Value Chain Analysis-Food Industry Final

7/26/2019 Value Chain Analysis-Food Industry Final

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Value Chain of Pizza Hut

Submitted by: Amores,Vianca PearlBermudo, JessaBuenavista, Alyanna KateEbo, MelDuran, Anthony AlRabaya, Luwin Jose h!salina, Dale


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Pizza Hut

Pi""a #ut is one o$ the best wide s read international $ast $ood %oint& 't o$$ersdi$$erent styles o$ i""a alon( with some side dishes li)e salad s, asta s, bu$$alo

win(s * otato rin(s, breadstic)s , and (arlic bread s& 't is a subsidiary o$ !um+ Brands a-ortune .// com any0, the world1s lar(est restaurant com any& 't is an American restaurant chain with more than 2,/// Pi""a #ut restaurants in the 3nited4tates, and more than 5,2// store locations in 67 other countries and territoriesaround the world& 't entered 'ndia in 8662, with its $irst branch in Ban(alore ande9 andin( all over therea$ter, creatin( a lar(e customer base $or itsel$&

Why Pizza Hut?

Pi""a #ut believes in ma)in( a er$ect i""a with their e9tra ordinary menu and

rovidin( hy(ienic, courteous and hel $ul service every sin(le time and on time& 4omuch so that all customers %ust loves it and $eels li)e comin( a(ain and a(ain& :huscustomers come in $or sim ly the best i""as and also have a (reat dinin( time withthe services o$$ered by them alon( with some (ood music ambience0 andcom$ortable sittin( arran(ement& :hus, Pi""a #ut believes in rovidin( a memorabledinin( time to the customer, this ma)es the customer ;ha y< and ma)es him comebac) a(ain and a(ain& :hus the basic mar)etin( strate(y o$ the Pi""a #ut is bein(customer centric rovidin( the best service& Li)e in 'ndia, it rovides with customi"edmenu as er the taste o$ the 'ndians, so that it can ma)e the customer ha y andalso has a chec) that all outlets should rovide a uni$orm taste and holistice9 erience&

Value Chain:

:he value chain is a systematic a roach to e9amine the develo ment o$ com etitive advanta(e& 't was develo ed in 86=5 by Michael Porter in >om etitive

Advanta(e& 't is used as a tool to identi$y various ways to create >ustomer Value&:he chain consists o$ a series o$ activities that create and build value& :heyculminate in the total value delivered by an or(anisation&
http://en.wikipedia.org/wiki/Pizzahttp://en.wikipedia.org/wiki/Side_dishhttp://en.wikipedia.org/wiki/Side_dishhttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Pastahttp://en.wikipedia.org/wiki/Buffalo_wingshttp://en.wikipedia.org/wiki/Buffalo_wingshttp://en.wikipedia.org/wiki/Breadstickhttp://en.wikipedia.org/wiki/Breadstickhttp://en.wikipedia.org/wiki/Garlic_breadhttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Side_dishhttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Pastahttp://en.wikipedia.org/wiki/Buffalo_wingshttp://en.wikipedia.org/wiki/Buffalo_wingshttp://en.wikipedia.org/wiki/Breadstickhttp://en.wikipedia.org/wiki/Garlic_breadhttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Pizza


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Value chain model from Michael E. Porters Com etiti!e "d!anta#e:

Accordin( to this model the activities are divided into two broad cate(ories?

Primary Activities@ Activities which relate directly to the actual creation,manu$acture, distribution, and sale o$ a roduct or service to the $irmheese4auce


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-ruits and ve(etables4 a(hetti4alt and e er

) erations

Pre aration o$ i""a base>ustomi"ation o$ i""aMa)e astas and saladsn time delivery

)utbound (o#istics :rans ortin( i""a bases4ervin( i""as hot

Mar*etin# and Sales

4e(mentation:ar(et Mar)etBrandin(Rede$inin( its menu'ntroduction o$ new roductsPricin(Distribution

Advertisin(Promotional o$$ers

Ser!ice and Su ort>ustomer $eels com$ortablenline orders

#ome Delivery

E+ lanation of Value Chain of Pizza Hut:

Primary "cti!ities:o $nbound (o#istics ? Purchasin( the raw materials re uired which

includes?Dou(h li)e?

:hin ;C >ris y Dou(hL -ull #ouseFDou(hPan Dou(h#and@:ossed 4tyle Dou(h4tu$$ed >rust Dou(h

>heese li)e?4trin( >heesePi""a >heese

4auce li)e?Ghite Pi""a 4auceRe(ular Pi""a 4auce4weet Pi""a 4auce

Con ve(etarian items li)e?Bu$$alo >hic)enBee$ Por)Diced >hic)enPe eroni'talian 4ausa(eMeat balls

-ruits and Ve(etables li)e?


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Mushroomnion:omatoesJala enosBanana e ersPaneer >hillies4weet >ornlives

A les>herries

Breads?Harlic BreadBreadstic)s

4 a(hettiDessertsGheat4 icesGater Mil)4u(ar 4altVe(etable ilI&&etc&

o ) erations ?Pre aration o$ i""a base usin( the above mentioned sourcesas er the re uirements and e9 ectations i&e& the re uiredamount o$ materials need to be added, thic)ness, so$tness, si"eo$ the i""a base as er the re uirement, heatin( the same $or the ri(ht time& All this so that the base becomes as er thee9 ectations set $or it&>entralised locations $or the re aration o$ i""a bases tomaintain the uni$ormity, $rom where these are trans orted to thevarious outlets&

>ustomi"ation o$ Pi""as, as er the order by the customer li)ewhat all to in(s and $lavours he wants& E9am les? A orders $or a chic)en i""a, while B orders $or a Ve(etarian one with lots o$ to in(s li)e mushroom, onion, on other hand > orders $or %ustcheese i""a with no to in(s at all& 4o di$$erent customershave di$$erent orders de endin( on their taste and re$erences,location o$ the restaurant li)e in 'ndia bee$ and other similar nonve(etarian items are banned and eo le re$er Paneer items,on the other hand this thin( com letely di$$ers abroad0& :hereby

ma)in( it an international brand with local taste&


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Ma)e Pastas and 4alads? as er the order o$ the customer $romthe raw materials as mentioned above&Doin( all this in the s eci$ic time eriod so as to deliver to thecustomer in the mentioned time eriod at the time o$ orderin(0

and also adherin( to the com any standards while maintainin(the uality o$ the $ood item i""as and astas0&o )utbound (o#istics ?

:rans ortin( the i""a bases to the Pi""a #ut outlets, wherethey are )e t and used $or customi"ation as er the order& :hishel s maintainin( the uni$ormity o$ bases, savin( time andresources in the re aration o$ i""a at each outlet&Pi""a and astas etc& servin( hot to the customers at therestaurant and at their doorste &

o Mar*etin# and Sales ?4e(mentation and :ar(et Mar)et? it basically tar(ets the eo letill the a(e 55 years, includin( wor)in( eo le, $amilies withyoun( children, students and travellers&Brandin(? Pi""a hut is a brand o$ i""as and astas, whichmeans that its roducts have an authenticity and a de$initebrand value and satis$action to customer o$ its uality&Rede$inin( its menu? Li)e in 'ndia, they have introduced

roducts that suit the 'ndian taste li)e the Paneer and tandoorii""as etc& :his hel s to increase the customer base and satis$ythem& Also, not usin( the roducts which are not acce table in'ndia li)e bee$, ham etc&'ntroduction o$ new roducts and bac)in( them u with ro er romotions, discounts and advertisements which e9cites thecustomers to (ive it a try atleast or %ust have a hi(h ;what


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>onsumer bene$it? a belie$ about its e9clusivity that Pi""a huto$$ers a (reat and memorable dinin( e9 erience, so much sothat at many laces eo le have to wait*boo) a table to (et intothe restaurants, thus increasin( the charm in the eo le about it&

Also advertisin( that the i""as are ;served hot< with their ownset o$ indicators to do that@ :his also hel s create an interestand con$idence o$ (ettin( hot i""as in the customer


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3sa(e o$ the modern technolo(y is also done li)e?Maintainin( o$ databases o$ customers so that they canbe contacted at the time o$ $estivals and $or romotionalo$$ers&Reachin( out to the cor orates and colle(es throu(hemails and over the net communication, $or settin( u o$ stalls durin( the $ests and events $or increased sales,enlar(in( the customer base and tar(etin( thesecustomers as $re uent customers by sendin( them o$$ersthrou(h emails and 4M4es (ivin( them cor orate andcolle(e discounts which hel s ma)e Pi""a #ut the tomost o tion $or the eo le when they want to have (ood$ood and have a memorable time0&3sa(e o$ the com uters and other advanced electronic

items which hel )ee them a chec) on?Billin( in$ormation:he 'nventoryGhat all needs to be brin( in as raw materials4alesReadily available Em loyees details

:em erature controlled truc)s $or the trans ortation o$ theraw materials and re ared bases at a controlledtem erature can be done&

o Human %esource Mana#ement ?Pi""a #ut

-ocuses on hirin( o$ the new em loyees&Provides them the re uired trainin(s so that they can er$orm aser the e9 ectations set $or them on the %ob&4trives to increase the )nowled(e and s)ills includin( so$t s)ills0o$ its em loyees&Hives annual a raisals as er the er$ormance o$ theem loyees& :his also hel s the em loyees (et the motivationand wor) hard to (et the a raisals&'m ortant in$ormation


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:he em loyees are able to handle some critical situations andta)e decisions accordin(ly@ as er the demand o$ the situation,without even the hel o$ their su ervisors& :his thus evenrovides them the $reedom o$ decision ma)in(&

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Value Chain Analysis-Food Industry Final