Background of Pizza Hut

The legacy of Pizza Hut® began in 1958, when two college students from

Wichita, Kansas, Frank and Dan Carney, were approached by a family friend

with the idea of opening a pizza parlor. Although the concept was relatively new

to many Americans at that time, the brothers quickly saw the potential of this new

enterprise.

Over the past four decades the Pizza Hut has built a reputation for excellence

that has earned the respect of consumers and industry experts alike. Pizza Hut’s

products have been voted Number One in countless consumer surveys

nationwide.

Pizza Hut®, a division of Tricon Global Restaurants, Inc., has more than 7,200

units in the U.S. and 3,000 units in more than 86 other countries. Pizza Hut is

owned by Pepsi Internationals who also owns Tacobell and KFC.

Pizza Hut is commitment to quality, dedication to service and value & the

qualities of entrepreneurship, growth and leadership, which have characterized

its business through nearly four decades of success.

Tricon is the parent company to two other segment leaders, Taco Bell and KFC.

When combined with Pizza Hut, these organizations make up the world's largest

restaurant group, with almost twice as many units as McDonald's.

When it comes to leadership Pizza Hut has a proactive approach to product

development and marketing. The five major products, Pan Pizza, Thin 'N Crispy®

pizza, Hand-Tossed style pizza, Stuffed Crust Pizza and The Big New Yorker

Pizza are loved by millions around the world and have become the standard by

which all others are judged.

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We are working together to run great restaurants in order to be the best at

making and serving the best pizza in America. That means we're willing and able

to go to any lengths to make our customer's experience with Pizza Hut® an

enjoyable one. And it means we strive to present the finest products the industry

has to offer, and to provide those products wherever and whenever people want

them. Pizza Hut is the only franchise to offer Home Delivery Services.

Yes, we've come a long way since that opening night back in 1958 when pizzas

were given away to generate interest in the fledgling business. And through the

strength of our heritage, our culture and our people, we look forward to even

more success in the years ahead.

2

Pizza Hut Year after Year

1958 The first Pizza Hut® restaurant opens in Wichita, Kansas, started by two college-aged brothers who borrowed $600 from their mother.

1959 Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.

1965 "Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial.

1967 World's largest pizza (six feet in diameter) is baked and served at the grand opening of a Fort Worth, Texas Pizza Hut® restaurant.

1968 International market entered with opening of Pizza Hut restaurant in Canada.

1969 Red roof adopted for restaurants.

1970 Sandwiches added to basic menu of Thin 'N Crispy® pizza, salad, beer and soft drinks.

1971 Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number of restaurants.

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1972 Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

1973 Pizza Hut restaurants open in Japan and England.

1975 Thick'n Chewy® pizza introduced.

1976 The 100th international Pizza Hut restaurant is opened in Australia, while entire system reaches 2,000.

1984 There is more pizza locations than hamburger restaurants in US.

1984 Pizzerias account for 9.9% of all restaurants in the U.S.

1986 Delivery service, as a new concept, is initiated.

1988 Hand-Tossed Traditional Pizza is introduced throughout the system.

1989 The Pizza Hut Jobs Plus® program expands nationwide to employ more than 10,000 individuals with physical and developmental disabilities.

The Jobs Plus program is recognized as the largest corporate initiative of its kind in the food service industry.

Pizza Hut opens its 1,000th international unit in Welland, Ontario, Canada.

Pizza Hut now serves 54 countries.

1990 Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday, about 7,000 pies a minute.

More than 4,000 Jobs Plus employees work for Pizza Hut

Personal Pan Pizza® becomes available at 1,000 Stop 'N Go convenience stores.

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1992Pizza Hut provides 120,000 free meals to relief volunteers and those who lost their homes.

Pizza boxes redesigned to save 275,000 trees a year.

1993 Pizza Hut introduces BIGFOOT™ Pizza -- two square feet of pizza cut into 21 slices.

Pizza Hut leads the entire restaurant industry in growth and sets new company records for sales and profits.

1995 Two Customer Satisfaction programs initiated: a 1-800 Customer Satisfaction Hotline and a Customer Call-Back Program, which takes the pulse of 50,000 customers per week.

1995 The Deliver Me Home™ program is created by Pizza Hut and the National Center for Missing and Exploited Children and is tested at the Dallas/Fort Worth International Airport to inform the community of an important identification tool in helping to locate, identify and return missing children to their families.

1995 Pizza Hut wins the 1995 "Choice of Chains" award for Best Pizza Chain sponsored annually by Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last eleven years.

1997 PepsiCo announces restaurant spin-off.

1998 Pizza Hut celebrates 40 years of making and serving great pizza.

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PIZZA HUT IN PAKISTAN

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.

The sale of Clifton Pizza Hut is the highest in the Asia Pacific region with a daily

turnover of 1500 Pizza (Normal days) and a turnover of 1800 to 2000 Pizza / day

over the week end.

The vision is to have 30 units of Pizza hut in two major cities by the year 2000 i.e.

Karachi and Lahore. It must be mentioned that these 30 units of Pizza hut will

provide employment to 1870 people and contribute Rs. 150 million in the form of

duties and taxes to the exchequer.

Marketing Objectives1. To able to capture the essence of success as a Global company.

2. To be the first choice for every Pizza occasion by always providing 100%

customer satisfaction.

3. To focus or unique selling proposition by providing the most irresistible

variety, quality taste, and service.

4. To capture 90% of relative market share by the end of year 2000.

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Facts About Pizza Hut

1. Pizza Huts worldwide sales were approximately $10 billion.

2. Pizza Hut service more than 1.5 million pizzas every day to approximately 5

million customers worldwide.

3. Pizza Hut owns and operates more than half of its restaurant and delivery

units making Pizza Hut, inc. the largest company-owned restaurant chain in

the world.

4. The highest volume Pizza Hut restaurant in the world is in Moscow followed b

stores located in France, Hong Kong, Finland and the U.K.

5. Outside the US the country with the most Pizza Hut units is Australia (405)

followed by Canada (354) and the U.K. (326.

6. Pizza Hut delivery drivers range in age from 18 to 80 miles, and average 50

miles per driver per day to deliver Pizza Hut products. The mode of

transportation varies from country to country with motor scooters the most

common mode in Western Europe, the U.K. and the Asia Pacific Countries.

7. Pizza Hut uses 2.5 percent of all the milk produced in the US every year for

cheese. That cheese production requires a herd of 250,000 dairy cows

producing at full capacity 365 days a year.

8. Pizza Hut uses more than 50 million pounds of wheat representing the annual

yield from nearly 400,000 acres of wheat.

9. Pizza Hut uses more than 400 million pounds of tomatoes each year and 50

million pounds of pepperoni.

10.Approximately 50 percent of all Pizza Hut units outside the US are full service

restaurant. About 35 to 40 percent are delivery carry out units, and 10 t0 15

percent are express units or slide “windows”.

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Product SituationPizza Hut opened its very first outlet in Karachi at Clifton on December 14, 1993

introducing the internationally recognized and well-accepted variety of Pizza as in

their original tastes. Pizza hut took great care, while remaining with the fact that

its wheat, cheese and pepperoni remain original while other ingredients available

in the local market come up to the manufacturers standards and consumers

expectations.

Target MarketThe target market belongs to upper - upper and upper middle class who has a

definite taste for foreign foodstuff. Out of 140 million people, we are only

targeting 20% of the population. Right now they are targeting market, which is

1% of the total urban population. Anybody whose household income is over Rs.

100,000 is in the “A” category, Rs. 50,000 is “B” and “C” is Rs. 50,000. They are

right now catering to “A” and “B” market and they have not touched the entire

market.

They are also targeting kids, teenagers and students & are also trying to increase

their customer base.

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Consumer Profile

DEMOGRAPHICS

The age group of our customers is family oriented i.e., the parlor offers a variety that to the needs of the family as a whole.

INCOME

The income bracket includes Rs. 50,000 per month and above.

OCCUPATION

Professionals, Executives, House Wives, studying individuals.

PSYCHOGRAPHCS

ACTIVITIES

Actively participate in social welfare causes, business matters, and members of socially elite clubs, annual family vacations.

LIFE STYLE

Encouraging eating habits towards foreign foodstuff, for instance, likely to use cake mixes, imported cheese.

MEDIA HABITS

Regular readers of Newspapers and Magazines.

PERSONALITY

Quality food conscious, outgoing and healthy eating habits health conscious people.

Marketing Mix

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PRODUCT

Pizza Hut offers aims in providing 100% customer satisfaction by excellence in

the product, service, equipment and hospitality they offer the products quality and

taste remains standard of excellence all over the world.

It has maintain its quality by importing the main ingredients and keeping the

recipes the same exclusively, for the South Asia regions it test launched spicy

flavored Chicken Tikka. Followed by a Seek Kabab Pizza, which gained and

remained so popular that they were included in the regular menu.

To make a check of its service and customers satisfaction, they issue a comment

card to make sure they come up to their customer’s satisfaction.

MARKET GROWTH MATRIX

MARKET SHARE

HIGH LOW

MARKET

GROWTH

RATE

HIGH Star

Supper Supreme

?

Bar B Q Beef

LOW Cash Cow

Chicken Tikka

Dogs

Sea Faer

PRICE

10

They are serving various variety of Pizzas, there menu card along with their

respective prices have been placed at the appendix section.

PROMOTION

Pizza Hut runs more or less the same type of promotion and advertising

campaigns in Pakistan as it does internationally, with the exception of electronic

media. It uses advertising tools such as newspapers, magazines to create

awareness and to get its message through its required target market. Recently

they are doing joint promotion with Milo and Pepsi in connection with World Cup

Cricket 1999.

Pizza Hut promotion budget remains the same world wide except for a few

countries i.e., it allocates 50% of its promotion budget on national advertising and

50% of the budget to regional advertising.

With regard to promotion, they have launched kid Klub for children under 12 year

of age. Every Tuesday is kids night for members where they get 50% discount on

their order. They are trying to start a program called book it, to promote reading

habits among kids. Any child who reads a book and get it signs by his teacher

that he has read it get a free Pizza.

Pizza Hut has adapted to promotional and advertising techniques regarding the

local market. It uses Newspaper and Magazines according to their availability

and effectiveness with regard to their respective target market.

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PLACE

KARACHIAt present there are four functioning units of Pizza Hut in Karachi.

Clifton Takeaway, Dine-in seating capacity of 200

Tariq Road Takeaway, Dine-in seating capacity of 250

Gulshan Takeaway, dine-in seating capacity of 120

I.I. Chundrigar Take away with dine-in seating capacity of 50.

LAHORE

At present there are two functioning units in Lahore.

Gulburg Takeaway, Dine-in seating capacity of 350 Red Roof

Mall Takeaway, Dine-in seating capacity of 200

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Mission Statement

We at Pizza Hut are committed to provide high quality of Pizza and exceed

the expectation through our passion for service, quality and value. We

believe that our prime responsibility is to serve our families who get

satisfaction from our product and services. Our product line consist from

various pizzas to sandwiches, pasta and deals to suit every customer.

We are known for consistency in providing the very best quality in facilities

and products, and for friendly personal and efficient, comfortable service

which gives the natural warm welcome and relaxed, comfortable ambience

of Pizza Hut.

We are dedicated to the total success of Pizza business as a worldwide

competitor. We are concern for its operation and are dedicated to its total

success and prosperity.

Pizza Hut is regarded as an industry leader for the innovation in each

discipline in the business, blending effectively the finest tradition of our

profession with progressive management philosophy and this is ultimately

our major competitive advantage.

Out team is seen as highly aggressive, competitive, and regarded by our

customer as reliable helpful and resourceful. Through open two-way

communication employees share the companies objective and strive to

provide complete satisfaction to our valuable customer.

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Vision Statement

Pizza Hut aims to succeed in one of the most logistically complex service

business. It is our intention to not only serve our customers with genuine

care and comfort, but to fulfill all their needs and give them complete

service excellence all the time, every time. Every employee is committed

to the ultimate dream and vision: 100% customer satisfaction and

retention.

We will continuously improve our product and services. Simply defined,

we empowers all Pizza Hut employees to “move heaven and earth” to

give instant pacification. Our customer’s expectations will not simply be

met; they will be exceeded to give each guest a “memorable visit”

“We Serve But We Are Not Servants

We Are Ladies And Gentlemen Serving Ladies And

Gentlemen”

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Code of Ethics

We are committed to the highest ethical standard. This responsibility is because our

customer, family and communities rely on each other which enhance the level of trust

and this can only be build on honesty and dedication.

We believe that our first responsibility is to satisfy our customer who takes advantage

from our services. It is our duty to serve them with honestly. We will promise only

what we can deliver.

Our business associate must know, that we will be fair and just. Our decision will be

based on factors such as quality, service, and reliability. We want our customer to be

proud of our character as individuals in the business we do. We look forward for a

friendly and caring relationship between our customer and ourselves.

We take pride in the quality of our collective effort at Pizza Hut. We are proud that

Pizza Hut has got the human resource that can face any challenge, because a

company is only depended on what their employees do for their organization.

We will justify with everybody, to whom we are in contact, whether employees or

customers – in assigning responsibilities, awarding incentives, and we will consider

every body. We will not entertain any unfair practices, which could harm our

organization prestige

We will establish the empire of friendship and trust between our employees and

customers, so that they could be benefited and achieve instant satisfaction.

External Factor Evaluation MatrixKey External Factors Weights Ratings Weighte

d Average

OPPORTUNITIES

1. There is a strong untapped market across Pakistan for the introduction of Pizzas.

0.15 4 0.60

2. Consumption pattern is more in Karachi.

0.08 3 0.24

3. “Eating out” is the main source of entertainment in Pakistan.

0.10 4 0.40

4. 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.

0.07 4 0.28

5. Cost could be reduced by the utilization of local flour.

0.14 3 0.42

6. There is a rising trend of consuming pizza.

0.06 2 0.12

Threats

1. Unstable economic, legal and political environment.

0.12 4 0.48

2. Increase in tax rates, which has a direct impact on the cost of pizza.

0.10 2 0.20

3. High duties on imported ingredients. 0.09 3 0.27

4. Attractive market for new entrants. 0.04 2 0.08

5. Pizza Hut’s main competitor is Pizza Express, who is providing best service to its customers.

0.03 1 0.03

6. Another major directs competitor is Domino Pizza.

0.02 1 0.02

TOTAL 1.00 3.14

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Internal Factor Evaluation MatrixKey Internal Factors Weights Ratings Weighte

dAverage

Strengths

1. Pizza Hut is the pioneer in Pizza business in Pakistan. 0.04

4 0.16

2. Popular brand name. 0.10 4 0.4

3. Pizza Hut follows strict quality control system.

0.07 4 0.28

4. Sales are growing at the rate of 4% annually.

0.10 4 0.40

5. Pizza Hut introduces new menu according to local taste buds and monitor new trends regularly.

0.12 4 0.48

6. Pizza Hut follows open door policy. 0.04 3 0.12

7. They maintain inventory up to the extent of 60%.

0.04 3 0.12

8. Pizza Hut home delivery service. 0.08 4 0.32

Weaknesses

1. Lack of finances for implementing new strategies.

0.05 2 0.10

2. Shift in Strategic Management. 0.06 1 0.06

3. Flour, which is the main raw material for pizza is imported, which increases the cost of pizza.

0.10 2 0.20

4. Cannibalization of sales by introduction of new branches.

0.04 2 0.08

5. Introduction of I.I. Chundrigar branch was a wrong decision and Pizza Hut has only been able to break even their cost.

0.09 1 0.09

6. Pizza Hut is unable to retain the customer base in Lahore.

0.06 2 0.12

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TOTAL 1.00 2 .93

ANALYSIS

External Factor Evaluation

(EFE) Matrix:The total weighted score of 3.14 indicates that Pizza Hut is well above average

and close to superior position in its effort to pursue strategies that capitalize on

external opportunities and avoid threats.

Internal Factor Evaluation

(IFE) Matrix:The total weighted score of 2.93 indicates that Pizza Hut is above average in its

overall internal strategic position.

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19

THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

FINANCIAL STRENGTH RATING

Debt to equity ratio is 58:42, which shows its financial strengths 5

EBIT is 8% 4

Pizza Hut’s market share is 55% leading to high sales revenue 6

Liquidity ratio is 1:1 which is the norm in the industry 2

TOTAL 17

FINANCIAL STRENGTH AVERAGE 4.25

INDUSTRY STRENGTH RATING

High growth potential 6

High profit potential 5

Resource utilization is excellent 5

TOTAL 16

INDUSTRY STRENGTHS AVERAGE (16/3) 5.33

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ENVIRONMENTAL STABILITY RATING

Dwindling Pakistan economy & high rate of inflation are norms of the industries

-6

Demand is not price sensitive/elastic as far as middle income group is concern.

-1

High entry barriers because Rs 50 to Rs. 55 million is needed for fixed costs and initial operations.

-3

Low demand variability -2

TOTAL -12

ENVIRONMENTAL STABILITY (-12/4) -3

COMPETITIVE ADVANTAGE RATING

Highest market share due to early due to early market penetration -1

Strict quality control system -2

Strong customer base and high customer loyalty -1

Technological edge our competitors -4

TOTAL -8

COMPETITIVE ADVANTAGE (-8/4) -2

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22

RESULT

ES AVERAGE -3 IS AVERAGE 5.33

CA AVERAGE -2 FS AVERAGE 4.25

Directional Vector Coordinates: x – axis : CA + IS -2 + (+5.33) 3.33

y – axis : ES + FS -3 + (+4.25) 1.25

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+1 +2 +3 +4 +5 +6- 6 –5 – 4 –3 –2 –1-1

-2

-3

-4

-5

-6

+6

+5

+4

+3

+2

+1

Conservative Aggressive

Defensive Competitive

INTERPRETATION

This space matrix suggest that the firm’s industry situation is excellent for growth

opportunities but it has to improve upon its financial strength, it has to build its

internal strength to take advantage of the excellent external position.

Pizza Hut can pursue the following strategies:

1. Integration

2. Intensive

3. Diversification

These strategies have been explained in “The Quantitative Strategic Planning

Matrix (QSPM)”.

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QSPM Model

Critical Success FactorsBackward

IntegrationMarket

Development

Concentric Diversificati

on

STRENGTHS WEIGHT

S

AS TAS AS TAS AS TAS

1. Pizza Hut are the pioneers in Pizza business in Pakistan.

0.04 2 0.08 4 0.16 3 0.12

2. Popular brand name. 0.10 2 0.2 4 0.4 3 0.33. Pizza Hut follows strict quality

control system.0.07 4 0.28 3 0.21 4 0.28

4. Sales are growing at the rate of 4% annually.

0.10 3 0.3 3 0.3 3 0.3

5. Pizza Hut introduces new menu according to local taste buds and monitor new trends regularly

0.12 3 0.36 4 0.48 4 0.48

6. Pizza Hut follows open door policy.

0.04 1 0.04 1 0.04 1 0.04

7. They maintain inventory upto the extent of 60%.

0.04 4 0.16 4 0.16 2 0.08

8. Pizza Hut home delivery service. 0.08 3 0.24 4 0.32 3 0.24

Weaknesses

1. Lack of finances for implementing new strategies.

0.05 2 0.1 2 0.1 2 0.1

2. Shift in Strategic Management. 0.06 - - 3 0.18 3 0.18

3. Flour, which is the main raw material for pizza is imported, which increases the cost of pizza.

0.10 4 0.4 3 0.3 -

4. Cannibalization of sales by introduction of new branches.

0.04 1 0.04 2 0.08 4 0.16

5. Introduction of I.I. Chundrigar branch was a wrong decision and Pizza Hut has only been able to break even their cost.

0.09 - - 4 0.36 3 0.27

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6. Pizza Hut is unable to retain the customer base in Lahore.

0.06 2 0.12 3 0.18 3 0.18

Critical Success FactorsBackward

IntegrationNew Market Developme

nt

Concentric Diversificati

on

OPPORTUNITIES WEIGHT

S

AS TAS AS TAS AS TAS

1. There is a strong untapped market across Pakistan for the introduction of Pizzas.

0.15 3 0.45 4 0.6 1 0.15

2. Consumption pattern is more in Karachi.

0.08 3 0.24 4 0.32 3 0.24

3. “Eating out” is the main source of entertainment in Pakistan.

0.10 2 0.2 4 0.4 4 0.4

4. 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.

0.07 3 0.21 4 0.28 3 0.21

5. Cost could be reduced by the utilization of local flour.

0.14 4 0.56 2 0.28 - -

6. There is a rising trend of consuming pizza

0.06 3 0.18 4 0.24 3 0.18

THREATS

1. Unstable economic, legal and political environment.

0.12 3 0.36 1 0.12 1 0.12

2. Increase in tax rates, which has a direct impact on the cost of pizza.

0.10 3 0.3 2 0.2 1 0.1

3. High duties on imported ingredients.

0.09 4 0.36 2 0.18 2 0.18

4. Attractive market for new entrants.

0.04 3 0.12 4 0.16 3 0.12

5. Pizza Hut’s main competitor is Pizza Express, who is providing best service to its customers.

0.03 3 0.09 3 0.09 2 0.06

6. Pizza Hut’s main competitor is Pizza Express, who is providing best service to its customers.

0.02 1 0.02 3 0.06 2 0.04

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TOTAL 2 5.41 6.44 4.53

Reason for considering corporate strategy

In the implementation stage of strategic management process, we have

designed TOWS and SPACE Matrix for Pizza Hut, and the strategic

thereby suggested were those of:

Intensive

Integration, and

Diversification.

Keeping in view these strategies and the results generated thereby in the

input stages of strategic management process as depicted in the iFEM and

EFEM matrix suggest that the firm is relatively week because of the

financial position where as EFE Matrix suggests that the firm is taking

advantage of strong environment stability and marketing condition.

In the QSPM model, we have deigned 3 strategies and these are as

follows:

Backward Integration

New Market Development

Concentric Diversification

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The 3 strategies thus considered have been given ratings from 1 to 4 and

the SWOT has been taken from the EFE Matrix and EFE Matrix along with

their weights.

REASON / JUSTIFICATION OF STRATEGIES DESIGNED

1. Backward IntegrationThe reason for designing and considering backward integration was

the fact that the costs of producing Pizzas have been rising

consistently since past few years, due to the exchange rate

fluctuation etc, and the fact that Pizza Hut Does not Hedge have a

direct impact on the costs of raw material and the most important

being flour. Therefore, the company can pursue the strategy of

backward integration and procure local flour of consistent high quality

which will not only reduce the costs of producing pizza but will also

increase its profit margin. Plus the supply of four will be in their own

hands and will not fact problems of under or oversupply of flour.

2. Marketing

Development

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Pizza Hut is currently pursuing marketing penetration strategy where as

we have designed new market development strategy along with the

currently used market penetration.

The reason being that there is a wide, untapped market in Pakistan

where Pizza Hut can open its branches and reap the benefits of 1st. entry

in those markets.

3.Concentric

DiversificationWe have designed a concentric diversification strategy which can be

considered by Pizza Hut. It can concentrate its business by opening a

Coffee shop or a dessert parlors separately as departments in the Pizza

Hut and offer special delicacies for each department. This will improve its

financial strengths and profits margin considerably.

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RECOMMENDATIONSThe QSPM total averae of the 3 strategies thus designed were:

STRATEGIES AVERAGEATTRACTIVE SCORE

Backward Integration 5.41

Market Development 6.44

Concentric Diversification 4.53

Due to the low financial condition of Pizza Hut and internal problems whereas,

excellent market condition with developing tastes and preference for Pizzas, it is

highly recommended that Pizza Hut must pursue New Market Development

Strategy.

ADVANTAGE

The Advantages of pursuing New Marketing Development Strategy are as follow:

1. Ist. to enter in the new market, therefore no competition, so Pizza hut can

reep the gains of 1st. to enter.

2. Strong Brand Name.

3. Innovations in menu will attract new consumers.

4. Eating out is the main source of entertainment in Pakistan, therefore

consumer’s will be attracted towards the introduction of Pizza Hut across

Pakistan.

5. Most importantly the food industry is attractive for the entrants, so, Pizza Hut

will reap huge benefits out of pursuing this strategy.

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CONCLUSIONPIZZA HUT, is the world’s renounced chain of fast food stores and our project

was based on its strategic management position keeping in new the internal and

external environment.

In the process of analyzing Pizza Hut we have deduced that it is the most

popular international franchise in Pakistan, with the largest market share in the

Pizza industry.

There is no major competitor of Pizza Hut and the market opportunities are

excellent in teems of growth and profits.

Pizza Hut has an opportunity to strengthen its business by adopting various

strategies e.g. Backward integration, and New market development.

Pizza Hut has to strengthen its financial position either by increasing its equity or

debt or both which will improve its internal position.

To conclude, we can say that Pizza Hut has a history of producing quality food

with growth as an integral part built into its root strategies.

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