Pizza Hut Environmental Analysis Report: A Strategic Overview

This report provides an environmental analysis of Pizza Hut, a multinational restaurant chain, using micro and macro environmental factors, SWOT, and PESTLE strategic tools. It examines Pizza Hut's mission, vision, market share, and growth trends, focusing on internal factors like skills, staff, and systems, and external factors including political, economic, social, technological, legal, and environmental influences. The analysis identifies strengths, weaknesses, opportunities, and threats, and offers recommendations for increasing market share and addressing health concerns. The report concludes that understanding these factors is crucial for strategic decision-making and future development, highlighting the importance of SWOT and PESTLE analyses in navigating the competitive landscape and planning for sustainable growth.

Pizza- Hut Report

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................5
Micro environment..........................................................................................................................5
PESTLE...........................................................................................................................................5
SWOT..............................................................................................................................................6
Recommendations............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This report is about Pizza hut which is known as the multinational restaurant and also known as
the international franchise chain which is founded in 2003 and it’s headquarter is located in
Plano, Texas. This report is the analysation of micro and macro environment and this also
involve analysation which strategic tool like SWOT and PESTLE, these factors help in analysing
internal and external factors of the organisation. This report also involves the recommendation
with the same in below analysation.
Mission
The main mission of this organisation is to take a pride to make an perfect pizza and serve proper
customer service as to expand there customer base and also to better there customer experience.
As by making perfect pizza they meant choosing fresh and local ingredient which will create a
natural taste. By serving better customer service they meant proving the better experience with
appropriate skill and knowledge of employees and lastly they are desired to give better customer
experience to there customers so that thy re visit again.
Vision
The vision statement of Pizza hut describes that they try to improve customer’s well being and
the people who all are connected to this company and organisation. As they are desired to serve
best with the help of skilled employees and they wat the title of best employees as this meant to
brand encouragement and they also encourages each franchise in such a way to increase the level
of profitably with the help of research and new development.
Market share
They had a huge market share in the industry as this is a well known company with the high
goodwill in the market and this also had an good financial performance in the industry which
helps in developing and expanding the business in many forms. This always helps in
encouraging the franchise and expanding it further.
Growth trend
As this organisation is one of the best known and had an 125% growth rate in the industry as this
fact helps n interacting with the customers effectively n an efficient way. They uses many
strategies in order to attain an certain place in an industry which makes an name and fame of the
organisation.
Expectation for future

This company is desired to earn maximum profitability level in the coming years and to expand
the company all over the world. They are also desired to get the competitive advantage by
expanding the customer base of the organisation in order to enhance the market and growth rate
of the company in industry.

TASK
Micro and macro environmental factors can affect the organisation in many such ways as micro
environment is the environment in which the organisation runs or works. Macro environment is
the external general environment which can affect positively or negatively to the organisation
and due this all the business operation can be affected. The analysation micro and macro factors
of Pizza hut is described below(Du, and Li, 2020).
Micro environment
Skills
This is known as the primary link in between the different business process which affects in the
growth of the organisation. In an company skill is plays a important role which leaves an positive
and negative impact in an company and this helps in the better and effective customer service
and implementing it in applying with new skills and knowledge(Kristensen, and Mosgaard, 2020).
Staff
This is known as the link in between the customer and the organisation. This link helps in
managing the customers in an effective way as with effective and efficient staff with knowledge
and skills which attracts the customers and solves there query in an effective way. This always
impact positively in Pizza hut.
System
This is known as the proper structure of an organisation which works accordingly as per the
business operations and functions of the business and always performs under an proper policies
and rules which is towards the company and it affects the organisation in an positive and
negative way to Pizza hut(Kurian, 2022).
PESTLE
This is an strategic tool which helps the organisation in order to analyse the external factors and
this helps in making effective strategies and this also helps in analysing the risk. The analysation
of this is described below.

Political
As Pizza hut is known as the leading brand which has expanded globally As Brexit had affected
a lot due to which companies are unable to trade in EU. Due to covid it had become challenging
to maintain previous customer base and level of profitability in an organisation(Habich-Sobiegalla,
Kostka, and Anzinger, 2019).
Economical factors
This usually affects on the business chains and affect in inflation rate, unemployment and GDP.
As due to more opening outlets due to covid people had starts using online stores and this is
becoming difficult in order to manage all the expenses.
Social factors
It is important to look around each social factor in order analyse all the risk as the actions which
is framed by the society and is essential to follow in order to achieve success. As each country
has different culture norms and it is important to focus in each targeted market requirement in
order to find success(Oliveira, and Almeida, 2019).
Technological factors
Pizza hut is started using new technologies like order on table which had reduced customers
efforts and make it more innovative and convenient for the customers in the outlets and they
using many new machines learning techniques in the business.
Legal factors
This company has the goodwill in the market due to maintain that they always follow all the
legal term of specific countries which helps the company in expanding more effectively(Özbük,
and Coşkun, 2020).
Environmental factors
This company follow all the eco friendly serving items I order to maintain the trend and being
sustainable in the company. The also reduces the use of carbon footprints and also follow various
initiative for energy efficiency.
SWOT
This is tool which analyses the internal factors and helps in the better development and planning
internally in the organisation in an effective way.

Strength
There for most strength is that Pizza hut is expanded globally and with an good fame. This
company has an innovative product line which helps in attracting the customer base. They
always follow new technologies in order to fulfil the society requirement.
Weakness
As there declining market share is considered as a weakness of Pizza due to which for the
customers it become easy in order to switch with the alternative(Freundschuh, 2018).
Opportunities
As in order to increase market share, they can expand in more countries and this can consider as
an opportunity for Pizza hut. They can also get an opportunity by making an separate app and
start home delivery.
Threats
Due to now a day growing the concern of health people are avoiding pizza and it is becoming
challenging for them to maintain the level of profitability. Due to multiple regulation compliance
also, it is becoming a threat for this company(Dedeoğlu, 2019).
Recommendations
- For increasing an market share of Pizza hut they can expand the business and can
introduce new franchise in order to maintain the level of profit.
- As due to health concern of the customers they can introduce new flavours and with
alternative healthy products which can help in increasing the concern of health.

CONCLUSION
This report has concluded that Pizza hut is a well known company with an high market share and
expanded customer base but it is important to analyse all the micro and macro environmental
factors which helps in analysing the risk and these factors can be analyses by strategic and
marketing tools. This report has also concluded that SWOT and PESTLE is considered as the
important tool in order to analyse all the external and internal environment of the organisation
which can help in further decision making process and in planning for the better development of
the company.

REFERENCES
Books and Journals
Freundschuh, S., 2018. Micro-and macro-scale environments. In Cognitive mapping (pp. 125-146).
Routledge.
Özbük, R.M.Y. and Coşkun, A., 2020. Factors affecting food waste at the downstream entities of the
supply chain: A critical review. Journal of Cleaner Production, 244, p.118628.
Habich-Sobiegalla, S., Kostka, G. and Anzinger, N., 2019. Citizens’ electric vehicle purchase intentions in
China: An analysis of micro-level and macro-level factors. Transport Policy, 79, pp.223-233.
Kurian, P., 2022. From Micro to Macro: A Relativistic Treatment of the Chiral Energy Shifts Caused by
Static Electromagnetic Effects on Free Electrons. Entropy, 24(3), p.358.
Kristensen, H.S. and Mosgaard, M.A., 2020. A review of micro level indicators for a circular economy–
moving away from the three dimensions of sustainability?. Journal of Cleaner Production, 243, p.118531.
Du, W. and Li, M., 2020. Assessing the impact of environmental regulation on pollution abatement and
collaborative emissions reduction: micro-evidence from Chinese industrial enterprises. Environmental
Impact Assessment Review, 82, p.106382.
Oliveira, M. and Almeida, M., 2019. The why and how of micro (nano) plastic research. TrAC Trends in
analytical chemistry, 114, pp.196-201.
Dedeoğlu, B.B., 2019. Shaping tourists' destination quality perception and loyalty through destination
country image: The importance of involvement and perceived value. Tourism Management
Perspectives, 29, pp.105-117.