Pizza Hut Case Study

Pizza Hut Case Study

Problem

Throughout this case study, there were a multitude of issues that were easy to identify. There were issues with currency, language, and weather, however, the three areas that we as a group felt were the key problem areas were, Turnover, Human Resources, and Supplies.

We felt that turnover among staff members was a key issue within this case due to the fact that Pizza Hut would have to hire a new employee every day, with a full staff turnover taking place within one year. With the turnover rate being so high, consistent and recurring training sessions would be need to onboard new staff members. Having to consistently retrain new staff members takes away from normal day-to-day operations, and greatly effects productivity since current staff members are normally the people who have to train the new employees. Also, with the rapid turnover taking place, companies are not guaranteed to get the same level of production from newly hired individuals, as they did from the individuals who left, and in Pizza Hut’s case, the new employees who were hired did not have the same respect for the business as the previous employees.

An area that was directly affected by the high turnover rate was Human Resources. With the consistent hiring of new employees, human resources would have to constantly make updates to many areas, including payroll. With management skills and experience at a minimum, managers were flown out of the country to be trained. This can cause a significant issue if managers were to leave, due to the inability to train new managers properly and efficiently.

The final issue we identified was supplies/suppliers. During the construction of the two buildings, there were many issues with supplies. No local builders or merchants were available, so most of the supplies had to be shipped in. By having to ship supplies in, the forecasted amount that was thought to be designated to supplies increased dramatically. This...