Analysis of Pizza Hut for Class Presentation

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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? 1.1We shall respond to this question through a high level analysis of Pizza Hut’s respective business environment in Brazil and in South East Asia. 1.2The 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. 1.3Brazil

1.3.1Because 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. 1.3.2When 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). 1.3.3In 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. 1.3.4They 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. 1.3.5http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Consumer%20Business/dttl_hiddenheroesv2.pdf

Index ScoresCambodiaIndonesia
Economy Sub-Index Scores0.350.94
Entrepreneurship and Opportunity Sub-Index Scores-1.4-1.1
Governance Sub-Index Scores-1.16-1.4
Education Sub-Index Scores-1.88-0.02
Health Sub-Index Scores-2.53-0.91
Safety and Security Sub-Index Scores-0.99-0.56
Personal Freedom Sub-Index Scores-2.38-1.25
Social Capital Sub-Index Scores-2.050.08

Variable NameDefinition
Economy Sub-Index ScoresThe Economy sub-index measures countries' performances in four areas that are essential to promoting prosperity: macroeconomic policies; economic satisfaction and expectations; foundation for growth; and financial sector efficiency. Entrepreneurship and Opportunity Sub-Index ScoresThe Entrepreneurship & Opportunity sub-index measures countries' performances in three areas: entrepreneurial environment; innovative activity; and access to opportunity. Governance Sub-Index ScoresThe Governance sub-index measures countries' performances in three areas: effective and accountable government; fair elections and political participation; and rule of law. Education Sub-Index ScoresThe Education sub-index measures countries' performances in three areas: access to education; quality of education; and human capital. Health Sub-Index ScoresThe Health sub-index measures countries' performances in three areas: basic health outcomes; health infrastructure and preventative care; and physical and mental health satisfaction. Safety and Security Sub-Index ScoresThe Safety and Security sub-index measures countries' performances in two areas: national security and personal safety. Personal Freedom Sub-Index ScoresThe Personal Freedom sub-index measures countries' performances in two areas: individual freedom and social tolerance. Social Capital Sub-Index ScoresThe Social Capital sub-index measures countries' performances in two areas: social cohesion and...
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