Strategy Planning is a process which requires taking steps in a certain order, this plan should always be evaluated for success.
When first entered Chinese market, the managers of Pizza hut thought it was necessary to introduce Chinese food in their stores to attract customers. However, years later, they found that might not be necessary during their competition with Papa John,because Chinese customers become more familiar with pizza. And the main changes turned to be the growth of cost in both labor and materials.
Through this lesion,we learnt the procedures of strategy planning, so that we try to design a strategy for Pizza hut.
First, we develop the vision for Pizza hut. The main vision is expanding quickly and gaining more market share.
Second, analyze the environments.
For the external environment, fierce competition comes from other fast food providers like Papa John. For the internal environment, they suffer from growing cost, their profitability is decreasing.
Third, decide the goals. There are two goals. First is to cut the labor and material cost; second is to enlarge pizza market share in Chinese market.
Fourth, develop strategies.
Our team designed four strategies for Pizza hut. First, update the outlet menu seasonally. Add family set and children set to attract more potential customers. Second, with the development of Internet, Pizza hut needs to provide more online accesses for customers to put orders. This also makes it possible to diverge the customers and thus helps to cut down labor cost. Third,outsource pizza delivering service. Since there are professional delivering service in China (e.g. E-lema and Meituan), and the cost is much lower, there is no need for Pizza hut to maintain there own delivering boys. This will help to cut down labor cost as well. Fourth, try to bargain with existing ingredients suppliers and find new , competitive and qualified food material suppliers in nation wide. Needless to say, this will decrease the material cost.
Fifth, get manager feedback.
Pizza hut should makes this plan clear then get managements’feedback. Changes might take place based on their feedback if it is useful. In any case, it will be easier to implement because the managers will feel like their opinions have been heard and are valued.
Sixth, implement the plan.
Last but not the least, Pizza hut should measure success. The company needs to evaluate,measure, and judge its success. It is necessary to check to see if their plan is actually going to make their vision come true, because the inside andout side always change. To measure success, management may monitor their financial data and collect information from competitors and customers.
Another important thing is that a successful strategic model is always changing. If the company get a different outcome than expected, they should go back and make changes where they need to. It should be constantly reviewed to make sure it is doing what the company wants it to do.