Pizza Hut and Pepsico Integration

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Pizza Hut and Pepsico Integration

Choice of organisation
Pizza Hut

About the organisation
Pizza Hut is a restaurant chain which was set up in 1958. During the past five decades, Pizza Hut has built a reputation for innovation, commitment to quality and delivery of great customer service. The company’s mission statement is to “provide courteous and helpful service on time all the time” together with “offering Team Members opportunities to growth, advancement and rewarding career in a fun and safe working environment”. In the restaurant where I work, workers work collaboratively to deliver the best performance and services. Communication is informal between managers and team members.

Issue
The discussion of this essay will be the “Integration of Pepsico and Pizza Hut” when PepsiCo acquired Pizza Hut in 1977.

Input: There existed 2 different business cultures in these 2 organisations.
|Pepsi |Pizza Hut |
|Short-termers |Lifers |
|Individual-focused |Team-oriented |
|Consumer-packaged goods |Quick service |
|Entrepreneurial |People Management |
|Decentralised | |

Output: The misalignments of these 2 organisations’ cultures results in the failure of this vertical integration.

Source of Information http://researchdocs.cox.smu.edu/slocum/YUM%20culture%20article.pdf – Changing culture at Pizza and Yum! Brands

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