EXTERNAL FACTOR EVALUATION MATRIX (EFE Matrix PIZZA HUT)

OPPORTUNITIES WEIGHT RATING WEIGHTEDAVERAGE

1. New Pizzas with different crust sizes and flavors. 0.10 4 0.4

2. Venture more into home delivery 0.10 3 0.33. Venture into newer markets 0.08 4 0.324. Use of social media 0.07 3 0.21

THREATS5. Rising competition undermines Pizza Hut as consumers go

for greater convenience0.08 4 0.32

6. Rising cheese costs threaten margins 0.10 4 0.47. Competition from DOMINOS 0.08 4 0.328. Threat from Mc Donald’s who have tried to introduce a

new meal that is a Pizza called: McPizza. Marcus Griffiths0.08 3 0.24

9. Other local restaurants can affect their market share by providing pizzas with lower price

0.07 3 0.21

10. Social factors can affect their image as a Western organization

0.06 3 0.18

11. Security issues 0.09 2 0.1812. Protests and strikes 0.09 4 0.36

TOTAL 1.00 3.44

INTERNAL FACTOR EVALUATION MATRIX (IFE Matrix PIZZA HUT)

STRENGHTS WEIGHT RATING WEIGHTEDAVERAGE

1. Part of the largest restaurant chain in the world 0.08 4 0.322. Outstanding Reputation. 0.07 3 0.213. Over 20,000 franchises around the world 0.09 3 0.274. Brand leader in the UK 0.09 3 0.275. Innovative range of pizzas under one roof 0.07 4 0.286. Good advertising and marketing 0.07 4 0.287. Food attracts people of various ranges from young to

old0.10 3 0.3

8. Sound financial situation and international turnover. 0.07 3 0.219. 100% owned by yum! 0.08 4 0.3210. Pizza Hut sits on top of global full-service restaurant

tree0.05 3 0.15

11. Hygenic food and quick service 0.06 4 0.24

WEAKNESSES12. Complex computer systems and internal conflicts

from franchisees.0.02 2 0.04

13. lack of an organic pizzas, which will limit the target market

0.04 2 0.04

14. Providing less range of products comparatively with high prices

0.04 1 0.04

15. More focused on Western taste instead of Eastern 0.05 2 0.1016. They rely on their quality pizza and good service to

account for their higher prices.0.02 1 0.02

total 1.00 3.09