Pizza Hut Case Study Write Up

485 Words2 Pages
Pizza Hut Inc. 1. Describe the basic dilemma Pizza Hut faced in their business strategy. * The basic dilemma Pizza Hut faced in their business strategy was whether or not to go into the delivery segment for fear of cannibalizing its traditional eat-in business. 2. Why was the success of the customer service center deemed to be crucial to the delivery efforts at Pizza Hut? * The success of the customer service center was deemed to be crucial to the delivery efforts because delivery customers expected their phone call to be answered within seconds, if the CSC was not run or operated properly it could create serious losses in the delivery market as experienced in Norfolk, Virginia. It had substantial marketing benefits but also significant risks. 3. Why was it so important for the Franchisor to convince the Franchisees that the new delivery units were where they needed to grow for the benefit of their franchise system? * It was important for the Franchisor to convince the Franchisees that the new delivery units were where they needed to grow for the overall benefit of the franchise because customers will be expecting all Pizza Hut locations to have delivery not just sporadic locations. It helps the cohesion of the brand and to maintain customer’s expectations and satisfaction. The franchisees needed to see the opportunity to increase their overall income with the delivery system. 4. Should the Franchisor use his power under the Franchise agreement to force franchisees to adopt the new model or should he try and “convince” them that it is the right “business” thing to do? * I believe that to keep good relations he should at first use good communication skills to convince the Franchisees that it is the right business move to make for them to increase their overall income and aid to the overall Pizza Hut franchise system. If after

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