Pizza2go Analysis

Introduction to Management

Assignment 2

1. Introduction:

Pizza2Go has been the most successful Vietnamese pizza company recently. It has numbers of potential key elements to lead the firm to grow up such as: enormous menu options, wide spread franchising or suitable marketing strategy. However, every company has its own problem and Pizza2Go is not exceptional. Over recent years, the firm has faced with its employees’ issue which is from three reasons: Internal human relations, underpayment and franchise management.

1. Analysis:

Firstly, the main problem of Pizz2Go is underpayment of wage. This is the cause of all the consequences inside the firm. Employees’ basic social motivations are being interupted because of wage fraud, wrong  payrolls or possibly there are some individuals who are related to corruption.

Secondly, the unhappiness workers are extremely dangerous to franchises or the company itself. The article shows the conflict between the CEO’s point of view  and the staffs’ behaviour. Although Pizza2Go’s CEO has disseminated her idea about “turning negative to positive” (article) by creating professional, productive and ideal workplace for employees. However, in reality, in those Pizza2Go franchises, the staffs are not satisfying. They indirectly turn the company’s culture into violence. Lumbering atmosphere can describe the portrait of their workplace. Human Relations theory has not been applied.

In addition, operations of a number of Pizza2Go’s franchisees have affected not only organisation’s culture but also productivities of the firm. Instead of conserving the standards and fulfil the firm’s promises by relying on others co-operative franchisees (Dent, 2011), Pizza2Go’ case is creating pressurely competitive workplace. They only focus on maximizing the sales. Moreover, there are some locations have been reported for salary fraud. How can people have motivation when working in term of unlawful and harshful organzation like that?

1. Solutions:

For the wage problem, financial management theory should be applied. Each franchise must have employees’ explicit statistics. Power theory is also needed. Because of fear of retribution, workers are not able to stand up to report about their issues. Low powers distance culture means high participation, contribution and preference of consultation; otherwise, the culture will have manifest hierarchy of authorities (Cross and Stockdale, 2003).

After solving the “money” issue, Human Relations theory should be also operated in order to solve Pizza2Go’s culture. The organizations have been storing numbers of conflict for about 4-5 years. It takes time to recover the connection among the staffs. Managers should repair their trust to workers by expressing as honest as possible. Crosby and Stockdale imply that “The more amicable the interpersonal relationship between the focal person and a given role sender, the greater the likelihood that the focal person will receive sent roles in an accurate manner and comply with them” (2003, p.81).

Suitable franchising management have to be concentrated because workers need an appropriate workplace. Mathews, Debolt and Percival argue that “franchisees rely on the franchisors put together marketing strategies and operational processes and systems that will help them generate cash flow to sustain operations” (2011, p.158). Instead of competing in annual output that makes employees have to work harder than normal condition: working in long hour 50-60 hours a week with no air-conditioner restaurant. This cause lots of stress to the staffs.