This document discusses Pizza Hut's expansion into Russia in the 1990s. It opened its first two locations in Moscow through a joint venture with PepsiCo. However, Pizza Hut struggled to comply with Russia's different rules and regulations. A local sanitary inspector shut down one location for not having proper documentation. With help from PepsiCo's president, Pizza Hut was able to negotiate and get that location re-opened. The document also notes Russians preferred American foods over local cuisine, so Pizza Hut adapted its menu to focus more on US-style foods.

2. 1 Muhammad Ihsan
2 Muhammad Umer
3 Irfan younas
4 Arslan khan ghouri

3. American based restaurants.
 largest fast food chain world wide.
11139 world wide locations.
95 countries worldwide.
Founded in Wichita Kansas 1958.
Founder Dan Carney & frank Carney.

4. Wholly owned subsidiary company.
 Pepsi co. & yam brands parent
companies.
 Headquarters in Plano Texas U.S.A
140000 employees worldwide.
David c Novak the chairman.

5. Pizza

Pasta ,garlic

bread
Bread sticks

Salad , wings etc.


6.  Eastern Europe and Russian started opening their
doors to Capatlistic ventures.
 Pizza Hut started Operations in Russia to gain large
market share.
 Pizza Hut learnt that good intentions were not enough
to be successful.
 As the Russian rules and regulations were quite
different from Americans.
.

7. And the manager find that Russian business
atmosphere was not suitable for their business.
Pizza Hut initially started it’s two units as joint
venture with PepsiCo in Moscow.
Action of a Russian Sanitary Inspector .
Pizza Hut manager’s efforts to solve out the Problem.
Pizza Hut back in Action.

8.  Careful negotiation to control the price
 Purchased refined products as raw materials
 Preference of US food over Russian foods by the
Russians
 Bypass methods for batter services

9.  Pizza maker a trained person or a youngster
 Russians point of view
 Pizza hut’s point of view
 finally the Russians succeeded to attract a handsome
number of customers by its policy

10. QUESTIONS

11. IF PIZZA HUT invested these funds in to a new US
based Unit. It may not earn more profit
 The Reasons were that pizza hut started in 1958 and
about in decade pizza hut became the number one
pizza restaurant chain in the world both in sale and
number of restaurant. At that time PIZZA HUT
already had maximum market share in US
 On the other hand Russian market was very vast and
had a lot of potential to earn profit as the Russian
government recently gave permission for capitalistic
venture.

13.  From demand condition we mean that
 THE NATURE OF THE CUSTOMER PREFERENCE
 In the beginning of the business pizza hut came with
the cuisine of Moscow taste but the nature of the
customer preference indicated that RUSSIAN people
prefer US food over their own with quick serving at
lower cost
 Then PIZZA HUT had to revised their operating
activity according to the demand of the customer

14.  “UNAWARNESS
FROM
LAW
CANNOT
PROTECT YOU FROM PUNISHMENT”
 For every business whether it is entrepreneurship,
partnership or corporation it has to fulfill rules and
regulation of the country where it is going to make
investment otherwise it has to face problems as PIZZA
HUT suffered

15.  The Russian do things quite differently from the
Americans such as rules, regulation and threats from
local official.
 When pizza hut start business in Russia the units had
failed to file all the documents including venereal
disease test of all employees
 So local sanitary inspector announced that documents
are not completed and wired the door shut then the
manager made a frantic call to the president of
PepsiCo who took the matter in his hand and solve the
matter at argent basis.