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SETTING UP OF HUT IN KABUL, AFGHANISTAN

FATIMA SHAHER

Finance Seers Professional Consulting Service, Kabul, Afghanistan E-mail: [email protected]

Abstract- The purpose for conducting this research is to assess the Marketing, Operations, Human Resources and Financing viability of setting up in Kabul, Afghanistan. This study will exactly expand the purpose and rationale of setting up Pizza Hut restaurant by conducting sufficient business review.Afghanistan has few local pizza brands and these organizations are producing huge profit. In spite of numerous security challenges, numerous opportunities are laid for business visionaries to establish Pizza Hut in Afghanistan, which will unquestionably have more prominent effect on both livelihood and economic development of the country.

I. INTRODUCTION (2000) the inclination of delight and desire fulfillment is known as Satisfaction. If Pizza Hut wants to The restaurant industry is confined into two classes; compete with other international or local fast food fast food and full service restaurants. brands and want their customers to be satisfied, they Typically, family restaurants alongside buffets could should focus on the key determinants of customer be viewed as full service restaurants; however, the satisfaction. fast food restaurants comprise various sorts of 2.1.2 Key Determinants of Customer Satisfaction restaurants that offer , , grilled Promotions: Huang (2011) promotions is distinctive chickens, burgers etc. Moreover there is monstrous manifestation of exercises for attracting and gaining contention in the industry of fast food, the general consideration of client to buy the item or service incomes are little, subsequently most positions in the through individual selling, advertising, deals industry of fast food are paid the least base wage or promotions and publicizing, and public relations. closer to it (Reynolds, 2002). There are heaps of Quality: Takeuchi (1983) quality is standard of popular brands of fast food industry that might be something which buyer measure against the other found in various nations. Some of well-known brands distinctive things; quality could be measured by are Wendy’s, McDonald's, KFC, PizzaHut and so giving grade, merit, traits, and so forth to the items or forth. services. Service quality is assessed when the out client think about his/her observation and desire of 1.1 About Pizza Hut service delivery (Gronroos, 1984). Pizza Hut was established in Wichita, Kansas in Branding: Kurniawan (2010) branding is one of the 1958. An American restaurant network and elements that has been recognized over and again international franchise offering different classes of client decision in the selected item. Branding has pizza alongside side dishes including salads, pasta, influence on buying choice of customers. The more a chicken wings, bread-sticks, garlic-bread and brand is succeeded in their prior period the more desserts. Effective from 2012, there were more than value for its brand could be produced. 6000 Pizza Hut restaurants in the United States, and Pricing: Skindaras (2009) there are a huge number of more than 5139 store areas in 94 different nations and products in this world having distinctive costs. domains in worldwide (Pizza Hut, 2014). Pricing a product is troublesome thing to do. Prices are situated as to the value of the product. II. BUSINESS REVIEW Taste: Lim (2010) for the client it is not important that a finer quality may have superior taste, if clients 2.1 Marketing love the taste of food, they will be ready to pay for it. As indicated by the definition, (Price, 1991) and In view of past examines, in customer satisfaction (Price, 1993) proposes two tools to help inspect the and taste, there is a huge association found between advancement of the fast food market: them. 1. The fast food typology for retail openings 2.2 Operations which offers fast food that changes and demonstrates The management of operations is constantly in its segmentation of takeaway outlets (Ball, 1996); deliberated as main aspect of every industry and in and this aspect of business review the PEST analysis is 2. The scope of an example of the different fast elaborated as below: food delivery structures used. PEST is the acronym of political, economic, social, 2.1.1 Customer Satisfaction: Customer is a and technological variables that straightforwardly or significant part of business and in the market. in a roundabout way impact firms in any industry Businesses run through customers, there is no (macro environment). PEST is a key instrument to businesses without customers. As indicated by Zairi excess the outside environment that give a 'satellite

Proceedings of 4th Research World International Conference, Istanbul, Turkey, 6th January 2016, ISBN: 978-81-925751-3-1 8 Setting Up Of Pizza Hut In Kabul, Afghanistan perspective' of an industry, and a key instrument for weigh rate in the adolescent (Bowman et al., 2004). checking patterns in the outside environment (Ward Subsequently, the Pizza Hut Inc. must have complete & Rivani, 2005). familiarity with the social effect of their operations in Afghanistan in light of the fact that this weight rate of 2.2.1 Political: In expansive sunlight notion it’s fast food utilization is truly an enormous issue in fast discovered that in a nation, the government is food industries. accountable for the mindfulness of overall culture 2.2.4 Technological: PEST analysis is significant for that what kind of fast food ought to be used or evaded fast food enterprises and including Pizza Hut (Badrie et al., 2006). Pizza Hut's fast food restaurant franchisees to survey and investigate their position in will have to agree to Afghanistan’s political an environment where they are running their business prerequisites, for example, national minimum wage operations and by performing PEST analysis, the fast regulations, affecting costs. Cleanliness and quality food restaurants will be unmistakably mindful of regulations differ essentially in the middle of Political, Economic, and Social and Technological countries and may influence the nature of products position of the country. provided by fast food outlets. 2.3 Human Resource 2.2.2 Economic: The conservative circumstance of Human Resource Management (HRM) structure is a Afghanistan is developing and most individuals form of exceptional however correlated activities, convenience, thus the inclination in utilization of fast limits, and process that are controlled at appealing, food is expanding. making, and preserving an organization's human capital (Lado & Wilson, 1994). Economic Outlook of Afghanistan Market: The Pizza Hut Inc. and its franchisees must have Afghanistan government comprehends the significant good HR practice in terms of Recruitment & part it ought to play to make a good environment for Selection, Training & Development, Compensation & investment. The section of the Private Investment Benefits and effective Performance Evaluation and Law in 2006 was a vital breakthrough exhibiting Appraisal system for its successful Human Resource government's dedication to encouraging new Management. investment. The Investment Law takes into account 2.4 Finance absolute of foreign ownership, simple return of Providing finance to a business is an imperative profits, and delights foreign investors in similar way matter that must be in thought of corporate as local investors; this means that foreign investor can visionaries by the time they are beginning a new attain 100% ownership for their investment. Because venture. There are different sorts of organizations that of this, the government has embraced a professional oblige distinctive stage of subsidizing, yet several fast private sector stand and a generous exchange food brands, for example, station of KFC, administration. In such circumstances of Afghanistan McDonald's, Pizza Hut and so on depends on colossal with nearly of 30 million populations, the economy financial capital. has been developing at nearly 10% per annum. 2.2.3 Social: Fast food has a far reaching common 2.4.1 Investment on Pizza Hut Restaurant effect on the livelihood of the people, it is found to be Investment requisite for setting up of Pizza Hut one of the significant components in the escalating Restaurant is explained below (Table1):

Proceedings of 4th Research World International Conference, Istanbul, Turkey, 6th January 2016, ISBN: 978-81-925751-3-1 9 Setting Up Of Pizza Hut In Kabul, Afghanistan

Above cost is derived from an official site of Pizza [7]. Lado, A.A. & Wilson, M.C., 1994. Human Resource Systems Hut, Inc. Above costs are approximate amount for and Sustained Competitive Advantage: A. Academy of Management Review. setting up Pizza Hut Restaurant (Pizza Hut, 2014). [8]. Lim, H., 2010. DETERMINANTS OF CUSTOMER Above numerical information will provide SATISFACTION IN FAST FOOD INDUSTRY. entrepreneurs with an investment idea for setting up a International Journal of Management and Strategy (IJMS), new western fast food Pizza Hut Restaurant. 3(4). [9]. Pizza Hut, 2014. About Us. [Online] Available at: HYPERLINK "http://www.pizzahutfranchise.com/about- REFERENCES best-pizza-franchise.php" http://www.pizzahutfranchise.com/about-best-pizza- [1]. Badrie, N..M.T.e.a.(.", 2006. Public awareness and franchise.php [Accessed 27 March 2014]. perception of genetically modfied engineered foods in [10]. Pizza Hut, 2014. Home. [Online] Available at: Trinidad, West Indies. British Food Journal, 108(3), pp.192- HYPERLINK "https://order.pizzahut.com/home" 99. https://order.pizzahut.com/home [Accessed 20 July 2014]. [2]. Ball, S.D., 1996. Whither the small independent take-away? [11]. Price, S., 1991. An analysis of the UK Fast Food Market International Journal of Contemporary Hospitality Structure. Huddersfield: Hotel & Catering Research Centre, Management, 8(5), pp.25-9. Huddersfield Polytechnic. [3]. Bowman, S.A., Gortmaker, S.L. & al., e., 2004. Impact of [12]. Price, S., 1993. The UK Fast Food Industry. London: Cassell. External Environment on the Performance of the Fast Food [13]. Reynolds, R., 2002. Facts and Figures on the Restaurant Industry. International Journal of Management, Economics Industry. and Social Sciences, 1(1), pp.19-25. [4]. Gronroos., 1984. DETERMINANTS OF CUSTOMER [14]. Skindaras, R.V.V.S.D., 2009. DETERMINANTS OF SATISFACTION IN FAST FOOD INDUSTRY. CUSTOMER SATISFACTION IN FAST FOOD International Journal of Management and Strategy (IJMS), INDUSTRY. International Journal of Management and 3(4), pp.36 – 44. Strategy, 3(4). [5]. Huang, W.-P.P.a.H.-H., 2011. DETERMINANTS OF [15]. Takeuchi, H.a.J.A.Q., 1983. DETERMINANTS OF CUSTOMER SATISFACTION IN FAST FOOD CUSTOMER SATISFACTION IN FAST FOOD INDUSTRY. International Journal of Management and INDUSTRY. International Journal of Management and Strategy (IJMS), 3(4). Strategy (IJMS), 3(4), pp.139-45. [6]. Kurniawan, B., 2010. DETERMINANTS OF CUSTOMER [16]. Zairi, M., 2000. DETERMINANTS OF CUSTOMER SATISFACTION IN FAST FOOD INDUSTRY. SATISFACTION IN FAST FOOD INDUSTRY. International Journal of Management and Strategy (IJMS), International Journal of Management and Strategy (IJMS), 3(4). 3(4), pp.331-35.

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Proceedings of 4th Research World International Conference, Istanbul, Turkey, 6th January 2016, ISBN: 978-81-925751-3-1 10