We want to know if Pizza Hut operates in Australia. It turns out that Pizza Hut is a successful franchise in Australia, with around 325 stores (Our Story, 2008). To understand the success of Pizza Hut in Australia, we will compare its operations in Australia to those in the United States and determine which country is more suitable for Pizza Hut’s business. The original Pizza Hut was established in 1958 in Wichita, Kansas and rapidly grew into a prosperous pizza franchise (Our Story, 2008). In Australia, Pizza Hut primarily operates as a take-out service but also has several locations that offer indoor dining.
Most of the menu items are similar in both countries Australia and the United States. In Australia, there are also a few specialties that stand out, particularly dishes made with different types of meat such as the “mildly smoked kransky,” a smoked, spicy, and juicy sausage prepared using an authentic Dutch recipe with cheese (Pizza Hut Australia). Additionally, Australians have a preference for replacing tomato sauce with BBQ sauce on their pizza (Pizza Hut Australia). Although Pizza Hut is primarily focused on serving its domestic market, they do not extend their services to other countries. The main target markets for Pizza Hut in both the United States and Australia are students, families, and Wi-Fi enthusiasts.
The introduction of pasta in the menu allowed the company to attract families. Pizza Hut’s Pizza Mia, which consists of large portions of pasta, is available at a cost of only five dollars when purchasing three or more of them (Pizza Hut targets families in Pizza Mia launch, 2008). This affordable price and generous quantity made Pizza Hut immensely successful worldwide, appealing to both families and large groups of students. According to Hofstede’s Dimensions, the United States and Australia ranked highest, with the US scoring 91 and Australia scoring 90 (itim International, 1967-2009).
In both countries, society prioritizes self-interest and family welfare. The United States scored slightly higher in masculinity with 62 while Australia scored 61. Masculinity represents male dominance and lack of sensitivity. Australia surpassed the United States in the Uncertainty Avoidance Risk dimension, scoring 51 compared to the US’s lower score of 46. Both the United States and Australia score below 50 in the last two dimensions according to Hofstede.
The Power Distance score of the United States is slightly higher than that of Australia, with the US scoring 40 and Australia scoring 36. In terms of long-term Orientation, the United States scored 29 compared to Australia’s slightly higher score of 31. Geographically, there are several differences between the two countries. Despite being the third-largest country in size, the US is smaller compared to Australia, which is considered as both the world’s smallest continent and ranks as the sixth largest country. The US surpasses Australia in size by approximately 1,890,000Km2 and has around 3% more water, 13% more land under development, and 4% more forested area. On the other hand, Australia holds a notable advantage with 29% more wild pastures than the United States (Students of the World, 2006).
The highest point in the United States, Mt McKinley, reaches approximately 6,194 m. In contrast, Australia’s highest point at Mt Kosciusko stands at 2,228 m. One notable distinction between these countries lies in their seasonal months. While it is winter in the United States, Australia experiences summer. Similarly, when it is spring in the United States, fall arrives in Australia. Climate-wise, the United States encounters varying weather conditions across different regions. The southern parts have a tropical climate whereas the Great Plains and Great Basin are dry. Additionally, the Northwest can be cold during winter months. Conversely, Australia generally has a dry climate in its South and East regions while enjoying a tropical climate up North.
The United States and Australia both possess a variety of natural resources including bauxite, coal, gold, silver, nickel, tungsten, zinc, natural gas, and petroleum. While these resources are shared between the two countries, each also has additional resources. When it comes to age structure, there is minimal difference between the nations. Approximately 20% of the US population is under 14 years old while 67% falls within the 15-64 years age bracket and 13% are over 65 years old. Similarly in Australia, around 19%, 68%, and 13% respectively belong to these age groups. Furthermore, both countries have a median age of 37 years for both men and women.
In the United States, the life expectancy is around 78 years, while in Australia it is approximately 81 years. The social class stratification in Australia mirrors that of the United States, with a majority identifying as middle class. In the last five decades, there has been a notable change in the working class. Back in 1947, blue-collar jobs constituted over half of the workforce; however, by 2003, white-collar positions like teachers, nurses, bank tellers or public servants made up more than 65% of the workforce.
The significant change is believed to be primarily due to the decline in the manufacturing industry. In 1966, more than a quarter of workers were employed in manufacturing, but by 2002, that percentage had decreased by half. There are noticeable differences in ethnicities between the United States and Australia. In the United States, approximately 80% of the population is white, while black and Asian populations make up 13% and 5%, respectively. Native Americans or Hawaiians and those belonging to multiple races account for around 1%. Additionally, Hispanics constitute about 15% of the total population (Students of the World, 2008). Conversely, whites comprise around 92% of Australia’s population, with Asians making up approximately 7%. Aboriginals or individuals from other ethnic backgrounds represent roughly 1% (Students of the World, 2008).
Both the United States and Australia have English as their primary language. They both follow a political system that values indirect democracy, political equality, and safeguarding minority rights. The United States is acknowledged as the world’s oldest continuous democracy, prioritizing individual freedom. These countries share numerous similarities, including being federal systems with a parliament consisting of two houses: the House of Representatives and the Senate.
Both the United States and Australia have a Senate representing the States, although there are some differences. In the US, each state has two senators while in Australia each state has twelve senators. However, both countries have senators serving six-year terms (AustralianPolitics.com, 1995-2008). Another similarity is that both countries have a court that interprets the constitution and serves as the final court of appeals – the United States has the Supreme Court and Australia has the High Court. However, one notable difference is that the United States operates as a Republic while Australia operates under a parliamentary system.
The House of Representatives members in the US serve for a 2-year term, while in Australia they have a 3-year term (AustralianPolitics.com, 1995-2008). Voting is voluntary in the US but mandatory in Australia. Currently, Barack Obama serves as the President of the US and Kevin Rudd is the Prime Minister of Australia.
Both countries’ legal systems are rooted in English common law. However, each state in the US has its own unique legal system and does not recognize compulsory jurisdiction by the International Court of Justice (ICJ).
In Australia, they have reservations but accept the compulsory jurisdiction of the International Court of Justice (ICJ) (Students of the World, 2008). Nonetheless, starting a business in these two countries varies greatly. In the United States, there are six steps to follow. The initial step is filing an article of organization for the company and adopting the operating agreement which has a cost of $275. Additionally, faster service options come at an extra fee: $150 for completion within 2 hours, $75 for same-day service, or $50 for 24-hours.
Starting a business involves several steps. Firstly, you must apply for a federal identification number for taxes without any fees. Additionally, ensure that you register to collect state sales tax at no cost. You will also need to register as an employer with the Unemployment Insurance division of the state Department of Labor and set up workers compensation disability insurance. The good news is that none of these steps require payment. Lastly, after arranging for publication, you must submit certification and affidavits of publication, which incurs a $50 expense (Doing Business, 2009). In Australia, starting a business simply requires completing the ASIC form 201 to register the company as an Australian company.
This item is priced at AUD 400 which is equivalent to approximately $292 USD. Additionally, there is no fee to register for ABN with the Australian Taxation Office (Doing Business, 2009). Comparatively, the United States is considered a more advantageous country to initiate a business. Although it may require higher costs and additional procedures to commence, the US offers greater flexibility in making decisions for the company. Conversely, Australia has limitations on the level of authority individuals have over their company and its operations.
Economic System Australia is a capitalist country with a free market determining supply and demand. It is one of the top five developed countries in the world (GNI exceeding 9,000) due to significant development growth in recent decades. The economy consists of trade, manufacturing, services, and finance as its main components. Australia’s mining and chemicals industries, transportation goods, and food processing are renowned globally. Additionally, there has been a recent surge in the Information and Communications Technology sector thanks to advancements in high-tech and social improvements.
Despite the higher unemployment rate in the US compared to Australia, Australia has a 50% higher PPP and a slightly more developed HDI. This makes Australia appear more favorable for starting a Pizza Hut. However, the US is more competitive with its higher GDP and GNI per capita. These economic indicators explain why Pizza Hut is more successful and profitable in the US. It could be hypothesized that companies in Australia may struggle to find labor due to the lower unemployment rate there. Job scarcity is less common than in the US, so Australians may prefer other job opportunities over working at Pizza Hut.
Works Cited
- Retrieved from Australian Bureau of Statistics: http://www. abs. gov. au/AUSSTATS/abs@. nsf/mf/6202. 0 AustralianPolitics. com.
- Retrieved 10 2, 2009, from AustralianPolitics. com: http://www. australianpolitics. com/usa/australia/ Doing Business.
- Retrieved 10 1, 2009, from Doing Business: http://www. doingbusiness. org/ExploreTopics/StartingBusiness/Details. aspx? conomyid=197 Doing Business.
- Retrieved 10 1, 2009, from Doing Business: http://www. doingbusiness. org/exploreTopics/StartingBusiness/Details. aspx? economyid=12 itim International.
- Retrieved 9 27, 2009, from Geert Hofstede Cultural Dimensions: http://www. geert-hofstede. com/hofstede_united_states. shtml itim International.
- Retrieved 9 27, 2009, from Geert Hofstede Cultural Dimensions: http://www. geert-hofstede. com/hofstede_australia. shtml Our Story.
