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Pizza Hut Moscow

In: Business and Management

Submitted By kaash19
Words 806
Pages 4
PIZZA HUT - MOSCOW: CASE ANALYSIS
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Executive Summary:
Pizza hut is faced with challenges as they try to get their “toe in the water” and enter the market in Moscow. The challenges are: * Lack of standard supply chain process * Cultural clashes * Language barriers * Service differentiation for Ruble and hard currency customers * High exchange rates and complication in pricing (government versus black market rates) * Communication (disconnect between the local employees and the management team) * Employees had to work long hours and cover for absentees * Turnover and ongoing training for the new staff jeopardized the service and quality of Pizza Hut.
Proposed solutions include a complete analysis of the political, economic, social, technological, environmental and legal aspects. The key to Pizza Hut’s success in Moscow is effective supply chain management. Efficient Management of materials, manpower, money and production will create a positive outcome. Focus areas for improvement include training, sourcing, understanding culture, adapting to the local environment, and creating a new lifestyle for the Russians. In other words, we recommend inducing change in employment conditions, payment methods, quality adherence, and customer service culture by partnering with local suppliers, customers, employees, companies and government agencies.

Background:
The joint venture between PepsiCo and its partner, Mosrestoranserise was based on a $3 billion commercial counter trade. The requirements were: * Pizza Hut would have 49% partnership in the joint venture. * Pizza Hut was required to source the majority of its food supply from locals. * Transfer its financial and technological expertise to Moscow. * Train Russian management teams to manage stores. * Tax exemption for initial 2 years followed by 30% taxation....

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