Pizza2go Case Study

Introduction:

Pizza2Go in Vietnam has gained many achievements. According to the case study,

Pizza2Go shares has increased dramatically 2,500 per cent, so it made a huge of people wealthy and in 2016, total revenue was VND 202,747,000,000. Pizza2Go have used the strategy that is not profit, maintain the royalty to making money and earning from quantities of sale. However, it still expose some problems in this hundred billion organisation. In the case analysis, we will clarify some problems belong to the case study, linking with the theory and then, we give some recommendations.

Case analysis

According to the case study, it raises three main issues which are style of business management, CEO behaviour and employees responding. We will look carefully each issue to make the case study clearly.

The style of business of Pizza2Go is not ready for franchising. The head office will concern the company's policies, labour cost and perception at the level cooperate. To explain, if your franchising get high cooperate, you can be received high policies or advantages from head office. That can bring benefit to some big franchising and especially is for employees but many small franchising business can be affected, also employees work for small franchising that can get some disadvantage. On the other hand, franchising have to compete with many franchising with the cheap cost of pizza. According to the article “The hidden cost of cheap pizza”, Erbentraut (2016) mentions that the price of pizza can be lowest as three or four dollars with the coupons. Head office make money from royalty, inequality in policies and less care about what will happen next, so franchising is hard to maintain the business in long term.

About the CEO of Pizza2Go, Mrs Nguyen who is a CEO, give some solutions to deal with the challenges. More detail, employees can be got extra 50 per cent of wage if they work in the long time as four or five years working, training, encourage, badges that can keep the employees loyalty and limit the mistake, also increase the productivity. She used reward power in Pizza2go and maybe it can be success anything above. Faiz (2013) states that perception of employee about reward power is a positive affect in public, private or both.

Finally, the case study mentions that worker is unhappy. Based on the case study, it describes that life of worker in Pizza2Go are suffered. Underpayment of wage and lack of entitlement in many franchising. Employee are abuse and can not talk to anyone because they can get some disadvantage such as retribution or fire. In addition, if employees work overtime, they will not be got the payment or attract penalties. Moreover, employees have to work in the pressure and inconvenient environment. For example, Mr. Thap work in 200-degree oven and bring his fan into store. To sum up, the life of employees in Pizza2Go is terrible.

Linking theory

According to the theory from topic one to five, we will appreciate strength and weakness in the case analyse. Therefore, we can understand the problems clearly and then will improve or promote it.

The style of business is so effective when they make money from royalty, not profit. One thing they have to change that is support and set a equal entitlements for franchising such as labour cost, company policies or create opportunities to reduce the stress of running the store because it has deficiency and inequality in business. CEO has made a lot of money but they overlook how the franchising earn money for them.

CEO has set out a good strategy for Pizza2Go and Mrs Nguyen used reward power effective. She has used it to promote high job satisfaction and keep the loyalty of employees. Many effective ideas are performed. She plan a interested idea that employees get different badges on shirt when they complete the mission. This can raise a high job satisfaction more than a little bonus. Unfortunately, she forget using some power. Especially, coercive, legitimate power are two of power to control the owner of franchising. This is a deficiency of her view. Two kind of power can create a discipline in franchising. This can improve entitlement of employees in many franchising. According to the topic five, people who own legitimate power is based on position or job. Therefore, CEO is leader in the head office and they have power to put or set up a rules for franchising. Legitimate power is necessary in the franchising. In addition, people who represent coercive power use punishments and threats. The head of office has used it, but it is still not effective because they do not apply the legitimate power first.

Inequality in pizza2Go environment, worker do not enjoy in this job. Organisation culture in many franchising is a weak culture. To explain, outcome oriented and aggressive are two kind of culture making a failure of pizza2Go. According to the theory: Environment and culture, outcome oriented care about the results and