Peformance of pizza hut as a company
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Published: Mon, 5 Dec 2016
Pizza Hut was develop in 1958; there are 5000 restaurants in UK and 20000staff. The number of the staff in the specific organisation is 38 persons, the turnover is very low, 20%, and it is very active in the global market and is one huge organisation.
Pizza Hut history starts in Wichita. Kansas in 1958 by two brothers (Frank and Dan Carney) who had the idea of developing a pizza restaurant, a new concept in America and very quickly the dream came true. They borrowed $600 from one of their mothers and they rented a small building on a busy road in Wichita, they also bought some second hand equipment and they became very rich with a big and successful organisation. Pizza Hut franchises were launched in 1958.
Although the Pizza Hut chain was able to develop both in the United States and overseas. Today, franchisees and joint venture partnerships account for nearly half of the Pizza Hut’s total restaurants. (www.everything2.com). Then Pizza Hut started to be international, the first international restaurant was in Canada in 1968. Pizza Hut started branching out quickly in the entire world, in Mexico, Australia, Europe, Africa and the Far East. Also Pizza Hut was cooperate with PepsiCo, actually was acquired by PepsiCo. Pizza Hut was share its position with the products of PepsiCo. PepsiCo in cooperation with Pizza Hut, KFC, and Taco Bell were make the largest restaurant group, the Trion global restaurant, in the world, in October 1997.
Background information – Theory
Pizza Hut is with no doubt one global successfully organisation, which belongs to public sort of organisations. However, for a successful organisation, the culture is a necessity that will eventually lead to a good environment in the organization. “Culture is the values and norms of an organisation, which determine its corporate behaviour and the behaviour of people within the organisation.” (Thompson, 2001, p 1124).
According with Pizza Hut’s information website (www.pizzahut.com) the staff is very friendly to the customers and that is the reason why, the customers are always coming again and again. For example, if the employees are working into a friendly environment then automatically they are friendlier to customers and as customers love to come to the restaurants because of the friendly environment. The working environment between the employees is very friendly and they all work like one team. Teamwork is a huge and important thing.
A working team is obviously important for an organisation, a working team player is “a person who can manage the roll of the self to fit the needs of a team.” (Belbin, 2000, p 111) The structure of Pizza Hut starts from the restaurant manager, who decides for everything, he takes all the decisions. Then there is the area manager who replaces restaurant managers, after that there is the regional manager, the human resources, the director of operations and finally the chief executive officers. For an organisation, is important to be organised “prioritised lists and well-planned schedules disperse the illusion of chaos”(Lindenfield, 2003, p 73).
In an organisation like Pizza Hut, there should be a functional strategy, strategies like marketing or finance. “The strategies for the various functions carried out by an organisation, including marketing, production, financial management, information management, research and development, and human resource management.”(Thompson, 2001, p 1125) from the information provided the company do satisfy all the needs of disabled people in the organisation, they use equipment which is friendly and not harmful at all to the environment. Also Pizza Hut food is also healthy and they produce pizzas with fresh ingredients. Additionally, Pizza Hut has recently started recycling. From now and then, the food packages are recycled and are just the first step of the recycling process. Furthermore, Pizza Hut is a flexible organisation which had being advertised by radio and of course television, through all media and through their main website, thus they have new marketing opportunities for “captivating” more customers, and as they considered is a very flexible organisation because they always change things.
Management in an organisation is everything because they all end up to this and because the managers can achieve and had the profit they want to if they work corrected. Manager is a person who has all the responsibilities, takes all decisions but also shared some responsibilities such as financial control, planning with directors. Management, is ‘the process by which an organisation establishes its objectives, formulates actions (strategies) designed to meet these objectives in the desired time- scale, implements the actions, and assesses progress and results’ (Thompson, , 2001, p 1128).
The manager must be democratic and his main activities are ‘planning/coordinating, staffing, training/developing, decision making/problem solving, handling paperwork, exchanging routine information, monitoring/controlling performance, monitoring/reinforcing, disciplining/punishing, interacting with the outsiders, managing conflict, socializing/politicking’ (Wright, 1996, page 18). But beside the manager, leadership plays an important role as well. In a journal is written that “there are no universal leadership characteristics. What works for one will not work for another. For all those who aspire to leadership, the challenge is simple-deceptively so. To be a more effective leader, you must be yourself-more- with skills”(Goffee, Jones, 2006, p 47) according by Pizza Hut leaders are the main planners of the organisation. Leaders adopting an international perspective have some advantages, “however defined, and that the educator is lacking an essential breadth if practice remains bound by the values and approaches which have emerged over time in any one location”(Lumby, 2006, p 7).
Leader is a “generic term used to describe a manager who is responsible for changes in the corporate strategy.” (Thompson, 2001, p 1128). In addition to this, leaders are very friendly and they don’t behave selfishly, but instead of that, they work like one and they had harmonic relationship with each other. What’s more, they are really good friends. But the personality of a leader should have the charisma to “sell” ideas and automatically be ready for action. “Understanding of leadership in which the focus on, leader is rejected, but asserts that the so-called leadership that relies on leaders is essentially flawed.”(Gallagher, 2002, p 24) Any leader should have some personal features by make him a successful leader, like being always on time, being committed and being ready for action. “Staying power is one of the most important yet least recognised attributes of successful leaders.”(Black, 2003, p 25)
Pizza hut manage to achieve that through their website and especially with advertisements in the media and every year they give financial information and they have 70 franchised delivery units, 118 companies owned, and they have weekly sales, food costs and utility costs.
The manager of the restaurant is responsible for the employment of staff and what qualifications do they look for. They ask for skills in IT, they ask for the necessary things that a cashier must be aware of and also they look for customers’ skills. Moreover, they need good communication skills and they want employees with interpersonal abilities. In some cases they do train staff and if they have previous employment they ask for interpersonal abilities. Pizza Hut offered any rewarded or benefits to staff for motivating them. “Another constraint upon organisations is wide acceptance of the idea that people want more from the employment relationship than just money: that they want rewards and satisfactions that are often psychological in nature”(Elgood, 1988, p 10).
External Influences on the organisation and Management of Change
External influences are the main influences that an organisation may change, for instance external influences are influences such as competitors or the global market which is closely related to organisations (Elgood, 1988). The competitors of Pizza Hut, there are many such as McDonalds, Subway, but the most important one is Frankie & Benny. The company tries to compete that by constantly introduce new products every 3-4 months. Each company has positive and negative aspects so the positive aspects of this organisation was anything new they produced, and the negative was taken away and delivery, also after Christmas time there are not many customers because customers spent their money. Another negative aspect that influences Pizza Hut is the building work around, that make people avoid eating at the organisation. In addition to this, seasonal changes are also a reason that can cause negative influence to Pizza Hut, for instance there are not any clientele in summer time because obviously most of them are going for holiday. But “success is the ability to go from one failure to another with no loss of enthusiasm” (Churchill, 2003, p 20).
External Analysis of the Organisation’s Environment
Technological Development: The business already used technology more than before, such as new equipment.
Economic Trends: Pizza Hut in UK support a charity, the Starlight Children’s Foundation. That charity is brightening the lives of some very ill children, trying to entertainment them and makes their wishes come true.
Environmental Issues: Pizza Hut has recently started to use recycle packages.
Legislation: Pizza Hut fill all the laws that government applied, they have all the necessities that a business should have.
Ethical Issues: In an organisation such as Pizza Hut, should use food products that are not harmful or causing any environmental problems.
Sheet indicating image, marketing
The new way of marketing at Pizza Hut is very interesting, they do use the psychology. Many different voices was respond to the question “Who’s called the Hut?”. That is a smart way of advertising Pizza Hut because firstly is a nice, funny view and secondly people are trying to imitate voices. People were imitate and that happened when it sank in.
“Management is a generic term and subject to many interpretations. Our concern is with management within a structured organisational setting and involving the exercise of formal authority over the work of other people. The nature of management is variable. It relates to all activities of the organisation and is undertaken at all levels. Management is essentially an integrating activity which permeates all other aspects of the organisation.”(Mullins, 2002, p 195)
Culture is based in the behaviour of people in the organisation. For example, the way that staff is behave shows the environment, leading to create the culture. Culture means “the values and norms of an organisation, which determine its corporate behaviour and the behaviour of people within the organisation” (Thompson, 2001, p 1124).
The term organisation means “a consciously co-ordinated social unit created by groups in society to achieve specific purposes, common aims and objectives by means of planned and coordinated activities”(Mullins, 2002, p 907). Organisation in a business and they have the same goals. Belonging to an organisation means that people were working peacefully and not egoistically.
Leader is close related with manager, for example, a leader is responsible for changes in an organisation. But also leadership is influenced the behaviour of other people because of any change. In that case, leader should be democratic and friendly to the staff.
According with all the managerial aspects I have analyse above the Pizza Hut as a company considered to be able to achieve all the criteria that the market is asking for development and recognition. Finally Pizza Hut is a well – managed company with all prospects for improvement and monopoly.
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