Assessing The Impact Of External Environmental Factors On Pizza Hut

Describing theme and its importance as per today’s business

The report is based on the business environment discussing about the external environment affecting the organization as a whole. There are two themes which are studied in the entire report. The 2 specific themes are: Climate change and Innovation. The organisation which is selected on the ground of which themes are studied is Pizza Hut. Pizza Hut is originated in 1958 and gradually speeds up with the changing environment and innovation.

Climate change depicts the changing atmosphere in the ecology as well as the competing environment of the business. Business is so connected with the climate change that when the devastation arises it directly harms every business to the great extent. Another important aspect of business is innovation. Innovation is considered as the crucial ingredient in the recipe of business without which the development would get curbed after reaching at the particular level. Hence the entire report analyses about the climate change and innovation in general as well as specific manner in terms of Pizza Hut. Response of business towards the selected theme is recorded and innovative steps taken by Pizza Hut are thoroughly discussed along with suggesting the ideas for inculcating the climate change at the selected organisation.

From entire report it would be cultivated that link between climate change and innovation should be bridged as both are indirectly connected with each other. Without climate change business will not be able to progress and innovation strengthens the organisation for long run.

Climate change

Climate change as the name itself explains is the changes causing in the climate due to mishandling and disturbance with the nature. In terms of business the changing market conditions and varying trends are said to be as climate change. It affects the human and their business at the global level. Climate change faces political, social, economic and environmental consequences. With the change in environment due to remittance of huge amount of chemical smokes from the factories and industries results in enhancement of dangerous diseases and varieties of health and environmental problem causing harm to human, wildlife and ecology as well (NASA, 2014).

Table 1: Number of S&P Global 100 companies  

• Climate change is affecting the agricultural industry as imbalance in environment and increasing deforestation results in less amount of rain causing irrigation problem and thereby leading to drought situation. This will propagate the condition of less supply of food having huge demand forcing the marketers to increase the cost of the food stuff making it unaffordable to certain low income group people causing disturbance in economy as well. In connection to this the inflation situation will arise affecting the world at social and political level. Such sets of circumstances are vulnerable to the environment (Bakker, 2016).
• As discussed above regarding the drought condition, similarly if such disparity continues it will either cause flood or results in cyclone and hurricanes resulting in overall devastation of human and ecology life.
• The situation will worsen up if no quick action is inculcated. Business leaders should respect the climate to divert the change in their favour by performing the positive tasks. The managers and staff need to undergo thought process to redesign the model of business, initiating changes in business priorities and objectives. The sustainability of resources should be focused on thereby benefiting the upcoming generation as well. This may be risky situation for the business but as it is quoted risk and profit are inter related with each other. Higher the risk higher will be the profit (Rankabrand, n.d.).
• It is the duty of the companies to support the environmental protection and adopt the ecological and environment friendly technologies. The effluent of the factories to be recycled and dumping should be carried out away from the residential area in the barren land so that neither the human nor the land gets disturbed (Shah, 2015).

Innovation is the necessity of every business whether it’s a small or large. In today’s scenario where the consumer is so demanding they always wanted to try something new and innovative. It becomes the prime responsibility of the company to come up with something tangy and spicy items within the equal and genuine time interval in order to attract the consumer towards their brand and product, also to increase the customer loyalty innovation and modification programs need to be launched timely. In the cut throat competition if the business has to flourish than they need to figure out the niche market and concentrate over it before the competitors grab it (Idea to value, 2016).

Innovation is the essence of every business to grow and maintain pace with the everyday developing market. Innovation is inculcated to attract consumer to avail the new product and select from the varieties made available to them. It not only benefits the organisation but also beneficial for consumers as they are getting many options to choose from. In order to attain success it is necessary for the company to bring out the fresh and unique material which should also be supportive towards the environment. Innovation should be planned from the beginning of the business so that growth plan would be followed as and when required to maintain the position and develop along with them to achieve the heights and own the title of trend setter among competitors (Fischer, 2011). The importance of innovation is briefly discussed as under:

Importance of climate change on business scenario

Creation of competitive advantage- In the present scenario where cut throat competition is prevailing innovation is must to be ahead of the competitors. The watch is to be kept on the next move of the competitor and trying the level best to maintain the USP of the organisation in order to involve the company in the list of innovators so that consumer preference could be gained.

Establishing the best method for business- In case if the leaders are in the confusions state of which product to be innovated and what initiation and inauguration to be brought out than experts of the field need to be consulted. If something new is not created than out of the box thought process should be given priority, it is to say that at times when revolution is not possible or is costing more than the profit then there exist an option of modification. Modification is the another phase of innovation by implementing changes to the old one to maintain the goodness of old product and serving it in new style, design, packaging, ,marketing, advertising and vast area of modification is open to the leaders and experts (InnovationXchange, 2017).

History of Pizza Hut

Pizza Hut got started in the year 1958. The founders of Pizza Hut are Frank and Dan Carney. They both were the students at Wichita State University, in USA. Dan was of the age 25 and Frank was in the 19 phase pursuing their master’s and under graduation respectively. They used to spend their weekends and evenings by working in the family grocery store. The landlady of Frank was disturbed with the clients of the tavern near by the grocery store where Frank and Dan were working. The landlady needs the cooperative and healthy neighbourhood business nearby the building she owned. So she delivered idea to Frank to open up the Pizza café near the building, though at that time Pizza was just an introduction which would probably grow or fail, there were equal chances of happening of any of the situations so they gave a thought and opted for the risk with the mission of success and inaugurated first ever Pizza Hutt on 13^th June, 1958. Slowly and gradually it took the pace and started to grow. By 1959 the franchisee of Pizza Hut started which was signed by Dick Hassur, manager of Pizza Hut unit no.3.on deposition of the certain set amount of fees the franchising of Pizza Hut could be adopted and the Franchisee will be able to get the Pizza Hut’s name and access over its secret recipes. The management was also shared by attaining the franchising. Innovation and launching of new schemes continued and Pizza Hut introduces home delivery in the year 1985 which ran successfully in the highly competitive and dynamic environment. As per today’s situation Pizza Hut is counted in the one of the largest pizza stores owning 12000 restaurants and delivery units all over world (Pizza Hut, 2017).

Climate change

The environmental and natural changes occurring at the global level are disturbing the nature’s cycle. It is also affecting the biodiversity with the increase in eminence of carbon dioxide and other harmful smokes results in climate change. As per the report launched by Union of Concerned Scientists (UCS), 13 most popular fast food chains and corners were supposed to contribute in the avoidance of deforestation but when in September 2016 the report of the agency published it showed up that many tropical and dense forests were destroyed in order to enhance the beef production (Sum of us, n.d.). Deforestation caused due to beef production is growing from year to year. Thus, there exist major food chains like pizza hut, dominos, and many more whose franchising run all over the world could contribute in afforestation and support the environment and country to grow (Ethical consumer, 2017).)

• Supporting afforestation: Pizza hut is figured out as one the reason for causing the destruction of the rainforest. It was decided that Yum! Brands of the Pizza Hut will also now encourage the use of 100% deforestation-free palm oil. In the recent reports it is quoted that Jardine Matheson is the one responsible for the endangering the rainforests. These dense rainforests are the habitat of endangered elephants. Jardine Matheson is one of the biggest multinational corporation holders and it acquired many restaurants chains owning Pizza hut, KFC and many more restaurants and food chains spread in Asia. Jardine is owner of the Astra Agro Lestari palm oil company and playing a crucial role in creating and enhancing the deforestation in Indonesia (ICIMOD, 2017).  
• Building of green team: For conserving the environment and supporting the nature Pizza Hut constructed a ‘Green Team’ which looks after the plantation and environmental protection. This team undertook many environment campaigns for the sustainability of atmosphere and preserving the greens on earth for future generation. For the sake of this campaign the green team initiated sustainable programs at Restaurant Support Centre (RSC) which involved waste audit as well. Another step which Pizza Hut has initiated is Go Dark Hour. As the name suggests dark indicates no lights thereby saving the electricity and energy. For this purpose the lights were turned down at RSC to protect and save energy, also the motive was to educate and aware people for conserving the resources. This results in optimum utilisation of resources and Pizza Hut corporate got awarded by the City of Plano with Environmental Star of Excellence (Yum, 2015).
• Eliminating use of antibiotic: The second move by Pizza Hut with regards towards climate change is that the organisation adopted strategy not to use the antibiotic in the pizzas they serve. They abolished the consumption of antibiotics essential for human medicines in growing and raising the chicken to be served in pizza. This step was supported by NRDC which is an antibiotic team (Kaplan, 2016).
• Nutrition value addition: Pizza Hut is counted as one of the leading brands offering around 2 billion or more variations in the toppings offered by them. Along with introducing divergent tastes the nutritional value should also be concentrated on. They use fresh vegetable and lean meat cooked in healthy oils and proper care of nutrition be paid on (Yum csr, 2015).
• Environment friendly packaging: Pizza hut launched the PEFC logo in their brand new take away packaging. This packaging is sustainable in nature as the material used in manufacturing it would be recycled and protecting environment. It is a step towards fulfilling social responsibility (Pefc, 2014).

Innovation

Innovation

Pizza Hut is one of the leading brands in the field of Pizza and owns numerous franchising globally including Indonesia, India, London, US, Australia and many more. To sustain in the market Pizza hut has adopted a lot of new strategies to impress and satisfy the consumers. Certain new techniques of it are quoted below:

• Inspired with Uber: The study reveals that Pizza Hut is highly inspired by the Uber. It adopted the novel mechanism of ‘Visible promise Time’ technique. The uniqueness of this automation is that before placing the order the consumer will be able to see the time it will get prepared, the time when pizza will be ready and gets delivered to the customer.
• GPS tracking: Alike the Uber cabs the pizza hut also connected GPS location with their delivery boy. Now the consumer will be able to track the location of the delivery person as to where the person is and how long will it take the individual to deliver the ordered pizza (Taylor, 2016).
• Unique DJ packaging: Pizza hut has given a thought process to the simple cardboard as well. It got rid of the boredom packaging and created the evolution in the packaging stream. It had designed the DJ box for serving the pizza in. it could be quoted that such a packaging is the “world’s first playable DJ pizza box”. This box is designed by coming into the partnership with the printed electronics maker Novalia. These boxes are limited edition and connected with the Bluetooth of consumer’s laptop or mobile phones. The user can enjoy their favourite track on DJ along with having leisure time with pizza (Jardine, 2016).
• Innovation in product: The recent innovation is bought up in the product as well. Pizza hut introduced the Garlic bread Pizza and made the offer limited for a particular time period.
• Online ads and feedback: Another new product launch by Pizza Hut is P’Zolo. The online ads are produce to aware and attract the consumers for the same. Also the strategy is adopted to gain on the spot feedback of consumers so as to know where the company is lacking and where the immediate corrections could be made (Inner crust, 2012).
• Shoe ordering: Ordering pizza with the help of shoes! It sounds weird but has turned into reality. Pizza hut has announced in one of its press release about such shoes through which the person would order the pizza of their choice. The company launched the Pizza Hut Pie Tops, they are especially designed basketball shoes inside its tongue there is a button which is connected with the users phone through Pie Tops app blue tooth. By pressing on this tongue the one can place the order (Lacy, 2017).

Although Pizza Hut is flourishing but every organization has one or the other thing where they lack behind. For the sake of that incompleteness there is a need for initiating improvement in both the themes- climate change and innovation.

Climate change

Ambience: At any restaurant, café or food oriented place what one essential thing that the customer demands for is the quite, calm and soothing ambience around to spend the good time with their groups and pizza. Climate change contributes in improvement to the great extent. Nature is the first and foremost thing assisting in the improvement of the ambience. Appropriate plantation strategy to be provoked.

Hygiene factor: The main component of Pizza Hut is its food factor. There is a strict need for regular improvement in the food stuff, taste and most importantly its hygiene factor is given utmost importance. The cleanliness measure must be concentrated and resources shouldn’t be wasted. The staffs need to prepare pizza in the hygienic environment and recipes followed and introduced have to be healthy following the diet chart to the extent possible.

Improved software: As the trend continues the paper free services should be motivated or less use of paper to be made. For this concern the online website is been created and consumers are asked to give their precious feedback on the website or the software created by them which involve the suggestions and comments given by the customers and also to analyse the competitors progress and move ahead consciously and smartly (Hospitality and catering use, 2014).

Innovation 

Whilst imparting the innovation strategies there are a lot of improvement that are to be made, there are rare times when any initiation has come up correct for the first time. Improvement goes hand in hand with the innovation (Sengupta, Sengupta & Raghupati, 2012). Certain improvements that are to be undertaken are:

Food quality improvement: On introducing some new variety or toppings and salads with pizza the quality served should be monitored. Compromise with the quality will not be entertained by the customers.

Technology: Since the inauguration of new packaging style, ordering style, GPS tracking has been initiated the maintenance of these technologies and working of it has to be watched upon. Timely up gradation need to be inculcated and software should be updated in the pizza ordering procedure and GPS delivery tracking app (Friedman, 2016).

Infrastructure: When a customer visits the place the first thing they notice is ambience and infrastructure of the restaurant. Comfort of the seats are maintained accompanying with the high hospitality services and enough space to settle down and enjoy the meal with friends, family and others (Trip advisor, 2017).

Conclusion

From above discussed report on the Pizza Hut and study made accordingly this could be concluded that climate change and innovation plays a crucial role in improvement and destruction of an organisation. If climate change is taken lightly and much emphasis is not paid over the environment concern it would surely bring adverse condition for the business. Another important thing to be concentrated is innovation technique. Each and every business set up with the motive to earn profit and gain better position in the market place. Firstly the general aspect of climate change and innovation is discussed as per the prevailing business scenario. On being specific the themes are studied specifically in the term of chosen organisation i.e. Pizza Hut. The climatic and innovative aspects of Pizza Hut is been discussed and certain improvement regarding the selected themes are quoted.

In nutshell connection between both the themes are made. Climate change is of utmost importance without it no business could flourish for long and same in the case of innovation. Interest among customers need to be enhanced to maintain the position and stay in the win-win situation.

References

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