Resource Allocation Strategies for Pizza Hut: A Comprehensive Report

This report, addressed to all departments within Pizza Hut, details the company's resource allocation plan and supplier management strategies. It defines resources, including labor and capital, and highlights Pizza Hut's substantial workforce and plant & machinery. The report emphasizes supplier management, such as delivering pizzas within a specified timeframe. It then applies the McKinsey 7S model to assess operational changes, focusing on strategy, structure, systems, shared values, style, staff, and skills in launching new products, like the "Green Team" initiative. Furthermore, the report examines the use of cost-benefit analysis to determine the financial viability of new product launches and the VRIO framework to evaluate the competitive potential of resources and capabilities. The report concludes with references to relevant books, journals, and online resources used in the analysis.

Principles of Operation
Management

Table of Contents
P7: Resource allocation plan to meet specific operational requirements...............................1
REFERENCES................................................................................................................................4

P7: Resource allocation plan to meet specific operational requirements
MEMO
To: All Departments
From: HR Departments
Date: 01/09/2018
Re: Resource and supplier management strategies
Resource: Resource can refer to an economic or productive components needed to attain a
mean, activity to undertake a company and accomplish determined outcome. It is considered as
most essential element which are required to be attained by an organisation to perform all
business activities in more effective and efficient manner. It includes: Labour: Pizza Hut has strong human resources groups and great position in the
marketplace as it has 3,50,000approximate workers working in more than 100 nations.
 Capital: It includes Plant & Machinery which assist production department of Pizza
Hut to produce quality products and services.
Supplier management strategies: Supplier are the creditors of company which supplies raw
materials to the company on time which makes possible to them in fulfilling the needs and
acquirements of customers. Pizza Hut has their own supply management strategies such as
delivering Pizza within 45 minutes etc. for which they have framed software system for their
own information spare of clients.
APPLICATION OF MCKINSEY 7S MODEL IN RESOURCE MANAGEMENT
McKinsey 7s model is considered as an effective tool which help Pizza Hut in assessing and
analysing the changes done in the operation process. It consists of seven key element which
determined the success of new creation of “ Green team” within an organisation. Such seven
elements includes:
Strategy: The main aim of Pizza Hut is to launch new product in the market due to which they
form a “Green Team” who decide to produce organic pizza for their targeted people in order to
maintain their healthy lifestyle.
Structure: There are different departments of Pizza Hut which are working together to
introduce new product more successful in the market. For example, marketing department are
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held liable to communicate the benefits of produced launched by Pizza Hut in order to attract
targeted people.
Systems: It includes acquisition, packaging, distribution, sales etc. which assist Pizza Hut to
launch new brand into the market. For example, acquiring skilled and high negotiation skills in
order to influence buying behaviour of customers towards them.
Shared values: It includes culture, vision and mission. The main mission of Pizza Hut is to
provide healthy products to their customers in order to improve their health. Along with this,
maintaining healthy relation with their staff also so as to retain them for longer period of time.
Style: In this, leadership style is included. Democratic style is more useful to adopt in order to
launch new products into market as it provides freedom to employees and motivate them to
bring new ideas to attract customers.
Staff: It includes staff members engaged in producing, promoting, delivering etc. the products
to the targeted customers. In Pizza Hut, there are more than 3,50,000 employees working for
Pizza Hut and give efforts in maximising the satisfaction level of targeted people..
Skills: To launch new product, it requires experiences as well as hard working skills so that the
benefits of new product to the health of customers. It can be done through adopting an
effective marketing strategies and tools etc.
USE OF A COST-BENEFIT ANALYSIS AND VRIO FRAMEWORK
Cost-Benefit analysis: It is an systematic approach which help company in determining the
total cost incurred in launching new products in the market and possible profits derived from
such product. Thus, it is essential for Pizza Hut to adopt such approach so that it makes easy
for management to prepare budget and plan accordingly.
VRIO framework: It consists of fours question framework which asks about the resources or
capability to determine its competitive potential. To analyse effectiveness of products and
services offered by Pizza Hut, VRIO Analysis is must required to be done to analyse in order
to identify its current position in market. For an example, In case of determining value of their
offerings, Pizza Hut may questions to its targeted people that “Are their products and services
that adds value for the targeted people” If the answer received by the mostly targeted people
are no then need to take corrective actions and if yes then the company should move to next
hurdle.
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REFERENCES
Books and Journals
Geisler, E. and Wickramasinghe, N., 2015. Principles of Knowledge Management: Theory,
Practice, and Cases: Theory, Practice, and Cases. Routledge.
Knott, P. J., 2015. Does VRIO help managers evaluate a firm’s resources?. Management
Decision. 53(8). pp.1806-1822.
Online
Pizza Hut by the numbers. 2018. [Online]. Available through:
<https://www.pizzahut.de/en/about-pizza-hut/pizza-hut-by-the-numbers/>.
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