BM2212

Names: BALICANTA,KISSA Section: BSTM-3 Date: 6/11/23

ACTIVITY

Pizza Hut: Stuck in the Middle

A business industry with a large number of competitors requires the execution of excellent skills and keeping
up with the competitive environment. While Pizza Hut was developing its business, it neglected to stay aware
of the changes in the market. Pizza Hut was established in 1958. In 2016, it had more than 14,100 stores in
more than 90 nations and was still the number one (1) pizza chain with deals over 5.5 billion dollars or 275
billion pesos. Unfortunately, the number went down 3.5% in 2017 as competitors who are more sensitive to
the clients have taken a piece of the market share.

Making pizza is a staple in all restaurants around the world. What has changed over the years is how
customers order, the ingredients they want, and how they want to eat their pizza. Online and mobile
ordering accounts for over 50% of rival Domino’s business. Customers demand fresh ingredients, gluten-free
options, and high- speed preparation. The advent of fast-casual restaurants where customers watch their
food preparation has only exasperated this situation.

Into this new era of advanced technology comes a Pizza Hut empire built around a hidden kitchen, pizzas
that take 15–20 minutes to prepare, and a 1950s-style eating area that is anything but comfortable. After
evaluating the best way to address the new reality, Pizza Hut began experimenting with new ovens that
could cook a pizza in three-and-a-half minutes. These redesigned interiors included a bar and fresh, simpler
procedures for running a storefront.

After testing the new ideas at two (2) restaurants in Texas, Pizza Hut announced plans to remodel 700 of its
U.S. stores a year through 2022. This initiative aligns with the company’s objective to regain its leadership
position in the pizza business. Tracking the effect of these changes and crafting those changes system-wide
will be a true evaluation and control challenge for the organization.

Answer the following items: (2 items x 10 points)

1. Describe how volatility, uncertainty, complexity, and ambiguity affect the business environment of
Pizza Hut.
 Pizza Hut failed to compete in their competitive market, which is why they began to hold their
position. Pizza Hut does not have a team to develop and study new items that their target
market would like; instead, they are only focused on their current products since they are too
busy to make it great, despite the fact that their target market needs new and quick products.
Where their competitors develop while they are busy innovating in their most current product.
Pizza Hut was unable to compete with its competitors due to a lack of strategy.
2. Propose ways for Pizza Hut to regain its competitive position in the market.
 Pizza Hut may reclaim its competitive position in the business by analyzing strategic planning
data. This information will assist Pizza Hut in making strategic decisions that will benefit Pizza
Hut in the future. The information acquired will then be used to develop a plan based on their
objectives. Pizza Hut must be aware of any commercial disparities between its strategies and
planned implementation. They should teach their management and employees to implement all
of their planned tactics. Most importantly, Pizza Hut must instruct its personnel on correct
execution and application of their learnings.