Review of Culture and Multinational Management

Culture varies in different countries. Culture is pervasive and shared beliefs, norms, values, and symbols that guide everyday life. Culture affects all aspects of life. Easily observable aspect of culture is known as front stage of culture: e.g., Japanese executive bows. Aspect that only insiders or members of the culture understand is known as back stage of culture, e.g. Japanese saying “it’s difficult” and twisting head to one side really means it’s impossible. Culture is divided into three levels & they are National culture, Business culture & Occupational and organizational culture. In order to determine cultural differences & basic values two diagnostic models are there to aid the multinational managers, the “Hofstede model of national culture” & “7d culture model”.“Hofstede’s model of national culture” is having five dimensions of basic values e.g. Power distance, Uncertainty avoidance, Individualism, Masculinity & Long-term orientation. Power distance concerns how cultures deal with inequality.Uncertainty avoidance is the norms,values & beliefs regarding tolerance for ambiguity.individualism & collectivism focuses on the relationship between the individuals & the group.masculanity deals with the tendency of the culture to support traditional masculine orientation & long term orientation is the blief in substantial savings, willingness to invest,sensitivity to sovial relationships& pragmatic adaption. 7d cultural dimension model there are some dimensions that deal with relationships include universalism Vs particularism, collectivism Vs individualism, neutral Vs affective, diffuse VS specific, achievement Vs ascription, sequential Vs synchronic, & internal Vs external control.In individualistic countries people are responsible for themselves. Universalism vs. particularism refers to how people treat each other based on rules or personal relationships. In collectivist societies people are defined by group memberships and responsibility, achievement, and rewards are group-based. In individualist societies individual is assumed responsible for success or failure. Neutral vs effective refer acceptability of expressing emotions. In specific vs diffuse it is seen to what extent an individual’s life is involved in work. Achievement vs ascription describes the manner in which society gives status.

Dimensions dealing with how a culture manages time and how it deals with nature are sequential vs. synchronic and internal vs. external control. In time orientation it is seen that how cultures deal with the past, present, and future. Internal control & external control is concerned with beliefs regarding control of one’s fate., means does nature dominate us or do we dominate nature.

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Introduction:

Type: Wholly owned subsidiaryFounded: Wichita, Kansas, USA, 1958Headquarter: Addison, Texas, USACeo: David C. NovakSlogan: “now you are eating”Employees: 300,000+Parent: Yum! Brands since 1997Website: www.pizzahut.com www.pizzahut.net.pk

History

1958- Frank & Dan Carney open the first Pizza Hut in Wichita & Kansas1972- Thousand restaurants are open throughout USA1973- Pizza Hut went international1977- Pepsi Company bought Pizza Hut1982- JV between Pepsi Company & Whitbread1997- Pepsi moved aside from drinks & Tricon Global came into being2002- Tricon Global became Yum! Brands Inc.2006- WB sold their shares to Yum2008- Bought Godfathers pizza in Ireland with 28 stores

Fun Facts in Pizza Huts History:

Pizza Hut are the world’s largest users of cheese, over the course of a summer it is estimated that Pizza Hut uses a hundred million pounds of cheese. Pizza Hut uses 300 million pounds of cheese annually.

Pizza Hut purchases more than 3% of all cheese productions in the United States, which require a herd of about 170,000 dairy Cows to produce it.

They also use 700.000.000 pounds of pepperoni & 525.000.000 pounds of tomatoes in one year.

Gorbachev (the former president of USSR) also played in a Pizza Hut commercial. In 2001 Pizza Hut sponsored a pizza delivery to the international space station. The oldest Pizza Hut is still functional is in Wichita, Kansas.

Mission Statement:

“ To be the best pizza for every pizza occasion” “Alone we are delicious, together we are Yum!” We are P.E.A.R.L.S

Passion for excellence in doing everything Execute with positive energy & need Accountable for growth in customer satisfaction Recognize the achievement of others 7 have fun doing it Listen & more importantly, respond to the voice of customer

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Sponsorships:

In 2000, Pizza Hut was a part-time sponsor of GLAXY MOTORSPORTS Pizza Hut was the shirt sponsor of ENGLISH FOOTBALL CLUB IN 2005, Pizza Hut sponsored “ THE SIMPSONS” on channel 4 In march 2007, Pizza Hut partnered with Verizon wireless to offer a free LG mobile

phone with the purchase of a Cheesy Bites Pizza 2007-08 Pizza Hut is a sponsor of the Newcastle Vipers ice hockey team for the season

in UK

Market strategy:

Pizza hut’s says:We want to satisfy our customers by offering them “The Best”

Be C.H.A.M.P.S:(Cleanliness, hospitality, accuracy, maintenance, product quality &speed)

You will find 3F’S at Pizza Hut:(Fun, friendly & familiarity)

Segmentation:

The segment Pizza Hut is working on High income Dual career families Age 12-30 years

Types of segments:

Geographic segmentation:

Localize products, advertising, promotion & sales efforts to fit the needs of the individual areas & cities e.g., product & promotion in India about Cow meat etc

Psychographic segmentation:

Dividing the market into different groups based on social class, life style or personality characteristics e.g., choosing prices for products as 999 or 899

Targeting:

Target market:

Target market is x & y generation Generation with a “spend now, pay later” attitude

College graduates:

Spending habits of college freshmen also indicates ca high percentage of money being spent on.

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non-essential items

Positioning:

Pizza hut has done their positioning in the target market by keeping in view two basicfactors.

Quality

Frequency

Worldwide & in Pakistan pizza hut has come to synonymous with the

‘Best pizzas under one roof”

Crew members ‘customer mania’ which makes customer unique dining experience

e.g., services

Marketing Mix:

Product: Product is further divided into following categories:

Variety:

Large variety of taste e.g., Cheesy bites, Stuffed Crust, Hand-Tossed, Thin ‘n Crispy,

Bigfoot etc

Quality:

A large number of market shares is with pizza hut only because of their high quality pizza

Design:

Always round pizza

Features:

Each variety is grouped on different tastes

Packaging:

Delivery through hot oven in boxes

Price:

Pizza Hut is using market skimming strategy Low price for meal & expensive for just one Coupons worldwide & gift card in developed countries Charging method in Pakistan price is multiplied by 16% tax

e.g., for a pizza of 999 you will pay Rs. 1149

Promotion:

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Spends approximately Rs 1M-1.2M on advertising annually using a media mix Advertising through

Bill boards TV ads Newspapers

Place:

Having 34000 outlets in 100 countries In Pakistan 38 outlets in 9 cities Sport arena’s, major airports & shopping mall More accessible to the customers

Channel:

Selling through Take in, Dine in, home delivery

Culture of the Pizza Hut

Culture:

Corporate culture has become very important for executives because now-a- days struggling to manage organizational change, understanding their organizational culture has become a paramount before undertaking such a change. They realize that significant strategic & structural realignment cannot occur if it is not supported by the organizations norms & values. Organizations cultures are created by the leaders so the function of the leader is the creation, management & sometimes the destruction of the culture.

An organizations culture reflects the values, beliefs & attitudes of the people. Organizations culture evolves imperceptibility over years. Organizations culture is considered to be the soul of the organization. Cultures are collection of unspoken rules & traditions & operate 24 hours a day. Cultures determine much of what happens with in an organization. If cultures are powerful influencers of behavior, they must be created. Culture does not occur in a vacuum. It is an integral part of the company’s fabric.

Pizza Hut is a multinational company that sets up 'Huts' in various locations that serves Pizza and other unrelated products. Pizza Hut is the world's largest pizza restaurant chain (next to McDonald's) and is a subsidiary of Yum! Brands, Inc., whose restaurants total approximately 340,000 restaurants, delivery-carry out units, and kiosks in 470 countries.

The chain was founded by a pair of Carnies, coincidentally named Carney, borrowing $600 from their mother, they bought some second-hand equipment from third-world countries. The chain grew from there, with equipment from and delivery centers used, in the same countries. In recent history, Pizza Hut has been an active supporter of the Black Knights in their fight for justice against Britannia.

Impact of Pizza Hut’s Culture on Different Regions

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Pizza Hut restaurants are located throughout the world. Like many international chain restaurants, Pizza Hut locations outside of the United States & Canada offer different menu choices based on food traditions of the local culture.

Australia:

Pizza Hut established its first restaurant in Australia in 1970 in Belfield, Sydney. By 1982, 267restaurants were established world-wide. In 1983, Pizza Hut began home deliveries & in 1987 acquired the Dial-a-Dino’s home delivery network. While there are over 300 stores in Australia, only a few now offer dine-in facilities after a major shift away from the restaurant format in the late 1990s.

Bangladesh:

Pizza Hut opened its doors to the Bangladesh market on the 6 th of December,2003 & ever since then it has been one of the most popular fast food outlets in Bangladesh. Currently there are 3 outlets, 2 in Dhaka while the other at Chittagong. all food served in the outlets are halal. Pizza Hut has an annual all you can eat offer during the holy month of Ramadan. It must be noted that Pizza Hut in Bangladesh charges the most among its operations in the countries of the subcontinent & the menu is also the most limited in the region.

China:

The first Pizza Hut restaurant in mainland China was opened on December 1, 1990. Currently Pizza Hut has approximately 200 restaurants in China & they are located in more than 50 cities. Pizza Hut is marketed as a dine-in restaurant, serving sangria & escargot as well as traditional pizza ( including traditional toppings & others like tuna)

Germany:

As in other countries, Pizza Hut’s menu is often modified to reflect the local markets more traditional food culture. White asparagus is especially popular in summer. An “Asparagus lover’s” pizza (with hollandaise sauce in lieu of tomato) is a seasonal product. Pizza Hut has had a strong presence in Germany since 1983. Currently, with 68 locations, restaurants are in almost every major German city.

Hong Kong:

The first Pizza Hut in Hong Kong was opened in 1981, in the basement of The Landmark. It currently has 54 restaurants throughout Hong Kong, 34 being "express" restaurants and 20 being full service restaurants.

"Pizza Hut Hong Kong" is notable for a menu on which half of the pizza selections that have a thousand island sauce base. Also, along with pizza, pasta, lasagna and baked rice are equally emphasized in Hong Kong's Pizza Hut outlets.

Greece:

Pizza Hut established itself in Greece in 1990, and now has a total of 41 locations across Greece. Pizza Hut offers in Greece a variety of choices based on the local tastes, such as 'Greek Lover's

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pizza' and 'Cyprus Lover's pizza' with the first having feta cheese and the latter halloumi cheese among other ingredients.

India:

Pizza Hut came to India in 1981 with a dine-in restaurant in Bangalore that had specialvegetarian pizzas, later opening its first all-vegetarian location in the city of Ahmadabad. It now has a presence in many Indian cities and towns.In addition to traditional toppings, Indian foods are incorporated such as chicken tikka, keema, lamb korma, and paneer, among others. Beef toppings are not sold due to the cow's status as a sacred animal among the Hindu majority. Indian Pizza Huts are typically sit-down restaurants with waiters, and menu options include non-pizza items such as beer, pasta, salad, and desserts. Its relatively high prices mean that patrons are predominately middle-class and wealthy.

Indonesia:

Opened first in 1984, Pizza Hut became the most successful pizza chain restaurant in Indonesia. Marked its 100th store in 2005, Pizza Hut are located in more than 20 provinces in Indonesia. Pizza Hut Indonesia served halal food.

Israel:

In Israel, many Pizza Hut restaurants are kosher in order to accommodate popular religious dietary laws. The popular advertising slogan there is: "Great pizza under one roof".

Japan:

Pizza Hut in Japan, run by KFC Japan Ltd., began its operations in 1991 with its first outlet in Myougadani, Tokyo. They also have the "sausage roll" pizza, which has a sausage baked in the crust. Specialty pizzas available include the "Crab & Shrimp Mayo King" (snow crab, shrimp, broccoli, onion, and corn), "Idaho Special" (diced potato, bacon, onion, corn, parsley, and black pepper), "Tuna Mild" (tuna, mayo, bacon, onion, and corn), "Seafood Mix" (shrimp, squid, tuna, mayo, broccoli, and onion), "Mayo Q" (BBQ chicken, mushrooms, onion, corn, nori), "Super Korean Burukogi" (bulgogi, garlic sprouts/shoots, and onion), "Mochi, Mentai & Potato" (shrimp, diced potato, mochi, corn, onion, mayo, and nori, with a mentaiko sauce) , and "Mochi & Shrimp Chili" (shrimp, mochi, garlic sprouts/shoots, and onion, with a shrimp and chili sauce), as well as some others.

Korea:

Unlike the United States and many other markets, where the focus is on casual dining and delivery, Pizza Hut in Korea is known as a fine dining restaurant. Many of the popular dishes consist of sweet potatoes and kimchi.

Malaysia:

In Malaysia, all Pizza Hut restaurants are halal in order to accommodate the religious requirements of the large Muslim community. Toppings that reflect the country's cuisine include Satay, a Malaysian form of spiced meat similar to a Shish kebab.

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Pakistan:

Pizza Hut is the pioneer of pizza in Pakistan, aimed at the casual dine-in market. Pizza Hut came to Pakistan in 1993 with only one outlet at Boat Basin, Clifton, Karachi. Today, there are 33 restaurants in nine cities in Pakistan. The slogan is “Share the good times”.

Pizza Hut introduced several locally-influenced products aimed the taste buds of the Pakistani market, including Seekh Kebab, Sundance, Spicy Hot, Bonfire, Ring O Fire, Green Chicken Tikka and Spicy Prawn. The Chicken Tikka topping which is now used in franchises in India was first used in restaurants in Pakistan. Pizza Hut offers annually an "All you can eat" in the month of Ramadan.

Conclusion

Pizza Hut has many targets which it has achieve in a given period of time. The time-period is mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets.

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