Social issues are also important in an organisation social issues can not satisfy all stakeholders however it is an advantage that the organisation will make more goodwill social issues are highlighted in the media. If consumers are not happy with actions of organisations they can form pressure groups and put an organisation under pressure to make changes in something that is opposed. These issues will affect Pizza Hut in all aspects.
Pizza Huts ethical issues will concern its food that is supplied it will have to make sure that there is no GM food included in any of the products ingredients. The ingredients that are used will have to be fresh and at a good standard. Environmental issues will be when Pizza Hut does deliveries it is their responsibility that customers dispose the packaging. That is why most organisations are cutting down on packaging. Pizza Hut use recycled card to make boxes for pizza boxes and they will have to continue to show improvements in a positive way. The media can easily put a business under pressure by making a story about and criticising.
Stakeholders are individuals or groups who have a stake or interest in running an organisation. Stakeholders have some control over decisions on how an organisation competes in a marketplace. Pressure groups are formal and approach organisations to fight organised campaigns. They have long-term objectives to complete a concern. For example an increase in pollution or traffic. Pizza Huts stakeholders have to be careful because if for example they want to sell more pizza's and make more earnings they will need to spend more on ingredients and this may mean using more meat where the requirement of hogs for pepperoni may be high causing pressure groups to move in.
The Trade Descriptions Act This act ensures that all products or services are not misleading consumers with false information. It is a criminal offence if traders are selling goods with inaccurate description. Therefore it is very important that a product is described accurately. For example a TV is shown one colour in the picture and is not noted colour may vary from picture it is violating the trade description act.
Monopolies and Mergers Act If a business expands it may become a monopoly and become the only supplier of a product the government makes rules to control the organisation that may have monopoly power in their business. The government therefore intervenes to protect consumers' interest. Monopoly power may lead to consumers being exploited and with no alternative product or competition to make the quality of the product better or to make prices lower.
The Advertising Standards Authority (ASA) The ASA is in control over all advertising except that on radio and television. This means that any form of press, outdoor advertising, direct marketing, screen promotions and sales promotions must comply with the ASA. The ASA makes sure that the advertisement is legal and that it is not misleading the consumer. It is not necessary for a company to comply with the ASA.
Pizza Hut will have to comply with all of these constraints. When Pizza Hut sells pizzas the ingredients that are used must be shown. Also the menu and pictures must be accurate customers can not be misled. Pizza Hut must be careful when sending out leaflets of offers if the picture on a leaflet shows that a pizza is large with a lot of topping it is expected that when a customer goes to Pizza Hut to buy the pizza with same qualities.