Organization Analysis of Pizza Hut

Pizza Hut (known as Pizza Hut, Inc. ) is an American restaurant chain and international franchise that offers different styles of pizza with other part food including pasta, buffalo wings, breadsticks, and garlic clove breads. Pizza Hut is a subsidiary of Yum! Brands, Inc. ( A parent body which includes headquarter in Dubai. They provide raw materials and standard for Pizza Hut (Peshawar) to follow and they have the right to seal the business enterprise if Pizza Hut doesn't follow their standard). Pizza Hut Pakistan has 40 retailers around Pakistan and its own head office are in Lahore and Karachi respectively.


Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. Whenever a friend suggested opening a pizza parlor, they arranged that the idea could demonstrate successful, plus they borrowed $600 using their mother to get started on a small business with partner John Bender. Booking a little building and purchasing secondhand equipment to make pizzas, the Carneys and Bender exposed the first "Pizza Hut" restaurant; on opening night, they offered pizza away to encourage community interest. They chose the name "Pizza Hut" because the signal they purchased only got enough space for nine people and spaces. Additional restaurants were opened up, with the first franchise product starting in 1959 in Topeka, Kansas. The original Pizza Hut building was later relocated to the Wichita Point out College or university campus.

(Guide- http://en. wikipedia. org/wiki/Pizza_Hut)


Chicken Wings -- Rs. 120 for 6 Parts, Rs 225 for 12 Pieces

Flaming Wings -- Rs. 135 for 6 Bits, Rs. 255 for 12 Parts.

Pizza Hut Platter 2 -- 365 Rs.

Bruschetta - 195 Rs.

Kebab Stuffers - 195 Rs. 4 Pieces

Pizza Hut Platter 1 - 365 Rs.

BBQ Chicken breast Spin Rolls - 195 Rs

Behari Hen Spin Rolls - 195 Rs.

(Guide- http://www. pizzahut. net. pk/starters. html)

P1: Give a proper explanation of Operations Management and discuss the salient top features of the definition

Operations Management

"Procedures Management is concerned with the development of goods and services. It handles the management of resources (inputs: machines, recycleables, real human skills, etc), and the circulation of finished goods and services (outputs) to the customers".

There are two types of business Procedures

Manufacturing Companies

Services Companies

If a" company gets the potential to produce tangible goods, it is known as production business companies" Manufacturing businesses offer with goods/tangible products. Example market sectors: Agriculture, forestry and angling, Mining, Structure, etc.

"The firms who do not produce tangible products are referred to as service business companies". Some service functions deal with tangible outputs even though they don't manufacture something: instances are distributors, email service, collection, etc. Other service procedures package with intangible products. These are pure service businesses: examples are financial advice, counseling, etc

Operation administrator is the vital part of the organization. He handles employees immediately; he shows just how work should be achieved in several departments of the business. He supervises the improvement and make sure that each job is completed on time. Operation managers everywhere receive the largest budget of the business so that he can utilize them and produce results. He is responsible to set up supplies of machines, recycleables, labors etc had a need to convert input in to outputs (products). Therefore, functions function plays a substantial role in success of businesses

Key salient top features of this description are

Products or services must be developed,

Materials must be purchased,

Facilities must be managed,

Products or services must be allocated, therefore on

Inputs Procedures Function

Output Customers (Fig 1. 0)

M1: Within the context of preferred business apply the procedure management meaning given in P1. Explain the salient feature you see available being researched?

During the interview the regional (Peshawar) manager of Pizza hut, advised us that their headquarters are in Lahore and Karachi respectively, where their mind operations department is situated. He said that they call their procedure director as a training master. Corresponding to him as Pizza Hut is a multinational company so it is bound to follow the international standard in Pakistan. Your body that provides basic Pizza recycleables, regulations and standard is Yum incorporation which can be found in Dubai.

According to him, their Instruction master is dependable to check out the Yum standard procedures. He receives organic material through ship from Yum, Dubai and then he supplies them to their warehouse in Lahore. This Training professional has very good marriage with his other branch managers. He make sure that the raw materials required to make pizza are sent to Pizza hut regional branches in time because the basic rule of Yum is the fact that daily some materials required should be utilized within 12 hours. The remaining materials should be disposed off. He has good romance with K&N and Pepsi because they are necessary for daily use and would have to be sent to each branches. He has generated a team culture for every branches of Pizza Hut and designated a role of team head to the respective manager of each branches. Then it's the manager's responsibility that how well he trains his helping staff in order to achieve the operations targets.

According to the manager of Pizza Hut Peshawar he has 60 promoting personnel who work in two shifts. First move from 9am to 5pm and second transfer from 7pm to 3am. He each week receives recycleables of their warehouse and from K&N. Then he monitors your kitchen work where in fact the recycleables are transformed in Pizzas and other food. Then he make sure his waiters politely receive the customers and using their orders and make an effort to deliver them at the earliest opportunity. They also have given the facility of eliminate where customers come and take item with them. As well as the administrator is also in charge of the online marketing strategy of the Pizza Hut marketing office to provide free delivery services till 20 km.

The points talked about above is associated with the salient top features of operation management that is of Products must be developed, Materials must be purchased, Facilities must be retained, Products or services must be allocated, etc. In Pizza Hut operation manager provides materials and labors services, get supplies from Yum and supply these to each branches, he's dependable to provide good environment for the clients and his employees and facilities to his customers. The products are then provided to the clients. So in general, in pizza hut procedures team in Karachi is responsible for the success of Pizza Hut (Pakistan).

P2: How operation management interlinks with other function of given group. (Financing, Marketing, Administration, Inventory Management etc)

Operations management must be well included with other parts of business. Businesses management is one of 3 prime functions of Pizza Hut




Works of 3 primary functions above overlaps one another and all 3 department work together to reach the overall goals of Pizza Hut. As I said above that functions supervisor of Pizza Hut is in charge of the next

He is dependable to receive the products of recycleables from Yum Dubai so he will need good relationships with account division (Finance) because for importing Organic material from Yum. Inc he needs money which they can get from the fund departments of Pizza Hut in Karachi.

He is liable to ensure that they keep following standard guidelines of Yum Inc. In this example he needs the assistance of the supervision and the employees if the administration provides incentives to the employees they will be motivated and they'll work for the success of Pizza Hut by following roles of Yum.

One of the functions of operation manager is to teach his current employees, compensate them. For compensating the employees he needs the help of the Finance department. For this purpose he has advertised team culture every one works collectively for the success.

For supply raw materials to the regional branches off their warehouse the procedure administrator need the help of the stock management of the warehouse to supply the raw materials through fast method of transport.

For getting customers for dishes, the operations director takes a good advertising campaign of the foodstuffs deals from Pizza Hut Marketing Division.

As we reviewed above that procedure management is the crucial area of the organization and they're in charge of the success of the every group but they can not achieve their goals with no help of Marketing, Fund, Stock management departments of the business. Therefore the functions management of Pizza Hut needs to have good relationship with the marketing, funding, stock departments and the employees of Pizza Hut in order to use their procedures effectively.

P3: Analyze the worthiness string and five performance target on the given business.

You should provide a general description of the worthiness chain and fiver performance objectives in your answer

Value Chain of Pizza Hut






Primary Activities

Customer Care


Operation Department












Pizza Hut

Primary Activities are related to recycleables, every week stock process, creation by requests, and delivery/services and sales.

Raw Materials: According to the director of Pizza Hut Peshawar, he said that they will get their raw materials on every week basis from other warehouse (Lahore). First of all the recycleables of Pizzas involves Karachi through ship from Yum incorporation (Dubai) then Karachi branch is in charge of delivering raw materials to Lahore warehouse and finally they send it to Peshawar branch while for soft drinks and chickens they have a contract with more fresh vegetables suppliers, Pepsi and K&N respectively for providing them fresh vegetables, carbonated drinks and chickens on daily basis.

Weekly Stock Process: Pizza Hut offers freezers for keeping the stock on weekly basis because their warehouses are at Lahore and Karachi so it's hard to allow them to order recycleables on daily basis while other activities like fresh vegetables, Pepsi and chickens are being purchased on daily basis because they would like to utilize fresh chickens, vegetables and so forth. And they are buying Masala for a week, because Masala is something which can't get spoil so that's why they buy it for weekly.

Cooking/Procedure: Based on the director of Pizza Hut Peshawar, presently he offers 60 supporting staff who work in two shifts. First switch from 9am to 5pm and second transfer from 7pm to 3am so for running pizza hut, they have divided their staff in different categories like there are a few waiters who gets an order at hall and some of the waiters are responsible to take requests at eliminate and receptionist will take an order through calls, so they offers order to procedure division through Computer Network and the order goes by to Order Filler then he pass the order to Order Checker and he's transferring it to the Make. If the given bought gets ready then Make meals provides given purchased Pizzas and etc to Order Filler and he is offers it to Waiter for providing the customer and this whole process takes only 15 minutes.

Serving Customers: Pizza Hut has different types of waiters that happen to be the following

Take Away: They take requests from customers and moving the order to operation division through Order Filler and Order Checker respectively from then on when the given order gets ready then Order Filler is responsible to deliver the item to take away, for offering those customers who wants to have Pizzas with themselves.

Waiters: Pizza Hut's waiters take an order and passes it to order filler for delivering Pizzas to customers

Sales: - There main concentrate is providing best value foods within short while of given purchases to deliver Pizzas in a quarter-hour so their fast services along with best quality of Pizzas are generating customer satisfaction which leads towards high income.

Support Activities provides purchased raw materials, and recruiting to support the principal activities.

Manager: He is the in charge person for providing recycleables from other warehouse (Lahore) on regular basis and carbonated drinks, chickens and fresh vegetables are being ordered to their contractor on daily basis and he is keep suspending under the roof of Pizza Hut all around in order to create profits.

Customer Care (ELIMINATE, Waiters, Dealer (Free Home Delivery), Fund Director and Guards)

They are adding at different levels for increasing the sales which will be the following

Take Away: They take orders from customers and passing the order to Procedure Department for portion that customer who wants to buy Pizzas on the spot due to which their sale increases.

Waiters: - At Pizza Hut there are a few waiters which work inside the business and they're responsible to adopt orders from the customers.

Supplier (Free Home Delivery): They are only responsible for providing Pizzas to be able to generate earnings from those customers who offers an order of Pizzas delivery.

Finance Administrator: In order to keep the record of budget manager himself and a subordinate is keeping the responsibility of payment types of procedures they have a much better financial management.

Operation Team (Cooks and Bakers): They are simply responsible for the procedure of cooking best value Pizzas.

Five Performance Objectives

Quality: Pizza Hut is well known by their best of quality pizza in Peshawar. They are buying raw materials from Yum (Dubai), staffs are well-trained and they're using latest machines which are aiding them to provide the customers with best pizzas.

Speed: Pizza Hut is delivering pizzas to their customers within 15 minutes. It shows that how much they are efficient along the way of cooking pizza with the aid of trained staffs and latest systems.

Dependability: As earlier we have mentioned that their recycleables are via Lahore (warehouses) to be able to provide best value of pizzas but purchasing recycleables can make them in big trouble because sometimes uncertainty can occur now a days in Peshawar and around Pakistan while if we discuss customers they may be more depended on them, as they get purchases then they have to provide the pizzas promptly and they are really productive in providing pizzas since it takes only a quarter-hour right after order.

Flexibility: It tends to be effective with the changes of customers flavour, design and so forth. Pizza Hut's major specialty is Pizza but additionally they have introduced different dishes along with pizza and they are offering pizzas in several sizes and deals for his or her customers which show they are really trying to fulfill their customers.

Cost: Pizza Hut is charging high awards of these pizzas due to their expensive raw materials, professional personnel, monopoly in the market of Pizza at Peshawar, so if they make an effort to have a warehouse within Peshawar then it will bring changes in their activities like they will not face the problem of recycleables delivery even if any uncertainty happens.

M2: Discuss different environmental auditing techniques and exactly how these techniques influencing procedure management of given corporation.

Environmental Auditing Techniques


Volume refers to the amount of times that an operation has to deliver a service of product. An operation interacting with high level should be made to process the demands placed after it more speedily than the operation meeting lower volume.

(2nd Edition, Functions Management in Framework by Frank Rowbotham)

According to the Administrator of Pizza Hut Peshawar, He is the dependable person to check each and everything on daily basis. He is providing raw materials for production section (kitchen) and he's always looking to watch over front desk, hall, waiters, suppliers and distributors (those who do free home delivery). Each one of these works are done by the administrator on daily basis and regularly with intend of satisfying customers by providing their meal purchases speedily, in order to provide quick service to them.


It represents the habits of volume demands. If there are many peaks and troughs in demand the situation is said to be one of high deviation. The challenge in this case is to create an procedure that can provide the correct level of capacity to meet this structure. Hauling extra capacity in the days of low demand is inherently expensive, regarding under-utilization of key resources such as staff, technology and facilities.

(2nd Edition, Procedures Management in Framework by Frank Rowbotham)

Changing their work processes and work designs relating to improve in the flavour of customers is a big concern for Pizza Hut. Nowadays customers want changes and want to style different products and foods. Pizza Hut is specialised in Providing quality pizzas however now in Peshawar new restaurants are beginning offering new tastes and dishes that are giving difficult time to Pizza Hut and their sales have been damaged by it enormously, keeping in view these environmental impacting on factors Pizza Hut has introduced new items in their dishes and are focused on introduce new dishes. They have invested a lot on new technological kitchen equipments to be able to contend with competitor and maintain their specifications.


Variety is the term applied to the amount of different types of products demanded. High variety conditions require different services or products on a recurrent basis, whereas low variety needs look for the same end result most of enough time. An operation facing high variety should be designed to provide appropriate degree of flexibility. This overall flexibility will be usually expensive set alongside the costs of operation designed to deal with low variety.

(2nd Edition, Operations Management in Context by Frank Rowbotham)

As we have discussed above that folks want change in whatever they certainly or wish to have and so far as pizza Hut is concern it is customized in pizza dealing with popular is very hard job for the procedure supervisor of Pizza Hut in Karachi because previously he was providing raw materials for producing Pizzas in each branches of Pizza Hut now with change in demand they have to expose new meals in their menu for that purpose he needs to arrange recycleables, cooks in each branches for these new meals. Providing quick service to the customer is very important aspect of operation supervisor so he must train his personnel to deliver requests on time effectively. Dealing with high variety is a more challenging managerial activity than coping with low variety.

Customer Contact

The customer contact dimensions is concerned with how much time the staff of operation have to spend with their customers. Customers are in addition to the procedure unlike its personnel. The more those customers involved, the greater is task to the planning and control of procedure manager.

(2nd Edition, Operations Management in Framework by Frank Rowbotham)

The manager who is responsible to control the operations of the Pizza Hut Peshawar branch deals with customers regularly on daily basis. He makes sure that customers are treated fairly in with a fair environment otherwise, customers can be disappointed and they wouldn't normally want to visit them again which make a difference the business. He's always entail with customers and try to deliver their orders quickly. When customers come even though going the director says welcome and bye from the front desk. In order to satisfy their customers the administrator of Pizza Hut spend lots of time with his supporting staff making sure that every work needs to be done on time to be able to meet their customers.

D1: Recommend the way the studied organization can improve its procedure performance based on environmental analysis

Pizza Hut has to bring the changes in pizza size, because Pakistani people always like and go with a huge pizza

Pizza Hut has to launch the idea of "Eat just as much as you can" in specific time frame. Obviously, the quantity of these customer will be increase, as end result they will earn much more profit.

The Peshawar Pizza Hut has to provide the facilities of car parking area for the family members. The parking area should provide specious

And another problem is in their call centre for order; because their call system is centralized from Karachi. For instance if the Peshawar customer demand order, its call will be connected with Karachi branch and how the Karachi center know about the fantastic of Peshawar as result the delivery probably calls for enough time around 55 minutes and the customer feel unsatisfied. They have to change the centralized call system to local system

And there is No information of local delivery system in their website

The location of Peshawar Pizza Hut is not best from business viewpoint because it domestic area and another point is, as it is a long way away from Hayatabad and University Town that is their middle of interest as discussed earlier. So the location they are having has both plus and disadvantages to them as well.

The Peshawar Pizza Hut appears excellent from outdoor (Facade) however they don't look after cleanliness inside of restaurant which will be having direct effect on customer health. They need to be careful about cleanliness

Overall Pizza Hut should broaden their products by attracting more items in their selections, e. g. more deserts, which can be affordable, and appetizers etc. increasing the meal especially regarding salads can become a motivating factor for Pizza Hut. They have to delete or omit goods that are not in use or not preferred by the consumers such as the thin crust pizza

During Ramadan many people face along lines and are unable to utilize the Ramadan deal. For this Pizza Hut must have one more wall plug in a locality.

The Pizza Hut should used the odd number technique i. e. rather than saying a major pizza Rs. 900 they should use or say Rs899. This makes the client think that they are receiving a good bargaining

In Peshawar the Pizza Hut should open up another store in the area of Hayatabad, because the people of Hayatabad are extremely interested with Pizza Hut's pizza, but due to their even location, people mostly prefer to go to Main BURGER.

Pizza Hut has re-generated its menu and should keep in mind in doing it over and over. They offered services and should generate and promote their other items such as pastas and spaghettis. Many consumers have complained that Pizza Hut should become a total restaurant that is they must offer different kind of desserts at affordable prices. The dessert offered by the moment are either too expensive or aren't worthwhile.

A small decrease in the prices of products can get prospect customers. The lowering can be included in the increase in the prices of Refreshments, as consumers do not go through the price of sodas when placing your order it.

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