Presentation OutlineShafaq Latif

• Introduction• History• Concept and Format

Saima kanwal• Progress and development• Menu

Zuresha Asif• Advertising and Marketing• Fun facts

Zulfiqar zaidi• Globalization• Global Attitude• How organization go global

Hina aziz• Global environment• Managing in global environment

Murtaza mehdi• Pizza Hut in Pakistan• Achievements.

INTRODUCTION

American Restaurant

Has a chain of restaurants & franchises based in Addison, Texas

Offer pizza with side dishes

Largest pizza restaurant company, in terms of both:

1. No. of outlets2. Percentage of market shares

INTRODUCTION

•Subsidiary of PepsiCo,Inc.,→1977-1997

• 11,000 pizza restaurants and delivery outlets in 90 countries worldwide.

Cont...Now-a-days Pizza Hut is a

subsidiary of Yum! Brand, Inc. (the world's largest restaurant company)

With approximately 34,000 restaurants, delivery/carry-out locations, in 100 countries.

In October 1997, the company expected to become a subsidiary of Tricon Global Restaurants, Inc., formed from the spin-off of PepsiCo's restaurant holdings.

OVERALL INTRODUCTION

Pizza HutTypes→ Wholly owned subsidiary

Industry→ Restaurants

Founded→ Wichita, Kansas (1958)

Founders→ Dan and Frank Carney

Cont...Headquarters→ Addison, Texas, United

States

Key people→ David C Novak (Chairman), Scott Bergren (President)

Products→ Italian-American cuisinepizza · pasta · desserts

Cont...Employees→ over 30,000

Parent→ PepsiCo (1977–1997), Yum! Brands (1997–present)

Website→ www.pizzahut.com

CONCEPT & FORMAT Pizza Hut is split into several different restaurant

formats:

1. The original family-style dine-in locations ("Red Roofs")

2. Store front delivery and carry-out locations ("Delcos")

Hybrid locations that offer carry-out, delivery, and dine-in options ("RBDs" or Restaurant Based Delivery units).

1. Full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat"

CONCEPT & FORMATThis building style “RED ROOF” was

common in the 1960s and 1970s.

In the 1980s, the company moved into other successful formats including delivery/carryout and the fast food "Express" model.

"Pizza Hut Express" and "The Hut" locations are fast food restaurants.

HISTORYFounded in 1958 by brothers Dan and Frank

Carney in their hometown of Wichita, Kansas.

They borrowed $600 from their mother to start a business with partner John Bender.

Rented a small building at 503 South Bluff in downtown Wichita

Purchased secondhand equipment to make pizzas

On opening night, they gave pizza away to encourage community interest.

HISTORY

Former Pizza Hut Logo

Dan and Frank Carney

The first Pizza hut located in Kansas

opened in 1958

COMMERCIAL HISTORYThe whole history of pizza hut has been

achieved through innovation

The history of pizza hut really took off with amalgamation into the Pepsi Company and more aggressive marketing techniques.

Over the years pizza hut has to reinvent the pizza and introduced a healthier style of pizza.

DEVELOPMENT & PROGRESS1958→founded by brothers Dan and Frank

Carney in their hometown of Wichita, Kansas.

1959→Pizza Hut was incorporated in Kansas, and Dick Hassur opened the first franchise as.

1960s→Pizza Hut grew on the strength of aggressive marketing of the pizza restaurant idea.

1962→the Carney brothers bought out the interest held by Bender, and Robert Chisholm joined the company as treasurer.

DEVELOPMENT & PROGRESS1966→the number of Pizza Hut franchise units had grown

to 145.

A home office was established to coordinate the businesses from Wichita.

1964→the first Pizza Hut franchise was opened in Canada.

This was followed by the establishment of the International Pizza Hut Franchise Holders Association (IPHFHA).

1971→Pizza Hut became the world's largest pizza chain, according to sales & no. of restaurants (1,000 by then).

DEVELOPMENT & PROGRESS1972→ Pizza Hut offered of 410,000 shares

of common stock to public.

1975→100 restaurants outside the United States and 2000 units in its franchise network.

The company's 2,000th restaurant was opened in Independence, Missouri.

It also established the 35 by 65 meter red-roof Pizza Hut restaurant building.

DEVELOPMENT & PROGRESS1977→Pizza Hut merged with Pepsi Co,

Sales that year reached $436 million, and a new $10 million dollar headquarters office opened in Wichita.

1980→Pizza Hut introduced "Pan Pizza" throughout in its network.

1983→Pizza Hut introduced "Personal Pan Pizza”. 1984→Steven Reinemund was appointed as

president and chief executive officer of Pizza Hut

DEVELOPMENT & PROGRESS1986→Pizza Hut opened its 5,000th franchise

unit, in Dallas, Texas, and began its successful home delivery service.

1994→several changes resulted in the company's first decline in operating profits in 15 years.

1997→Tricon became the partner company.

2002→Tricon Global became the Yum! Brands Inc.

A continuous changes in pizza styles are always taking place.

PRODUCTS OR MENU Pizza Hut sells pizzas in four different

sizes: 1. personal (individual serving) 2. small 3. medium4. Large

It sells a variety of related food items like:

1. Pastas2. Salads3. Desserts etc

Pizza toppings

SupremeSuper SupremeChicken SupremeBBQ BeefMeat LoversChicken TandooriCheese LoversVeggi LoversChicken TikkaHot & Spicy

Appetizers

Garlic BreadGarlic Bread Supreme

Garlic MushroomsChicken WingsPotato SkinsSpicy Wedges

Pastas

Lasagna Florentine

Creamy Tomato Penne

Soups & salads

Salad BarSweet Corn & Chicken

SoupMexican Tomato Bean

SoupChicken Caesar Salad

Desserts & Drinks

Ice Cream

Hot & Cold

Strawberry Cheesecake

MARKETING & ADVERTISING

Very first ad was "Putt Putt to Pizza Hut” in 1965.

First ever commercial included the jingle "Putt Putt to the Pizza Hut” in 1965.

The architecture of these restaurants became one of Pizza Hut's best marketing tools.

In 1989 sponsored the film Back to the Future Part II, and offered a free pair of futuristic sunglasses, known as "Solar Shades", with the purchase of Pizza Hut pizza.

MARKETING & ADVERTISINGIn 1990 NES game Teenage Mutant Ninja

Turtles II: The Arcade Game, came with a coupon for a free pizza.

Another UK ad shows British Formula One driver “Damon Hill” visit a Pizza Hut restaurant and order a pizza, with famous F1 commentator “Murray Walker” visiting with him, and narrating as though it was a Formula One race.

In 1997, Pizza hut made an ad with a greatest boxer “Muhammad Ali”

MARKETING & ADVERTISING

In 2001, Pizza Hut sponsored the first space pizza delivery.

They paid for their logo to appear on a Russian Proton rocket in 2000.

Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and is currently "Now You're Eating!".

Now they are also using mobile phone SMS technology for advertising.

FUN FACTS OF PIZZA HUTPizza hut are the world's

largest user of cheese, Pizza Hut uses more than 300 million pounds of cheese annually.

To make that amount of cheese requires 360 million gallons of milk.

To make this amount of cheese a herd of 170,000 cows is needed.

In 2010 Pizza hut history was made again, when they were the first national pizza franchise to allow their customers to order online in Spanish.

Globalization

An on going process by which regional economies, societies and cultures have become integrated through a globe spanning network of communication and technology.

Factors affecting globalization :

Political, Cultural, Technological

Pizza Hut as a global organization

An organization that operates in multiple countries is called global organization.

As Pizza Hut is operating in 90 countries with more than 12, 000 outlets.

Generally the global organizations follows the three types of global attitude :

Ethnocentric ( Home Country Oriented )

Polycentric ( Host Country Oriented )

Geocentric ( World Oriented )

Which attitude Pizza Hut does follow ?

Pizza Hut follow the Polycentric attitude

They believe that the manager in the host country knows the best work approaches and practices for running their business.

Advantages

Advantages related with polycentric attitude:

Extensive knowledge of foreign market and workplace.

More support from host country.

Committed local managers with high morale.

DisadvantagesDisadvantages related with polycentric

attitude: Duplication of work.

Reduced efficiency.

Difficult to maintain global objectives because of intense focus on local tradition.

Types of global organization

Multinational Organization

( Ethnocentric attitude )

Transnational Organization

( Polycentric attitude)

Borderless Organization

( Geocentric attitude )

Which type of global organization Pizza Hut is?

Pizza hut follows the polycentric attitude so it is a Transnational Corporation ( TNC ) type organization.

A company that maintains significant operations in more than one country but

decentralizes management to local country

How Organization Go Global :

Most organizations proceed through three stages :

Stage 1 Stage 2 Stage 3

Passive Response Initial Overt Entry Established International Operations

Importing, Exporting

Hiring and contracting with foreign representatives

Licensing, FranchisingJoint VenturesStrategic AlliancesForeign Subsidiary

How Pizza Hut Go Global ?

Pizza Hut proceeds through the 3rd stage of globalization and go global by franchising .

By using franchising approach it going global by giving other organizations the right to use its brand name, technology or product specifications.

In return it get a lump-sum payment or a fee usually based on sales.

How Pizza Hut Became a global Organization ( Key Steps )

•Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.

•The first franchise unit open in Topeka, Kansas.

•1000 restaurants were open throughout the USA.

.

•Pizza Hut went international with restaurants in Japan, Canada & England.

.

•PepsiCo bought Pizza Hut.

•There were 9,000 restaurants in 84 countries.

•first franchise in Pakistan.

•Pizza Hut began a franchising programme with its delivery stores

•the company is in good shape in terms of international expansion,

1958

1959

1968

1973

1977

1992

1994

2001

2009

Managing in a global environment

Legal-political environment•Stable or unstable political

environment•Strong or weak rules and

regulations

Economic Environment•Fluctuating Exchange Rates•Inflation Rates•Diverse tax Policies

Cultural Environment•Individualism vs. Collectivism•Power Distance•Uncertainty avoidance•Quality vs. Quantity of life

How Pizza Hut manage in global environment ?

World’s largest pizza restaurant company.

Have restaurants, delivery outlets and franchises in more than 90 countries.

Faces very diverse and constantly changing global environment around the world

Cont... Manage by understanding different

cultures and making policies according to the respected culture.

Also manage by decentralizing almost 90%

of its management to the local countries.

Managing in a political-Legal environment

As Pizza Hut is operating in multiple countries, it is constantly racing diverse (stable or unstable) political environment.

Managing by making policies according to environment facing in

each country. short-term plans, low investment and limited no. of outlets in

politically unstable country e.g. Pakistan and other Asian and African countries.

Long-terms plans, huge investment and large no. of outlets in

politically stable countries e.g. USA, UK and other European countries.

Also make strong relationship with Government, political and powerful persons of the respected countries.

Managing in a cultural environment

Each country has its own specific culture which is called National Culture and can be defined as :

The values, belief, attitude and norms shared by individuals from a specific country that shape their behavior and beliefs about what is important?

Every global organization has its own culture which is called Organizational Culture.

Pizza Hut manages in global environment by giving

more importance and emphasis to the national culture than its own culture.

Examples of Hofsted’s cultural Dimensions

Country Individualism/ Power distance Uncertainty Quantity of

Collectivism avoidance life

USA Individual Small Low Strong

Canada Individual Moderate Low Moderate

Japan Collective Moderate High Strong

Singapore Collective Large Low Moderate

Pakistan Collective Large Low Weak

How Pizza Hut deals with Hofsted’s Cultural Dimensions ?

In individualistic countries Pizza Hut gives incentives, bonuses and other facilities to its employees on the basis of individual performances and work.

In countries where collectivism is very high it encourages the team work and give facilities on the basis of group work.

In countries where power distance is very large Pizza Hut manages by maintaining power distance environment in its culture.

Cont…In order to manages in countries which

have different uncertainty levels and also vary in quantity or quality of life Pizza Hut make policies and develop its culture according to the specific national culture.

Pizza Hut In Pakistan Largest pizza restaurant company, in terms of both:

No. of outlets Percentage of market shares.

Owned by the MCR pvt, Ltd.

Operating in more than 6 main cities with more than 35 outlets and restaurant.

Unlike in India where the pizza has become widely popular, the pizza in Pakistan is not very widely popular.

How and When Pizza Hut Started in Pakistan ?

The first pizzerias opened up in Karachi and Islamabad in the late 1980's, with Pappasallis serving pizza in Islamabad since 1990.

Pizza Hut was launched in Pakistan in 1993.

Manzar Riaz from Lahore was the first franchisee.

The franchise is said to be financed by Arfeen International who owns 33% of the franchise, 33% by Khurshid Hadi, Chairman of Bankers Equity and the remaining by Manzar Riaz, the company's Chief Executive.

More about Pizza Hut in Pakistanthe pizza in Pakistan is only popular and well

known only in the provinces of Punjab, Sindh and Kashmir.

Pizza is still virtually unknown in the provinces of North-West Frontier Province and Baluchistan.

In Pakistan, pizza hut is serving with three types of restaurants i.e. Dine Inn, Delivery and Take away.

Achievements

Most popular and no.1 Pizza selling company in Pakistan.

Winner of the ‘’ Brand of the

year award ‘’ for 2009 & 2008.

always one step ahead from its competitors i.e. KFC, McDonalds in terms of

Popularity Social working Customer

satisfaction No. of outlets Market share.

Priorities of pizza hut• Pizza hut’s main priority all over

the world is maintaining the standards

• Their second priority is to make

the whole world familiar with their brand name for that they spend huge amount on promotion

• With their famous brand name and no compromise on their quality still they are offering affordable prices

Future Planning's Pizza Hut is planning to invest

approximately 1 billion rupees (U.S. $17.2 million) to expand into Pakistan.

Going to open about 20 new outlets and would create some 2,000 new jobs.

There are immediate plans to open outlets in the cities of Peshawar and Faisalabad.

plans to set up small Take Away stores at high public places such as railway stations, bus stands and large recreational parks.