21-08-2012, 12:44 PM
Pizza Hut Business Strategy
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INTRODUCTION:-
Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta, Buffalo wings, breadsticks, and garlic bread.
Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. They chose the name "Pizza Hut" since the sign they purchased only had enough space for nine characters and spaces. In 1964 a unique standardized building appearance and layout was established for franchised and company-owned stores, creating a universal look that customers easily recognized.
By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange under the stock ticker symbol NYSE: PIZ. In 1978, Pizza Hut was acquired by PepsiCo, who later also bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in 2001 joined with Long John Silver's and A&W Restaurants to become Yum! Brands.
Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company) with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries.
STRATEGIES:-
Pizza hut business strategy is some how different from other firms. There firm strategy is to satisfy customer in such a way that every customer before leaving say that "I'll come back" In other words 'to improve brand image by satisfying customers'.
And their Operation strategy is to compete on the basis of Response, means they set of values related to rapid, flexible, and reliable performance. Response strategy is adopted to deliver product in the minimum possible time to their customer and their product must be healthy and fulfill all the requirements of health certification and it must have regular and normal calories in their product and all the other values through which they can provide rapid and flexible response in as aspect to their customer.
The operation strategy and the business strategy are fit and related to each other and in both they are willing to increase customer satisfaction and customer retention. We can evaluate their willingness to meet customer satisfaction from this that They know their customer want fast service that take less time that's why when we ask them in which process you have problem or which process you want to improve then they said us to try to reduce our time of production because our customer want speedy process and we want to satisfy them. On the other hand there process strategy is Repetitive Focus. In this strategy the customization is more which lead to more customer satisfaction.
PRODUCTION PROCESS:-
The process we choose for our project was the production process of PIZZA because the pizza hut F-10 Islamabad face trouble in the time of production means they are willing to reduce the time of production of one pizza.
In our project the only Quality tool we use is the FLOW CHART because it means a chart that show different steps in the process and this is the only tool out of seven TQM tools which we think is appropriate for our project, Other then this we use one more chat which is known as PROCESS CHART. This the main chart of our project. Through this we become enable to identify the flow or the error in the production process of pizza hut.
RESULTS AND RECOMMENDATIONS:-
Just by changing the position of CHILLER machine and bringing some technology such as, attaching conveyer belts to few machine we reduce the huge amount of annul labor cost and also reduce number of labor by 2 labor who are doing their work on the roller machine and transferring product to other machine because the person who make dough of 10 kg then he can easily divide and roll the dough and then place them on conveyer belt which further automatically take product to their topping table where other employee putt toping on it and then place on the conveyer belt of oven which take the work in process product to oven for backing and then directly take to the Slicer table through conveyer belt, where another labor slice them and send toward customer. Due to such a small change, which cost them approximately 50000 only one time and they can save many times more than the cost. Let's do some numerical calculation.