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Comparison of Old Town and Pizza Hut

White Cafe Sdn Bhd (Old Town) founded in 1999, made record when the company became the first and pioneer White Espresso Producer to create and unveiling the famous Malaysian Ipoh White Espresso as a 3-in-1 Instant Mix. THE BUSINESS single-handedly captured the original authentic taste of your in any other case localized white espresso, making it a mobile item and become one of the fast paced consumer good (FMCG ), taking the South East Asia market. As the owner of the well-known OLDTOWN Brand, the business makes a great effort to be Malaysia's Leading White Caffeine maker with profitable expansion through a blend of organic development combined and strong aftermarket business.

In Wichita, brothers Frank and Dan Carney exposed the first Pizza Hut restaurant on June 15, 1958. They had been approached by the owner of a small building who wanted a nice neighborhoods business, and experienced browse the Post's article about pizza. Pizza Hut is included and held her first franchise product in Topeka, Kansas in 1959. After 6 years, "Putt-Putt to Pizza Hut" musical jingle is developed for Pizza Hut's first television commercial. In 1967, A Pizza Hut restaurant was built-in five days and nights by franchisees at the Oklahoma Express Fair. World's greatest pizza is baked and offered at the grand opening of the Fort Worthy of, Texas Pizza Hut. 2 years later, Pizza Hut moved into the International market with the beginning of the first Pizza Hut branch in Surrey, B. C. , and Canada. Pizza Hut acts a million people a week at its 310 locations.


In 2005, old town white caffeine company has launched of the first food and beverage (F&B) wall socket. Today, old town has open up 135th outlet within the Malaysia. Within this shorter period, Old town was progress and extension their business over the country even the international such as Singapore. The business goal is "To let everyone enjoy every sip of genuine Malaysian Ipoh White Espresso, "anytime, anywhere" (Web: http://www. oldtown. com. my/). Old town want to give attention to every area in Malaysia, thus, everyone in the country can enjoy every sip of traditional Malaysia Ipoh White Caffeine. Therefore, company was used the geographic framework (Appendix 1) to perform their business. The first layer of organization graph is Operator Director who is responsible to set the business goal and define planning. In second coating, the organization involve of Assistance operation Manager, support Assistance, area supervisor and assistance director. The Assistance operation Manager is to assist the procedure director managing and oversee the operation in every area. In addition, area manager is in charge of lots of outlet stores in each area. Work meticulously with outlet managers to plan, co-ordinate, maintain and develop each store performance. The past layer requires restaurant administrator, assistance restaurant supervisor, supervisor, assistance supervisor and worker. The missions in this part are to managing the operation of the outlet and make sure the restaurant provide good services to customer.

Pizza Hut is a globalization cooperates that was within 1958. The organization has their own strong group structure in order to contend with other competition. Pizza Hut used the efficient structure (Appendix 2) to oversee and take care of their global business. The Section Vice president is at the very best of the organization hierarchy which is responsible for the whole organization. The middle level of the organization involves Finance, Franchise development, delivery development, real estate, service development and etc. Those departments director will directly are accountable to the department vice leader and provided leadership on proper and operational issues over the division. Beside that, market manager and area administrator are at the next line management level. They can be responsibility to use the strategies and delivering the earnings to the organization. Furthermore, the first series management level will involve those people who are work at shop such as unit manager, shift administrator, creation employees, cross-trained employees and service employees. The objective of this level people is to provided good services to the customer and the wall plug manager has accountable to motive the subordinate to be able to achieve the organization goal.

Compare and Contrast

Old Town White Coffee and Pizza Huts are from the meals and drink (F&B) industry. Both companies are functioning in Malaysia and providing a good customer services in each wall socket, but, both have different group structure to manage and oversee the work of employee. We are able to compare both companies procedure through the use of several concepts such as work specialty area, chain of command, period of control and etc.

Work Specialization. Since the old town white espresso company learn to growth and expansion their company in this few years, therefore, they do not specialized the task into different office. Old town only split the work into different area such as Kuala Lumpur, Ipoh, Johor and etc. Each area has their area administrator respectively. The area professionals will perform the marketing and campaign of the business enterprise, employing the strategy and monitoring the procedure within the wall plug in their specific area. Furthermore, the area supervisor also training, motivate and producing the management staff. Pizza Hut has separation the task into few departments such as finance, Franchise development, center development, human source and etc. Each team has their director, assistance director and employees. They'll perform the responsibilities relevant to their specialised function. Beside that, the task also focuses primarily on each restaurant which includes manager, shift director production series, cross-trained series and service brand.

Chain of Order. Both companies practice unity of demand. Each employee is merely report the duty to one supervisor. From the old town white caffeine organization graph in Appendix 1, each restaurant professionals report the performance of the restaurant with their area administrator, who in turn report to the assistance procedure manager, who in turn report to procedure director. Based on the research by J. Kendall Middaugh, II II from Wake Forest College or university, he uploaded that the pizza hut's restaurant director report to the area managers who switch the report to the market supervisor. The market manager will report the performance of every area to the vice leader operation that will are accountable to the division leader. Other than that, Pizza Hut Company has work specialised, thus, each department managers will record the performance of the team to the section vice leader.

Line versus Personnel Power. Both companies have a same collection function activity which is provide a service and food to the customer. Staff expert in old town white caffeine is only the Area administrator. He provided the advice to the restaurant manager. Beside that, the series staff of old town is same as pizza hut which is work under the restaurant supervisor and provided the service and offering the food to customer. Furthermore, in Pizza Hut firm, vice president operation, director of the departments are personnel expert. They provided the advice to the collection staff and do not donate to creating or retailing the organization's product but instead support brand activity. The brand staffs of pizza hut require those individuals who work under the machine (restaurant) director. They provided the services and providing the pizza hut to the clients.

Span of control. The Old Town white espresso has a broad span of control which is also called flat structure. The company has 5 subordinate works under the assistance operation supervisor. In each area, the area director/assistance area supervisor will supervise their area respectively and they will direct survey the performance of the region to the assistance operation supervisor. As compare to the old town, the business graph of pizza huts can consider as a tall structure that includes a narrow period of control. With this business, 9 subordinates are work under the section president. In each of the department consist of a administrator and assistance supervisor. They will escort report to the department vice president. In addition, a market manager will directly are accountable to the vice leader operation whereas the area supervisor is work under the marketplace administrator. He/she will guide report the progress to the market director. Beside that, 32 subordinate area work under the restaurant administrator who will guide report to the area supervisor. The Old Town White Espresso is an organization smaller than Pizza Hut which has already have globalization. Therefore, old town only used a flat structure that may easily to connect and coordinate. The organization graph of the pizza hut is recognized as a tall structure which often is more formal but poor in communication and decision making.

Advantages and Disadvantages


There are numerous foods and beverage (F&B) Company using the geographic company structure, this composition can separate the task easily into different area and can helps the region supervisor as they can target with their specific area. Because of the work specialization, this can help them easy to train, monitor and stimulate their employees with a much better plan. In addition, experience gained in a local department is often an outstanding training for management at higher levels. OLDTOWN got decentralization to local or local devices, by that your choice making are faster by the area manager, when the small problem occurs in their specific area, area director can react faster since decision making are faster and increase the performance. The great regions of Malaysia exhibit completely different cultural, cultural diversities and economical activities, this will impact different area needs and demand. With a good chain of command line, OLDTOWN in a position to respond to market changes by knowing the neighborhood market situation and execute their competitive strategies.

Separation work to each area division will raise the operating cost and duplication of resources because each department must have its own useful specialists, and production facilities. This problem will lead to isolation of specialists since the functional specialist cannot be shared from other area. OLDTOWN is a fast growing food and drink Company in Malaysia, but this geographic group framework will definitely discourages company expansion and many problems will occurs. These problems are hard to checking and evaluate by top management because all the issues are only reported to the region administrator. Beside that, this also appear a whole lot of issues between area managers such as conflict between each location's branches. Sometimes, the conflict cause by compete for organizational resources between area manager.

2) Pizza Hut

Functional organization framework grouping coordination of work relating to managers and employee expertise and the resources they use to perform their jobs. This will likely lead the standardization to the company since each section targets their work respectively. Beside that, the organization able to ensures that every branch can maintain the same standard with others. In addition, superiors and subordinates can share their common experience and experience. With this kind of control, managers will be much easier to train their workers within practical area and save lots of time. The features of grouping will boost the reliable use of resources, provide high-quality complex decision making and increase performance. This will likely enhance the company growing especially to the international franchise company. Furthermore, by the prevailing of line personnel and vice leader operation, Pizza functions their customers more efficiently without conflict to each other.

There are 34, 000 franchises in 100 countries; the coordination of work across efficient boundaries may become a difficult management task to the PIZZA HUT. This extra tall structure of corporation will lost the control of their employees since difficulty of monitoring by the practical director and weakness of intercommunion and decision making. In the realistic world, there are present a whole lot of external environment influence to the organization, but PIZZA HUT acquired a slow reaction to internal changes since decision specialist is located close to the top of the organization and slow down the decision making. As PIZZA HUT increases in the scale and spreads to multiple physical locations, they can not respond for the client needs and requirements in a nutshell time and this will cause a great deal of loses of customer.


A simple geographical structure is unquestionably not fit to OLD TOWN nowadays. As OLD TOWN growing faster and faster, different of departments such as HR, Financial section should be developed in order to improve the work efficiency. Soon, every section can add in their own field so the conflicts wouldn't normally exist anymore. A unique market office, or in other words, a survey department can be developed out to oversee the marketplace needs and response quickly. On the other hand, the electric outlet in each area is getting more and more, therefore, we claim that old town should set a assistance area administrator in order to cut back the work fill of the region manager.

A duplication of work domains for each and every position can be looked at in the business chart of Pizza Hut. For instance, there are 2 market managers who take responsibility in the similar field that actually causes waste in resources. As an indicator, 1 particular manager is enough for the position so that there would not work across and occurs issues. Since the business of Pizza Hut is extra tall, problems in communication and decision making always occurs. As Pizza Hut has a tremendous number of branches in over the world, decision should be make fast. Because of that, a set type of corporation is needed to counter this issue. Very much like OLD TOWN, Pizza Hut should create a market department to fulfill the market demands. As we talk about early on, each restaurant has 3 change managers to execute the same job. We wish to claim that, the number of shift supervisor should be reduced. As we realize that, the service line is vital to boost the reputation of the pizza hut. Therefore, company should create a service department to train the worker to be more effectiveness and efficiency to be able to give a good service to the customer.


The purposes of this statement are comparing and contrast two similar companies composition which can be split into several concepts such as work specialty area, chain of control, line versus personnel authority and span of control. From the analyze of both company, we discovered that both companies have different company structure to manage and oversee the task of employer, which the Old town used geographic framework to run their business Pizza Hut used the practical framework to oversee and take care of their global business. .

As the consequence of the compare, we discovered that there a wide range of problems discourage Old Town growth. We also discovered that Pizza Hut experienced a slow response to the exterior and the inner environment that will bring a whole lot of damage. To overcome this issue, we had suggested that Old Town and Pizza Hut should create a survey section out to oversee the marketplace needs and response quickly. Despite the fact that both companies acquired a good success in the meals and beverage, however they still need to numerous changes to compete on the market.

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