P1: Explain the international business environment in which a selected organisation operates.
P2: Describe the mechanisms that regulate international trade.
M1: Assess the methods to increase trade between countries and the methods to restrict trade between countries
P1: Explain the international business environment in which a selected organisation operates
In this task I will be discussing the international business environment in which Pizza Hut and the
economies which it operates in. Pizza Hut is a well-known business across the world and in a variety
of different markets, in 94 countries including the UK, North and South America and Asia. Brothers
Dan and Frank Carney opened the first ever Pizza Hut restaurant in the US in 1958, it was brought to
the UK in 1973 and now have over 700 restaurants and delivery outlets across Britain, which offer a
menu of a range of different pizzas. The business was later brought by ‘Yum!’ which is a public
limited company; the brand also owns other food chains such as KFC and Taco Bell.
Pizza Huts main competitors are Dominos and Papa Johns, which are both established pizza takeout
companies which operate internationally. Research in the US shows that in the year ending
September 2014 Pizza Hut had 14.79% of the market share, whereas Dominos had 9.86% and Papa
Johns had 6.45%. In the year ending 2015 the Pizza Hut division of ‘Yum!’ achieved a total of
13,728million units which was a slight increase from the previous year. The company’s total revenue
in 2015 was $13,105million and their operating profit was $1,921million. The competitor I will
discuss is Dominos, in the year of 2015 they made £865.6million in the UK and Ireland alone, which
was a massive 15.7% growth from the previous year. In the UK dominos revenue increased by 10.1%
in 2015 to £283.7million, and their operating
profit of £73.2million was up 16.6% from the
previous year.
This graph shows that the total trade exports for
July 2016 were £23.9billion, which was a fall of
3.1% from the previous month and a 2.2% drop
from the year before. It also shows that trade
imports in July 2016 were £39.7billion, which was
a decrease of 1.1% from the month before and a
13.5% lower than the year before. Data also
shows that the UK was a net importer in July
2016, where imports exceeded exports by
£15.9billion.
The second graph shows the UK’s GDP over
the past ten years. The UK economy has
reached 2.2% in the second quarter of 2016, which means the economy is good.
A benefit of international trade is it gives businesses the opportunity to grow because the amount of
potential clients and supplies grows when a business starts trade in another/more countries, this
would be easier than a business trying to expand their market in one country.
Another benefit of international trade is it diversifies risks, if a business relies on one country and
one market it could be risky, due to things such as natural disasters, financial meltdowns and
troubles in the Middle East, these types of things have huge impacts on the market. So if a business
deals with multiple countries/markets it would be saved by countries that are still economically
okay.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ellieemaesmith. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
