Term Paper on "Pizza Hut in Egypt"

Term Paper 13 pages (3946 words) Sources: 13 Style: Harvard

[EXCERPT] . . . .

Pizza Hut in Egypt and the United Kingdom

The fast food industry represents one of the greatest achievements of the 20th century in the light of the impact it had on the population as well as for the reactions it triggered in the world of business, economics, and most importantly in terms of corporate affairs. From a business market point-of-view, it represented a real success especially taking into account the period in which the term became a well established concept, in the late 50s. The financial perspective is also important because it offers the actual dimension of the impact the concept of fast made and delivered food has had on the food industry. Finally, one of the most important issues the fast food industry brought new in the area was the cultural dimension of the business. More precisely, due to the fact that the globalization process determined a strong interconnectivity between nations, states, and cultures, the need to adapt to different regions of the world developed an entire array of corporate values. This in turn determined a reorientation of the strategies and business perspectives practiced up to that point. It gave the sense of global but at the same time of a cultural approach of the product. Therefore, restaurants came to identify their specific products with the parts of the world in which these were made. It represented a marketing as well as cultural approach of trade.

Pizza Hut is in this sense one of the most relevant examples. Its history and marketing strategy offers a significant example for the way in which corporations can evolve and become global, while maintaining the regional specificity of every one of its branches. The evolution of the Pizza Hut branch however is not necessarily unique. It represents a worthy example for the way in which all major fast food brands came to adapt their offer to the different regions in which they activate.

The literature in this sense can be considered to be rather vast in dealing with the early start of the fast food industry and its adaptation to the world of globalization. In this sense, Eric Schlosser argues in his book "Fast Food Nation the Dark Side of the All-American Meat" that indeed the world of fast food has greatly influenced the way in which the food industry came to perceive the actual process of food creation and distribution. In this sense, he argues that "over the last three decades, fast food has infiltrated every nook and cranny of American society. An industry that began with a handful of modest hot dog and hamburger stands in southern California has spread to every corner of the nation, selling a broad range of foods wherever paying customers may be found" (2000) Therefore it can be considered that the world of fast food is not necessarily strictly related to the idea of poof and its practical meaning, but it is also an idea related to the issue of the export of culture. Therefore, Schlosser's approach is on the one hand a pragmatic one, related precisely on the products of the fast food industry, and on the other hand on the idea it entrenches. In this sense he argues that "This is a book about fast food, the values it embodies, and the world it has made. Fast food has proven to be a revolutionary force in American life; I am interested in it both as a commodity and as a metaphor. What people eat (or don't eat) has always been determined by a complex interplay of social, economic, and technological forces." From the perspective he offered, the distinction between the practical and the cultural influences of the fast food industry have crossed national borders and each in its own way have promoted a new style of life and cultural communication.

The fast food industry brought the attention on yet another important element aside from the existence of a variety of cultures in the world and the need to communicate. Once the history of places such as Pizza Hut began to unfold, there was an obvious trend of shifting the perspective from an elitist perspective to a popular one. More precisely, the history of the Pizza Hut business as presented from the official sources points out the fact that the story of what would later become an entire chain of restaurants was in fact a reorientation of the interest from the industry designed for the rich people to that which would cater for the needs of the common people. It is important to consider the official source for the actual story because it offers the most reliable information for what came to be Pizza Hut, from its early beginnings to the fast food giant that is today. Thus, "we are rooted in family -- literally. Two brothers, mom, and $600 turned into the recipe for the world's largest pizza company in 1958, when a family friend with the idea of opening a pizza parlor approached the two college-age brothers in Kansas. The concept was relatively new at the time, and the brothers quickly saw the potential of this new enterprise" (Pizza Hut, 2008). Therefore, it can be said that the very beginning of the Pizza Hut concept gave a new sense of direction for the values and norms that would guide the company and in general the fast food business in the future.

The fast food industry has also represented a means of promoting political considerations. Although it may seem rather hard to believe, it is fair to say that often Pizza Hut is seen as a symbol of the West and of capitalism. A relevant document in this sense is Brodie Fenlon's article "China: Better Rich than Red. Leashing the Economic Dragon" which argues through a relevant example the great impact of capitalism. More precisely, he identifies Pizza Hut with the essence of capitalism and argues that the eventual success of the Hut is extremely relevant for the way in which such companies have acquired success on a communist market. At the same time it can be argues that in fact the multinational companies have been an important agent of change in terms of economic practices in former anti-capitalist regimes. The symbolic meaning of Pizza Hut restaurant and its association with the western civilization is visible in a negative way as well. Therefore, the 2006 incident in Karachi that involved the setting on fire of a Pizza Hut restaurant as a sign of protest against the western presence in the Middle East is relevant in this sense (FoxNews, 2006).

Finally, fast food chains are extremely relevant for pointing out the power of cultural communication and the need for the adaptability of a certain brand to a certain market. Ron Ruggless's point-of-view in this matter is relevant for pointing out the difficulties a multinational brand such as Pizza Hut had to face in the United Kingdom, an essential market potential which cannot be exploited to full potential precisely due to the different perspectives regarding the idea of corporate culture. He points out that fact that an important part in the limited success American brands have registered in recent years in the UK is due to the misconception that some U.S. brands don't look at the English mentality and way of life; they just expect that what works in the States will work in England as well" (2006). This perspective underlines the necessity of taking into account the specificities of the area when promoting a product or an entire brand.

These points taken into consideration it is important to underline that the role of the cultural identity of a region and in particular of the actual country in which the brand intends to develop is essential. Barry Mike and John W. Slocum Jr. offer a comprehensive account of the way in which Pizza Hut in particular and Yum Brands (Pizza Hut, Taco Bell, and KFC) understood the need for a reconsideration of the general strategy and the approaches they would have to implement in order to have a substantial input on the respective markets. The article presents the history of the Pizza Hut name, but unlike the official sources from Pizza Hut, the authors try to point out the relevance of the different partnerships with PepsiCo, for instance. Therefore, they point out the contribution such financial partnerships have brought in the development of the brand and that of the perception of national cultures. Most importantly however, the main points of the authors are related to the way in which Pizza Hut along with the two sister companies managed to restructure their own corporate culture that resulted in the end in the redefinition of values and beliefs. Thus, the products that would eventually be sold throughout the world would take into account the traditional values of the Pizza Hut system, but, at the same time, the focus would be on the consumers and on the special cultural, religious, and national needs.

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