1 Muhammad Ihsan 3 Irfan younas2 Muhammad Umer 4 Arslan khan ghouri

American based restaurants. largest fast food chain world wide.11139 world wide locations.95 countries worldwide.Founded in Wichita Kansas 1958.Founder Dan Carney & frank Carney.

Pizza Hut :

Wholly owned subsidiary company.

Pepsi co. & yam brands parent companies.

Headquarters in Plano Texas U.S.A

140000 employees worldwide.David c Novak the chairman.

Pizza

Pasta ,garlic bread Bread sticksSalad , wings etc.

Products

Eastern Europe and Russian started opening their doors to Capatlistic ventures.

Pizza Hut started Operations in Russia to gain large market share.

Pizza Hut learnt that good intentions were not enough to be successful.

As the Russian rules and regulations were quite different from Americans.

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Pizza hut in russia

And the manager find that Russian business atmosphere was not suitable for their business.

Pizza Hut initially started it’s two units as joint venture with PepsiCo in Moscow.

Action of a Russian Sanitary Inspector . Pizza Hut manager’s efforts to solve out the

Problem. Pizza Hut back in Action.

Careful negotiation to control the pricePurchased refined products as raw materialsPreference of US food over Russian foods by

the RussiansBypass methods for batter services

Key points for pricing and sales

Pizza maker a trained person or a youngsterRussians point of view Pizza hut’s point of view finally the Russians succeeded to attract a

handsome number of customers by its policy

QUESTIONS

Pizza Hut in Russia

IF PIZZA HUT invested these funds in to a new US based Unit. It may not earn more profit

The Reasons were that pizza hut started in 1958 and about in decade pizza hut became the number one pizza restaurant chain in the world both in sale and number of restaurant. At that time PIZZA HUT already had maximum market share in US

On the other hand Russian market was very vast and had a lot of potential to earn profit as the Russian government recently gave permission for capitalistic venture.

Q#1 Why did Pizza Hut make a direct investment in Russia? Would they not have made more profit by putting these funds into a new US based unit?

So pizza hut follow the policy ofINVEST FIRST GET MAXIMUM PROFIT FIRST Now PIZZA HUT HAVE MORE THEN 50% MARKET SHARE IN RUSSIAN MARKET

From demand condition we mean thatTHE NATURE OF THE CUSTOMER

PREFERENCE In the beginning of the business pizza hut

came with the cuisine of Moscow taste but the nature of the customer preference indicated that RUSSIAN people prefer US food over their own with quick serving at lower cost

Then PIZZA HUT had to revised their operating activity according to the demand of the customer

Q#2 How does pizza hut use demand condition to help revise operating strategy ?

“UNAWARNESS FROM LAW CANNOT PROTECT YOU FROM PUNISHMENT”

For every business whether it is entrepreneurship, partnership or corporation it has to fulfill rules and regulation of the country where it is going to make investment otherwise it has to face problems as PIZZA HUT suffered

How important is an understanding of government regulations to the success of the Moscow operation? Why?

The Russian do things quite differently from the Americans such as rules, regulation and threats from local official.

When pizza hut start business in Russia the units had failed to file all the documents including venereal disease test of all employees

So local sanitary inspector announced that documents are not completed and wired the door shut then the manager made a frantic call to the president of PepsiCo who took the matter in his hand and solve the matter at argent basis.

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