And one of the most important objectives is surviving. It is the main thing the business needs to be concerned about. With Pizza Hut being part of a franchise they don’t really need to worry about this objective much because as soon as the company opens a restaurant it has a good brand name and good products so will always survive.
All businesses combine factors of production to produce their products and services.
The first thing you see at any business is the building and the land.
LAND
Then inside you will see the machinery or the cookers etc.
CAPITAL
You also will see the workers.
LABOUR
Then there is enterprise, this is the factor that brings everything together to help the business run.
Combining these factors means the business can carry out a range of functions.
These are the functional areas that help the business to run.
- Production
- Finance
- Human Resources
- Marketing
- Administration
- Research and Development
Production
In Pizza Hut the production team is called the “New Product People”. Their role is to develop new products; they have to make sure that the resources are available to put the product into production. They make sure the pans are the right metal to withstand the heat of the oven etc and that it is available for the pans to be made out of it for the product to be produced. This is sometimes referred to as “operations management”. This helps the business to run smoothly because it organises the resources so that the customers can get the best value and quality. If the right resources are not available the product will to be to the customer’s satisfaction and therefore quality would no longer be assured or controlled. Then the sales figure would not increase as people would stop going to that business because quality can not be assured and the business would lose profits.
Finance
The finance department is responsible for the accounts of the business. There must be a detailed record of all money paid in and taken out of the account. They take in all the account information from all the different Pizza Hut restaurants and correlate them to produce a final balance sheet, sources of use funds, profit and loss account and other financial records at regular intervals. They organise and send pay rolls to each restaurant organise marketing invoices. The look at the information they have correlated and set targets and plans for profit and sales, amount of hours all the workers do (hours of pay),sort out all the deals that are going on with investors. If this functional areas was not functioning any more then all the restaurants would not know whether they were making a profit or a loss. They would not be able to get the targets and objective sales figures. They wouldn’t know if they had to improve dramatically or that they were doing fine. The staff would not get the pay slips and if the restaurants did them there selves they are likely to be wrong or missed people out or not get done in time at all so the culture of the business would change to a bag culture which would reflect to the customers and sales figure would drop.
Human Resources
They deal with the people element of the business. They deal with the recruitment of the staff and the training of the staff; organize the pensions and benefits for the staff. Sort out the long service awards for the members of staff that have stayed with the company for a number of years, they organize conference and give advise on complaints and compliments and discipline to the managers of the restaurants. Human resources is very much about the culture of the business because they are the people that look after the staff and assure they are happy and that the get looked after now, and in the future so the employee is happier and will work more efficiently and be thinking more about the customers needs rather than there own.
Marketing
The marketing department is responsible for advertising on TV, radio, newspaper etc. They organise the décor and art work for the restaurants.
The department is basically responsible for getting the Company to provide what the consumer wants.
They carry out some market research, more to do with what the consumer wants rather than what the consumer thinks about existing products.
They work very closely with the production team.
Pizza Hut is a very good brand name nut at first and on going it needs to remind people that they should go to Pizza Hut because of how much better it is that its rivals. A large percentage of Pizza Hut’s customers that visit will have seen it on T.V. or heard it on the radio, seen it in the news paper etc so with out the advertising of Pizza Hut a large percentage of sales would drop.
Administration
Administration is quite a small department. They deal with the mail the Company receives and sends it to the right department.
They also deal with internal mail and send it to each restaurant.
Although the Administration department is only small Pizza Hut could still not function efficiently without it. Department like research and development and finance need to get there information to every restaurant and because they have not got a brilliant ICT network if the administration department did not sort out all the mail then the operation of the other departments would be useless. They also deal with all the promotional mail i.e. stickers to advertise in the windows of the restaurants, the sending of new menus, the receiving and sending of orders for each restaurant. Without the administration department none of these things would get sent to the right the right restaurant or mail to the other correct departments for them to operate.
Research and Development
This is really to further the Company’s business aims by creating new and better products, improving operational processes and developing new ones.
At Pizza Hut research and development is run by the production team.
Businesses have different management styles and cultures.
Different organisations work towards different objectives. They all have different style of running their businesses and different cultures within the business.
There are four different management styles that businesses can adopt.
Autocratic
Democratic
Consultative
Laissez-Faire
A management style is a person’s own style he or she shows in the management role of a business.
Each manager will like to run things in a different way to suit themselves.
Autocratic
Autocratic management style is one where the manager is most likely to be giving out instructions and telling people what to do rather than asking them for their opinions. The manager will be the only person making the decision process. Managers with this style will be use to having power and might not understand how the process of empowerment would work.
Democratic
Democratic management style involves empowerment. Individuals and teams are given responsibilities to make decisions and be held responsible for them. This type of manager will be comfortable with letting others make decisions and have more responsibility. The manager will have a good understanding of the decisions that will be made and have to have feedback for what is happening. They will have to be confident with the empowered teams and individuals and their decisions made.
Consultative
Consultative managers will ask other people before making any decisions. The type of manager that wants more opinions than just his or hers. This type of manager will have to have good listening skills and be able to consult other people in the correct manner. In this type of style there will be newsletters and team briefings etc, so the manager gets a feel of the concerns of other decision makers involved as well as to develop staff skills which is one of the objective that they might have.
Laissez-faire
This type of manager tends to let others make their own decisions and only make a few decisions. This type of manager will let people under them make a lot of there own decisions. Thos allows the worker to be very creative although it can lead to people having the feeling that no one knows really what is going on. The English for laissez faire is let it be hence the management style described. This type of business will have very general guidelines and targets and will just let subordinates achieve their targets in their own ways. Conflicts can arise easily as subordinates are not always aware of what they should be or should not be doing.
Pizza Hut is a democratic management style.
Pizza Hut tries to treat people as individuals and to be fair to every employee. They like people to want to work and do their job making their own decision as they arise as long as they are not to big a decision. They try to make the atmosphere as pleasant as possible for the employees to work in.
Each shift manager has their own style but mostly is orientated around the democratic style just interpreted in their own ways.
The democratic is best suited to Pizza Hut because it is quite a busy restaurant and problems arise quite frequent so if each individual can make decisions it makes the business run more smoothly and faster so the customer is more satisfied.
Cultures are built up over the years of an organisation although can be suddenly transformed by managing styles changing. There are several different types of cultures.
Power culture, is keyed down to centralisation. This is often found within in small organisation where control is often by on individual. The decision-making in this type of organisation is down to the individual to move well and react quickly to threat or danger of the business.
Role culture is associated with Bureaucracies which are larger organisations in which each member has a specific role to carry out. Businesses would be divided into different functions and often have a hierarchical ordering of offices.
Task culture, is teams working together to complete projects. They may work with each other for short or long periods of time. In this there is a strong emphasis in building a team. Each member will need to share values and aspirations. They also will need to feel very valued to the company they work for with this type of culture.
Person culture, individuals are very much central. The organisation needs to operate in only the interests of those within it. These are more likely to be found in co-operatives and non profitable organisations. Apart from with neutral consent hierarchies are impossible in person cultures. The organisation can not evict a group member but they can only leave the organisation of self choice. In this type of organisation each individual has total freedom and can move in any direction with any style as they please.
Pizza Hut suits best to the Role Culture. It has main managers but there are specific jobs that are assigned to each member working on that specific shift.
Flat and Tall Structures
Flat and tall structures refer to the number of levels or within the structure or hierarchy of the business. It is set out to show every ones role and authority within the organisation. It makes it easy to see the chain of command.
Span of control is the number of people that are directly supervised by the one person.
ICT
ICT has transformed ways of communication within a business.
The use of e-mail has replaced many communications carried out by letters, fax, and phone calls.
Networked databases replaced traditional systems of filing and storing information.
At Pizza Hut they have an internal computer system called GSUS. This is a very valuable program to Pizza Hut and without it would not be able to operate. The system sorts out all the pay slips, it processors all orders taken and prints them out in the kitchen for the food to be made. It also deals with all cash handling procedures for example how much money each employee has taken that night or how much money the restaurant has taken that night so they know how much each person has to cash in at the end of their shift.
Externally is also quite important for a lot of companies to have ICT. At Pizza Hut the ICT is used for contacting head office and sending and receiving sales figures and pay amount etc. Pizza Hut doesn’t contact and other companies or organisations from each of its restaurants, but a lot of companies do to help them run there businesses.
ICT has not had a massive impact on Pizza Hut because of the type of business it is but it has still had a significant impact because the way that ICT is used in Pizza Hut it could not operate with out the use of ICT that they have.
The Use of networked database in Pizza Hut saves the traditional way of filing and storing information. With networked databases it makes it a lot easier an faster to look at any one persons details and or list workers in order of start date etc.
The particular branch of Pizza Hut that I am doing my report on is meeting and working beyond its target. This is proven for the data I have seen that Pizza Hut Doncaster 2 is currently working at a 120% through flow profit.
For sales improvement there is a target of 11.8% sales growth per year. This branch of Pizza Hut is currently improving by __% each year.
There are three stages of the development of quality.
- Quality Control
- Quality Assurance
- Total quality Management
This high profit and sale improvement figures is achieved by the quality assurance and value adding of the products.
The quality control is standards set for the products they produce and the cutting out of the products that fall below set standards. Inspections of this are carried out to ensure each restaurant sticks to the set standards. Pizza Hut sends inspectors out once a month and an additional two times at any time so that standards have to be high at all time to pass the inspections. Quality assurance happens both during and after the process. It tries to stop any faults happening in the first place. It ensures products meet the predetermined standards.
Quality assurance concerns the work force as a whole, as a team rather than inspectors. Total quality management is the creating of a good culture so the worker are happy and strive to make the consumer happy. It encourages each worker to think more about quality in every thing they do even more.
All these quality stages help the business to run better as adding quality to products adds value to them as well. This can be measured and proven in the sales growth year on year. The value is added in the consumers eyes buy being at or beyond the standards they expect.
