BM1807

Names Darrenel M. Buenaobra _ _Section _BSBA601 Date_06/10/22 __

ACTIVITY

Pizza Hut: Stuck in the Middle

A business industry with thousands of competitors requires execution of exceptional skills and keeping up with
the competitive environment. While Pizza Hut was growing its business, it failed to keep up with the changes
in the industry. Pizza Hut was founded in 1958, and in 2016, it had more than 14,100 locations in over 90
countries and was still the number one (1) pizza chain in the world with sales over US$5.5 billion or P275
billion. Unfortunately, that number was down 3.5% in 2017 as competitors who are more attuned to the
customers have taken market share.

Making pizza is a staple of restaurants around the world, and there is little rocket science in the effort. What
has changed over time is how customers want to order, what they want as ingredients, and how they want to
consume their pizza. Online and mobile ordering now accounts for more than 50% of rival Domino’s business.
Customers are demanding fresh ingredients, gluten-free options, and high-speed preparation. The advent of
fast-casual restaurants where customers watch the preparation of their food has only exasperated this
situation.

Into this new era comes a Pizza Hut empire that was built around a hidden kitchen, pizzas that take 15–20
minutes to prepare and a 1950s style eating area that is anything but comfortable. After evaluating the best
way to address the new reality, Pizza Hut began experimenting with new ovens that could cook a pizza in
three-and-a-half minutes, redesigned interiors that included a bar and new, simpler procedures for running a
store-front. After testing the new ideas at two (2) restaurants in Texas, Pizza Hut announced plans to remodel
700 of its U.S. stores a year through 2022. This initiative is in line with the objective of the company to regain
its leader position in the pizza business with sales topping the 275 billion peso record of the company.

Tracking the effect of these changes and crafting those changes systemwide will be a true evaluation and
control challenge for the organization.

Answer the following items: (2 items x 5 points)

1. Describe how volatility, uncertainty, complexity, and ambiguity affect the business environment of
Pizza Hut.
Pizza Hut was unable to compete in their market, and as a result, they began to
struggle to maintain their position. Pizza Hut does not have a staff dedicated to
innovating and researching new items that their target market would enjoy; instead,
they are too occupied perfecting their current products, oblivious to the fact that their
target market wants new and quick products. Where they compete while trying to
innovate in their most current product. Pizza Hut was unable to keep up with its
competition due to a lack of strategy.
 2. Propose ways on how Pizza Hut can regain its competitive position in the market.

By analyzing information linked to strategic planning, Pizza Hut can reclaim its
competitive position in the business. This data will aid Pizza Hut in developing strategic
foresight that will benefit the company in the future. Then, using the information
acquired, they may devise a plan based on their objectives. Pizza Hut must be aware of
any business inconsistencies between its strategy and their suggested implementation.
They should teach their management and workers to implement all of their initiatives.
Most significantly, Pizza Hut must advise their personnel in the effective execution and
implementation of their learnings.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
8
details, and factual scenarios
Grammar Used correct grammar, punctuation,
1
spelling, and capitalization
Organization Expressed the points in clear and logical
1
of ideas arrangement of ideas in the paragraph
TOTAL 10

Reference:
Bamford, C., Hoffman, A., Hunger, D., & Wheelen, T. (2018). Strategic management and business policy:
Globalization, innovation and sustainability (15th ed.). United Kingdom: Pearson Education Limited.

12 Activity 1 *Property of STI

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