Explore The Background To Change Affecting Pizza Hut Business Essay

Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has subsidiary businesses and famous brands like KFC, Taco Bell, A&W and Long John Silver's under one brand umbrella. It is the world's greatest pizza chain more than 13, 000 restaurants across 97 countries. Pizza Hut improves his functions in last five years. In India, Pizza Hut has 143 restaurants across 34 locations, including Delhi, Mumbai, Banglore, Chennai, Kolkata, Pune and Hyderabad. Great taste and quality, variety of pizzas and hallmark dining experience have made it possible for the business to for double-digit expansion and scale up its presence to its current size. Having a 27 per cent market share of the eating-out market and over 70, 000 footfalls per day across the country

Pizza Hut started its business from India in 1996, and opened its first restaurant in Bangalore. Pizza Hut preserved significant expansion and acquires a maximum share of pizza market and suffered growth rate of above 40 per cent per annum. Pizza Hut works through 95 outlets

across 24 cities in India which provided employment practically 5000 people by the finish of 2009. Pizza Hut

invested about US$ 35 million in India up to now through YUM! Commercial franchisee Brands Inc are the owners of worldwide chain of pizza shops listed in Bundle of money 300 Company. Since 2008 it made more than $36 million through sales.

http://www. pizzahut. co. in/dinein/aboutpizzahut. php

Task 1

Outcome: - Explore the background to change affecting the organization

Change can be carried out through various models such

Kotter's eight step change model


Business process re-engineering

Kotter's eight step change model

1. Increase urgency - inspire people to move guide and group these to make targets real and relevant.

2. Build the guiding team - Make the groupings with the right people in right place with their appropriate skills and levels.

3. Receive the eyesight right - Arrange and make the team to establish a vision and strategy concentrate on creative aspects which is essential to drive service and efficiency.

4. Communicate for buy-in - Involve as many people possible for improve the work, exchange of information and communication between the essentials and give response if any needs from people.

5. Empower activities - Processing to Remove road blocks, make promotive reviews and support from market leaders and top management for pay back and identify improvement and achievements.

6. Create short-term wins - Arranged objectives and aim that are easy to obtain in big size substantial work. Manageable amounts of initiatives. Finish current working functions and phases prior to starting new objective function.

7. Don't let up - Promote the expansion of the establishment and relating work and encourage perseverance of ongoing change - support and encourage ongoing progress which reports high light obtained and big significant prospective work.

8. Make change stick - Recruitment campaign and change of leaders which enforces the value of success.

http://www. associatedcontent. com/article/237685/_pg4. html?kitty=3


Change often brings high degrees of stress and disruption to the people. ADKAR change method in the organization world often gets rid of many of the negative and unsafe effects associated with new steps.

1. Awareness. Gives benefits to all levels of personnel and aware them about need of changes to the organization, changes for the sake of seldom is useful. Change is to apply for improvement of the business operation which really helps to be competitive in market. This is very essential for success.

2. Desire. It really is need that management sensible to encourage the desire of their employees to support and be active by participating in the prospective change in company.

3. Knowledge. It really is management's responsibility to supply the training and education to its employee change methods of the new strategies, and software. Sometime it is inadequate to do work in change environment without sufficient understanding of the goals desired by firm.

4. Potential. After obtaining a desired knowledge staff is involved must be given working out to attain and place to new change to be made which affects successful for corporation.

5. Support:- According to study it includes proven that anybody who perform and replicate the task continually for 21 times, it will turn into a habit of this person whether it's good or harmful to him. Reinforcing new "practices "of the employees enhance the success of the change made.

http://www. kellyservices. com/eprise/main/web/us/hr_manager/articles_aug08_akdarmodel

Business Process reengineering

Business process reengineering is a radical thinking about organizational process; this is a very fundamental thought. This a simple and perfect steps carried out to enterprise source of information planning implememtation. basically BPR analyses and implies the structural changes to be made for corporation. This identify very important because it helps company should be personalized and design itself to be ERP friendly. If company struggles to stands with the external changes then your best way to control is adopt the changes according to environment and apply the changes in it.

Study has been proven that if any changes are enforced in company then unexpected changes are not all time works in proper way because the incorrect method applied to it. It need plan to apply it; this is avoided by the utilization of BPR in basically.

Davenport (1992) prescribes five approaches to BPR model that are follows

1) Develop business vision and process objectives

2) Identify business process to be resigned

3) Understand and measure the existing processes

4) Identify Information Technology levers.

5) Design and create a prototype of the new processes

(valuebased management, 2008)

Pizza Hut has recently undergone an enormous change to improve the business and also to give better service for customer; this is because of demand from the clients and improvement suggestion. According to responses Pizza Hut made some changes in their services a few of them the following.

Franchise system: System followed for store forcast, screen performance, employee uses and food ordering and inventory management of business. One specific cause of adopting this to use technology and service better through management information system. Now these systems are supported by a skilled internal team to be sure customers get the best use from them.

(A pizzahut fanchise, 2008)

http://www. pizzahutfranchise. co. uk/html/technology. html.

Leadership Style: In running business with standard models and ideology of authority there was something missing about the importance of human values they want some changes plus they made it in functional life importance of the human heart in generating a company's human being drive and way of success to inspirational motivation in change management situations.

Real time performance reporting - Development in technology which can monitor the improvement of business anytime, anywhere via remote log-in features.

Online recruitment system for the people and associates only who meet up with the minimum success criteria added to shortlist.

Online training for managers and team members.

Digital marketing including online and mobile handsets.

http://www. pizzahutfranchise. co. uk/html/technology. html

First of all why don't we understand the meaning of strategic involvement:-It is a technique of influencing component that is used to modify the prevailing elements of business process there are three standard strategic intervention methods particularly.

HR intervention

Strategic leadership

Team building

HR intervention:

There are different issues and techniques had a need to run business organization and being success to achieve their goals. Human Resources comply with these methods very well. they prepares business guide for the managers, performance management, succession planning systems, and many other works for the betterment of company. So HR treatment is usually necessary, it continues the organization up to date with legal compliance.

Strategic management:

Strategic leadership involves handling through others, managing entire venture, making changes corresponding to requirement. Controlling real human capital is very critical skills of tactical leader. Commercial technology, and manage the data is also major functional activity of the leader. It is rather important to obtained a good strategic command for success of a business.

http://asso. nordnet. fr/adreg/Hitt%20et%20al%20strategic%20leadership. pdf

Team Building:

A team building can be defined as a group of men and women who collectively work towards a pre-defined goal utilizing experience and knowledge

in an office helps to nourishes better and open communication between the employees themselves, it also makes fosters to build up the connection between employees and the bigger management. It will go quite a distance in increasing professional relation. Team development in the workplace significantly contributes towards employee drive and building trust on the list of employees, thereby guaranteeing better efficiency.

http://www. buzzle. com/articles/team-building-in-the-workplace. html

Human Resources intervention techniques I would recommend in producing ` change:

Since previous five year we have seen drastic changes in other departments of Pizza Hut. Long lasting changes managed to get is working very well. Changes they take up technology, control style and franchise system going well. That is internal area of the business which is basic and participating in important role in upgrading the function of business. On the other hand of business and decision making there would another change to be going on in Pizza Hut. RECRUITING is major body of an organization i. e. Pizza Hut. HR is also accountable for other functions of business issues like training developers', individual development of

employee. Profession make progression route drive the culture of Pizza Hut. Money and accounting is vital for Pizza Hut. But i personally think that these are presenting much importance to their function because lack of decision making process, delaying in improper assessment of payment of employees, so there would be need for the change in the same. A lot more than 13, 000 thousand employees are working on regular payroll system and 2000 are working on monthly basis, in present company is using bureau system. it need change to innovative technology for accessing the repayment system. The efficiency and flexibility of the new system would make simple and help for further enhance the HR and payroll services which give all restaurant clubs. After all Wages is simply a fee for the supply of services to the business. Wouldn't HR be better off focusing on Employee Development and other training programs, rather than interacting with problems in the payroll.

Task 2:

Outcome:- Understand Issues associated with strategic change in the organization

a) Pursuing some generic background relating to strategic change has been introduced in Pizza Hut which shown good improvement in company's improvement. Here I also elaborate some practical areas which have changed it substantially.

1) Customer expectation:

Fast food industry is growing day by day, and new varieties of food are to arrive market. therefore the customers expectation are growing more then one not the same as other food companies. Food market is certainly going global means international food preferences are available in many restaurants. So the variety of taste needs more from consumers. There is need to fulfill the clients expectation about the change.

2) Competitive border:

In global market there's always a competition among the meals companies. Pizza hut also facing a hardcore competition. Domino's pizza is a significant competitive player of pizza hut keeps roughly 20% of market when compared with pizza hut is 46%. remaining market share is keep by small companies nearly about 32%. So planning and strategy is important to be competitive in market by making some different kind of variety pizzas, pastas etc.

3) New technologies:

Sometimes only advertising is not the only path to sell the product, technology will definitely play important role. For pizza hut updating technology, advertisement through social networking websites, Internet marketing, mobile marketing, sponsorships, tie up with local but popular makes, etc are technological ways to get marketed. Internet marketing, mobile marketing, sponsorships, connect up with local but popular makes etc. dependence on change for better end result.

4) Monetary changes in market

Every year there's a fixed budget to perform the business including the extra cash is given to them for adaptable financial procedure. But external environment aren't remains constant, like financial policy of administration, prices of commodities, increase in tax etc. it influences the financial policy of business, pizza hut is immediate customer focused business so if the exterior causes or environment changes it directly effect on business so they need to change at that time.

Drivers that determined Pizza Hut to above consider Change as follows

Technological Advances

Loss of markets


Technological Advancements:

To draw in customers also to give him better and fast service it's important to look at of technical changes, so that it could help those to compete in global market. if we consider pizza hut there is certainly good scope to present Online purchasing system, discount E-coupons, Happy time schemes etc. consequence of this new technology adoption pizza hut could easily get good response from customers, these technical advances gives satisfaction of good service to customers, instant service.

Loss of markets

In competitive market the business enterprise progress is mirror by their market talk about data. Loss and gain of market share is depends after quality and service directed at customers, so that it is an extremely critical to obtain a market show and keep it intensifying. Pizza hut is a competitive with domino's pizza, compare between them reaches present pizza hut is positioning around 46% and dominos 20%. this means dominos losses their market compare to pizza hut. So in business, market talk about is takes on important role for prospective progress of business.


Every business corporation featuring its own economic policy to perform business in market. business economics is diversified towards market means exterior forces always impact internal composition of the economic policy of individual organization. Financial status, liquidity of funds etc are related to funding matters of company, demand and supply are vital part

which depends after the necessity from the external market, external forces such as financial downturns, policy, inflation and deflation in market, interest, are directly affect market of business. If Pizza hut is doing their business so above cost-effective factors effect on costs of product rises in pizza prices anticipated to cheese price increased.

So above three are main drivers of change in business organization.

2. b) The main resources that pizza Hut needed for the implication are the following

1) The HR office: - It offers a desirable reputation and it is a fully included part of the organization, playing a key role generally in most business decisions. HR helps the restaurants and the Restaurant supply chain where it is actually needed. Pizza Hut made good improvement in individuals source so ensure that 70% of all vacant positions are filled up internally. Pizza hut also arrange annual achievement prize programs to employees who achieved special in current 12 months. Fast-moving, sociable atmosphere keep by company to work friendly in work area.

If HR didn't respond to need for proper change then maybe it's going difficult to handle the training programmes, resource change management system, decision making. so to provide a better potential to company then HR shouldn't be failed work.

2) It: - Pizza hut shown its changes in IT office since 5 years. IT department doesn't just cover the RSC but it's accountable for all the systems across more than 680 Restaurants. Company upgrade IT services which are looking at the procedure of loan provider reconciliations, preserving infrastructure.

IT reduces the work pressure and give more appropriate service, so in pizza hut for client satisfaction it takes on very critical role because placing your order the selections, online order coupon etc. are targeted online customers. If IT failed then it will directly impact on turnover of business. so IT must work regularly and perfectly.

As a section we're very vibrant and forward-thinking, driving a vehicle change from the inside of the organization out. What's more you'll take advantage of the long-term job security of working for a major global brand and enjoy a good work/life balance, without reducing on the type of technical troubles that keep carefully the job interesting.

Task 3

Outcome: Develop systems for understanding and regarding others along the way of change

a) Key stakeholders

Tricon global restaurants:

TGR is a famous major restaurants company with brand Yum! based in Louisville, KY having restaurants with an increase of than 36, 000 restaurants in over 110 countries and territories and more than 1 million affiliates. Yum! Is acquired his position numbered #216 on the Bundle of money 500 List, with practically $10 billion in earnings in 2009 2009. Four of TGR restaurant brands - KFC, Pizza Hut, Taco Bell these are the global player of the chicken, pizza, Mexican-style food and quick-service seafood categories.

http://www. yum. com/company/ourbrands. asp


Suppliers to pizza hut for the products like toppings, cheese, poultry will make the merchandise more successful and present assurance that the product will not make a reduction to company. Suppliers are always notion on pizza hut to make a good marriage between them. They is interdependent to one another. They have destined to give good business to each other in any circumstances. So company is also major stakeholder of pizza hut.

Customer and public:

Customers and the general public the final major stakeholder of pizza hut because will be the ones that will buy and take in the merchandise, every company design their product keep in head to customers only. Not all stakeholders want a similar thing. So besides professional stakeholders or any other business organizational stakeholders are indirectly based mostly upon consumers and customers.

Proposed system to involve stakeholders along the way of change

By going for a thread of above talk about the stakeholders in Pizza Hut, like business corporation, suppliers, customer and general public. We are going to make a proposed system or any model to describe the involvement of above in the change of a business.

We have reviewed Tricon Global Restaurants, suppliers, and customers as a public. So Pizza hut need to be any change in future to make any business strategy, company should think about above participants for decision making process. To broaden or to make goal of company pizza hut to go over all the ideas and things regarding to money within the organization framework to its business enterprise stakeholder i. e. TGR because this company invested a significant money and provides financial support to pizza hut. Therefore the concern about TGR is must for pizza hut. Second suppliers who give his best service by supplying cheese, pizza bases, toppings, paperroni etc. to make product like pizza and other variety products.

Customers and public without it would not be possible to achieve success for any company because they're the final vacation spot where any product gets used from the marketplace. So public are crucial part of the business organizational change.

Now we can interrelate the above categories in following manner

Tricon: - Financial support to pizza hut.

Suppliers:-Immediate supply of cheese, cheesebase, source on demand.

Cutomers and community:-final destination of utilization.

b) By considering the above factors that happen to be involves in system change management also have some advantage and disadvantages described below.


1) If Stakeholders is a small business group then good benefit is fund stream from such a stakeholders is definitely good on the other side they also have trader of another companies that may good for make their business grow in market and wider range of objectives.

2) In case the stakeholder is major stakeholder in company then his company in my opinion contains in financial issues of making an investment company for getting better business in market.


1) We know that dealer is a playing an integral function running a business but he's not only 1 to whom company prone to tie up for business. Pizza hut can't focus his function on suppliers to provide specific business from him. and totally depend on demand from the external environment.

2) Pizza Hut business is operating only after consumers. Where they will have their likes and dislikes. taste and variety of foods, different selections, and special deal on menus are the main fascination of customers. if the pizza hut can give good service then it immediately affects' the profit of the business.

3. c)

Change management strategy with the main element stakeholders

1) Identify stakeholders: Stakeholders can be identify by making survey and capability of stakeholders to have stake in comparative company, think of all the individuals who are damaged by stakeholders work, who've influence and power over it.

2) Prioritize stakeholders: our company has a long list of people and organizations who influenced by our companies work. Could be a few of them developing a power to prevent or progress. and another one is they can be interesting in our companies work.

3) Mapping information of stakeholders
Pizza Hut can map the profile of stakeholders in four categories

High vitality, interested people: these folks our company must completely participate and make the good efforts to fulfill.

High electricity, less interested people: Limit the task with these folks to make sure they are satisfied but not beyond their capacity.

Low power, interested people: keep talk to these people properly and speak to those to ensure that no major issues are arising. These people are continually be helpful and concerns about project work of investing company.

Low electric power, less interested people: keep monitor these people however, not surpass communication about certain limitations.

http://www. mindtools. com/pages/article/newPPM_07. htm

( Brain Tools Ltd, 1996-2011)

d) Technique for managing resistance to improve is discussed as follows.

1) Start communication :- Pizza hut undergone changes in previous five years, company needs more changes to be achieved in nearest future I'd be started out with open communication with employees, workers, and other individuals of business. first I would like to inform them why we are in need of the changes? Then which change especially they need and what exactly are benefits for everyone peoples associated with it. Open up communication always takes on vital role because with this we can exchange the information of both attributes and understand the viewpoints. so it is great medium to handling resistance to change.

2) Engagement: - I would like to go over about the role of employees and worker in Change in pizza hut would also change their role and provides more responsibility and can escalates the opportunities on accomplishment, also to give specification on participation in decision making process that could encourage employees.

3) Reviews:- Getting feedback from the employees, subodianates is always important because it helps to understand their views and judgment about change happened in organization. So that it would be an improved way to handling amount of resistance in change in company.

Task 4

a) I here select McKinsey's 7S model for putting into action change of Pizza Hut

1) Strategy:-

Pizza hut purely follows norms to achieve the quality product for best operational strategy to attain the client satisfaction particularly C. H. A. M. P. S

a) Cleaningness: Of all restaurants to provide quality foods and serve better to customers.

b) Hospitality: Great way of communication, respect and entertain customers.

c) Accuracy and reliability: Serving food with time with accuracy and maintaining quality of flavor.

d) Maintenance: Handling of staff, romance with customer, and servicing of machines.

e) Velocity:- providing food in time

2) Composition:-

Consider an individual outlet as a business organization pizza hut design their management composition like support supervisor who handles the shift of working team member, deputy designed supervisor managing training of new recruits, deputy director works for functional departs like income and aim for business, restaurant general manager looks for the functioning of most finanve, orders, quality. etc

3) System:-

The best part about pizza hut is, it is a business of franchises system, Delivery system is a significant function of business and almost 20% of purchases done by delivery mode. frinchises and head office personnel work are meticulously together to attain their things.

http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-HYPERLINK "http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-&-catering/"&HYPERLINK "http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-&-catering/"-catering/

2010 What Franchise Magazine

4) Shared values:-

Pizza hut have a special quality of organizational life. Ethnicities determine a lot of every deal happens which is centralize across an organization. While managers know about their cultures, they are generally unsure about how precisely to influence. emlpoyees and each individuals in pizza hut business respects the values and principles of pizza hut.

5) Skills:-

Pizza hut is usually respecting the skilled employees, something ground breaking and various ideas are always pleasant in pizza hut, new recruiters also get training to ensure also to put up their skills from knowledge to practicle life.

6) Style:

Every menu of pizza hut has its unique style; they always make an effort to make something different from other competitor's formula. Unique method of customers entice with diff. styles choose by pizza hut.


Pizza hut staff members always prefer to greet and serve the clients and planning great food behind the views, team members are friendly, outgoing and wanting to please. They are simply keen and enthusiasms tic, they have ability to handle fast paced working environment.

b) How might you implement a number of model(s) in your selected business, what improvements do you expect to achieve by implementing your selected model(s), and exactly how would you assess these? (AC: 4. 2, 4. 3)

4. b) Change Implementation Plan with Business Process Re-Engineering (BPR):

Business process reengineering is a radical thinking about organizational process; this is a very fundamental account. BPR analyses and implies the structural changes to be produced for organization. Implementation of BPR in pizza hut described below
Davenport (1992) prescribes five approaches to BPR model that are follows

1) Develop business vision and process aims:

A perspective of the Pizza hut after the change occurs; the school which gives high quality education with new technology and supports updated curriculum that really helps to increase the percentage of university entrance exam success

Pizza hut having a great show in US and Western european market rest of these they would like to dominant in china brands with profitable growth. They have got good plan to be the best at providing brand name restaurant choice with multibranding.

2) Identify business process to be resigned

Day by day competition being so strong in food servicing industry. There will be a risk of imitation products that will surely be a problem to be dealt with. So in future if other imitated products come in market then pizza hut must adjust or to learn variety of product to accommodate change in market.

3) Understand and measure the existing processes

If we consider the special offers and marketing of pizza hut they could have to be bigger and much better than your competition of nowadays, if think about product development the product might need to be altered to give it that little bit of competitive border. Forexample stuffing the crust with cheese or giving a free topping with the purchase would help give Pizza Hut an advantage over your competition.

4) Identify Information Technology levers.

See pizza hut using IT since many years and changes has been made matching to need. in the IT business framework the online purchasing system will heading to be very competive, so that people need to be adopt more scientific appliances and advanced technology in potential years.

5) Design and create a prototype of the new processes

If we fundamentally think about the business process it will need flexibility in procedure and product life pattern stages to be a market leader. It will desire a great marketing plan which will be matched in new product section. Promotion and advertising will be using for marketing so that it will make focus on an extremely profitable.


Internet Recommendations.

1) (A pizza Hut company, 2010)

http://www. pizzahut. co. in/dinein/aboutpizzahut. php

2) (A pizzahut fanchise, 2008)

http://www. pizzahutfranchise. co. uk/html/technology. html.

3) (A Associated Content, 2011)

http://www. associatedcontent. com/article/237685/_pg4. html?cat=3

4) (A kelly services incorporation, 2011)

http://www. kellyservices. com/eprise/main/web/us/hr_manager/articles_aug08_akdarmodel

5) (Strartgic management)

http://asso. nordnet. fr/adreg/Hitt%20et%20al%20strategic%20leadership. pdf

6) (A Buzzle. com, 2010, 2011)

http://www. buzzle. com/articles/team-building-in-the-workplace. html

7) (A Yum organization, 2009)

http://www. yum. com/company/ourbrands. asp

8) ( Brain Tools Ltd, 1996-2011)

http://www. mindtools. com/pages/article/newPPM_07. htm

9) (journal, 2010)

http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-HYPERLINK "http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-&-catering/"&HYPERLINK "http://www. whatfranchisemagazine. co. uk/franchise-finder/franchisor/pizza-hut/food-&-catering/"-catering/

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