-term financial
health of the business as they dictate the clear lines, upon which the company has to operate.
Porter’s Five Forces Analysis of Pizza Hut covers the company’s competitive landscape as
well as the factors affecting its sector. The analysis focuses on measuring the company’s
position based on forces like threat of new entrants, threat of substitutes, bargaining power of
buyers, bargaining power of suppliers and competitive rivalry.
Pizza Hut Five Forces analysis helps to analyze its current position in the market based on
multiple internal and external factors like competitors, customers, suppliers (vendors and
partners), financial strength, future scope & alternate solutions
For food chains like Pizza Hut these policies are especially important as friendly policies help
them to establish outlets with ease and also operate them efficiently.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Pizza Hut:
The economic system in which the organization operates directly impacts its working.
Nations with macroeconomic system have a direct effect on business chains such as Pizza
Hut. Similarly, gross domestic product, unemployment rates and inflation rates of the region
affect the business in a broader sense. The more amount of foreign direct investment influx in
the state, the larger number of franchises of Pizza Hut will be constructed. The economic
factors also include the consumer burying and overall expenses design. People spend more
amounts of money in the beginning of the month and visit the outlet more often. The
efficiency of the operation of the financial markets has a profound impact on the ability of
Pizza Hut to raise capital at a fair price. If inflation increases the cost of the raw material then
this leads to high prices for the product
Social Factors:
Following are the social factors impacting Pizza Hut PESTLE Analysis:
Since Pizza hut is a multinational brand, whose origination can be traced back to America,
the entire organization is overwhelmed by western culture. Every country has cultural norms,
values, beliefs and religion which affect the working of the organization. Factors such as
Demographic and life expectancy of people affect the fact that whether a franchise of Pizza
Hut can be established. The area with high life expectancy and greater urban population have
better sales and thus better profits. Preferences of the local people affect profitability to a
great extent. Developed nations have people which are prone to fast food, which leads to
greater sales and better profits for the company. The class distribution is also very important
as a premium brand such as Pizza Hut would not be able to obtain sales if it promotes its
products among general public where majority of the people belong to lower class.
Technological Factors:
The technological factors in the PESTLE Analysis of Pizza Hut are mentioned below:
In order to prevent obsolescence in the future by a company it is important that the brands
constantly innovate and create with the help of new disruptive technologies. In the 1990s
Pizza Hut had the largest profits in the industry. With the 2000s and probably after 2007, a
number of new chains like Pizza Hut surfaced into the market. Now, in order to deal with the
competition Pizza Hut launched new ideas to stay relevant in the market. The current industry
trends have also increased the sales of the company. The ease of ordering of food from online
portals along with the discounts offered has had a positive impact on profitability. They have
invested in customer centric technologies such as computer based customer data that is MIS
(managing information system) which acts as a direct aid in collecting data of the customers,
conducting daily transactions, forecasting the future and decision making. Even the entrance
of new and efficient vehicles would make their service efficient.
Environmental Factors:
In the Pizza Hut PESTLE Analysis, the environmental elements affecting its business are as
below:
Those companies which produce large amounts of waste may attract hefty fines and also be
required by law to change their environmental habits. Factors such as Hygiene and trends
related to recycling need to be considered by food chains like Pizza Hut. The brand has a
comprehensive policy for the use of tropical commodities such as soy, palm oil and beef, so
that the company doesn’t contribute towards destruction of tropical rainforests. The Pizza Hut
brand focuses on minimizing, reducing and compensating for carbon emissions. They have
several initiatives for the same as green building and energy efficiency. The company is the
founding member of The UK Plastics Pact which is a collaborative initiative to bring
businesses together and provide a direction to the governments as well as NGOs for the issue
of management of plastic. Pizza Hut took a step further towards sustainability by eradicating
the use of plastic straws and introducing paper straws in replacement. The company has
invested over £1.5m in new smart meters, LED lighting and signage which are environmental
measures taken to reduce carbon footprint.
2019-20A 2020-21A 2021-2022F 2022-23F 2023-24F
Ratio Analysis
Liquidity
Current ratio 6 12 23 32 42
Quick ratio 6 11 22 31 40
DSO 8 8 8 8 8
Solvency
Profitability
Advertising $0 $16,500
Other fees
System Advertising
4.75% of gross sales.
Fund Contribution
All living and transportation expenses of all trainees. The amounts are unknown and
may vary depending upon factors such as the third-party supplier selected and the
Initial Training Costs
franchisee’s distance from training. Additional and subsequent trainee charge: $500
per person per week.
Franchisees must buy proprietary products from the franchisor (or RSCS, if it offers
Proprietary Products
and sells same), its affiliate or designee.
Franchisees must reimburse the franchisor for all costs and expenses incurred in
Inspection and Testing
connection with the review, inspection and/or approval of a proposed product or
Costs
supplier, including any salary, travel and lodging expenses.
Transfer Fee $2,500 plus an additional $250 per system restaurant transferred.
Conclusion:
Some of the strong points are that Pizza Hut is most suitable for socializing with friends and
extremely easy to access for students at VCU. The main use of Pizza Hut’s eating space is
used for eating, however students have also made the area useful for socializing and doing
other activities. In addition, with swipes and ready-made food, Pizza Hut is great for students
that are in a rush. On the other hand, some of the weak points are the line is not constant
throughout the day and the food served is made to eat as lunch rather than dinner. These weak
points did not affect the success of Pizza Hut because the business still continues to operate
fairly well.
Recommendation:
There are some points, which pizza hut must below follow to have more customer and
increase sales and profit in the market and in order to finish the threats.
. Pizza hut should focus on more advertisement, as in Pakistan, they are not making
advertisement they should telecast their advertise more and on the right time when their loyal
customer and the target customer are watching the television By this, they are positioning
their products in their customer’s mind They should make an attractive one in which they are
differentiating their pizzas in quality, taste and tell that how nutrition and healthy meals they
are offering.
. More advertisement of Pizza Hut is been watched by the customer then the Varity seeking
buying behavior of the customer will also decreases. The customers will become loyal to it.
. They should make discount cards or the membership cards for the loyal customers. Those
customers who mostly go once in a week or after two weeks.
. They should reduce their price as compare to the competitors’ price and if not then they
should differentiate their product in their quality and taste. They should tell that they are
using more toppings and cheese
. They must sponsor more concerts and games held in Pakistan, as they do not do. By this
they will make a good reputation to toward their customers.
. They should make stalls in the universities and colleges when there are some parties held.
In the stalls, they must offer pizzas in student discount prices.