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Pizza Hut Essay

Executive Summary

Pizza Hut is one of the leading pizza restaurant companies in the world in terms of both the number of outlets and the percentage of market share that it holds. Pizza Hut’s main purposes are to provide foods and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. Pizza Hut believes a plentiful and leveraged diverse strategy is a competitive advantage. Their goal is to grow that competitive edge by fostering an inclusive culture. Diversity is a business strategy for Pizza Hut. It’s an intentional choice that creates sustainable competitive advantage.This report provides an analysis and evaluation of the current and prospective liquidity and financial stability of Pizza Hut. Methods of analysis include Company Overview, Entry Strategies, Entry Restrictions, Political, Cultural Values, Economical Conditions, CSR programs, Marketing Mix, etc.

Company Overview

Early History:
Pizza Hut was founded in June 15, 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. When a friend suggested opening a pizza parlor—then a rarity—they agreed that the idea could prove successful, and they borrowed $600 from their mother to start a business with partner John Bender. Renting a small building at 503 South Bluff in downtown Wichita and purchasing secondhand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut restaurant; on opening night, they gave pizza away to encourage community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick Hassur opened the first franchise unit in Topeka.

Pizza Hut Today:
Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also the world’s largest pizza chain with more than 6,100 restaurants in the United States and over 5,500 restaurants in 97 countries and territories around the world, employing more than 300,000 people, serving 1.7 million pizzas everyday to more than seven million customers.

Pizza Hut’s Mission Statement:
We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, “I’ll be back!” We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.

Core Values:
Passionfor excellence in doing every thing
Execute with positive energy and urgency
Accountablefor growth in customer satisfaction
Recognize the achievements of others
Listen and more importantly, respond to the voice of customers

The vision of “Pizza Hut” is that “reach on the top of the peak to provide best service and taste” & “To see Yum on customer’s face”.

Present Major Goals:
Our goal is to reach 85% recognition of the new product in our target market. As with all businesses, the most important goal of a company is to increase revenue and profits. Customer satisfaction is for most.

Practice what we preach: integrity, ethics and open communication.

SWOT Analysis:
Part of the largest restaurant chain in the world
Over 20,000 franchises around the world
Brand leader in the UK
Innovative range of pizzas under one roof
Famous television advertising
Loyal customers are feeling that the satisfaction of the pizzas is declining. While Novak said Pizza Hut’s expansion into China is going exceedingly well. There are complex computer systems and internal conflicts from franchisees. Opportunities

New Pizzas with different crust sizes and flavours.
Pizza Hut expands Indian market menu and looks to old favourite to bolstersales in the US Pizza Hut targets upscale products and a downscale consumer base.


Rising competition undermines Pizza Hut as consumers go for greater convenience. Rising cheese costs threaten margins.
Threat from Dominos pizza, also from Mc Donald’s who have tried to introduce a new meal that is a Pizza called: McPizza.

Country of its Origin:
Headquartered in 7100 Corporate Drive Plano, Texas 75024, United States, Pizza Hut is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company.

Countries of its operations:
U.S., etc.

Smokin Joes
Papa John’s Pizza

Competitor Analysis:
Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas.

Entry Strategies

Entry Strategy

In Bangladesh, Pizza Hut has done market development. Pizza Hut has made pizza familiar to the people of Bangladesh. Pizza Hut is the 1st chain restaurant of Bangladesh.

Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. Pizza Hut has a good brand image which helped them to reach their target customer easily. For good brand image Pizza Hut has easily become the market leader.

For their brand image Pizza Hut has less chance for diversification. Less “Freedom of choice” for customers in menu.
Less opportunity for product development.

Entry Restrictions
There is no such entry restriction in Bangladesh.
Multinationals face different entry restrictions in some countries.Such as- High tax rate
High registration fee
High establishment expence
Quota system
High employment rate
High production cost

Political, Cultural Values and Economical Condition

For political ups and down the economical growth hampers. As a result disposable income can be reducing. It is a concern for Pizza Hut. Pizza is a western food. It does not match with Bangladeshi culture. But urban people of Bangladesh are being attracted to western culture. So we are hoping that customers of Pizza Hut will increase day by day and gradually people of our country will accept pizza as a common food. The GDP of south asian countries are increasing day by day. So it’s a good opportunity and high time to establish any business in this continent.

Extrinsic and Intrinsic, Motivational and Hygienic factors/rewards

Extrinsic Rewards:
Extrinsic reward is something given as a recognition of good work. Pizza Hut offers various kinds of extrinsic rewards to its employees, which are:

Pay Raises

Intrinsic Rewards:
Intrinsic reward means personal satisfaction felt for a job well done. Employees who work in Pizza Hut take “Pride in their performance” and develop a “Sense of achievement”

Motivational Factors:
Motivational factors are job factors that cause the employees to be productive and keep them satisfied. The motivational factors offered by Pizza Hut are:

Job itself
Career augmentation

Hygienic Factors:
Hygienic factors are those that can cause dissatisfaction if missing but that do not necessarily motivates employees. Hygienic factors offered by Pizza Hut are: Compensation
Benefits of employee
Policy for company
Job safety
Working environment
Inter-personal relations
Supervisor’s attitude

Motivational Theories Followed By Pizza Hut:
Pizza Hut follows “Theory Y”, “Adam’s Equity Theory” and “Herzberg’s Two Factor Theory” in treating its employees in all countries. The theories which have been described are the shedding of motivation. Nonetheless the theories are followed; the most important factors are the fascinating work and intensive pay for the employee. If there is the proper configuration in between individual and proficient objects, then employee motivation is an easy task. There are other choices such as job improvement, enhancement, encouragement, fiscal and non-fiscal reward (e.g. identification) should be well thought-out. It may be really tough to moderate the reward system of an organization for all individuals but it is possible to formulate an acceptable method which is suitable for both employees and company.

CSR Programs

Corporate Social Responsibility means the concern businesses have for the welfare of society. It is based on a commitment to integrity, fairness and
respect.CSR proponents argue that businesses owe their existence to the societies they serve and cannot exist in societies that fail. Pizza Hut’s some great CSR programs are:

As the largest pizza restaurant company in the world, with approximately 6,200 locations in the US, Pizza Hut is proud of the change it affected as the official World Food Programme sponsor and partner. But, as a company with deep roots in the Dallas-Fort Worth community (its HQs are in Plano and it has124 restaurants across the metroplex), Pizza Hut is especially proud of the relationship that they’ve formed with Children’s Medical Center and the opportunity it’s afforded them to invest in and impact their community, year-round.Over the last year, Pizza Hut employees have read to patients at Children’s, hosted patient “Pizza Pal” craft parties, been a food partner for the annual Red Balloon Run & Ride, and sponsored the Children’s Medical Center Holiday Parade. With Children’s doing its part to Make It GreatTM in the DFW community, Pizza Hut is thrilled to be the presenting sponsor of the 25th Annual Children’s Medical Center Holiday Parade, which promises to be the best parade to date! Pizza Hut has integrated the “Carry Out for Literacy” card into their corporate image and giving. Proceeds from the card flow into a donor advised fund at the Hawaii Community Foundation, where HCF helps to evaluate potential grants supporting literacy. Pizza Hut (UK) supports the Starlight Children’s Foundation, a registered charity that works to brighten the lives of seriously ill children by granting their wishes and entertaining them while they are in hospital. Wishes can range from going to Disneyland, to meeting a favourite soap star or even winning the Grand Prix! Each year the demand grows for wishes, Starlight Fun Centers (mobile entertaining trolleys), Starlight Hospital Projects, hospital parties and outings. Pizza Hut employees have been fundraising the length and breadth of the UK for Starlight and are always looking for new and innovative ways to raise further support. All these programs are philanthropy based because they included charitable donations.

Marketing Mix

Pizza Hut’s main product is Pizza.
The price of pizza is high for people of Bangladesh
Pizza Hut has outlets in Dhaka and Chittagong only.
Pizza Hut has doing promotion for their target customers.
Physical Evidence
The outlets of Pizza Hut are the only physical evidence of Pizza Hut. People
Pizza Hut hires educated and well manner people for their service. Positioning
Pizza Hut has position themselves by creating values and believes.

IMC Campaign of Pizza Hut

At present Pizza Hut is putting on their billboards in major places of Chittagong and Dhaka city. In these billboards they have mainly focused on their offerings and discounts. Pizza Hut is using print media a lot for their IMC campaign, such as- News paper, magazines, periodicals etc. In there, they have also focused on their different offerings and discounts. During Ramadan they give a special offer for customers. Pizza Hut offers buffet pizza for customers and the person who eats maximum pizza, he gets free buffet for the next day. At present Pizza Hut has introduced “Pizza Hut Delivery” (PHD) in major places of Dhaka and Chittagong city. And to introduce PHD they have used billboards, leaflets and print media ads a lot.

Contingency Strategies

TVC (Television commercial)- Pizza Hut can use TVC for their promotional campaign. Pizza Hut can do campaign in schools, colleges and universities. Pizza Hut can do campaign in major commercial places.

Pizza Hut can use FM radio for their promotion.
Pizza Hut can sponsors different events for their promotion. Pizza Hut can do market research to find out what kind of promotional activities will affect their target customers. Pizza Hut can arrange contests for youth.

Pizza Hut can introduce less fat and calorie pizzas for aged people. Guerilla marketing can be very effective for Pizza Hut.


Pizza Hut has many targets which it has achieved in a given period of time. The time-period is mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets.

“CSR Program”, accessed 20 April 2013,
‘Pizza Hut’, wiki article, April 19, 2013, accessed 20 April 2013, . William G. Nickels; James M. McHugh; Susan M. McHugh (2010). Understanding Business, 9th Edition, McGraw-Hill Irwin, NY.

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