Doing a value chain analysis is a fantastic way of following a process to review all of the ways you can generate value for your customers. Based on the following information, students are required to create/draw (infographic) value chain to the identified organization below. PIZZA HUT Let’s look at the value chain of Pizza Hut: PRIMARY ACTIVITIES Inbound logistics: This includes all of the sourcing activities to procure and standardize all of the produce, ingredients and materials to bake pizza’s fast, consistently, and delicious – in house. They capitalize on economies of scale, and use massive global purchase orders to source the best prices on raw products for their restaurants. Operations: By targeting areas where there is an affinity for Italian food, Pizza Hut operates in a huge number of countries globally with a licensing model where stores are managed by a local franchise owner. Outbound logistics: There are two models that Pizza Hut capitalizes on, in store dining and their home delivery service. Marketing and Sales: There is a large investment in marketing to drive additional sales, and compete with the other fast food chains. Service: The entire goal of Pizza Hut is to offer value to their customers in affordable and convenient pizza that everyone can enjoy. SUPPORT ACTIVITIES Infrastructure: Again, this includes every other activity that is required to keep the stores in business, such as finance, legal, etc. Human Resources: To keep the costs down staff are typically junior, and unskilled. Technological development: The process they have created to have unskilled chefs cooking the pizza is their biggest asset. Breaking down the complicated method into simple steps that can be repeated again and again for consistently great pizza. Procurement: The purchasing and activities required to produce the pizza, the raw food, and all of the buildings, and equipment needed to cook and deliver the pizzas. Based on these activities, Pizza Hut is leading the market in producing pizza that is both affordable, and can be delivered to your door in under 30 minutes (in most cities). This convenience is what sets them apart from many other competing options for meals, like going out to dinner or preparing a meal at home yourself, and they use a strong campaign and marketing focus to entice customers to use them over similar competitors in the fast food delivery industry.
Doing a value chain analysis is a fantastic way of following a process to review all of the ways you can generate value for your customers. Based on the following information, students are required to create/draw (infographic) value chain to the identified organization below.
PIZZA HUT
Let’s look at the value chain of Pizza Hut:
PRIMARY ACTIVITIES
Inbound logistics: This includes all of the sourcing activities to procure and standardize all of the produce, ingredients and materials to bake pizza’s fast, consistently, and delicious – in house. They capitalize on economies of scale, and use massive global purchase orders to source the best prices on raw products for their restaurants.
Operations: By targeting areas where there is an affinity for Italian food, Pizza Hut operates in a huge number of countries globally with a licensing model where stores are managed by a local franchise owner.
Outbound logistics: There are two models that Pizza Hut capitalizes on, in store dining and their home delivery service.
Marketing and Sales: There is a large investment in marketing to drive additional sales, and compete with the other fast food chains.
Service: The entire goal of Pizza Hut is to offer value to their customers in affordable and convenient pizza that everyone can enjoy.
SUPPORT ACTIVITIES
Infrastructure: Again, this includes every other activity that is required to keep the stores in business, such as finance, legal, etc.
Human Resources: To keep the costs down staff are typically junior, and unskilled.
Technological development: The process they have created to have unskilled chefs cooking the pizza is their biggest asset. Breaking down the complicated method into simple steps that can be repeated again and again for consistently great pizza.
Procurement: The purchasing and activities required to produce the pizza, the raw food, and all of the buildings, and equipment needed to cook and deliver the pizzas.
Based on these activities, Pizza Hut is leading the market in producing pizza that is both affordable, and can be delivered to your door in under 30 minutes (in most cities). This convenience is what sets them apart from many other competing options for meals, like going out to dinner or preparing a meal at home yourself, and they use a strong campaign and marketing focus to entice customers to use them over similar competitors in the fast food delivery industry.
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