Table of Contents

INTRODUCTION ........................................................................................................... 3
MAIN REPORT............................................................................................................... 3
A. Continuous Improvement Plan .................................................................................. 3
I. A range of approaches to continuous quality improvement: ..................................... 3
1. PDCA Cycle:........................................................................................................... 3
2. Six Sigma ................................................................................................................ 5
3. Kaizen : ................................................................................................................... 5
II. Plan for continuous improvement of the organization: ............................................. 6
1. A theoretical concept .............................................................................................. 6
1.1 Cause and Effect Diagram: ............................................................................... 7
1.2 Some of the benefits of constructing a Cause-and-Effect Diagram : ............... 7
1.3 Apply on Pizza Hut ........................................................................................... 8
2. Checks List: ............................................................................................................ 8
2.1 Apply on Pizza Hut ........................................................................................... 8
3. Designing a Plan by approaches and solutions for continuous improvement........9
CONTINUOUS IMPROVEMENT PDCA FORM PROJECT AIM: REDUCE
WAITING TIME FOR THE FOOD IN PIZZA HUT ..................................................... 9
3.1 Advantages and disadvantages of some approaches: ..................................... 11
B. Strategic Risk Analysis: ........................................................................................... 14
I. Definition: ................................................................................................................ 14
II. The Importance of SRA to Pizza Hut: ..................................................................... 14
III. Risk Management with PESTLE and SWOT: ..................................................... 14
IV. RISK ASSESSMENT PLAN: ................................................................................. 17
V. STAKEHOLDER ANALYSIS: ............................................................................... 18
CONCLUSION: ............................................................................................................ 20
REFERENCE: ............................................................................................................... 20
Table of Figures:
Figure 1 ...................................................................................................................................... 3
Figure 2 ...................................................................................................................................... 5
Figure 3 ...................................................................................................................................... 6
Figure 4 ...................................................................................................................................... 7
Figure 5 ...................................................................................................................................... 8

Table of Tables:

Table 1 ............................................................................................................................................................................. 12
Table 2 ............................................................................................................................................................................. 13
Table 3 ............................................................................................................................................................................. 13
Table 4 ............................................................................................................................................................................. 15
Table 5 ............................................................................................................................................................................. 16
Table 6 ............................................................................................................................................................................. 18
Table 7 ............................................................................................................................................................................. 20
INTRODUCTION

The Report was made with the purpose of establishing a Continuous Improvement Plan and Strategic Risk
Analysis for the Pizza Hut restaurant chain. Potential risks will be explicitly analyzed through Models such
as PESTLE, SWOT, and Stakeholder Analysis. Since then, Pizza Hut has strategies to make product
promotion campaigns more effective.

MAIN REPORT

A. Continuous Improvement Plan

I. A range of approaches to continuous quality improvement:

1. PDCA Cycle:

PDCA (Plan - Do - Check - Act) is a well-known and most-used method by organizations for continuous
process improvement and effective strategic plan development within the company. Each of the four steps of
this approach plays a vital role in determining which business processes are working well and which need
improvement. Using PDCA not only correct the organization's performance but also avoids repeating mistakes
and errors in operations.

The PDCA cycle was first introduced in 1939 by Dr. Walter Andrew Shewhart. To help organizations achieve
continuous improvements and monitor the quality of changes in their processes, Dr. William Edwards Deming
continued to evolve this cycle into the 1950s. It has since become a widely used strategic tool for businesses
and organizations in all industries.

(Deshpande, 2017)

Figure 1

(What is the PDCA cycle? how does it improve your management? 2023)

The model is divided into four phases that form a circular, repetitive process: Plan, Do, Check and Act:
 - Plan:

Determine the underlying cause of the problem by identifying all probable causes. It is necessary to
investigate and carefully evaluate the present condition and the source of the problem to pick an
improvement with the best probability of success. Brainstorming is an effective method for identifying
potential reasons.

+ Identify potential enhancements: To address the fundamental problem and agree on which one to
test.
+ Create an improvement theory: An improvement theory is a statement that articulates the impact
the change was expected to have on the problem.
+ Create an action plan that specifies what has to be done, who is accountable for it, and when it should
be finished.
(The PDCA cycle: More success with the deming cycle 2019)
- Do:
This is the time to execute the established plan. This phase can be divided into three sub-segments:
+ Training all employees involved in the project.
+ The actual process of doing the work.
+ Recording data for future evaluation.
(Hargrave, 2022)
- Check:
By partnering with associates to understand what worked well and what adjustments need to be
improved , an improved plan can be developed to elevate the process further. This enables the "Check"
phase to be an opportunity to create comprehensive strategies rather than simply fixing what went
wrong in the "Do" phase. If negative results derive from the "Do" phase, the improvement work must
start again at the planning phase. If not, the tested solutions will continue to the "Act" phase. Compare
the new data to the baseline data to identify whether an improvement was achieved. Document lessons
learned, knowledge gained, and any surprising results that emerged.
(Team & Dublin, 2022)
- Act:
The solutions are prepared for implementation once the improvement cycle has reached this step.
Options include:
+ Adopt: Standardize the improvement if the measurable objective in the aim statement has been met.
If the test results fall somewhat short of the measurable improvement goal, adapt the action plan and
repeat the “Do” phase.
+ Abandon: If the changes made to the process did not result in an improvement, consider lessons
learned from the initial test, and return to the “Plan” phase.
(Deshpande, 2017)
 2. Six Sigma

Figure 2

(Miller, 2022)
Six Sigma, developed in 1986, is a method for improving business processes using statistical analysis.
Six Sigma operates on data-driven and is highly disciplined. Organizations use Six Sigma as a toolkit
to minimize change in business and production processes. Six Sigma is applied before the
implementation of the new project to study and analyze the certainty of risk.
( Patel & Chudgar, 2020)
The Six Sigma DMAIC (Define, Measure, Analyze, Improve, and Control) methodology can be
considered a roadmap for problem-solving and process improvement.
- Define: Identify the system. Determine the project objectives as well as any consumer deliverables.
- Measure: Measure critical features of the present process to understand performance better.
- Analyze: Examine the data to investigate and verify the cause and effect of the discrepancies.
Determine the root causes of any defects.
- Improve: Based on data analysis, improve the present process utilizing approaches such as the
design of experiments, mistake proofing, and standard work to establish a new, future state process.
Establish ways to reduce flaws and improve the process.
- Control: Monitor the future state process to ensure any deviations from the target are corrected
before they cause faults. Manage the performance of future operations.
(Maiti & Maiti, 2021)

3. Kaizen :

Kaizen is a idea of continuous improvement in which personnel at all levels collaborate to make
frequent, incremental changes to the production process. It focuses on making minor, daily
 adjustments that add to significant long-term results. Kaizen is most typically linked with
manufacturing processes, such as those utilized by Toyota, although it has also been effectively
used in non-manufacturing settings. Many organizations in many sectors have followed Toyota's
lead and begun implementing the Kaizen principle, with the continual quest for efficiency and
development.
(P. Lambert, 2022)

Figure 3

II. Plan for continuous improvement of the organization:

1. A theoretical concept
 1.1 Cause and Effect Diagram:

Figure 4

(Tqp, What is a fishbone diagram? ishikawa diagram: Cause & Effect Diagram 2021)
A Cause-and-Effect Diagram A diagram is a tool for identifying, sorting, and displaying the causes
of a problem. It visually depicts the link between an inevitable result and all the factors influencing
it. This sort of design is also known as an "Ishikawa diagram" after its creator, Kaoru Ishikawa, or
a "fishbone diagram" due to its appearance.

1.2 Some of the benefits of constructing a Cause-and-Effect Diagram :

- Determine the probable root causes, or fundamental reasons, for a specific effect, situation, or
condition.
- Sort out and connect some of the interactions between the elements influencing a specific process
or consequence
- Analyze current issues so that corrective action may be performed.
 1.3 Apply on Pizza Hut

2. Checks List:

A checklist lists frequent flaws and the number of times these defects have been noticed. It is a primary
yet efficient quality control tool that enables workers to gather detailed information about problems
noticed and their occurrences.
(N, Tools of Quality Control: 7 tools: Company management 2017)

2.1 Apply on Pizza Hut

Figure 5
 Pizza Hut Restaurant
Name of Data Recorder: Hoai Ngoc
Location: 62 Nguyen Van Thoai Street, Da Nang
Data Collection Date: 21/05/2023 – 28/05/2023

Defect Types/ DATE

TOTAL
Event Occurrence
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Poor customer
service, such as
| | | |||| ||||| 12
rude or
unresponsive staff
Long wait times or
|| ||| | ||||| ||||||| |||||| 24
slow service
Inconsistent
portion sizes or || | || 5
unevenly cut slices
Dirty or
unhygienic
conditions in the | || || 5
restaurant or
kitchen
Inaccurate bills ||| |||| 7
Pizzas with
toppings missing | || | 4
or not as ordered
Pizzas that are not
|| 2
hot or fresh
TOTAL 3 6 2 2 9 16 21

3. Designing a Plan by approaches and solutions for continuous improvement

CONTINUOUS IMPROVEMENT
PDCA FORM PROJECT AIM:
REDUCE WAITING TIME FOR THE FOOD IN PIZZA HUT
Plan-Do-Check-Adjust: The PDCA cycle is a four-step model that provides
structure and discipline for our improvement efforts.
P
- Define the problem: long wait time for food.

- Set achievable goals: Reduce food waiting time from 30 minutes to 15

minutes, increase customer satisfaction ratings by 20%

- Develop a detailed plan: Rearrange the number of employees in positions, and

conduct training sessions for all employees.
 Does Not Meet My Expectations  Meets My Expectations  Exceeds
My Expectations

D
- Was the test carried out as planned?  Yes  No
- Data & Observation:

+ The number of wait staff is reduced by 10%, and the kitchen staff is
increased by 15%. Recruit more kitchen staff to ensure the number of
employees.

+ There will be training sessions for employees every week

+ Create evaluation forms for customers to collect satisfaction data, especially

in the aspect of waiting for food
Does Not Meet My Expectations Meets My Expectations  Exceeds
My Expectations

- Analyze the results:

C

+ 10% more chefs compared to 20% planned in the plan

+ 72% of employees fully participate in the training sessions held

+ 60% of customers agree food wait times have improved

- Identify areas of improvement:

+ The training program will change to be flexible and appropriate for

 employees

+ Looking for another solution to the problem of shortening food preparation

time

+ What solutions are likely to increase customer satisfaction rate?

 Does Not Meet My Expectations  Meets My Expectations  Exceeds

My Expectations

-  Adopt – Changes selected for larger test or implementation

A

-  Abandon – Change Discarded

- Adjust the plan:

+ To reduce food preparation time, not only increase the chef but also invest
in advanced and modern technology for the kitchen.

+ Training sessions will be held simultaneously online and offline and

recorded. This will increase employee attendance and make it easier for new
employees to approach the working process.

+ Customer review forms will be added in an "Improvement Suggestion"

section. Customers receive a voucher for 10% off their next meal for each
review.

 Increase customer satisfaction and help Pizza Hut understand what needs
improvement

3.1 Advantages and disadvantages of some approaches:

- PDCA CYCLE PLAN:

Advantages Disadvantages:
1Stimulating continuous improvement: 2Requires the participation of the whole
With an iterative improvement framework, PDCA organization:
relies on real-life experiments and forces

1
(Transforma on, 2019)
2
(Lauenroth, 2022)
 organizations to provide data for The PDCA cycle is not a one-time use tool.
implementations. A difference between each This is an ongoing process, so it requires
iteration will help organizations save time, avoid involvement from all levels of the
repeating mistakes, bring them closer to their organization. New complete information
goals, and increase productivity in the long run. helps the PDCA cycle give the most
accurate results.
Versatility and flexibility: Requires a lot of preparation time:
The cycle is applicable for many different The PDCA cycle requires a significant time
purposes, including personal or business. In commitment, especially regarding planning
business, problems are not only simplified but and analysis. Therefore, it is unsuitable for
also the PDCA cycle can also be used in product situations where the organization must
manufacturing for production and quality control. make quick decisions.
Employee Integrations: A fixed principle
An organization using the PDCA cycle will The PDCA cycle works on a fixed principle,
enhance teamwork activities. All employees must leaving little room for other variables
be involved in the process to devise a solution and during implementation.
solve the problem. This not only ensures work
efficiency but also creates a healthy work culture.
Table 1

- SIX SIGMA:

Advantages Disadvantages

Six Sigma is the proven quality control method. Six Sigma often requires better equipment,
The limit of Six Sigma is only 3.4 defects arising improved inspection systems, more quality
per one million products or processes. checks, and tighter tolerances  This can
consume many resources.
Diverse and easy to use, Six Sigma can be applied Many tools can be used to implement Six Sigma
to any industry, any business. From production to in business. Choosing the most suitable tool for a
planning, warehouse to supply chain, engineering particular company can become difficult.
to HR, and healthcare to the food business.
Increase efficiency by eliminating errors and The method outlines several modifications a
waste, resulting in cost savings. So businesses can company must make to apply it effectively. This
earn more money with the same effort.
 increases bureaucracy and rigidity in the
company's systems.
Table 2

(Fursule et al., 2012)

- - Kaizen

Advantages Disadvantages
Improve team spirit Difficult to implement in existing systems
Kaizen is a quality improvement tool driven by This is because implementing Kaizen is equivalent
teamwork. When a kaizen team solves problems to altering existing management systems. When
together, they develop close relationships and build implementing Kaizen in an organization, returning
partnerships. In this way, new employees can work to old management systems is difficult. Thus,
with a fresh perspective, unbiased and unbiased Kaizen may be easier to implement in businesses
attitude. that do not yet have an established management
system.
Improve employee satisfaction Change is difficult
Employees can provide suggestions and creative When businesses want to implement Kaizen, they
input for changes through a recommendation system must face resistance. Employees may not be ready to
such as team meetings. When employees participate accept a system different from the one they are used
in decision-making, it gives them a sense of to. On the other hand, management may be reluctant
belonging and value. By doing so, employees are to implement Kaizen because they feel it is
motivated, and productivity increases. expensive.
Builds leadership skills. Training requirements
Each kaizen group must have a group leader. The Another disadvantage of Kaizen is the training
kaizen team leader ensures that everyone method. The kaizen method requires training
successfully fulfills their role. Holding a employees and management to understand and apply
management role is unnecessary to qualify as a team the kaizen philosophy. However, more than the time
leader. Another advantage of kaizen is that it allows spent on training may be needed for employees to
employees to take on leadership roles. grasp the concept of Kaizen. As such, employees
may only be willing to implement a concept they
understand.
Table 3

(Drmahey, 2022)
B. Strategic Risk Analysis:

I. Definition:

Strategic risk management is the process of recognizing hazards, evaluating their

sources and consequences, and implementing appropriate risk-reduction measures.
Internal and external issues such as production failures, economic fluctuations,
changing customer tastes, and so on pose risks.
Strategic risk can jeopardize a company's capacity to fulfill its objectives, break
through the market, or survive.
(Team, 2023)

II. The Importance of SRA to Pizza Hut:

Strategic risk analysis is critical for Pizza Hut because it assists them in identifying and
assessing potential risks and uncertainties that may influence their company operations
and ability to achieve their strategic objectives.
Some strategic risks that Pizza Hut may face include changes in consumer preferences,
increasing competition, rising costs, shifts in market trends, regulatory changes, and
global economic uncertainties. By analyzing these risks, Pizza Hut can identify the
potential impact and develop strategies to make informed decisions, manage risks
effectively, and adapt to changing market conditions.

III. Risk Management with PESTLE and SWOT:

Pizza Hut has a marketing and communication strategy aimed at young people.
Therefore, Pizza Hut focused on rebranding by launching a new product called
"Sausage Pizza Pate." This blend of familiar ingredients has a unique flavor associated
with Gen Z. However, Pizza Hut needs to perform a Risk Analysis to assess the factors
affecting the success and failure of the new product. PESTLE and SWOT models are
used to consider the risks that Pizza Hut will be facing.
PESTLE Factors Issue
Political - The Vietnamese government may have strict regulations on food products and ingredients
- The current trade tensions between the US and Vietnam
Economic - Inflation: Vietnam has experienced high levels of inflation in the past which could
increase the cost of ingredients and other inputs required
- Exchange rate fluctuations: Vietnam's currency, the dong, is not fully convertible, and the
exchange rate can be volatile.
Social - Vietnam is one of the world's fastest-growing middle-income countries have excellent
spending power on food and beverage since it meets basic human needs.
- Young people prefer out-of-home food and beverage consumption
Technological - The most popular methods for ordering fast food online through mobile app.
Legal - In Vietnam, a company must first get many permissions before beginning operations,
which takes far longer than in neighboring nations
- The food franchise should have a food safety and hygiene certificate, a certificate of
satisfaction with the firefighting and preventive conditions, a commitment to
environmental protection.
Environment - Needs to concern about environmental issues when the environmental awareness
of Vietnamese people is increasing day by day
- Implement a campaign to bring a friendly environmental image to customers.
Table 4

After performing the PESTEL Analysis, the Political, Economic, and Legal aspects all raise alarms
for Pizza Hut. When inflation happens, Vietnam's currency is not fully convertible, and the
exchange rate can be volatile. These are all risks that could hinder Pizza Hut's new product launch.
In addition, for new products not to be prevented by the Vietnamese government, Pizza Hut needs
to provide certificates of food hygiene and safety and the origin of raw materials.

Social, Environment, and Technological aspects can be an opportunity but also a challenge that
Pizza Hut needs to face when launching "Sausage Pizza Pate." With the development of society
and the young generation as potential targets, Pizza Hut's new products and promotions only focus
on them and seem to ignore other generations and customer segments. This can cause Pizza Hut
 to lose loyal customers. In addition, finding environmentally friendly materials and packaging to
convey the message of environmental protection is also a challenge for Pizza Hut's activities.

Strength Weakness
- Established brand in the US with a global presence and - High competition in the Vietnamese food industry,
recognition especially in the pizza segment
- Catch the trend quickly - High operating costs due to rent, labor, and raw materials
- Strong financial position to invest in expansion and - New products focusing too much on young people, ignoring
marketing many potential customer segments
Opportunities Threat

- A growing middle-class population with changing - Intense competition from both local and international pizza
eating habits and preferences chains
- Increasing demand for Western-style fast food and - Economic and political instability in Vietnam, which can
convenience food affect business operations and profitability
- Strong potential for online ordering and delivery - Increasing health and environmental concerns which may
services lead to a shift in consumer preferences toward healthier food
options
- Rising food costs which can lead to higher menu prices and
reduced customer demand
- Changes in consumer behavior and preferences due to the
COVID-19 pandemic.
Table 5

 Pizza Hut is a brand established in the United States with high recognition.
However, In Vietnam, some elements still do not like the brands found in the US.
Therefore, when promotional activities become too popular in the market, they will
probably cause these subjects to commit destructive behaviors to hinder the
operation and development of Pizza Hut in the Vietnamese market.
Compared to the popularity of competitors like Domino's or Company Pizza, Pizza
Hut has fewer franchises. Therefore, Pizza Hut products may have appeared after
the competitors --> This is a significant hindrance because when customers are
familiar with the taste of those competitors' Pizzas, they are less likely to experience
 the same things in Pizza Hut. In addition, when inflation shows signs of
development in Vietnam, there is a risk of endangering capital sources and currency
conversion. All costs from space rent and raw materials will increase dramatically.
Another factor that can hinder new product launches is the influence of KOLs.
Pizza Hut is very sensitive to trends and has invited singer "Hieu Thu Hai" and
influencer "Trang Hi" to promote new products. Besides the customer's support for
these two guests, there are still people who do not like Hieu Thu Hai or Trang Hi,
thereby creating a dislike for the whole Pizza Hut brand.

IV. RISK ASSESSMENT PLAN:

Risk Impact Severity Likelihood Risk Mitigating Action by Who Status

Score Strategy
Foreign The fluctuations 2 3 6 Manager Not Started
Exchang of the Vietnamese Finance
e dong against the Department
US dollar, Pizza
Hut might face a
huge exchange
rate difference
Pizza is The smoke can be 3 3 9 Always check All of Staff In Process
baked blocked and and make sure (Especially
with cannot escape into the exhaust Security Guard)
wood the environment, system is safe.
and emits exposing
a lot of employees and
smoke. customers in the
restaurant to gas
poisoning.
Emission The air around 3 3 9 Set up an air Manager In Progress
of baking Pizza Hut stores purification
smoke will not be fresh. system before Employee apply
into the The people discharging to on operating
environ around there will the
ment breathe in environment.
unhealthy air.
Materials Most of the 4 4 16 Look for and Manager Logistic In Process
are not materials are cooperate with Department
safe and imported from the essential goods
guarante US in Vietnam.
ed.  The process of
transporting them
to Vietnam may
cause the raw
materials to lose
their freshness
and quality.
Table 6

V. STAKEHOLDER ANALYSIS:

Stakeholder analysis helps identify key stakeholders and the positive or negative value
they bring. The work will become more efficient and convenient when analyzing
stakeholders because it allows Pizza Hut to create different plans and strategies for each
stakeholder, allocate time and effort appropriately, proactively seek out and address
potential risks.
(Preparing a supplier engagement plan – Goods and Services Procurement Guide
2022)
Stakeholder Name Contact Person Power Interest Engagement Strategy
Material Suppliers Director They can interup High - Discussing and giving opinions
Pizza Hut’s operation to suppliers when problems occur
 or changes to the product are
recommended. This ensures the
material will meet the needs and
satisfaction of Pizza Hut as well
as benefit the supplier.
- Pizza Hut has new products and
helps Suppliers to exploit new
sources of raw materials. Bring to
the benefit of both
Influencers or KOLs Direct Manager Negative/Positive Medium - Influencers who participate in
effect to Pizza Hut’s promoting Pizza Hut's products
reputation will eat free products until the
promotional project ends. This is
a way to market new products
and, at the same time, create
sympathy with partners to keep
each relationship sustainable
Franchises Franchisee Increase brand High - Pizza Hut's franchises will
awareness of Pizza always be guaranteed benefits
Hut and revenue during the
cooperation with Pizza Hut
(When newly opened
establishments have little
revenue, with delivery orders, the
main establishment will give
about those franchisees).
- Meetings between the franchise
and the main Pizza Hut facility
will be held regularly to
acknowledge contributions to the
development of Pizza Hut. This
 not only keeps the relationships
harmonious but also contributes
significantly to the development
of Pizza Hut.
Customers Directly Increase Pizza Hut’s High - Promotions should be held more
Customer revenue, reputation. regularly to attract new
Loyalty customers customers and retain old
customers.
- Loyal customers will receive
gifts (vouchers) on birthdays and
discount codes on holidays.
Table 7

CONCLUSION:

The Report has provided helpful information by performing Analyses such as PESTLE, SWOT,
and Stakeholders. In addition, for Pizza Hut to avoid potential risks and prepare effective
strategies, Continuous Improvement Plan and Strategic Risk Analysis are also provided for this
purpose.

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