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Research Methods for Business and Management

Working title:

An investigation on effectiveness of Enterprise Resource Planning (ERP) in

enhancing organisational performance of a restaurant chain: A case study on Pizza

Hut, UK.

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Contents 1. Introduction ....................................................................................................................... 3

1.1. Significance of the study ............................................................................................. 3

1.2. Research aim ............................................................................................................. 4

1.3. Research objectives ................................................................................................... 4

1.4. Research questions .................................................................................................... 4

2. Literature review ............................................................................................................... 5

2.1. Enterprise resource planning ...................................................................................... 5

2.2. Need for ERP implementation in restaurant chains ..................................................... 5

2.3. Impact of ERP implementation on operations management........................................ 6

2.4. Impact of ERP implementation on customer service ................................................... 6

2.5. ERP in Pizza Hut and its impact on performance ........................................................ 7

2.6. Conceptual framework ................................................................................................ 8

3. Research design and methodology ................................................................................... 8

3.1. Types of investigation ................................................................................................. 8

3.1.1. Research philosophy ............................................................................................ 8

3.1.2. Research approach .............................................................................................. 9

3.1.3. Research strategy ................................................................................................ 9

3.1.4. Research design ................................................................................................ 10

3.2. Data collection methods ........................................................................................... 10

3.3. Sampling methods .................................................................................................... 12

3.4. Data analysis plan .................................................................................................... 12

3.5. Accessibility issues ................................................................................................... 13

3.6. Ethical issues ........................................................................................................... 13

3.7. Research limitations ................................................................................................. 13

4. Time table ....................................................................................................................... 14

References ......................................................................................................................... 16

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1. Introduction

In modern business organizations, communication and collaboration between

different departments is essential for effective organizational performance.

Enterprise Resource Planning (ERP) systems are used for this purpose in many

organizations (Maditinos, Chatzoudes and Tsairidis, 2011). Elragal and Al-Serafi

(2011) also observe that ERP implementation helps organizations in improving

performance. Halim, Kurniawan and Hartono (2014) on the other hand mention that

ERP implementation is a complex endeavour which sometimes negatively influences

organization performance. Zeng (2010) also point out that ERP systems are

expensive to implement and sometimes increase the complexity of existing process

of the organization. From these statements, it can be assimilated that ERP systems

can influence organizational performance either positively or negatively based on

how it is implemented in the organization. So in the present research, the

effectiveness of Enterprise Resource Planning (ERP) in enhancing organisational

performance in Pizza Hut which has used ERP systems on a wide scale in their

restaurants will be investigated.

1.1. Significance of the study

Pizza Hut has recently rolled out an ERP system to offer superior customer service

through social networking channels. As mentioned earlier ERP systems can

influence organizational performance either positively or negatively. As ERP

implementation is very expensive there is a need to assess its effectiveness in

improving organizational performance of Pizza Hut, UK.

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1.2. Research aim

The main aim of this research is to investigate the effectiveness of Enterprise

Resource Planning (ERP) in enhancing organisational performance of a restaurant

chain. For achieving this case study of Pizza Hut, UK will be carried out.

1.3. Research objectives

To assess the main objectives behind the implementation of ERP system by

organisations.

To assess the effectiveness of operations management after ERP

implementation at Pizza Hut, thereby leading to enhanced performance.

To investigate the efficiency in the customer service at Pizza Hut after ERP

implementation, thereby leading to enhanced performance.

To provide recommendations to Pizza Hut in terms of areas needing

improvement in the customer service.

1.4. Research questions

This research will also try to answer the following research questions.

1. What were the main challenges faced by Pizza Hut while implementing ERP

system in their restaurants?

2. How did ERP system in Pizza Hut influence the performance of employees?

3. To what extent was operations management in Pizza Hut influenced by ERP

system?

4. Was Pizza Hut able to improve the customer service in online channels

though ERP implementation?

5. How can customer service in Pizza Hut be further improved using ERP

system?

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2. Literature review

2.1. Enterprise resource planning

Enterprise Resource Planning (ERP) is a system which is constituted of wide range

of integrated applications that help an organization in collecting, managing,

interpreting and sharing information of business activities across different functions

of the firm (Seo, 2013).ERP systems in restaurant chains is mainly used for

accounting, purchasing, sales, delivery management, employee management etc.,

reports Business Wire (2011).

2.2. Need for ERP implementation in restaurant chains

Tsekouropoulos et al. (2014) lists out two main reasons for adoption of ERP systems

in organizations i.e. technical gains such as replacement of existing systems and

business gains such as improvement in organizational performance.Halim,

Kurniawan and Hartono (2014) point out that restaurant chains mainly adopt ERP

system for reengineering and automating business processes. They also mention

that today’s restaurants cater to customers through multiple channels and provide

diverse products and services. This requires high level of automation in the business

processes of the organization. This is achieved through ERP systems.

Federici (2009) observes that ERP systems improve information availability and

organisational management and also enhance employee collaboration. Reduction in

cost and operation time is also expected from ERP systems. Seo (2013) argue that

ERP systems lead to information integration in the organization and thus improve

organization performance and thereby indirectly help in increasing customer

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satisfaction. From this discussion, it can be observed that organizations seek to

implement ERP systems for achieving many objectives.

2.3. Impact of ERP implementation on operations management

Elragal and Al-Serafi (2011) observe that ERP implementation has positive impact

on performance management due increase in collaboration between different

departments of the company. Huang et al. (2009) also provides similar views. They

mention found that ERP systems reduce costs, facilitate business processes and

improve information management and thereby improve operations management. On

the other hand, Rao and Mandal (2011) opine that ERP systems sometimes

negatively influence productivity in the organization especially when ERP

implementation changes the existing process. Federici (2009) asserts that ERP

systems positively influence the overall business performance but at the same

disrupt some operations of the organization. Esteves (2009) ERP has positive impact

on the performance of an organization in the long term but in the short term it keeps

performance as-is.

2.4. Impact of ERP implementation on customer service

As per Elragal and Al-Serafi (2011), ERP systems help in faster fulfilment of

customer orders and thereby improve customer service. Similalry, Halim, Kurniawan

and Hartono (2014) observe that ERP systems influence customer experience in

restaurants by reducing the time taken for product delivery. This is crucial in

restaurants as customers expect products to be delivered faster. Rao and Mandal

(2011) asserts that the positive correlation between ERP systems and increase

service quality is undeniable even if ERP has no major impact on financial

performance of the company. They also point out that over time employees become

familiar with ERP and hence are able to provide improved services. Based on these

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observations, it can be concluded that ERP system has a definite positive impact on

customer service in organizations.

2.5. ERP in Pizza Hut and its impact on performance

Pizza Hut is one of the leading restaurant chains in UK with more than 700 stores.

The business model of Pizza Hut has two main revenue streams i.e. restaurant and

home delivery. Pizza Hut achieves integration between these two business units

using ERP systems (Pizza Hut, 2015). Pizza Hut was one of the early adopters of

ERP systems and these systems have contributed greatly in the development of

Pizza Hut as a global brand (He, Zha and Li, 2013).

About 30% of Pizza Hut’s home delivery comes from its website. Due to this Pizza

Hut has recently implemented a cloud based ERP that linked its website with other

operations and thereby improving the performance of the company (Pizza Hut,

2015). 30 minutes delivery guarantee is an important part of customer experience

with Pizza Hut. In order to achieve this high level of collaboration among different

business units is necessary. This is also achieved through ERP (He, Zha and Li,

2013).

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2.6. Conceptual framework

Figure 2.1: Conceptual framework

Source: Created by the author

3. Research design and methodology

3.1. Types of investigation

3.1.1. Research philosophy

According to Williams (2011) research philosophy is the initial step and an essential

segment of research methodology which enable the researcher to obtain information

in an efficient and proper way. The three different terminologies of research

philosophy are: Positivism, interpretivism and realism. Positivism philosophy relies

on highly organized methodology to provide quantifiable observations and to analyse

the findings by using statistical tools. Whilst interpretivism is based on believes and

meaning of simple phenomenon and appropriate for almost every research issue. On

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the other hand realism is based on the existence of purposive and external reality

that affects individual’s social behaviour.

Justification: The research tries to find out the effectiveness of Enterprise Resource

Planning (ERP) in enhancing the profitability of fast-food industry, taking Pizza Hut,

UK as cases study. Thus the research philosophy will be positivism as it helps the

researcher to perform the study without biasing it with respect to researcher’s

judgments (Williams, 2011).

3.1.2. Research approach

Research approaches are the actions and tactics for a research study (Crowther and

Lancaster, 2009). The two types of research approaches are deductive and

inductive. In deductive approach, a hypothesis is implemented based on present

theory and then a method is designed to test the hypothesis whereas in inductive

approach a new theory is formed depending upon the research observations

(Mertens, 2009).

Justification: The researcher will be opting for inductive approach for exploring past

studies from a different perspective (Crowther and Lancaster, 2009). The present

research will explore the effectiveness of ERP in increasing the profitability of an

organization which has been researched by several scholars from a distinct

perspective. Thus the researcher will be using inductive approach in this study.

3.1.3. Research strategy

Research strategy provides a path that lead the research in an organized way

towards the research objectives and it can be exploratory, explanatory and

descriptive (Kumar, 2010). Exploratory strategy is adopted when the study aims to

find out “what is happening”, to ask questions, to evaluate findings form a different

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perspective. Descriptive strategy aims to find out answers to what, where, who and

how of the research topic whereas explanatory strategy aims to develop accurate

theory which will be adopted to describe practical generalizations.

Justification: The researcher intends to use exploratory strategy as the study aims to

build up new proposals for future studies (Kumar, 2010). As the present study

investigate the effectiveness of ERP in increasing profitability from a new

perspective, exploratory research will help the researcher to investigate and

elucidate the situation in the research in a more detailed way.

3.1.4. Research design

According to Carsrud and Brannback (2014), research design is a detailed outline of

how a study will be performed and it can be an experiment, survey, action research,

case study, narrative enquiry, grounded theory and ethnography.

Justification: The research will be using survey design as it is highly efficient in

gathering precise information from a large population in a time and cost efficient

manner (Carsrud and Brannback, 2014). Moreover, as stated by Mertens (2009), the

data gathered through survey will be simple to analyze and will enable the

researcher to understand the staff’s opinion on the effectiveness of Pizza Hut’s ERP

in enhancing profitability of the firm.

3.2. Data collection methods

Data collection is the most important process in a research and it includes two types:

primary and secondary data collection methods (Lim and Ting, 2013). Secondary

data collection method evolves the collection of data which are source materials

previously obtained by some other researchers for the study purpose. Secondary

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data’s are collected quickly through referring sources like online articles, books,

journals etc.

As per stated by Khan (2011) primary data collection methods helps the researcher

to do more efficient analysis of the research through collecting fresh information

related to the research matter and it can be qualitative or quantitative. Quantitative

research is an objective and organized process that evaluates the relationship

between variables and translate data into digits for statistical evaluation. Methods

such as case studies, surveys, interviewsetc; used to collect quantitative information.

Justification: The researcher will be using both primary and secondary methods for

exploring the research topic. Secondary data collection method will enable the

researcher to collect information related to ERP and profitability that has already

been gathered by any other researchers for any other purpose. The researcher will

be referring secondary sources such as books, websites, journals etc; to get

secondary information.

The researcher will be using qualitative and quantitative methods for gathering

primary information. Qualitative method will explore the research matter in a

subjective way whilst quantitative method will explore the research subject from an

objective perspective (Lim and Ting, 2013). The researcher will be using qualitative

method ‘interview’ which will enable the researcher to recognize the viewpoint of

mangers of Pizza Hut related to the companies ERP and profitability as they are

highly aware about this. The quantitative method ‘survey’ will be adopted by the

researcher to collect big amount of information from the staffs of Pizza Hut and also

will help to know about their perception about the research matter.

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3.3. Sampling methods

Sampling methods are adapted to choose a group of representative units from a

population, observes Lim and Ting (2013). Probability and non-probability are the

two sampling methods used in research studies. In probability sampling each

individual in the population has equivalent chances of being included in the sample

whereas in non-probability sampling individuals do not have identical chances of

being included (Levy and Lemeshow, 2013). Probability sampling is divided into

simple random, cluster, systematic and stratified random sampling. On the other

hand, non-probability sampling is classified into convenience, quota and purposive

sampling.

Justification: The researcher will be adopting stratified random sampling method for

interviewing 4 managers and 60 staffs of Pizza Hut, UK. As observed by Levy and

Lemeshow (2013) stratified sampling will extend the scope of the study by collecting

distinct opinions of the participants on the research topic and also will reduces the

chances of unreliable sample from large population.

3.4. Data analysis plan

Both primary and secondary methods will be adopted by the researcher to gather

research data. The researcher will be acquiring secondary information by referring

data sources like articles, journals, books etc; related to ERP, current online ordering

channels and their effectiveness in increasing the profitability of fast food

organizations. This analysis will enable the researcher to create proper

questionnaires for primary data collection.

The primary data will be gathered using qualitative and quantitative methods.

Analysis of qualitative data will be carried out manually and the analysis of

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quantitative data will be performed with the help of pie charts, tables and bar charts

as this will help the researcher in presenting obtained information in a simple and

understandable manner. Moreover, Microsoft-Excel worksheet will be using for

entering quantitative information.

3.5. Accessibility issues

In this research, the researcher will be facing constraints related to the accessibility

of both primary and secondary information. The issue in primary data accessing will

be related to interviewing managers and surveying staffs of Pizza Hut. Since, Pizza

Hut is a multinational organization; it will be difficult for the researcher to obtain

access to the managers and staffs as they will be busy in peak hours. This will in

turn affect the preciseness of data and in such cases the researcher will conduct

primary data collection at a faster rate with respect to participant’s convenience.

3.6. Ethical issues

The researcher will strictly follow the research ethics and will respect and give equal

importance to all the participants in the research. Prior to the commencement of the

research, the researcher will be providing a detailed outline of the research and will

not force any person to participate in the analysis. Moreover, the researcher will also

keep the confidentiality and privacy of collected data as well as details of the

participants.

3.7. Research limitations

According to Denscombe (2010), constraints related to time and cost are frequent in

any research. Due to lack of cost and time, the sample size is reduced and there is a

possibility to miss the viewpoints of entire Pizza Hut’s functioning on a global scale,

which will in turn impact the accuracy of information. Since the research focus on

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evaluating the subject matter from a distinct perspective, the scope of the research

will also be limited.

4. Time table

No. Works/

Duration

April-

2015

May-

2015

June-

2015

July-

2015

August-

2015

Septemb

er-

2015

Weeks 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

1. Selectin

g

appropri

ate

research

topic

2. Researc

h

proposal

preparati

on and

submissi

on

3. Chapter

15

1:

Introduct

ion

4. Chapter

2:

Literatur

e review

5. Chapter

3:

Researc

h

methodo

logy

6. Chapter

4:

Data

collectio

n

7. Chapter

5:

Data

analysis

8. Chapter

6:

Conclusi

16

ons and

recomm

endation

s

9. Creating

table of

contents

,

abstract,

acknowl

edgeme

nt and

referenc

e

10. Review

and

submissi

on

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