ABOUT THE COMPANY.

PizzaHutisoneoftheflagshipbrandsofYum!RestaurantInt.,whichalsohasKFC,TacoBell,A&W
and Long John Silvers under its umbrella. It is the worlds largest pizza chain with over 12,500
restaurantsacross91countries.
TwobrothersFrankandDanCarneyinWichita,Kansas,startedpizzaHutin1958.Theyhadtheideato
openapizzaparlor.Theyborrowed$600fromtheirmother,andopenedtheveryfirstPizzaHut.
In1959,thefirstfranchiseunitopenedinTopeka,Kansas.Almosttenyearslater,PizzaHutwas
servingonemillioncustomersaweekintheir310locations.In1970,PizzaHutwasputontheNew
YorkStock
ExchangeunderthetickersymbolPIZ.
In1986,PizzaHutintroduceddeliveryservice,somethingnootherrestaurantwasdoing.Bythe1990's
PizzaHutsaleshadreached$4billionworldwide.In1998,PizzaHutcelebratedtheir40thanniversary,
andlaunchedtheirfamouscampaign"TheBestPizzasUnderOneRoof."In1996,PizzaHutsalesin
theUnitedStateswereover$5million.
ThefirstIndianoutletwasopenedinJune1996inBangalore.InIndia,PizzaHuthas139restaurants
across36cities.PizzaHuthasbeenvotedthebestfamilyrestaurantforthesecondyearrunningatthe
2007Tommys Parent Friendly Awards. "Pizza Hut is known for quality, innovation and category
leadership.

MISSIONSTATEMENT.
Wetakeprideinmakingaperfectpizzaandprovidingcourteousandhelpful
serviceontimeallthetime.
To be the best pizza for every pizza occasion
Alone we are delicious, Together we are YUM!

o P.E.A.R.L.S:
PASSIONforexcellenceindoingeverything
EXECUTEwithpositiveenergyandurgency.
ACCOUNTABLEforgrowthincustomersatisfactionandprofitability.
RECOGNIZEtheachievementofothersandhavefundoingit.
LISTENandmoreimportantly,respondtothevoiceofthecustomer.
VISION.

o To make the people know that for all the eating items they desire
to eat can be made available in minimum time without our effort
excluding money.

o To improve the well being of our customers, community and people

connected to our enterprise. RUN GREAT RESTURANTS

STRATEGIES ADOPTED
BY PIZZA HUT.
A business strategy is the pattern of decisions and actions that are taken by the business
to achieve its goals. A business has a variety of goals and objectives. All businesses need
to organize their business activities in order to achieve their business objectives. Running
a business involves planning the currents well as future activities. Hence, in order to
achieve the business objectives, all business organizations adopt different strategies.
Similarly, Pizza Hut has adopted many strategies, which help achieve the targets set by
the main office to the local store opened at Peshawar. Changes are the external as well as
internal environment has led Pizza Hut rethink their past strategies and has therefore
designed new strategies after noticing the changes in the environment. These
environmental changes are seen through the PEST and SWOT analysis. After
considering all the factors Pizza Hut has decided upon the strategies and their current
strategies are divided into five main categories and further have sub-parts.
Functional Strategies:
These are strategies designed to improve the efficiency of a business operations. They
often focus on an area, such as marketing, human resource etc. All business
organizations adopt strategies at functional level as once the functional objectives are
achieved, corporate objectives become easy. In order to make the functional strategy
efficient, Pizza Hut has made all the functional departments co-operate with each other.
Total Quality Management:
This is the most important for a food chain like Pizza Hut. All the employees back-ofthe-house i.e. the kitchen assistants are trained accordingly. They are given extra classes
in order to meet the quality standards set by Pizza Hut around the world. This strategy is
important in order to satisfy the CHAMPS. This strategy is strictly implemented in Pizza
Hut in order to fulfill the quality standards. Different quality management staff is also
there at Pizza Hut. The shift managers have the task to observe whether the quality
standards are met or not, whereas there are a total quality management department at the
main office. This department has the task to implement quality standards and know
whether they are achieved or not.

 Business Level Strategy:

Business level strategies are plans made to gain a competitive advantage over its rivals in
a market. Hence, all the businesses need to adopt business level strategies in order to
compete in a competitive environment. If we take a look at the Pakistani market, there
are no large competitors of Pizza Hut but unlimited small competitors exist in the
market. The threat of competitors is very low as there is no international food chain
offering pizza in Pakistan at present. Therefore, present strategies adopted by Pizza Hut
are keeping in consideration the present competition. Whereas, in future this competition
will increase and Pizza Hut will have to change all its business level strategies in order to
compete with its rivals. In very near future Dominos is opening its first branch in
Karachi. This would be a threat for Pizza Hut and hence, the strategies would be
changed.
Pricing Strategy:
The level of competition a business faces determines its pricing strategy. Sometimes a
business has the scope to set its price and sometimes a business cannot. When a business
has the scope to set its price there is a number of pricing strategies or policies it might
choose. As there are no such competitors of Pizza Hut which could compete with the
quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza
Hut is market skimming. Pizza Hut has adopted this pricing strategy as they want to hold
maximum share of the market by maximum profit. This is a golden era for Pizza Hut, as
there are no competitors and hence, Pizza Hut is free to charge any price they want. They
are charging higher prices due to the uniqueness of the product. They satisfy the target
market as the food quality is worth the price paid. The pricing strategy is not just to get
the worth of quality but also to gain maximum profits before any competitor enters
because then Pizza Hut will have to change its pricing strategy. Although the prices
would be lowered with the new entrants in the market but not to greater extent as the
quality food products are not home-produced. They are imported from different countries
keeping in view the best quality

VALUE CHAIN ANALYSIS.

The value chain is a systematic approach to examine the development of competitive
advantage. It was developed in 1985 by Michael Porter in Competitive Advantage. It is
used as a tool to identify various ways to create Customer Value. The chain consists of a
series of activities that create and build value. They culminate in the total value delivered
by an organization. Value chain model from Michael E. Porters Competitive Advantage:
According to this model the activities are divided into two broad categories:

Primary Activities:
Activities, which relate directly to the actual creation, manufacture, distribution, and sale
of a product or service to the firms customers.
Support Activities:
Economic activities, which assist the firms primary activities.

Operations:
Preparation of pizza base using the above mentioned sources as per the
requirements and expectations i.e. the required amount of materials need to be
added, thickness, softness, size of the pizza base as per the requirement, heating
the same for the right time. All this so that the base becomes as per the
expectations set for it.
Centralized locations for the preparation of pizza bases to maintain the uniformity,
from where these are transported to the various outlets.
Customization of Pizzas, as per the order by the customer like what all toppings
and flavors he wants. Examples: A orders for a chicken pizza, while B orders for a
Vegetarian one with lots of toppings like mushroom, onion, on other hand C orders
for just cheese pizza with no toppings at all. So different customers have different
orders depending on their taste and preferences, location of the restaurant (like in
India beef and other similar non vegetarian items are banned and people prefer
Paneer items, on the other hand this thing completely differs abroad). Thereby
making it an international brand with local taste.
Make Pastas and Salads: as per the order of the customer from the raw materials as
mentioned above.
Doing all this in the specific time period (so as to deliver to the customer in the
mentioned time period at the time of ordering) and also adhering to the company
standards while maintaining the quality of the food item (pizzas and pastas).

Outbound Logistics:
Transporting the pizza bases to the Pizza Hut outlets, where they are kept and used
for customization as per the order. This helps maintaining the uniformity of bases,
saving time and resources in the preparation of pizza at each outlet.
Pizza and pastas etc. serving hot to the customers at the restaurant and at their
doorstep.

Marketing and Sales:

Segmentation and Target Market: it basically targets the people till the age 55
years, including working people, families with young children, students and
travellers.

Branding: Pizza hut is a brand of pizzas and pastas, which means that its products
have an authenticity and a definite brand value and satisfaction to customer of its
quality.

Redefining its menu: Like in India, they have introduced products that suit the
Indian taste like the Paneer and tandoori pizzas etc. This helps to increase the
customer base and satisfy them. Also, not using the products which are not
acceptable in India like beef, ham etc. Introduction of new products and
backing them up with proper promotions, discounts and advertisements which
excites the customers to give it a try at least or just have a high whats new
quotient.
Pricing: as per the market demand and keeping the competitors also in mind.
Distribution: Pizza Hut is opening a large number of outlets targeting a large
customer base, so that more and more people can enjoy its offerings.
Advertising through hoardings, newspapers, TV ads, promotion on internet,
mobile apps, pamphlets etc. And also setting up stalls and catering in colleges,
fests, events, marriages, parties etc.
Promotional offers like buy one get one free, corporate/college and group
discounts, meals for 2 and 4, choose your own topping and pizza etc.
Consumer benefit: a belief about its exclusivity that Pizza hut offers a great and
memorable dining experience, so much so that at many places people have to
wait/book a table to get into the restaurants, thus increasing the charm in the
people about it. Also advertising that the pizzas are served hot with their own
set of indicators to do that- This also helps create an interest and confidence of
getting hot pizzas in the customers mind.

Service and Support:

Provide/Serve the pizzas hot to the customers at the restaurants. Providing the
customers good service by making them feel comfortable and fulfil their needs
both before and after serving the pizza to them.

 Politely tell the customers of the new menu items, offers that they have so as to
ease their process of making choices.
Ordering online service: customers can look at the menu, decide and order online
as per their location. They can also get contact and other information like the new
entries, discounts and offers, which they can use as per their wish.

Support Activities
Procurement: It basically deals with how to get the required resources.
It has to maintain the quality, deliver the best pizzas, keep the customer satisfied,
all this at affordable and competitive prices. Thus, to achieve this they maintained
the supply chain and developed a chain for 95% of its ingredients of local
suppliers. And to maintain its famous Pizza Huts taste, it imports the main
ingredients like pepperoni, mozzarella cheese from Australia and Spain
respectively.
Their strategy to take some ingredients from the local market and get some
imported helps them maintain the quality as well as low prices (as required
especially by the Indian market).

Technology Development:
Pizza hut believes in taking feedback from the customers and improvising
themselves. So, all the customers that come to the Pizza hut restaurants and even
the ones who order online give their valued feedback as to what they liked and
how can they improve to serve better.
Pizza hut does research work on how to improve on the existing products and
innovate to introduce new ones. This is to provide the customer with the new
products and increase the foot step, and also give a distinctive
perspective to the brand so as to be in front of the line when it comes to offer the
best pizzas and service.
Usage of the modern technology is also done like:

 Maintaining of databases of customers so that they can be contacted at the time of

festivals and for promotional offers.
Reaching out to the corporates and colleges through emails and over the net
communication, for setting up of stalls during the fests and events for increased
sales, enlarging the customer base and targeting these customers as frequent
customers by sending them offers through emails and SMS giving them corporate
and college discounts (which helps make Pizza Hut the top most option for the
people when they want to have good food and have a memorable time).
Usage of the computers and other advanced electronic items which help keep them
a check on: Billing information The Inventory What all needs to be bring
in as raw materials Sales Readily available Employees details
Temperature controlled trucks for the transportation of the raw materials and
prepared bases at a controlled temperature can be done
/
?

Human Resource Management: Pizza Hut

Focuses on hiring of the new employees.
Provides them the required trainings so that they can perform as per the
expectations set for them on the job.
Strives to increase the knowledge and skills (including soft skills) of its
employees.
Gives annual appraisals as per the performance of the employees. This also helps
the employees get the motivation and work hard to get the appraisals.
Important informations are diligently internally communicated to all the
employees.
Its employees work passionately in providing the customers a great time by doing
a number of activities like smiling and greeting the customer, politely taking the
orders and even guide them (if required), serving the food hot as and on time as
per the specifications and customizations mentioned by the customers (like what
all toppings should be there, use of onion or not in vegetarian pizzas, even to the
extent that number of ice cubes in the drinks/beverages served), politely asking
them to come again. This makes the customer feel really comfortable and happy
and thus making them wanting to come again and again.

The employees are able to handle some critical situations and take decisions
accordingly- as per the demand of the situation, without even the help of their
supervisors. This thus even provides them the freedom of decision making.