Systems Thinking Approach to Analyze Pizza Hut's Business Issues

This report presents a systems thinking analysis of Pizza Hut, examining the company's current challenges, particularly those related to declining sales and customer dissatisfaction. The analysis employs a rich picture to visually represent the complex situation, highlighting stakeholders and their interactions. Furthermore, a CATWOE analysis is conducted, evaluating Customers, Actors, Transformation processes, Worldview, Owners, and Environmental constraints to identify key issues. The report recommends the introduction of improved marketing strategies and the implementation of a drone-based delivery system to address late delivery issues and enhance customer satisfaction. The conclusion emphasizes the importance of these recommendations for improving the company's revenue and market position. The report also highlights the key actors in the business, including customers, suppliers, government officials, and shareholders, and how they are affected by the company's performance.

Running head: SYSTEMS THINKING
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Name of student
Name of university
Author’s note:

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Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Rich picture................................................................................................................2
CATWOE analysis.....................................................................................................2
Recommendations..........................................................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................7

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Introduction
Pizza hut is the popular American restaurant and food delivery chain that specialises
in the delivery of pizza to the customers. presently the company is facing the issue of loss of
significant amount of customers and sales that is resulting to various reasons. This report
intends to analyse the present situation of the pizza hut using the approach of systems
thinking. The rich picture and the CATWOE analysis has been employed for determining the
most preferable solution for the issues that are presently residing in the business. The rich
picture has been used for illustrating the effect of the issue and what kind of impact would the
solution provide to the organisation.
Discussion
Rich picture
CATWOE analysis
Customers: The clients or the customers are analysed to be among the several
individuals or even any of potential customers or even various stakeholders who are suffering

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because of the probable alterations that are being introduced by the system (Molderez &
Ceulemans, 2018). These could be considered as the individuals who would benefit or even
suffer extensively because of the changes in the system. The main reaction to alteration of
any customer is required to be considered by the company, the most possible considerations
are the stakeholders, the problems as well as the reactions to any of the suggested changes as
well as the responses. In the situation of the Pizza hut, it could be considered that the
customers of the company are the major stakeholders that are affected due to the issues
residing in the organisation. With the introduction of the improved delivery system in the
company, the customers would gain their food delivered and within the time (Gilbert, Gross
& Kreutz, 2019). The improvement of the delivery could be done by the introduction of the
drone system for delivering the products. With the introduction of the drone system for
delivery, the delivery system would not have to face the issues of the traffic congestion on the
roads and the Pizza could be delivered easily to the customers.
Actors: The actors in any system could be considered as the individuals that are
mandated for implementing or even affecting the changes to the system that leads to the
consequences that could affect the business either negatively or even positively (Lane, Munro
& Husemann, 2016). The actors could be the suppliers, the Government officials. In the
situation of the Pizza hut, the main actors of the business are the customers, the suppliers, the
government officials from various departments and the shareholders. All the actors are
somewhat equally affected by the reduction of the sales of the company due to the improper
delivery system. The customers are not provided with the product at the correct time and the
food is not spoilt. The suppliers are not able to do business with the company and due to the
reduction of the sales in the company, the suppliers are not provided with the payment at the
correct time. This is becoming serious issue in the organisation as several suppliers are
reluctant to do business with the company. The shareholders are required to invest huge

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amount of capital for continuing the business and allow the company to at least survive (De
Savigny, Blanchet & Adam, 2017). The loss of capital in the Pizza hut company is becoming
the serious issue for the company as the compensations is required to be provided to the
customers who got their delivery significantly late.
Transformation: The transformation could be described as the alterations that are
being introduced by the implementation of the new system or the process. The
transformations processes of any system could be considered as the vital elements that are
used as majority of the businesses relies on the timely processes that are conducted at the
specific intervals and therefore introducing the main consequences of any system (Rusoja et
al., 2018). In the situation of the Pizza hut company, it could be considered that the present
issue of the improper delivery methods is leading to the spoilage of the food products and the
customers are not making the payment for any of the food. The solution for this issue could
be considered to be the implementation of the drones system in the organisation. With the
help of the drone system for the delivery of the products, the products could be reached to the
customers by air and there would no issue of facing any traffic congestion that was the main
reason why the delivery of the products was becoming late (Rangone & Mella, 2019). The
products would be provided to the customers within the allocated time and the market of the
company could also be expanded as the drone system would allow the company to deliver the
products to significant huge areas.
Worldview: The worldview could be considered as the main impact of the
transformation that is being introduced in the business with the alteration of the system or
processes. The vast view of the complete impact of changes in the terms of the consequences
are considered. With the introduction of the drone system for delivery of Pizza in the
company, the company would be able to expand their delivery area and significantly huge
areas of the market could be covered by the drones easily (Davis & Stroink, 2016). The main

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issue that is being eliminated is the issue of the late delivery of the products to the customers.
The late delivery of the products are leading to the spoilage of the products and the company
has to refund the complete payment that has been taken from the customer and there is
wastage of the products and capital. The drones could be monitored from the company and
the location of the delivery would be set by the company. The company would be able to gain
significantly high competitive advantage in the market where they are functioning (Tomko et
al., 2017). The company would gain increased customers for the business and the sales of the
business would also increase exponentially. The major shareholders of the business would
gain increased profit from the business.
Owner: The owners of in CATWOE analysis could be described as the decision
makers that are provided with the authority of the making the changes, then stop the project,
as well as make the decision on whether any of the intended changes is supposed to be
implemented or not (Arnold & Wade, 2017). The owners are considered to be critical
elements in the CATWOE analysis as these are the individuals are possessing the authority of
taking the decision of implementing the desired changes or not. In the situation of the Pizza
hut, the owner of the company is the owner who possesses the authority of the implementing
or not. The changes could be implemented by the owner after making the analysis of the issue
and the impact of the solution in the company (Ahlström, Williams & Vildåsen, 2020). And if
the owner of Pizza hut decides the implementation of the drone system in the delivery
department would not be significantly helpful and the cost of implementing the drones is
extensively high, then the changes would not be implemented.
Environmental constraints: These could be determined as the major external
constraints as well as the restriction that are affecting the major success of solution (Shaked
& Schechter, 2017). In the situation of the Pizza hut company, the main environmental
restrictions that are affecting the implementation of the drones system for the delivery of the

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products are the ethical limits, the regulations, the financial constraints, the resources
restrictions, the restriction of the project scope, the restrictions that are set by the terms of the
reference as well as various other restrictions of the market where the company is presently
functioning. The environmental constraints or the effects introduced regarding as the result of
major changes are considered in the CATWOE analysis, these are the major effects that
affects the business atmosphere commonly they includes the noise, the health hazards of
various gadgets to the humans (Ståhle et al., 2020).
Recommendations
From the CATWOE analysis and the rich picture it could be suggested to the Pizza
hut company that the introduction of the improved marketing strategy could be done for
reaching to increased number of customers and the implementation of the drone system
should be done for ensuring that all the products are provided to the respective customers
accurately and within the allocated time. The delivery system should be extensively improved
and the implementation of the drone system should be done after the analysis of the proper
regulations of operating the drones in the civilian areas.
Conclusion
It is therefore concluded from above discussion that the introduction of the marketing
strategy would be helpful for the marketing department and the introduction of the drones
system would be helpful for eliminating the issue of late delivery of the products and the
company would gain increased revenue from the business. the customers of the company are
the major stakeholders that are affected due to the issues residing in the organisation. With
the introduction of the improved delivery system in the company, the customers would gain
their food delivered and within the time. the main actors of the business are the customers,
the suppliers, the government officials from various departments and the shareholders.

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References
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