Pizza Hut: A Case Study on Implementing Effective Change Management

This case study analyzes the implementation of a change management strategy at Pizza Hut, focusing on adding healthy food items to the menu to increase profitability and meet evolving customer demands. It examines the internal and external factors affecting the organization, including political, economic, social, and technological influences. The McKinsey 7S model is applied to assess the strategic alignment of the proposed change, considering elements like strategy, structure, systems, style, staff, skills, and shared values. The analysis concludes that the suggested change is crucial for sustaining Pizza Hut's operations and enhancing its revenue in the competitive food industry. Desklib provides this document along with a wealth of study resources for students.

Running head: ANALYSIS OF CHANGE MANAGEMENT
ANALYSIS OF CHANGE MANAGEMENT
Name of the Student
Name of the University
Author Note

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ANALYSIS OF CHANGE MANAGEMENT
Executive Summary
The report is based on the analysis of the ways change management strategy that can be
implemented in Pizza Hut for the purpose of increasing the profitability and revenues. The
change that has been suggested to Pizza Hut in this case is related to the addition of healthy
items in the menu of the restaurant so that the changing needs of the customers can be
fulfilled easily. The most important part of analysis is thereby related to the process of the
implementation of the change in the organization. The internal and external environment of
the company is also analysed in detail for deciding the feasibility of the change in Pizza Hut.

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Table of Contents
1)Introduction and background to change......................................................................3
2)Pressures based on change..........................................................................................3
3)Diagnostic models.......................................................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................7

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1)Introduction and background to change
Pizza Hut is an American chain of restaurants and is an international franchise which
was founded in the year 1958 by F6irank Carney and Dan Carney. The company is mainly
known in the food industry for the Italian-American cuisine which includes pasta and pizza.
The organization has established more than 16,000 restaurants all over the world. The
organization has been able to create a huge share in the market with the help of its restaurants
and franchises that have been established in different parts of the world (Pizzahut.com.au.
2018).
The change that can be implemented in the organization for the purpose of increasing
the sales and profitability is based on the addition of healthy food to the menu. The main
reason behind the suggestion of this change is based on the increase of demand for healthy
food. The choices of customers have started changing a lot in the recent time which has led to
high demands for healthy food. The change in the menu of the organization will be
transformational in nature which will further enable Pizza Hut to attract more customers
(Alvesson and Sveningsson 2015).
2)Pressures based on change
The different internal and external factors that affect the organization are able to
affect the ways by which it is able to formulate specific strategies. Pizza Hut is also affected
in a huge manner by these factors.
Internal factors - The internal strengths that are related to the organization are based
on the premium position that Pizza Hut has received in the minds of consumers. The high
quality food is also an important factor which is related to the position that is held by Pizza
Hut. The delivery options that are provided by the organization is an important strength. One
of the major weakness of Pizza Hut is that it is losing the revenues in the market in the

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process of maintaining its brand image. The organization has also started losing customers
due to the unhealthy menu which acts as an issue. Pizza Hut also has huge opportunities in
the market to grow with the help of its food products and restaurant chain as well. The
competition that the organization faces in the market from organizations like, Dominos,
McDonald and KFC (Aslam et al. 2018).
External factors that affect the operations of Pizza Hut
Political factors
 Pizza Hut is an international
organization which is affected by the
political stability of its country of
operations.
 The regulations that are formed by
the government affects the
profitability of Pizza Hut.
Economic factors
 The economic state of the country in
which Pizza Hut operates plays an
important role in deciding the
purchasing ability of customers.
 The rates of unemployment in the
areas where Pizza Hut has the
operations is an important factor that
affects the profitability.
Social factors
 The social factors are mainly based
on the faith that people have on the
products and services that are
offered to the customers.
 The choice of the customers has also
changed in the recent times which
has led to the reduction in the
demand for pizza.
Technological factors
 The new organizations which have
become a part of the food industry
are posing huge levels of
competition to Pizza Hut in terms of
technological capabilities.
 The trends based on ordering food
with the help of internet platforms
have also increased in the modern
business environment (Bailey et al.
2018).
The key drivers of the performance of Pizza Hut in the food industry are as follows,
 The technological innovations will affect the ways by which food is delivered
to the customers. The major competitor of Pizza Hut in thus dimension is
Dominos which uses the best technologies for delivering pizzas to the
customers.

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ANALYSIS OF CHANGE MANAGEMENT
 The food industry is highly competitive in nature and the entry of new
organizations will further affect the performance and revenues of Pizza Hut in
the long term.
 Pizza Hut will also face major competition with respect to the staff who form a
major part of the organizational operations. The human resource base of Pizza
Hut can be affected by the competition that is provided by the other
organizations in the industry (Benn, Edwards and Williams 2014).
3)Diagnostic models
The McKinsey’s 7S model can be used for the purpose of analysing the organizational
change that is to be implemented in Pizza Hut.
Strategy – The strategy of change that can be implemented by Pizza Hut is mainly
based on the addition of healthy alternatives in the menu. This strategy is mainly aligned with
the goal of the company to attract more customers.
Structure – The structure of the organization is based on the divisions and hierarchies
that are present in Pizza Hut.
Systems – The procedures and the processes of Pizza Hut will be affected by the
changes that take place in the menu that is offered to the customers (Binci, Cerruti and
Braganza 2016).
Style – The style is related to the ways by which Pizza Hut has been taking actions to
improve its brand value in the food industry.
Staff – The staff of the organization acts as an important factor in the ways by which
healthy food options can be offered to the customers (Botha, Kourie and Snyman 2014).

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Skills – The skills of the employees of Pizza Hut play a major role in the preparation
of the healthy food items which will be added to the menu of the organization.
Shared Values – The shared values are based on the ways by which the vision of the
change is shared between the management and the employees. The employees can become a
part of the change that can be implemented in the organization (Bratton and Gold 2017).
Conclusion
The report can be concluded by stating that the change is important for increasing the
revenues of Pizza Hut in the food industry. The internal and external factors of the
organization are able to affect the revenues and profitability in an effective manner. Pizza Hut
can thereby increase its revenues with the help of the change that has been proposed in the
report. This will be helpful for the organization to sustain its operations for a longer term.

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ANALYSIS OF CHANGE MANAGEMENT
References
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Aslam, U., Muqadas, F., Imran, M., Rahman, U. and Ilyas, M., 2018. Exploring the sources
and role of knowledge sharing to overcome the challenges of organizational change
implementation. International Journal of Organizational Analysis, (just-accepted), pp.00-00.
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource
management. Oxford University Press.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Binci, D., Cerruti, C. and Braganza, A., 2016. Do vertical and shared leadership need each
other in change management?. Leadership & Organization Development Journal, 37(5),
pp.558-578.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Pizzahut.com.au. (2018). Pizza Hut | Pizza Delivery & Takeaway - Order Online Or In-Store.
[online] Available at: https://www.pizzahut.com.au/ [Accessed 24 Jul. 2018].