Analysis of Pizza Hut for Class Presentation
PIZZA HUT IN BRAZIL
Question 2
1. Should Pizza Hut put more of its efforts in expanding in Brazil or somewhere in South East Asia? Why?
1.1 We shall respond to this question through a high level analysis of Pizza Hut’s respective business environment in Brazil and in South East Asia.
1.2 The business environment is the aggregate of all conditions, events, and influences that affect a company’s operations. It includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.
1.3 Brazil
1.3.1 Because of the current world economic crisis that as hit Brazil particularly hard, the short-term outlook looks pretty bleak as the country is facing negative growth rates for 1999. However, the country’s long term prospects are more promising as the current administration is committed to reforming the fiscal accounts as well as aggressively breaking up and selling off state assets. This will present opportunities for foreign investment and the increased competition will serve to improve productivity.
1.3.2 When it comes to the promise of a rising middle class in emerging markets, the lion’s share of attention has for good reason been visited upon China. Yet several other big, emerging markets offer great promise, and not only the other BRICs (Brazil, Russia, and India).
1.3.3 In an October 2010 report (Hidden Heroes: Emerging retail markets beyond China), Deloitte Touche Tohmatsu Limited (Deloitte) and Planet Retail provided an overview of the outlook and opportunity regarding eight key emerging markets.
1.3.4 They are Brazil, Colombia, Egypt, India, Indonesia, Mexico, Russia, South Africa, Turkey, and Vietnam. These otherwise disparate countries have one thing in common: they are all on the radar screen of some of the world’s leading retailers; all are likely to play an important role in the further globalization of retailing.
1.3.5
Question 2
1. Should Pizza Hut put more of its efforts in expanding in Brazil or somewhere in South East Asia? Why?
1.1 We shall respond to this question through a high level analysis of Pizza Hut’s respective business environment in Brazil and in South East Asia.
1.2 The business environment is the aggregate of all conditions, events, and influences that affect a company’s operations. It includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.
1.3 Brazil
1.3.1 Because of the current world economic crisis that as hit Brazil particularly hard, the short-term outlook looks pretty bleak as the country is facing negative growth rates for 1999. However, the country’s long term prospects are more promising as the current administration is committed to reforming the fiscal accounts as well as aggressively breaking up and selling off state assets. This will present opportunities for foreign investment and the increased competition will serve to improve productivity.
1.3.2 When it comes to the promise of a rising middle class in emerging markets, the lion’s share of attention has for good reason been visited upon China. Yet several other big, emerging markets offer great promise, and not only the other BRICs (Brazil, Russia, and India).
1.3.3 In an October 2010 report (Hidden Heroes: Emerging retail markets beyond China), Deloitte Touche Tohmatsu Limited (Deloitte) and Planet Retail provided an overview of the outlook and opportunity regarding eight key emerging markets.
1.3.4 They are Brazil, Colombia, Egypt, India, Indonesia, Mexico, Russia, South Africa, Turkey, and Vietnam. These otherwise disparate countries have one thing in common: they are all on the radar screen of some of the world’s leading retailers; all are likely to play an important role in the further globalization of retailing.
1.3.5