Develop the staff skill
The business I have chosen “Pizza Hut Ltd” falls under the classification of a Franchise. A Franchise is when a company allows someone to sell its goods or services using its trademarks, brand name. A fee will be charged for this. The benefits for this type of owner ship are: That the business has a very large, very secure baking of finance. Source of the finance for a franchise is similar to those of other independent operators – the franchisees own funds, bank loans and over drafts. Or in the case of a limited company, money is raised through the sales of shares. Banks look more favourably on a franchise operation when considering loans; they are much less of a risk.
Pizza Hut is a very good brand name so if a new franchise of Pizza hut opens they are pretty much guaranteed of some business. All the resources they need, will be available from pizza hut so will not have to invest in other companies for the pans, utensils, condiment holders etc. And because Pizza Hut is such a large company they will get all there resources quite cheap because they buy in bulk as the same pans the same utensils etc are
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Some of the disadvantages of a franchise are:- The main disadvantage is the amount of or lack of decisions the franchiser has over the restaurant. So they have no control of any of the food or drinks. They have no control over the restaurant decor. E.g. The pictures they have up, the colour of the restaurant etc. Even though Pizza Hut is a franchise it is still a limited company so it has limited liability. For it to become a (Ltd) Private limited company there needs to be a least two shareholders but there is no maximum number for shareholders.
Limited liability means that if the business goes bankrupt because it is unable to meet its debts but the shareholders/owners will not be liable to lose their possessions to pay the money that is owed. They can only lose the amount they have put into their shares. Businesses exist to provide goods and or services. Whether or not they aim to make profit, all businesses provides services or makes products to satisfy customers’ wants and needs. The businesses set objectives for themselves to help them operate.
Having focused objectives gives the business clear ideas of the direction the business is heading in. The main objectives of Pizza Hut are to improve year on year in their sales and profit. For all the individual restaurants there is a target of flow through profit of each year. The amount is set at 60%. Pizza Hut also has smaller objectives that have immediate action in the day to day running of the business.
They aim to develop the staff skills. The importance of people in organisations is becoming mire and more recognised. The staff, if trained more with detailed training has proved to add millions of pound to the value of a business. Pizza hut has objective for the objective of developing staff skills. They have targets the employees should meet through there training. Development programmes have been devised to help the staff meet the objectives for each monthly target. The sort of things that help a business such as Pizza Hut is good communication skills, good interpersonal skills, be fluent with ICT, be able to work with numbers fast and efficiently, and work quickly in problem solving situations.
They aim to produce high-quality products and offer high-quality services. This does not mean the most expensive. It is producing the best good and service for the customer. This has to be achieved by using the best products available for Pizza Hut and training the staff to the best of their ability, which links in with there other objective of staff skills. If the staff work well and the product is good the customer will be happy and will come back again therefore is adding value to the business.
And one of the most important objectives is surviving. It is the main thing the business needs to be concerned about. With Pizza Hut being part of a franchise they don’t really need to worry about this objective much because as soon as the company opens a restaurant it has a good brand name and good products so will always survive. All businesses combine factors of production to produce their products and services. The first thing you see at any business is the building and the land.