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Communication Final

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this reports covers the basic corporate communication strategies adopted by pizza hut to maintain it's goodwill in customers.
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STUDENT NUMBER: 21025309 STUDENT NAME: RASVINDER SINGH SUDA
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Page 1: Communication Final

STUDENT NUMBER: 21025309STUDENT NAME: RASVINDER SINGH SUDA

Page 2: Communication Final

CONTENTS

1) Introduction and objective

2) Swot analysis

3) Corporate Communication

4) Communication strategy

5) Types of communication

6) Internal communication

7) Communication with employees

8) External communication

9) Mission vision, and values

10) Conclusion

11) Bibliography

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1. Introduction and objective:

The aim of the assignment is to understand and demonstrate the various strategies and ways of corporate communication of pizza hut i.e. company of interest to study about its corporate communication strategies. The report lightens the excellent communication strategy of the Pizza Hut Company for dealing with all of its constituency’s i.e. internal stake holders that includes stake holders/employees and external stake holders that includes share holders. Pizza hut is one of the famous names in the world of fast food industry. The other thing that is included in this report is to demonstrate how key components of reputation management and corporate communication effect the companies business, how company crosses the barriers of international problems like culture, language and religion and beliefs. This report also shows what the main aims are, why they want to achieve that aims and how the company has been succeeding over the years with such good results through their communication strategy and providing high quality hygienic products to their consumers. In reality every company uses different communication strategies of their own that makes a unique operating environment of the company. They use specific strategies for an effective communication. Corporate communication is a management function that that helps in effective coordination of all means of communications with the purpose of establishing and maintaining reputations with stakeholder groups (internal/external) upon which organization is dependent. This report explains that how corporate communication strategy in the Pizza hut is performed in the internal and external environment of the organization. The internal communications process of the Pizza hut company is associated with the employees of the organization and with the shareholders of the organization. Internal communication also involves various levels of communication. For external communication, the company provides a distinctive picture and presents a corporate custom worldwide and involves the customers. This report also shows the

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various mission, vision and values of the Pizza hut company along with the environmental, health and safety policies. The main aim of this assignment to apply various communication models of the corporate communication strategy and then to evaluate their approach with regard to selected company.

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Company profilePizza hut was first of all started by two students in U.S.A namely, Frank and Dan Carney, in year 1958 in 1958. Today the Pizza hut company is part of the Pepsi Empire, but back then two brothers’ borrowed $600 from their mother and started to forge the history of Pizza hut. Pizza Hut is split into several restaurant formats; the original family-style "Red Roof" dine-in locations, delivery locations that offer a carry-out, delivery, and dine-in options, and the store front delivery and carry-out locations. Additionally, Pizza Hut also has a number of other business concepts that are different from the store type; Pizza Hut "Bistro" locations are Red Roofs which offer an expanded menu and slightly more upscale options. The firm expanded overseas and introduced the slogan, "Gather 'round the good stuff".

The Pizza hut is among the world’s leading fast food chains of restaurants .The Pizza hut operates in more than 200 countries around the globe. PepsiCo made $1.7bn (£1.09bn) in 1994 on the back of increased sales in canned drinks, up on $1.5bn (£967m) in the previous year. But the performance of its restaurants, which include Pizza Hut, was flat. Turnover for the year was $28.4bn, up from $25bn last year. (Independent, 2009)

(

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Vision &mission Since the goal of corporate communication is all about managing image of the company, goal of the corporate communication is to manage all surrounding happenings. Mission can be linked as an aim to do things. Vision is like a goal to achieve or a target for which they are looking for. In pizza hut vision is based on McKinney’s 7’s model approach. Values are like roots of an organization on which it depends since we all know

That mission, vision and values are the important factors of any organization to perform better and to achieve a certain level of success. Mission can be linked as an aim to do things. Vision is like a goal to achieve or a target for which they are looking in pizza hut (pizza,2009)

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SWOT ANALYSIS

STRENTHS

1. A famous name in the world of fast food chain of restaurants.2. Good standard image.3. A large chain of restaurants throughout the world.

WEAKNESSES

1. Criticized for the high salt content of some of their meals.2. Pizza hut delivery services are included in most threat full job.3. Until not reached in small towns of developing countries like India, Pakistan, and Bangladesh.

OPPORTUNITIES

1. Needs to develop a more close relationship with its customers.

2. Utilization of employees more efficiently in terms of their shift timings.

3. Needs to open new chain of restaurants in prime locations.

THREATS

1. Very hard competition.2. Threats to maintain

representation.3. Dependency on other firms

which provides the raw material and food to prepare its final product.

Pauline, 2006

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3)Corporate Communication:

Communication is something that all of us do al the time, mostly without thinking about it. In our day to day life we communicate without thinking about it but in corporate world it is a mod of managing in which communicational principles are applied in context. Corporate communication practices, as the main way of conducting communication, unleash per formative capacities in ongoing interactions with the stake holders.(William, 1925)

4)Communication Strategy:

Communication strategy is reviewing what you are doing now, working out what works and what does not, and defining what needs to be done to fix things. Communication strategy creates the ideal frame work between the different levels of an organization. Moreover, it provides guideline to enable the appropriate assumption of social responsibility towards employ worldwide.

“The total communication domain”, model invented by the Finnish writes Rogers in 1992 can partly be applied on Pizza hut’s approach to corporate communication. According to Rogers to make the corporate communication successful these four forms of communication have to operate together.

Socialising: providing training, tutoring and providing handbooks to employees.

Informing: informing the stakeholders about the latest changes like internal and external important activities which may or may not related to their relation with the organization.Profiling: product and corporate oriented survey.Support: of core operations internal & external market support. (Rogers, 1992)

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5)Types of Communication:

Types of communication rely on the communication channels:

Communication can occur via various processes and methods depending on channels used and the style of the communication based on the communication channels used, the process of communication cancan be broadly classified as verbal and non verbal communications. Verbal communication includes written and oral communication whereas the non-verbal communication includes body language, facial expressions and visuals diagrams or pictures used for communication. Verbal communication:

Verbal communication is further divided in written and oral communication. By oral communication we mean spoken words in communication process it can be either face to face communication of a telephonic conversation.

Non verbal communication:

Non verbal communication includes overall body language of person who is speaking, which include the total body posture, body gesture, and over all body movement. The facial expression also plays a vital role in non verbal communication as face of the person says a lot about the mood of the person who is taking. Non verbal communication can also be done with the help of pictures, sign boards, and sketches, and paintings. That is all employees of pizza hut are taught about making a fare relationship with the customers, during their basic training to communicate in a positive way. (Richard, 2003)

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6)Internal Communication

The internal Communication is termed as exchange of information/thoughts/decisions within an organization. Internal communication helps the organization in strengthening the relationships with employees Employees play a critical role for the communication activities; internal communication is becoming very essential, especially in large companies to reach every employee like ‘pizza hut’Argenti, 2003). Pizza Hut Company has properly structural hierarchy from the top to bottom. Every employee has properly defined and assigned task and responsibility in the organization. (Evans, 1990)

7)Communication with Employees:

Due to the fact that employees have become a critical audience for the communication activities, internal communication is becoming increasingly important, especially in large companies to reach every employee. (Argenti, 2003)

Horizontal/Lateral Communications

Horizontal communication refers to the pattern of information flow between individuals in different departments or divisions within the same organisation. This form of communication may cut across the level of authority as shown in the organisation chart, but is generally part of the formal lines of communication. Typically, it is characteristic of “staff” relationships (Pitmann, 1999)

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Communication with Shareholders:

Shareholders are the prior owners of business. Big organisation does their communication programme towards their key shareholders.Pizza hut Company gives great importance to the effective communication with the shareholders. Pizza hut Company provides information to shareholders by the Annual Reports. Shareholders receive letters from the company at regular intervals.

Comparing with the internal communication the communication model used in the organization was the Shannon’s model of communication which was the basic model of internal communication for the pizza hut company and for the most of the organizations in which all the employers in the organization can communicate.

But this classical approach to internal communications process within the employees, however, was somewhat inconsistent and unstructured. Because the company doesn’t discloses its communication strategies to a large extent.(Goodman ,1992)

8)External Communication

As internal communication External communication carries out of the organisation, organizations constantly exchange message with customers, investors, journalist and community representative. The external communication strategy of a pizza hut company involves the face to face interaction and providing the normal public with the various prizes, gift coupons, at different intervals of time in order to have a loyalty of the customers. The external communication strategy of pizza Hut Company involves the face to face interaction and providing the normal public with the various prizes.

Their main strategy involves targeting the audience, youths, males,

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young adults and elder audience by providing them good services to them. To do so they promote their products mostly during sports events, advertising on TV, cinemas and on press, and even by different posters and Pam plates in attractive colours. (William, 1992)

Communication with Consumers :

Consumer is the ultimate buyer of the products of a company. Consumer satisfaction is the motto of every organization. Pizza Hut Company follows various promotional schemes for advertising their product. through television and cinema campaign, posters, press, sponsorships, internet, sales promotions. (Lynda,2007)

Communication with the Suppliers :

Pizza hut company actively pursues close and strong relationships with suppliers based on sound business practices and mutual trust. The relationship should be dynamic in nature and must ensure the long-term competitiveness of the supplier. Pizza hutCompany’s suppliers include those who supply material including ingredients, packaging, machinery as well as goods and services. Coca-cola company also considers suppliers as an important information source and relies on their objectivity and expertise. Suppliers must therefore be fully aware of company quality and safety standards, understand quality policy; share objectives and work together to achieve them and makes suppliers clear about laws and regulations including those concerning child labor, abuse of labor, collective bargaining, discrimination, wages and benefits, working hours, and environmental practices . (Wilden, 2005)

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Communication with Government:

Communication with government is also very important. Pizza hut Company has many legal mediators who represent the company in front of the government. Pizza hut has to follow rules and regulations including changes in tax, accounting standards etc. Company is following certain standards for the quality of the products produced by the company and the company ensures that its operations are strictly followed as per the standards set by the government. (Lynda, 2007)

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10Conclusion:

Report concludes that the pizza hut company had a very good image in customers which, as a result, has helped the company in acquiring an excellent reputation in front of its customers with a bright future ahead. Such image has been built by the company over the past 51 years providing high quality services to its customers. This great and tremendous reputation has helped the company many times to come out of the crisis. This report also shows that it has a very good and effective internal and external communication structure that satisfies everyone who ever is linked with the company internally or externally. Company also knows that the good communication with employees providing efforts and capabilities, shareholders providing support, customers providing trust and belief, investors providing capital are very necessary to run the business well organized. This report also shows the fact that company’s operations are greatly influenced by its mission i.e. caring values and vision that helped it in establishing such a great brand image. Due to these facts elaborated above it shows that the company has a great potential in delivering message to its customers and caring about them in every aspect of life through their corporate communication strategy which is making a good reputation of the company. But still there are some areas where improvements are required in order to make corporate communication as one of its key to success.

11 Bibliography

(http://www.independent.co.uk/news/business/profits-fizz-despite-flat-

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pizzas-1572086.html, 20/3/2009, 22:10.

https://quikorder.pizzahut.com/phorders2/deals.php?WT.mc_id=021109Penny_Pizza_Deal_Wildcard,20/3/2009,23;10.

Michael B. Goodman, (1994) corporate communication. State university of New York press.

Hammer R &Wilden A, (2005) Corporate Reputation & the brand. Kogan Page publishers

Evans, D. (1990) People, Communication&Organizations.2nd ed. London: Pitman Publishing. Pauline Ratnasingam, 2006, International journal of cases on electronic Commerce: SWOT analysis for B2C e-commerce, Hershey, PA: Idea Group Publishing. Frederick, William C, 1925, Business and society: corporate Strategy, public policy, ethics.7th, New York; London: McGraw-Hill, c1992.

Lynch, Richard L, 2003, Corporate strategy, 4th edition, Harlow, New York: FT/Prentice Hall.

Goodman, Lenn Evan, 1992, Avicenna: Arabic thought and culture, London; New York: Rutledge.

Frederick, William C, 1925, Business and society: corporate strategy, public Policy, ethics, 7th edition, Mc graw hill, London.

Applegate, Lynda M, 2007, Corporate information strategy and Management, 7th edition, Boston, [Mass.]: London: McGraw-Hill.

Bennett, Roger, 1999, corporate strategy 2nd edition, London: Financial Times/Pitman

Argenti, p.A, 2003, Corporate communication-2003, 3rd edition ,McGraw- Hill, London.

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