...International Logistics | Case Analysis Pizza Hut Moscow Globalization of Operations Strategies Submitted By- GROUP 3 | Sec A Aditya Batabyal 003 Ameya Bhadkamkar 007 Amitash Laxminarayana 008 Arun Kumar 017 Ashish Kulshreshtha 020 Bhavya Desai 028 Chetana Rane 030 Harsh Bakhai 039 Mohit Niranjane 054 Pratamesh Tawde 060 Analysis Culture is very important to the practice of international business. It impacts the way strategic moves are presented, influences decisions and is the lens through which motivation occurs. Management, decision making, and negotiations are all influenced through culture. Culture is what makes international business practice difficult or easy, depending on how similar or different cultures are. Culture is both divisive and unifying. Culture is not a constant; it evolves over time. Globalization has made it necessary for companies to establish themselves in new markets. The Pizza Hut case let is an example of one such new market exploration venture by the American company PepsiCo in the Russian markets. In September 1990, American company PepsiCo and its Russian partner Morsrestoranservise opened two Pizza hut restaurants in Moscow. The joint venture plan was based on a 3 billion agreement between PepsiCo and the Soviet Union. It laid down three fundamental requirements for the future Pizza Hut joint venture. Owning 49% partnership, Pizza hut will need to use local food source and provide training for...
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...Introduction Pizza Hut was started in 1958, by two brothers in Wichita, Kansas. Frank and Dan Carney had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut would be serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990's Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the United States were over $5 million. Out of all the existing pizza chains, Pizza Hut had the largest market share, 46.4%. However, Pizza Hut's market share has slowly eroded because of intense competition from their rivals Domino's, Little Caesar's and newcomer Papa John's. Home delivery was a driving force for success, especially for Pizza Hut and Domino's. However, this forced competitors to look for new methods of increasing their customer bases. 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...
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...1.1 AN introduction overview TO THE BROAD AREA OF TOPIC This research is based on comparison of Quality service offered by pizza hut and dominos. This research is based on to test the quality of service and comparison between two Pizza Houses. The fast food industries of India is experiencing phenomenal growth and is one of the fastest growing sectors in the country, with the compounded annual growth rates of the market crossing 25%. Further, on the back of changing and busy lifestyle, fast emerging middle class population and surging disposable income, the industry will continue to grow at a pace in coming years. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years. But some of most rapid growth is occurring in the developing world; where it's radically changing the way people eat. People buy fast food because it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about fast food industry, its trend, reason for its emergence and several other factors that are responsible for its growth. This report provides extensive research and rational analysis on the Indian fast food industry and tracks the changing dynamics of the market. It features market performance, key related sectors and competitive landscape of the market. The research study looks into the market condition and future forecasts, and outlines current...
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...service restaurant company. Yum has three major restaurants, Kentucky Fried Chicken (KFC), Taco Bell and Pizza Hut. The company franchises and licenses its restaurant worldwide. In February 2012, they acquired controlling interest in Little Sheep Group Limited. They have around 18,000 system restaurants in the United States and in 2011 had revenues of $3.8 billion and operating profits of $589 million. Suppliers Yum purchases its supplies from a number of different suppliers throughout the world. The primary items that Yum purchases are cheese, beef, chicken and pork products, as well as paper and packaging materials. Their China division deals with around 500 different suppliers, primarily based in China. Yum and the representatives of the company’s franchise groups are members of the Unified Co-op. The Unified Co-op provides companies with the opportunity to purchase lower priced products and equipment. Customers The company does not focus or rely on just one group of customers. Quick services restaurants are able to cater to and appeal to the needs of a wide range of people. With that being said, Yum targets all groups of people of all ages. Products Kentucky Fried Chicken restaurants offer a variety of fried and non-fried chicken products and various side items such as macaroni & cheese, mashed potatoes and potato wedges. Pizza hut offers a variety of pizzas as well as...
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...33 .CANON, 34. SONY, 35 . KELLOGG’S ,36. AMAZON.COM, 37. GOLDMAN SACHS 38. NINTENDO, 39. THOMSON REUTERS MEDIA, 40. CITI ,41. DELL, 42. PHILIPS, 43 . EBAY, 44. GUCCI ,45. L’ORÉAL, 46. HEINZ, 47 . ACCENTURE, 48. ZARA, 49. SIEMENS, 50. FORD, 51 . COLGATE ,52 . MORGAN STANLEY, 53. VOLKSWAGEN, 54. BLACKBERRY, 55 . MTV, 56. AXA, 57 .NESTLÉ 58. DANONE, 59. XEROX ,60. KFC, 61. NEW SPRITE, 62. ADIDAS, 63. AUDI, 64. AVON, 65. HYUNDAI ,66 .YAHOO! ,67. ALLIANZ, 68. NEW SANTANDER 69. HERMES,70. CATERPILLAR ,71. KLEENEX, 72. PORSCHE, 73. PANASONIC, 74 .NEW BARCLAYS, 75. JOHNSON & JOHNSON ,76. TIFFANY & CO, 77 .CARTIER, 78. NEW JACK DANIEL’S ,79. MOËT & CHANDON, 80. NEW C REDIT SUISSE, 81. SHELL, 82 . VISA, 83 . PIZZA HUT, 84 . GAP, 85. NEW CORONA 86. UBS, 87. NIVEA, 88. ADOBE, 89. SMIRNOFF,90. NEW 3M ,91. FERRARI, 92. NEW JOHNNIE WALKER ,93 .NEW HEINEKEN, 94. NEW ZURICH ,95. ARMANI, 96 .LANCÔME ,97 .STARBUCKS, 98. HARLEY-DAVIDSON ,99. CAMPBELL’S ,100. BURBERRY. Top ten value proposition global brands: 1 Coca-Cola71,861 ($m) 2 IBM69,905 ($m) 3 Microsoft59,087 ($m) 4 Google55,317 ($m) 5 GE42,808 ($m) 6 McDonald's35,593 ($m) 7 Intel35,217 ($m) 8 Apple33,492 ($m) 9 Disney29,018 ($m) 10 Hewlett-Packard28,479...
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...China may boast a 5,000-year-old culinary tradition, but when it comes to fast food, Western-style outlets rule. For this you can thank -- or blame -- changing consumer tastes, and the breathless expansion plans of chain restaurants, which are eager to grab a bigger slice of the country's estimated annual $29 billion fast-food market. For two decades the battle for the modern Chinese stomach was fought between two American giants: McDonald's, the world's largest fast-food chain, and Yum Brands Inc., which operates the KFC and Pizza Hut brands in China. Yum, which arrived in China in 1987 (three years before McDonald's), has always stayed ahead of its rival -- going by both the number of restaurants and consumers' awareness of the brand. In 2005 the two titans were joined by another American stalwart, Burger King, the world's second-largest burger chain. In April Burger King had only 12 outlets on the mainland, including nine in Shanghai. But after this cautious start, the company is pushing ahead with a faster store rollout: In June it announced plans to open between 250 and 300 outlets in China over the next five years, including another 10 restaurants in Shanghai. As in other markets, 90 percent of them will be franchised and one-tenth owned by Burger King. For comparison, KFC has more than 2,200 outlets in some 450 cities and McDonald's has 950 outlets. Airport eateries will also be vital. Some 200 of Burger King's 11,500 outlets worldwide are...
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...Factors Behind Their Success Westernized fast food chains are steadily growing in foreign countries. Kentucky Fried Chicken is one of the leading U.S. fast food chains currently in China. There are several factors that have contributed to KFC’s rapid expansion and success in China. The story of KFC in China is one of great success on an economic level, as well as a great example of international business. There are many factors behind KFC’s success in China which include, five competitive advantages: infusing a Western brand with Chinese characteristics, expanding rapidly, developing a logistics network, training employees in service, and focusing on ownership rather than franchising. KFC is part of the Yum! Brand, which also owns Pizza Hut and Taco Bell. KFC China’s success in the international market has all been due to its five competitive advantages. The first of these advantages is infusing a Western brand with Chinese characteristics. KFC China makes sure that even though it is a US chain and restaurant it has worked hard to assimilate into the Chinese culture. They have done this by offering a variety of menu choices that cater to the local cuisine. They have also expanded their kitchens and their workforce to be able to produce and accommodate for the additional menu options. Extended families are a big part of Chinese culture; KFC China has acknowledged this by increasing the square footage of their establishments in China. Another advantage that has aided KFC...
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...Expansion Pizza Hut came to Pakistan in somewhat the same way it began in America; it was Dan Carney who approached Manzar Riaz with proposition of bringing the chain to Pakistan. Along with its flagship restaurant in Clifton it has three more operational units functioning in Karachi, while one is functioning in Gulberg, Lahore. It is called “RED ROOF”, with seating capacity of 350, which makes it the largest in the sub-continent. Pizza Hut being the first international Franchisee in Pakistan got an over whelming response when we opened up. * There is a strong untapped market across Pakistan for the introduction of Pizzas, Therefore consumers will be attracted towards the introduction of Pizza Hut across Pakistan. * Consumption pattern is more in Karachi Most importantly the food industry is attractive for the entrants, so, Pizza Hut will reap huge benefits out of pursuing this strategy. * Eating out” is the main source of entertainment in Pakistan .Pizza hut is soon to open new outlets in Gawadar port because there is new potential for new market. Have an opportunity to open an outlet in an emerging market * Soon to have outlets at Airport and Port Grand because eating Pizza is a rising trend of Pakistani society. * Pizza Hut has an opportunity to target new segments of class “C” customer base as they are currently targeting “A” and “B” class customers i.e. income groups of 50,000 & above respectively Recommendation Strategy: 1 Pizza Hut should come...
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...INTRODUCTION This project puts in perspective the multinational company called Yum!Brands, which is an American company in the fast-food industry. We will be discussing about some aspects of this company generally, but we intend to give more details on the company Kentucky Fried Chicken(KFC) which is one of the Strategic Business Units (SBU) of Yum!Brands. We will give the profile of Yum!Brands and KFC, and also analyze the strategy of the company, its internal and external environment, its position vis-à-vis its competitors, its competitive advantage and how far it has come/how well it is doing today. We intend to focus on one local market, so in this project we are taking KFC China as our case study. We decided to choose Yum!Brands and specifically KFC as our project case study because we have noticed the rapid growth of the fast-food industry. Fast-food is a typical American trend which reflects the American eating culture of “grabbing a quick bite” so to speak. Today people are very busy, not only in America but all over the world. People have less time to sit and eat a home cooked meal, especially at lunch time when almost everyone is out of the house and working. The most convenient thing to do is to go for a “fast-food”. We noticed that this trend has even moved from being just a lunch-time substitute for home cooked meals to being a fun time meal between friends, colleagues and family. Some corporate bodies even order fast-food for meetings or corporate get-togethers...
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...SEMESTER FALL 2012 BUSINESS ETHICS (MGT610) ASSIGNMENT NO. 02 DUE DATE: 7 JANUARY 2013 TH MARKS: 25 ASSIGNMENT: Kentucky Fried Chicken (KFC) is a renowned fast food chain having its operations all across the globe and enjoys a lot of reputation due to its spicy food items. KFC has planned to launch its operation in India in early 1990’s amid of strong protest from the People for Ethical Treatment of Animals (PETA) and violation of the food Adulteration act, 1954, with an excessive amount of active ingredient of monosodium glutamate. Along with this heavy protest from the opposition parties to stop the invasion of KFC into Indian food market. KFC, after two decades is now again planning to invest and expand its operations in India. Being as an industry analyst, how would you analyze the major issues faced by KFC in India and develop a roadmap for its successful investment. Hint: Major issues should be considered as Cultural, Political, Economic, Ethical and Agricultural issues. IMPORTANT: 24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL INSTRUCTIONS • Try to remain to the point • Avoid copying from blogs OTHER IMPORTANT INSTRUCTIONS: DEADLINE: • Make sure to upload the solution file before the due date on VULMS. •...
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...Pizza Hut Case Analysis For years now Pizza Hut, Inc. has been the leader of the pizza industry. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. Based upon our Economic Analysis we have decided to not launch the BIGFOOT pizza. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion. Economic Analysis: First off, we appreciate the opportunity to have had an important role in Pizza Hut's latest product development, BIGFOOT. As you know, over the past five years market shares for the industry have changed much more drastically than in recent years. Our market share has been stagnant, and sales are down 10% this year in relation to last year's numbers. During the same period, Little Caesars made a strong push and they have continued to grow. Little Caesars' "two for one" marketing approach was effective in infiltrating the "mom's night off" segment, and is seen by customers as a great value. This is adding direct competition into our niche market share. Little Caesars is surely not making headway with the pizza connoisseurs, but it has effectively targeted a market in which Pizza Hut does not currently have a strong presence. 50% to55% of this market is made up of family dining situations. Our marketing team has conducted multiple data analyses on ways in which we can gain market share from Little...
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...Task 1 Culture and Structure McDonald’s organisation structure in every chain store. McDonald’s managing organisational at the top are the restaurant manager, and under that are the first and second assistant managers. And the assistant is executive the trainee manager, below that are the floor manager, that include the shift running floor manager, floor manager and the trainee floor manage. In this floor manager, the shift running is the top, and trainee is the low. Finally, the floor manager is managing other employee.The organization structure of McDonald’s is pyramid-shaped, to ensure consistency of service delivery across all country Since its inception, Kentucky Fried Chicken has evolved through some different company changes. In 1986, PepsiCo was acquired KFC, which is trying to expand some of its fast food service restaurants. (Kelley 2010) In the two companies of McDonald's and Kentucky Fried Chicken, they have some different organisation structure. That is the Kentucky Fried Chicken company acquired by other company to control their structure, but the McDonald's is control by the Chairman. And the KFC is set up the middle management team to manage the chain store, but the McDonald's is the SVP manage for each country, and then the SVP will give the control to each chain store restaurant manage. McDonald provides inclusiveness and diversity for everyone to equal opportunities and contributes to the success. Such as the integration of diversity initiatives into our...
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...consumers were targeted to enable the critical analysis of market forces and costs. Of the producers interviewed were General Motors; car manufactures and Pizza Hut; a food producing company. The consumers interviewed were picked from these companies. This provided a clear basis or evaluation between the producer and client to assess their countering opinions. Interviews from the Companies General Motors Here the company chief salesperson was interviewed. When asked about what attracted consumers mostly to their products, he said, “our brand, A brand is bigger than an ad... most people revere this company and that’s why our products are valued.” The chief sales persons also commented on the competition saying that the quality and prices at GM were the best around. The sales head then argued that the government constantly cut down on their profits through levies and taxes which the company pays duly. Pizza Hut The manager in one of the pizza huts was glad to answer questions on this survey. He argued that the food business had been facing many challenges over the past. “One thing about our pizzas is that they are sold all over the country... the familiarity makes the difference. He argues that due to the heritage the company has, its brand is respected. Asked to comment about the competition; “Who can compete with Pizza Hut?” he brags. He however mentioned challenges relating to infrastructure and high cost of living that made food prices go up. “This makes the cost of production...
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...Domino’s Pizza Domino’s pizza is the second-largest pizza chain in the United States, founded in 1960 by Tom and Jones Monaghan. Domino’s open it first international locations in 1983 in Canada and Australia which lead Domino’s pizza become an international pizza delivery corporation. It has more than 9,300 corporate and franchised stores in 65 international markets and all United State. Problem 1. Domino should maintain low-cost or focusing more health conscious approach which leads to higher price. 2. How can the company maintain efficiency in this high competitive environment which most of the firms provide almost the same product as now Domino is number two in the market. Analysis Five Forces Model Bargaining power of suppliers is low due to undifferentiated product from suppliers, low switching cost and easy to switch, and also lots of substitute of supply. Bargaining power of customers is low as the customers do not buy large volumes, no concentration of buyers. Threat of new entrances is high due to high capital requirement to set up the chain, product differentiation expense required and cost disadvantage from similarity in product offering. Threat of substitutes is high due to lots of substitute and low switching cost. Competitive rivalry is high due to there are many company offer the same product and compete in the saturate market. Domino’s Pizza internal and external analysis. Strengths | Weakness | - Currently operate in more than 60 countries.-...
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...States that Buffalo Wild Wings Operates in. Buffalo Wild Wings is looking for a new venue. Buffalo Wild Wings is looking for a new country to market and present their product. China is seemingly a great choice as other United States based companies are finding great success in their restaurants. Companies such as Kentucky Fried Chicken and McDonalds have seen profitable results from their restaurants in the People’s Republic of China. Buffalo Wild Wings wishes to capitalize on this market and expand the Buffalo Wild Wings brand to the next level. * American fast food chains show surprising success operating in China. Several fast food chains have been very successful in China. Yum! Brands is an American restaurant giant that owns Pizza Hut, Taco Bell, and Kentucky Fried Chicken. This company has had the most success of any multinational restaurant group in the challenging Chinese market ("Localization Key To Yum! Brands' Success In China", 2012). Kentucky Fried Chicken has 140 restaurants in the People's Republic of China. Other companies are following suit in China. Companies such as McDonald's are Kentucky Fried Chicken's primary competitor, even though many Chinese...
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