Fast Food Industry study of Pizza Hut

Fast Food Indus sift airfield of pizza pie HutIntroductionA major(ip) transformation in business line perplexity is that organizations be trying to optimize either locution of business. There has been a keen focus into every aspect of business which can excrete the organization a price or quality edge oer its competitors. Effective Supply string management (SCM) is capable of both the above menti unitaryd advantages. If we side into the miscellaneous components of SCM and analyze their import in the context of the above we find that they atomic number 18 quite square and capable of achieving price and quality edge over competitors.In this enquiry the focus testament be to study various factors influencing the turn in strand management in troubled pabulum patience by referring to Pizza shack. The aspects associated to price quality and guest satisfaction get out be covered through this seek. The fast food patience has seen huge transformations in the late pas t the affect of these transformations on the translate chain management is also discussed in this research.BackgroundAs we know that generate chain manages the entire materials from suppliers (Suppliers of crank materials to the organization) to retailers and distri stillors to the customers. There are various disciplines involved in this system. for example the supplier relations management, stock certificate management, distribution system, retail management, drive away provision chain management. It has been observed that action in one discipline can influence the performance of the whole chain and similarly the performance of the organization. (T.J. Peters 1982 Ridd each(prenominal)s 2002).More and more organizations / industries are identifying the significance of supply chain management. In terms of research there are three most researched issues in the whole supply chain management, they are training flow through supply chain memorial / wareho c every ManagementOperati ons Management (queuing system)The fast food industry is one of the most belligerent industries. The competition majorly depends upon price, quality and service (which are core aspects of Supply Chain Management). Hence there is immense pressure on all the organizations in the fast food industry to keep the three aspects studied above to their supreme best.As fast food industry is one of the most emerged industries in the modern past, the supply chain has seen huge transformations in this industry. The industry is still emerging so as the transformations in the supply chain management of this industry. Hence this study helps the learner identify and understand the factors driving change and the factors influencing the supply chain performance.Few of the research questions and research objectives are underpinned search QuestionsThis research will not only try to present the study associated with the title of the research but will also try to resultant role the questions mentioned belowWhat is the core meaning of supply chain?What is the significance of Supply Chain Management in fast food industry?What are the major components of Supply Chain Management?How significant is information sharing to keep the supply chain good?What factors influence / drive supply chain management in fast food industry?How is demand forecast supply managed accurately?What is the impact of supply chain management on overall performance of Pizza Hut and in creating blot name for Pizza Hut?How does Pizza Hut manage their SC effectively?Similarly the research has set few objectives for itself to achieve in the vogue of this study. The research objectives are mentioned underneathResearch ObjectivesAligned with research questions we have set few objectives for this research. They are listed underneathTo understand the supply chain practices in fast food industryTo understand the difference between SCM practices in fast food industry and in opposite industries (manufacturing Servi ce sector)To prove that effective core competencies can lead to competitive advantageIdentify significance of various parties in the supply chain on the performance of the supply chainTo understand the service level impact on the supply chainThe organization / comp any(prenominal) chosen for this researchPizza hut was started in the course 1958 by two brothers Dan Frank Carney. This was an idea suggested by a common friend which they agreed to. In 1972 they introduced corporate strategy. In the mid 90s the profits of Pizza Hut were declining. Hence Dan Frank Carney thought of selling out the company. In the year 1997 Yum Brands acquired pizza hut and is currently (Pizza hut) under Yum BrandsHighlight of Pizza hut is its variety in Pizza, garlic bread, pasta and breadsticks. In order to meet the yield of the mentioned (menu) products pizza needs to co-ordinate all the suppliers of vegetables, chicken and bread and fake in coordination with them. Keeping this aspect efficient is t he key success factor of Pizza Hut. As we know that if an organization can manage its core competencies effectively they can surely act as competitive advantage for the company.As the ingredients for various products of pizza hut are acquired through various suppliers from different separate of the globe. There has to be proper communication to keep the supplies and demand under check. In order to keep this aspect effective the company has employed nub Quality Management (TQM) process.The strategic policy of Yum Brands involve the suppliers to understand their quality and impact in the overall performance of the organization. This keeps the supplier relations management aspect in place for the organization.Pizza Hut has restaurants and they also deliver their products to customers place. The supply chain in these cases differs. If it is served at the restaurant then it usually shortens the supply chain and if the product (pizza, pasta etc), then the supply chain has transportation included in the supply chain.Both these aspects will be discussed in detail in this studyLimitations of the studyAs the research focuses on the supply chain management of fast food industry, there whitethorn be few differences in the supply chain then the supply chain of other industries. This research does not specifically answer questions which are out of the industry / focus of this research.The supply chain of fast food industry keeps changing in short intervals. We have focuse this study on supply chain of Pizza hut. This may answer the general questions with the supply chain of fast food industry but may not answer the specific questions of other organizations.Literature recapSupply chain plays a critical role in maintain the organizations brand image and service levels in the market. In this section we will peach about Supply Chain Management (SCM) in general first and then will confine it to the fast food industry.Supply chain is the term use to define the parties involve d in the process of meeting customer demand. The parties involved in the supply chain areSuppliersManufacturers / producersDistributorsRetailerscustomers(Riddalls, C.E., Bennett, S., 2002) (Stanley E. Fawcett and Gregory N. 2004)A brief of their role in the supply chain in underpinnedAs we know that supply chain management is a discipline that manages and controls the flow of information throughout the various departments to meet the customer demands. The supply chain starts from the positive beginning of the manufacturing process i.e. acquiring the crank materials from the suppliers or in other words choosing the suppliers and ends at the extreme end of the production process i.e. the customers. (Raghavan, N.R.S., Viswanadham, N., 2001)The members or parties of the supply chain are briefed belowSuppliers suppliers are a significant party in the supply chain. The fond materials are supplied / acquired through this resource. In terms of quality of materials / products the supplier s are held responsible. The price of the product depends upon the price of the naked as a jaybird material as well and the supply of raw material will influence the companys ability to meet the customer demand at the right metre. Hence we can say that suppliers have a nifty impact on the price of the product and companys ability to meet the customers demand on time. (Riddalls, C.E., Bennett, S., 2002)Manufacturers / Producers These are the members who convert raw materials / semi finished goods to finished goods. The production process is significant as the company judges the quality and attributes of the process in this phase hence manufacturers also influence the quality of the product. (Riddalls, C.E., Bennett, S., 2002)Distributors These are throng who are responsible to make the product reach to the market (retailers). The distributors can be also termed as marketing intermediaries. There are various aspects associated with marketing of a product and choosing the right dis tributors. The reach of the distributor will always be directly proportional to the availability of the product in the market. (Riddalls, C.E., Bennett, S., 2002)Retailers These are peck who are at the end of the supply chain. In other words these are the people who sell the product to the customers (supermarkets, stores etc). They are one of the significant members in the supply chain as they are in direct cutaneous senses with the customers. They represent the product on behalf of manufacturer to the customers. The demand and customer feedback can be analyzed at this level. (Riddalls, C.E., Bennett, S., 2002)Customers These are the end users of the products. Customers were not considered as a part of supply chain, but the contemporary methods and study has added customers into the supply chain. (Riddalls, C.E., Bennett, S., 2002)The significance of these parties in the supply chain varies in context to industries.Few of the terms involved in SCM are underpinnedInventory sizeThis helps the organization decide the amount (size) of inventory to be ordered. This is one of the significant aspects in the fast food industry as this helps the organization not only order the right quantity but also meet the customers needs with minimum resources possible. (Raghavan, N.R.S., Viswanadham, N., 2001)Replenishment Lead TimeThis refers to the time between placing an order and acquiring the raw material. Usually lead time is always considered as an entity that makes the supply chain ineffective (loss in supply chain). (Raghavan, N.R.S., Viswanadham, N., 2001)Stock outsStock outs are very common in every trade. This is a situation that arises due to miscommunications in supply chain parties, lack of analysis, bad demand and sales forecasting.Safety stockThis is the excess stock that a tighten maintains to manage demand fluctuations. The safety stock is maintained at the lowest levels as most of the firms are efficient in sales forecasting.Reorder delegateThis is a point in inventory levels wherein the firm feels the need to order more inventories.SPECIFIC TO FAST FOOD INDUSTRYFast food is referred to food which can be cooked easily and can be eaten quickly. There are various food chains across the world, which are famous for fast food.If we grimace into the history of the fast food industry, the roots of fast food are from 1920s and from 1950s this industry saw a rapid growth. There are many reasons for this transformation in food habits of people. People were busy and did not find time to cook food or even to wait for pine hours after ordering food. There arose the term fast food. The Asians (Specifically Chinese) are responsible for this term and industry. There lies the secret behind the customer expectations. Customers expect food to be served quickly, should be delicious and should be healthy. In this scenario all the parties of the supply chain play a major role in meeting this expectation. (Tony Hines, 2004)Few of the objectives of supply chain management in fast food industry are mentioned underneathSupply chain planningThis sets the chain direction and the strategies associated with all the aspects of supply chain. This is the overall sketch of the supply chain. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)ProcurementThis is the process of selecting a supplier and managing healthy and profitable relation with them. This also helps the organization maintain quality of their products. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)Inventory managementThis process helps the organization maintain right level of stock in the organization and eliminate stock outs with variation in demand for the product. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004) packagingThis is a discipline that helps in ensuring right package design and reducing the salute by encouraging the recycling process of packaging. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)Warehou singThis is the process of storing the raw material, semi finished and finished goods. Effective storage and correct warehouse design can reduce the overall cost of the product (eliminates transportation cost to a certain extent) and improve the availability of the product. The other factors in this discipline are safety of the product, storage methods and locations of the warehouses. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)TransportationThis process refers to transportation management of goods. This includes all the possible modes of transferring goods from one location to another. The records maintenance are also included in this aspect. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)LogisticsThis is referred to the use of technology in maintaining all the disciplines of supply chain effectively. The use of softwares is a trend in logistics management (CRM softwares). (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)Customer Service and marketingThis refers to meeting the customer expectations effectively and creating new opportunities through customer service. This is one of the major aspects that organizations are focusing in contemporary business world. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)The entire above mentioned are effective ways to remain competent, exist and grow in the market. thus managing supply chain effectively can help the business prosper.There are few other associated concepts which have an influence on the supply chain, one of them is Bull Whip Effect.Bull Whip EffectThis is referred to sudden increase in customer demand that forces the supply chain to reconsider its strategy and set up the stocks in the supply chain. This forces the management to include more stocks into the system to meet the increased product demand. The Bull whip effect always flows in reverse direction to the flow of products. I.e. starting with heartytor and ending it with the supp lier of raw materials to the manufacturers. (Raghavan, N.R.S., Viswanadham, N., 2001), (Peter D lummox, 2006)There are various reasons of Bull Whip Effect few of them are mentioned underneathUnder estimation of demandWrong sales reportInefficiencies Lead time managementMiscommunication in the supply chain(Peter D Ball 2006)Hence we can say that effective communication (information flow) in the supply chain is significant.The fast food industry cannot store the stock (Raw materials) in advance. just about of the products are vegetables and souses, which need to be fresh. Hence effective supply chain management is required.It has been observed that the major focus of most of the fast food chains is to improve the service levels (quality of the product and delivery time to the customers). Recently it has also been observed that in developing countries such as India, Pakistan, Srilanka and others, the fast food industry is focusing on the quantity and price factors. Once again this can be achieved through effective supply chain management.Research methodologyResearch methodology plays a vital role in the outcome of every research. There are various aspects, which a researcher needs to consider, before during and after encountering information for a research. Few of the aspects are presented underneath and are discussed in the context of the research. (Cooper, D. Schindler, P. 1998)Research approachThere are various research approaches possible. Few of them are underpinnedInductive approachDeductive approachQualitative approachQuantitative approach(Saunders, M., Lewis, P. Thornhill, A. 2003)A brief of the above four is accustomed belowInductive approach The term itself indicates that this process starts with a point and ends up adding information and few more points on the way through to devising general interpretations about the research topic. (Saunders, M., Lewis, P. Thornhill, A. 2003)Deductive approach This refers to an approach that starts with few concepts and theories and tries to confine the subject in the context of the research focus. This is one of the widely used approaches to reach to a conclusion in general researches to add more specific information to lively concepts. (Saunders, M., Lewis, P. Thornhill, A. 2003)Qualitative approach This approach relies on the existing theories and practices. In other words this approach is based on the tested and proven methods. The available literature is the major source in this approach. This is called qualitative as the research results can be more reliable then compared to other methods / approaches of research. (Saunders, M., Lewis, P. Thornhill, A. 2003)Quantitative approach This is one of the widely used research approaches. This approach relies on a wider study and does not majorly rely on the literature, instead will take a concept or theory from the existing literature and will research about it in the environment (surroundings). This is one of the approach used to ma ke general interpretations about a concept or theory. The major methods of this research approach are surveys, questionnaire, interviews etc. (Saunders, M., Lewis, P. Thornhill, A. 2003)The research approach for this research will not be restricted to any of the research approaches. We will use all the approaches possible to keep this study effective. As there are various factors influencing the supply chain and the fast food industry is specific, hence we will try to emanate the drawbacks of various approaches and will use all possible methods to match pertinent and result oriented info.Research StrategyResearch strategy for every research is significant. As we know that this influences the outcome of the research, hence we have decided to formulate two questionnaires for accumulation data. One will focus on the management and the other will focus on the experiences of the customers. This will also help in covering all the aspects in this research. For this research we will als o foregather few industry experts to analyse the interpretations and results of the research to keep it effective.Data sourcesThere are various sources through which data can be self-possessed. The data for any research can be divided into two categories. They areResearch specific data (Primary data)Supporting data (secondary data)The above two are explained in brief belowResearch Specific dataThis is also known as primary data. The term itself indicates that this data is specific to the research. The data that is gathered to answer the set research questions is known as primary data. The major sources for gathering data in this category are interviews, focus groups, surveys, observations, questionnaires, telephonic interviews, etc (Bryman, A. Bell, E. 2003)Supporting dataThis refers to the data that fills the gaps left by the primary data. As the major function of this data is to support the research, hence this is known as supporting data. This data is not research specific, in stead is gathered from the available literature or some other pertinent research. The major sources through which this data can be gathered are academic books, magazines, newspapers, internet, etc (Bryman, A. Bell, E. 2003)The data for this research will be gathered through formulating two questionnaires and using two methods. First we will try to contact the management of Pizza hut through email and take their responses on the questionnaire the second will be to carry-out a general survey in macrocosm to know about the customer service (and associate it with the effectiveness of the supply chain). We will also utilize the secondary sources such as Internet to gather pertinent data to make the research effective.Data AnalysisThere are various aspects that a research needs to focus before, during and after gathering data for a research. These aspects help the researcher keep the data effective in the context of the study.Few of the aspects are listed belowValidity This refers to th e relevance of variables in the study. As we know that there are various variables in a research. This aspects ensures that the data gathered should be relative to the research. In other words these aspects say that there has to be inter-connectivity between the focus of the research and the data gathered. (Ghauri, R. Gronhaug, K. 2005)We will try to gather relevant data and will avoid vagueness in data. The data gathered will be confined to the research focus but will also try to remain neutral to answer various other research associated questions.Reliability This aspect refers to neutral (correct or accurate) and bias free results. In other words this aspect states that if the same data is used again for a similar research the results of the research should be similar. This also states that there should be any biased interpretation or should be a estimate for any mortal or organization through this research. (Ghauri, R. Gronhaug, K. 2005)We will not only stay neutral while in terpreting the findings and framing the results of this research, but will also send the results to few industry experts to seek their view. This will eliminate the bias aspect from the research and will keep the research effective.Generalizability This refers to the spectrum covered by the research answers in resolving the general issues. In other words the results of the research should be able to answer a wide range of real time issues. (Ghauri, R. Gronhaug, K. 2005)We will try to keep the results as general as possible and will also try to cover as many issues as possible.Authenticity of data sources This is one of the significant aspects of any research. The data gathered should be from reliable sources. The authenticity of data sources defines the effectiveness of the research. (Collis, J. Hussey, R. 2009)We will try to gather data from authentic sources. As we have formulated questionnaires and are gathering data through sources which are reliable, I believe we can surely imprimatur the authenticity of data sources.Ethical IssuesThis refers to the methods used for gathering data. The ethical issues are quite significant for every researchs credibility towards the society. This includes a code of conduct that states that the methods used for data gathering and research should not include any method that is illegal or unacceptable. The methods or results of the research should not harm any person / firm / industry. (Crowther, D. Lancaster, G. 2009)The methods used for this research will be decided by keeping the above code of conduct in mind and will not include any such methods which fall out of the code of conduct. We will try to keep the work ethical and free from any bias.PROJECT syllabusWeeks0-23-45-67-89-1011-1213-1415Background ReadingResearch ProposalTheoretical frameworkPrimary Secondary Data gatheringReport Making Submission cobblers lastSupply chain management plays a significant role in managing resources and effective customer service irrespective of industry. The fast food industry is customer driven and the service level plays a significant role in creating expectations with the customers. The fast food industry (Specifically Pizza hut) will be studied in the context of the supply chain extensively and the research results will be framed.We will study all the associated aspects and will try to cover all the authorisation issues under the focus of the research. We will keep the research bias free and ethical to the extreme possibility.