Explore The Background To Change Affecting Pizza Hut Business Essay

Explore The Background To substitute Affecting pizza pie pie pie army hovel Business Essaypizza Hut is wiz of the flagship brands of Yum Restaurant Int. which to a fault has subsidiary telephone linees and famous brands like KFC, Taco Bell, AW and Long John Silvers under one brand umbrella. It is the worlds largest pizza chain more(prenominal) than 13,000 eating places across 97 countries. pizza pie Hut increases his operations in last five years. In India,pizza Hut has143 eating houses across 34 cities, including Delhi, Mumbai, Banglore, Chennai, Kolkata, Pune and Hyderabad. Great mouthful and quality, variety of pizzas and trademark dining experience have made it possible for the comp whatever to for double-digit growth and scale up its presence to its current sizing. With a 27 per cent merchandise sh be of the eating-out market and over 70,000 footf whollys per solar day across the countryPizza Hut started its business from India in 1996, and opened its first restau rant in Bangalore. Pizza Hut maintained signifi rout outt growth and acquires a maximum share of pizza market and sustained growth rate of to a higher place 40 per cent per annum. Pizza Hut operates by dint of 95 outletsacross 24 cities in India which gave employment nearly 5000 large number by the end of 2009. Pizza Hutinvested approximately US$ 35 million in India so far through YUM Corporate franchisee Brands Inc is the featureer of worldwide chain of pizza outlets listed in Fortune 300 participation .Since 2008 it generated more than $36 million through sales.http//www.pizzahut.co.in/dinein/ somewhatpizzahut.phpTask 1Outcome Explore the background to ex throw affecting the system of rulesChange can be implemented through various models such Kotters eight step change modelADKAR ModelBusiness earn re-engineeringKotters eight step change model1. Increase urgency inspire people to move guide and group them to represent objectives real and relevant.2. Build the guiding police squad Make the groups with the right people in right place with their appropriate skills and levels.3. Get the vision right Arrange and make the team to establish a vision and strategy focus on creative aspects which is necessary to drive profit and efficiency.4. Communicate for buy-in Involve as m each people possible for mitigate the work, exchange of information and converse between the essentials and depict response if any emergencys from people.5. Empower actions worrying to Remove obstacles, make promotive feedback and support from leadership and top trouble for reward and identify progress and achievements.6. Create short-term wins Set objectives and aim which are easy to obtain in big size substantial work. Manageable numbers of initiatives. Finish current working belongs and stages before starting modern objective function.7. Dont let up Promote the growth of the asylum and relating work and encourage determination of ongoing change support and encourage ongoing progress which reports highlight obtained and big significant prospective work.8. Make change stick Recruitment promotion and change of leaders which enforces the value of success.http//www.associatedcontent.com/ denomination/237685/emailprotected_pg4.html?cat=3ADKAR MODELChange often brings high levels of stress and incumbrance to people.ADKAR change method in the corporate world often eliminates many of the negative and harmful effects associated with pertly procedures.1. Awareness. Gives social welfares to all levels of staff and aware them about need of changes to the organization, changes for the sake of seldom is useful. Change is to apply for avail of the business operation which supporters to be competitive in market. This is genuinely necessary for success.2. Desire.It is necessity that exercisement responsible to encourage the desire of their employees to support and be active by participating in the prospective change in organization.3. Knowledge . It is managements responsibility to provide the development and education to its employee change methods of the new procedures, and software. Sometime it is useless to do work in change environment without sufficient cognition about the goals desired by organization.4. Ability.After getting a desired knowledge employee is involved needs to be given the training to achieve and set to new change to be made which affects successful for organization.5. Reinforcement- concord to study it has proven that any person who perform and repeat the task continuously for 21 days, it will execute a habit of that person whether it is ingenuous or bad for him. Reinforcing new habits of the employees improve the success of the change made.http//www.kellyservices.com/eprise/main/web/us/hr_manager/articles_aug08_akdarmodelBusiness Process reengineeringBusiness process reengineering is a radical thinking of organizational process this is a very fundamental consideration. This a fundamental and pri me steps under injectn to try resource formulation implememtation.basically BPR analyses and suggests the structural changes to be made for organization. This identify very important because it helps organization should be customized and design itself to become ERP friendly. If organization is unable to stands with the a mood changes wherefore the best way to manage is adopt the changes according to environment and apply the changes in it.Study has been proven that if any changes are imposed in organization then sudden changes are not all time plant life in proper way because the improper method applied to it. It need plan to apply it this can be avoided by the use of BPR in practically.Davenport (1992) prescribes five approaches to BPR model which are follows1) Develop business vision and process objectives2) local anestheticize business process to be resigned3) run into and measure the existing processes4) discover training Technology levers.5) Design and work a prototy pe of the new processes(valuebased management, 2008)Pizza Hut has recently undergone a huge change to enhance the business and to give go against service for customer this is due to demand from the customers and improvement suggestion. According to responses Pizza Hut made some changes in their services some of them listed below.Franchise system System adopted for store forcast, varan slaying, worker uses and nutrition ordering and inventory management of business. One specific reason behind adopting this to apply applied science and service better through management information system. at bring in these systems are supported by a skilled internal team to make sure customers get the best use from them.(A pizzahut fanchise, 2008)http//www.pizzahutfranchise.co.uk/html/technology.html.Leadership air In running business with standard models and ideology of leadership there was something missing about the importance of human beliefs they need some changes and they made it in prac tical life importance of the human heart in driving a fellowships human drive and path of success to inspirational motivation in change management situations.Real time performance reporting Development in technology which can monitor the progress of business anytime, anywhere via irrelevant log-in functionality.Online recruitment system for the applicants and team members only who meet 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 outgrowth of all let us understand the meaning of strategic intervention-It is a technique of influencing element that is used to modify the existing elements of business process there are three standard strategic intervention methods namely.HR interventionStrategic leadershipTeam buildingHR intervention there are different issues and procedures needed to run business organization and being success to achieve their goals. Human Resources comply with these procedures very well.they prepares organization guide for the managers, performance management, succession planning systems, and several other works for the betterment of organization. So HR intervention is eer necessary, it stays the organization up to date with statutory compliance.Strategic leadershipStrategic leadership involves managing through others, managing entire enterprise, making changes according to fatality. Managing human capital is very critical skills of strategic leader. Commercial innovation, and manage the knowledge is also major(ip) functional activity of the leader. Its very important to obtained a good strategic leadership for success of an organization.http//asso.nordnet.fr/adreg/Hitt%20et%20al%20strategic%20leadership.pdfTeam BuildingA team building can be defined as a group of people who collectively work towards a pre-defined goal utilizing experience and knowledgein an major power helps to no urishes better and open communication between the employees themselves, it also makes fosters to develop the relation between employees and the higher management. It goes a long way in improving professional relation. Team building in the workplace significantly contri yetes towardsemployee motivationand building trust among the employees, thereby ensuring better yieldivity.http//www.buzzle.com/articles/team-building-in-the-workplace.htmlHuman Resources intervention techniques I would recommend in introducing changeSince last five year we have seen drastic changes in other departments of Pizza Hut. Whatever the changes made it is working very well. Changes they adopt technology, leadership style and franchise system going well. This is internal part of the business which is basic and playing important grapheme in upgrading the function of business. On the other side of business and decision making there would another change to be happening in Pizza Hut. Human Resources is major b ody of an organization i.e. Pizza Hut. HR is also responsible for other operations of business issues like training programmers, individual growth ofemployee. Career make progression path drive the culture of Pizza Hut. Finance and accounting is vital for Pizza Hut. But i personally think that they are plentiful 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. More than 13,000 thousand employees are working on weekly 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 payment system. The functionality and flexibility of the new system would make simple and help for raise improve the HR and payroll services which provide for all restaurant teams. After all Salaries is simply a payment for the deliver of services to the company. Wouldnt HR be better off focusing on Employee Development and other training programmes, rather than dealing with errors in the payroll.Task 2Outcome- Understand Issues relating to strategic change in the organizationa) Following some generic background relating to strategic change has been introduced in Pizza Hut which shown good improvement in companys progress. Here I also elaborate some functional areas which have changed it drastically.1) Customer expectationFast fare industry is growing day by day, and new varieties of food are coming in market. so the customers expectation are growing more and something different from other food companies. solid food market is going globose means international food tests are available in many restaurants. So the variety of taste demands more from consumers. thither is need to fulfill the customers expectation about the change.2) Competitive edgeIn global market there is always a competition among the food companies. Pizza hut also facing a tough competition. Dominos pizza is a major competitive player of pizza hut holds approximately 20% of market as compared to pizza hut is 46%.remaining market share is hold 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 technologiessometimes only advertising is not the only way to sell the reaping, technology will definitely play important role. For pizza hut upgrading technology, advertisement through social networking websites, Online advertising, mobile marketing, sponsorships, tie up with local but popular brands, etc are technological ways to get marketed. Online advertising, mobile marketing, sponsorships, tie up with local but popular brands etc. need for change for better result.4) Economic changes in marketEvery year there is a fixed work out to run the business including the extra money is given to them for flexible financial operation. But external environment are not remains constant, like stinting policy of government, prices of commodities, increase in tax etc.it impacts the financial policy of business, pizza hut is direct customer oriented business so if the external forces or environment changes it directly effect on business so they need to change at that time.Drivers that motivated Pizza Hut to preceding(prenominal) consider Change as followsTechnological Advances personnel casualty of marketsEconomicsTechnological AdvancesTo attract customers and to give him better and fast service it is necessary to adopt of technological changes, so it could help them to be competitive in global market. if we consider pizza hut there is good scope to introduce Online ordering system, discount E-coupons, Happy hours schemes etc.result of this new technology adoption pizza hut could get good response from customers, these technological advances will give satisfaction of good service to customers, instant service.Loss of marketsIn competitive market the business progress is reflect by their market share data. Loss and gain of market share is depends upon quality and service given to customers, so it is a very critical to obtain a market share and sustenance it progressive. Pizza hut is a competitive with dominoes pizza, compare between them is at present pizza hut is holding approximately 46% and dominos 20%.this means dominos losses their market compare to pizza hut. So in business, market share is plays important role for prospective growth of business.EconomicsEvery business organization having its own economic policy to run business in market. business economics is diversified towards market means external forces always impact internal anatomical structure of the economic policy of individual organization. Financial status, liquidity of funds etc are related to finance matters of company, demand and supply are integral partwhich depends upon the requirement from the external market, external forces such as economic downturn s,policy,inflation and deflation in market, interest rate, are directly affect economy of business. If Pizza hut is doing their business so above economical factors effect on pricing of reaping increases in pizza prices due 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 as follows1) The HR department It has a sexually attractive reputation and is a fully integrated part of the organization, playing a key role in most business decisions. HR supports the restaurants and the Restaurant supply chain where it is really needed. Pizza Hut made good improvement in human resource so ensure that 70% of all trifling positions are filled internally. Pizza hut also arrange annual achievement award programmes to employees who achieved superfluous in current year. Fast-moving, sociable atmosphere keep by company to work friendly in workplace.If HR failed to respond to need for s trategic change then it could be going difficult to handle the training programmes, supply change management system, decision making.so to give a better prospective to company then HR should not be failed work.2) Information technology Pizza hut shown its changes in IT department since 5 years. IT department doesnt just cover the RSC but its responsible for all the systems across more than 680 Restaurants. Company upgrade IT services which are looking at the process of bank reconciliations, maintaining infrastructure.IT reduces the work pressure and give more accurate service, so in pizza hut for customer satisfaction it plays very critical role because ordering the menus, online order coupon etc.are targeted online customers. If IT failed then it will directly impact on upset of business. so IT must work regularly and perfectly.As a department were very dynamic and forward-thinking, driving change from the inside of the organization out. Whats more youll benefit from the long-ter m job security of working for a big global brand and enjoy a favorable work/life balance, without compromising on the sort of technical challenges that keep the job interesting.Task 3Outcome Develop systems for understanding and involving others in the process of changea) Key stakeholdersTricon global restaurantsTGR is a famous largest restaurants company with brand name Yum based in Louisville, KY having restaurants with more than 36,000 restaurants in over 110 countries and territories and more than 1 million associates. Yum Is got his position numbered 216 on the Fortune 500 List, with nearly $10 billion in revenue in 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.aspSuppliersSuppliers to pizza hut for the products like toppings, cheese,chicken will help to make the product more successful and give assurance that the product w ill not make a loss to company. Suppliers are always belief on pizza hut for making a good family relationship between them. They is interdependent to each other. They have bound to give good business to each other in any circumstances. So supplier is also major stakeholder of pizza hut.Customer and publicCustomers and the public the final major stakeholder of pizza hut because will be the ones that will buy and consume the product, every(prenominal) company design their product keep in mind to customers only. Not all stakeholders want the same thing. So besides industrial stakeholders or any other business organizational stakeholders are indirectly dependent upon consumers and customers.Proposed system to involve stakeholders in the process of changeBy taking a get out of above discussion about the stakeholders in Pizza Hut, like business organization, suppliers, customer and public. We are going to make a proposed system or any model to describe the involvement of above in the change of an organization.We have discussed Tricon Global Restaurants, suppliers, and customers as a public. So Pizza hut need to be any change in early for making any business strategy, company should consider above participants for decision making process. To expand or to make objective of company pizza hut to discuss all the ideas and matters regarding to funds within the corporate context to its business enterprise stakeholder i.e. TGR because this company invested a major money and gives financial support to pizza hut. So the concern about TGR is must for pizza hut. Secondly suppliers who give his best service by supply 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 are the final destination where any product gets consumed from the market. So public are crucial part of the business organizational change.Now we can interrela te the above categories in following mannerTricon Financial support to pizza hut.Suppliers-Immediate supply of cheese, cheesebase, supply on demand.Cutomers and public-final destination of consumption.b) By considering the above factors which are involves in system change management also have some advantage and disadvantages described below.Advantages1) If Stakeholders is a business organization then good advantage is fund flow from such a stakeholders is always good on the other side they also have investor of another companies which will skillful to make their business grow in market and wider range of objectives.2) If the stakeholder is major stakeholder in company then his company personally incorporates in financial matters of investment funds company for getting better business in market.Disadvantages1) We know that supplier is a playing a key function in business but he is not only one to whom company liable to tie up for business. Pizza hut cant concentrate his function on suppliers to give specific business from him. and totally depend on demand from the external environment.2) Pizza Hut business is running only upon consumers. Where they always have their likes and dislikes. taste and variety of foods, different menus, and special deal on menus are the main attraction of customers.if the pizza hut is able to give good service then it directly affects the profit of the business.3.c)Change management strategy with the key stakeholders1) Identify stakeholders Stakeholders can be identify by making survey and ability of stakeholders to take stake in relative company, think of all the people who are affected by stakeholders work, who have influence and power over it.2) Prioritize stakeholders our company has a long list of people and organizations who affected by our companies work. May be some of them having a power to block or advance.and another one is they are interesting in our companies work.3) Mapping profiles of stakeholdersPizza Hut can map the profile of stakeholders in four categoriesHigh power, interested people these people our company must fully engage and make the good efforts to satisfy.High power, less interested people Limit the work with these people to make them cheerful but not beyond their capacity.Low power, interested people keep communicate with these people adequately and talk to them to ensure that no major issues are arising. These people are always be helpful and concerns about project work of investing company.Low power, less interested people keep monitor these people but not exceed communication about certain limits.http//www.mindtools.com/pages/article/newPPM_07.htm( Mind Tools Ltd, 1996-2011)d) Strategy for managing protection to change is discussed as follows.1) Open communication - Pizza hut undergone changes in last five years, company needs more changes to be done in nearest future I would be started with open communication with employees ,workers, and other participants of business .first I would like to tell them why we need the changes? Then which change particularly they need and what are benefits for all peoples relating to it. Open communication always plays crucial role because with this we can exchange the information of both the sides and understand the opinions. so it is very good medium to managing resistance to change.2) Involvement I would like to discuss about the role of employees and worker in Change in pizza hut would also change their role and gives more responsibility and will increases the opportunities on achievement, also to give specification on involvement in decision making process that could motivate employees.3) Feedback- get feedback from the employees,subodianates is always important because it helps to understand their views and opinion about change happened in organization.So it would be a better way to managing resistance in change in organization.Task 4a) I here chose McKinseys 7S model for implementing change of Pizza Hut1) Strategy- Pizza hut strictly follows norms to attain the quality product for best operational strategy to attain the customer satisfaction namely C.H.A.M.P.Sa) Cleaningness Of all restaurants to give quality foods and serve better to customers.b) Hospitality Good way of communication, respect and entertain customers.c) Accuracy Serving food in time with accuracy and maintaining quality of taste.d) Maintenance Handling of staff, relationship with customer, and service of equipments.e) Speed- delivering food in time2) Structure-Consider an individual outlet as a business organization pizza hut design their management structure like support manager who manages the shift of working team member, deputy designed manager handling training of new recruits, deputy manager works for operational departs like profit and target business, restaurant general manager looks for the functioning of all finanve,orders,quality.etc3) System-The great thing about pizza hut is ,it is a business of franchises system , Delivery system is a major function of business and almost 20% of orders done by delivery mode.frinchises and head office staff work are closely together to achieve their objects.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 Magazine4) Shared values-Pizza hut have a special quality of organizational life. Cultures determine much of every transaction happens which is centralize across an organization. While managers are aware of their cultures, they are often unsure about how to influence.emlpoyees and each participants in pizza hut business respects the beliefs and principles of pizza hut.5) Skills-Pizza hut is always respecting the skilled employees, something innovative and different ideas are always welcome in pizza hut, new recruiters also get training to ensure and to put up their skills from knowledge to practicle life.6) StyleEvery menu of pizza hut has its unique style they always try to make something different from other competitors recipe. Unique approach to customers attract with diff.styles adopt by pizza hut.7)StaffPizza hut staff members always like to greet and serve the customers and preparing great food behind the scenes, team members are friendly, outgoing and eager to please. They are fanatical and enthusiasms tic, they have ability to handle fast paced working environment.b) How would you implement one or more model(s) in your chosen organization, what improvements do you expect to achieve by implementing your chosen model(s), and how would you measure these? (AC 4.2, 4.3)4. b) Change Implementation Plan with Business Process Re-Engineering (BPR)Business process reengineering is a radical thinking of organizational process this is a very fundamental consideration. BPR analys es and suggests the structural changes to be made for organization. Implementation of BPR in pizza hut explained belowDavenport (1992) prescribes five approaches to BPR model which are follows1) Develop business vision and process objectivesA vision of the Pizza hut after the change takes place the school which provides high quality education with new technology and supports updated curriculum that helps to increase the ratio of university entrance exam successPizza hut holding a great share in US and European market rest of these they want to dominant in china brands with profitable expansion. They have good plan to be the best at providing branded restaurant choice with multibranding.2) Identify business process to be resignedDay by day competition being so strong in food servicing industry. There will be a threat of imitation products which will surely be a problem to be dealt with. So in future if other imitated products come in market then pizza hut will have to adjust or to fi nd out variety of product to accommodate change in market.3) Understand and measure the existing processesIf we consider the promotions and marketing of pizza hut they may have to be bigger and better than the competition of nowadays, if think about product development the product may need to be altered to give it that little bit of competitive edge. Forexample fecundation the crust with cheese or giving a free topping with the purchase would help give Pizza Hut an edge over the competition.4) Identify Information Technology levers.See pizza hut using IT since many years and changes has been made according to requirement. in the IT business context the online ordering system will going to be very competive,so that we need to be adopt more technological appliances and advanced technology in prospective years.5) Design and build a prototype of the new processesIf we basically think about the business process it will need flexibility in operation and product life cycle stages to be a market leader. It will need a great marketing plan which will be suited in new product segment .Promotion and advertising will be using for marketing so it will make target a very profitable.Reference net References.1) (A pizza Hut company, 2010)http//www.pizzahut.co.in/dinein/aboutpizzahut.php2) (A pizzahut fanchise, 2008)http//www.pizzahutfranchise.co.uk/html/technology.html.3) (A Associated Content , 2011)http//www.associatedcontent.com/article/237685/emailprotected_pg4.html?cat=34) (A kelly services incorporation, 2011)http//www.kellyservices.com/eprise/main/web/us/hr_manager/articles_aug08_akdarmodel5) (Strartgic leadership)http//asso.nordnet.fr/adreg/Hitt%20et%20al%20strategic%20leadership.pdf6) (A Buzzle.com, 2010,2011)http//www.buzzle.com/articles/team-building-in-the-workplace.html7) (A Yum corporation , 2009)http//www.yum.com/company/ourbrands.asp8) ( Mind Tools Ltd, 1996-2011)http//www.mindtools.com/pages/article/newPPM_07.htm9) (magazine, 2010)http//www.whatfranchisemaga zine.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/