Analysis of Computerisation at Pizza Hut Essay

In the economics of industrial society, the purpose of the computerization of the workplace is to replace labor with machines, thereby reducing the unit cost of production while increasing both productivity and efficiency. Instead of hiring twenty workers to accomplish one task, an employer can simply buy one machine to do the same task faster and more efficiently; less resources are invested while much more output is generated. In general theory, the introduction of technology into the workplace spurs economic growth and prosperity, resulting in the creation of more and better jobs, higher wages and an increased standard of living. However, when looking at specific data and analysis, it becomes apparent that each level of worker is distinctly affected by the computerization of the workplace. Pizza Hut Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has subsidiary businesses and famous brands like KFC, Taco Bell, A&W and Long John Silver’s under one brand umbrella. It is the world’s largest pizza chain more than 13,000 restaurants across 97 countries. Pizza Hut increases his operations in last five years. In India, Pizza Hut has 143 restaurants across 34 cities, including Delhi, Mumbai, Banglore, Chennai, Kolkata, Pune and Hyderabad. Great taste and quality, variety of pizzas and trademark dining experience have made it possible for the company to for double-digit growth and scale up its presence to its current size. With a 27 per cent market share of the eating-out market and over 70,000 footfalls per day across the country Pizza Hut started its business from India in 1996, and opened its first restaurant in Bangalore. Pizza Hut maintained significant growth and acquires a maximum share of pizza market and sustained growth rate of above 40 per cent per annum. Pizza Hut operates through 95 outlets across 24 cities in India which gave employment nearly 5000 people by the end of 2009. When entering the delivery-segment of the pizza industry, Pizza Hut opted to use a computerized Customer Answering Service that would field all the calls from a particular area and then electronically send orders to the closest delivery-only units. Thus customers would only have to call one number and not have to talk to individual delivery unit managers. Pizza Hut believed that this system would reduce the costs needed for maintaining separate workers who would answer the phone at each unit. However, this system had several problems in its initial installation such as orders being mixed up and other inefficiencies. As a result, Pizza Hut’s reputation was damaged as consumers lost patience and faith in the company; this allowed Domino’s, Pizza Hut’s main competitor to increase its market share.