Domino's Pizza SWOT Analysis and Business Environment

The assignment is based on a corporate association, where all working activities are interconnected with each other. The firm's strength and weaknesses are dependant upon external factors such as political, social, economic, and environmental factors. A SWOT analysis of Domino's Pizza reveals its strengths in using new and innovative techniques in manufacturing, weaknesses in intense competition with national and international players, opportunities for growth and diversification, and threats from government regulations and social responsibility concerns.

Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various kinds and also purpose of private, public and voluntary firms................................1
P2 Size and scope of various range of organisations..................................................................3
TASK 2............................................................................................................................................6
P3 Relationship among various organisational function ............................................................6
P4 Negative and positive impact of macro environmental factors...........................................9
P5 Conduct external and internal analysis................................................................................10
P6 How strength and weaknesses are interrelated with external factors..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
It is very significant for organisations to understanding the environment in which it
operates and running. The environmental factors put a huge impact on all aspects of business
units as well as its nature, prices of products, location, distribution system or policies. Thus, the
growth and success of a corporate association depend on adoption of the environment in which
it functions. Business environment consists external as well as internal factors beyond control of
business firm and hinders its functions; these elements are – customers, employees, suppliers,
government, social, political etc. These components also put a huge impact on decision making
process of the firm in direct and indirect manner. The present assignment is based upon
Domino's Pizza its a multinational pizza restaurant chain which was founded in 1960. In
February, 2018 the organisation has become largest seller of pizza over the globe on the basis of
retail sales. The overall sales revenue of the firm is $ 2.47 billion; its prime motive is deliver best
taste to people so as to gain high competitive edge. Apart from this, the report will describe
purpose and scope of public, private and voluntary organisations. SWOT and PESTLE analysis
will conduct so as to analyse internal and external factors of the company.
TASK 1
P1 Various kinds and also purpose of private, public and voluntary firms
There should be close relationship among business and its environment, this gives
strengthening to the firms by using its resources efficiently. The nature of business environment
is complex, multi faced as well as dynamic and far reaching impact on growth and survival of the
company. Thus, the proper understand of business environment assists to improve its image in
target market. In this competitive era, on the basis of their types and purpose business
organisations are classified in to 3 parts, i.e. public, private and voluntary sectors. The brief
description of all these sectors is stated as under: -
Public sector – Public sector organisations consists with publicly along with government
that is controlled through agencies, firms and funded groups which help in provide better quality
services and products. The sector is wider than merely which is totally government and may
convergence which the private and not for profit sectors. In UK there are several public sector
organisation has been established, i.e. from healthcare to education and etc. Here, funding comes
through different forms of direct and indirect taxation, revenue earning activities which are
1

organised by locally and centrally government. Thus, it can be said that public sector
organisations plays a significant role in enhance economy of country.
For an example – NICE is a public sector business organisation which works for health
department in UK. It provides guidance for social care services as well as to public health
workers towards health promotion. NICE also serves as a significant role in implementing new
and innovative technology in healthcare system so as to deliver effective services to people.
Purpose – The main purpose of NICE is to guide, advice, maintain quality standards and
provide information towards health and social care. It also contain various origins in order to
attain optimal utilisation of available resources.
Legal structure – The management of public sector organisations is divided on the basis
of several areas- central government, religion, local government, criminal justice etc.
British government is liable for managing and handling business associations, for the sake of
approval and payment of the level of contributions and benefits, autonomous of its role as a
supervisory body or employer. The legal structure of public sector is divided into three parts, i.e.
central, state and local government.
 "Central government" it is associated with all managerial departments of a state and
central government regulatory bodies which covers entire territory of a nation, instead for
the management of cultural security funds,
 "State government" is associated with detached institutional unit which perform certain
government functions. The government regulatory body is responsible for managing who
operates at local level and follow all instructions of central government, excluding
management of social security funds and capital.
 "Local government" – it involves all types of public associations which are liable to cover
local areas of an economy or a nation, instead of local agencies of social security funds.
Private sector – This sector also plays an imperative role in generating employment
opportunists within the nation as there are several number of private sector organisations are
being growing day by day. It is also critical for economic development as the development of
private companies enhances the process of industrialisation.
For example – Domino's Pizza is UK based international fast food chain which mainly
offers pizza. Its owns have exclusive rights to sell pizza, open other franchise or branches of
2

similar product over the world. Dominos Pizza is highly famous among customers due to its
delicious taste. Since 2013, there were 900 stores in UK, the firm also caters various services
and products including production of own pizza dough, sourcing of ingredients and provide
special training to employees and other franchisors as they can perform effectively. The leading
fast food chain also deliver advertising and further IT as well administrative related services on
the behalf of its franchisee.
Purpose – The main purpose of private sector organisations is to gain high profitability and sales
revenues by producing new and attractive products for customers which gives higher level of
satisfaction.
Legal structure – Its legal structure is classified into various parts for an instance- sole trader,
partnerships, franchises and limited companies.
Voluntary sectors – It is group of some people who wants to deliver their interest into social
welfare through an agreement as volunteers to form a body in order to attain specific social
purposes. In UK, there are various voluntary sector entities which works for social welfare and
benefits so as to improve area of society by maintaining quality standards.
For example – Oxfam is one of biggest charitable organisation over the world which
works towards alleviation of poverty. It was situated in 1942 and focus on advocacy, policy
research, disaster relief, pro-migration.
Purpose – The prime motive of voluntary sector organisations is to serve the social and economic
needs of the community as a whole and mainly the weaker sections.
Legal structure – The trustees these organisations works as a board of directors who are liable to
all important decisions and set of working activities. The Volunteers work as employees which
follow trustees and their directions.
P2 Size and scope of various range of organisations
In this competitive aura, business organisations are also classified based upon their size
and scope which are briefly stated as under: -
Public sectors – The sector occupied wide place in order to attain systematic and planned
development in a country. UK is suffering with multi dimensional problems, so that to cater
essential in order to support the development strategy of economy, public sector organisations
put efforts to bring sustainable growth in nation. With the help of filing gaps in adequate
infrastructure and industrial structure, economic development will be increased. Along with this,
3

PSU are also liable for balance diversifying the natural resources, regional development and
further facilities in less developed areas of United Kingdom.
For example - NICE was situated in an attempt so as to provide effective and efficient
treatment of healthcare in England and Wales, in which healthcare services are available and
depended upon NHS health which provides national guidance in order to improve health of
individuals as they can live better life. The organisational structure of the organisation sets out
strategic policies and priorities whereas day to day decisions are made by senior management
team. Communities in NICE are enable to provide essential information to key key groups i.e.
local government, public health professionals etc.
Mission and vision of company – Vision of NICE is to improve wealth and health in
world through research. Whereas the mission statement of firm is to enhance the standard of
healthcare over the system; it results quality of services will be improved and it build up
customers' trust. In addition, NICE emphasis on adopting the new technology bringing
technology that help of treating people in better manner and manage the health care.
Stakeholders of the firm -
Government – It is liable for regulating business activities which preserve customers. In
UK, there are several government agencies ensure standards of a product which are offered by
the firm by implementing several laws and legislations; it have to be followed to protect
customers' rights.
Society - Local communities keep check and admire a business so as aware about the
impact of society in future. They write letters of firms as well as media to talk on various trndy
topics.
Private sectors – The sector also has a positive role in expansion and development of a
nation. It involves in managing and providing entire services to people in general. Usually, these
organisations are not a part of government bodies, there is null involvement of government in
decision making process of private businesses.
For example - Domino's is also known as of the largest private sector entity. It operates
its business in three different sections: Domestic Stores, Supply Chain and International
Franchise. The competitors of the company are - Pizza Hut, Little Caesars Pizza and Papa
John's.
4

Mission and vision of company – Vision of Domino's Pizza is to be operator of pizza
system by having best talent. Whereas mission statement of company states that Domino's is
expertise in manufacturing and selling pizza who continuously delights the customers' by
offering them unique and delicious taste in pizza as well as variety of similar products with
cordial team members providing prompt and safe delivery system.
Stakeholders of the firm – The main stakeholders of the private sector organisations is
stated as under: -
 Employees – They are liable for work in a better manner in order to attain set activities.
For doing tasks, team work is necessary and staff members should have better
interpersonal skills. In an organisation, it is necessary that employees should follow rules
and regulations.
 Customers – The firm produce products and services on the needs and their preferences.
Customers purchase goods which can satisfy their requirements and demands in a better
manner. It is helpful in provide the competitive benefits to Dominos.
 Owners- They should give the necessary resources which help business to operate its
business activities and operations in a significant manner. Under this includes workers
employment, determining better premise, raw materials, machinery etc. The business
owners of Domino's Pizza should take better decisions timely so that it can enhance its
profit level.
Voluntary sectors – It consists social enterprises, trade unions, community interest,
voluntary organisations etc. which generally executed for social upliftment and benefits; it is
also eligible for a extent of income and property tax exemptions. In United Kingdom, there are
more than 162,965 voluntary organisations in which 50% of those which have an annual income
under £10,000 and around 80% under £100,000.
For example – Oxfam is known as one of the leading charitable organisation, it believes
that poverty and unemployment are the major concern for society but it can be reduced through
effective human actions or initiatives. The organisation thinks that people have right to a
sustainable living as well as to participate in societies and build a positive change in people lives
so as to meet needs and wants of society in the best possible manner.
Vision and mission of company – Mission statement of organisation is to address all
causes of poverty and work primarily through local accountable units by raising their
5

effectiveness. Beside this, its vision statement is to become leading charity which works for
social benefits and welfare.
Stakeholders of firm -
 Volunteers are known as board members which make all necessary decisions in order to
keep a firm running smoothly.
 Donors, these people provide funds or money to do all activities in organisations. It
involves federal agencies. Every charity should have a basket of income from a myriad of
sources.
TASK 2
P3 Relationship among various organisational function
A business organisation is build their structure through different working environment in
which is specific skill individuals are provides their services to attain organisation's objectives
and its future goals easily. Business structure is known as key element of firm that contribute
their services properly in firm. Relationship between different departments of Domino's are
given below -
Research and development: It works to analyse market and customer's demand toward
their products to provide quality services to them easily. All business procedures depend on this
departmental activities. Through their result organisation start manufacturing process to build
effective services for customers.
Marketing department – The marketing division of the firm is liable for advertising and
promoting products and services in market and large number of customer get know about it. It
helps in increasing sales and also profitability of company in order to achieve its aims in an
effective manner. Financial success of a company is often depends on the marketing ability; all
working activities will not really matter if there is not sufficient demand for products and
services.
Production department : This department produces quality services or goods for
consumers. For a firm it is required to understand their production approaches to reduce extra
wastages and cost that can be consume in production of new products. For build quality of their
services they can offer new offers and discount that reduce cost of production services.
Human Resource Management: This division of organisation is build effectiveness
with every department of firm. Human resources management is works to build skills and
6

capacity for their employees to attain firm's future goals easily. Its main aim is to give learning as
well as training, hire experienced candidates, manage business activities and build career path for
employees easily. This department works to reduce conflicts and barriers from organizational
activities easily.
Accounting and Finance: This department of company is built to manage finance and
accounting activities in appropriate manner. By this firm can mange the capital management,
cash flow and fund flow, budgetary control and trading accounts that needs to be mange
according to exact manner. This is confidential department of company that manage all financial
statement in order to achieve the future development of business in an easy manner.
Organisational structure of Domino's Pizza: -
As same other companies, Domino's Pizza also follows hierarchically based
organisational structure. There are various jobs availed within the organisation from top
management to staff members. It is categorised into four parts, such as- president, chief financial
officer, Human resource manager and fast food manager. In which, the post of president is
highest ranking post which has right to leadership, it is totally up to him to supervise the
production of the firm. Whereas the chief financial officer of the company is look after and cope
all financial affairs. Beside this, the fast food manager is responsible for managing the quality of
products and production process.
7

Source: Dominos Hierarchical Organisational Structure, 2018
Dominos are following hierarchical organisational structure which is classified into steps
that are explained below:
President: They mainly look out for entire functioning of the company within the country
and along with this supervise the production of the firm.
Chief financial manager: Their prime role is to manage financial affairs of departments
so that cost production and profits can be managed.
Manager, Human Resource: There are many managers for different departments and
they check out the work done by their departments and report to their senior managers.
Manager, fast Food: Their prime role is to keep an eye on the food manufactured in
order to analyse the quality. As a result, it will assist them in delivering the best quality product
to its clients.
8
Illustration 1: Dominos Hierarchical
Organisational Structure

P4 Negative and positive impact of macro environmental factors
In business organisation macro environment includes all external business factors which
affecting its operational activities and also decision making process directly. It involves various
elements as Political, legal, terotechnological, social, economic and environmental factors. All
these factors are based on various changes that affect business policy and procedure. In external
environment risk, challenges and opportunity factor open different path to adopt desired success
through different business strategies. External analysis is determine by PESTEL analysis that is
given below as above: -
Legal and political factors – All these factors depends on government policy, activities
as well as various changes that affect organisational working procedure. These legal and political
factors are directly affect decision making procedure of a firm. In this modern era, it is essential
necessary for company to determine legislations and government regulations that can impact on
business process. This project is based on Domino's Pizza which is a well known fas food firm.
Fro them government of a country build different law and rules that they needs to implement in
their business procedure. There are some positive and negative impact of this factors are given
below as - Positive Aspects – The rules and laws of Government are regulated to build positivity in
country. These kind of factors are reduce negative approaches such as illegal term, fraud
and other harmful terms that harm reputation of country directly.
 Negative Aspects – Government regulate very strict rules for different organisation that
they need to implement in their procedure. These thinks takes a lot time and consume
large cost.
Economic factors – These factors are depend on economic situation of United Kingdom
that impacted by business process. It has broad structure that directly impact on legal as well as
trade terms of company. It includes economy growth, interest rate, inflation and tax related
terms. Domino's is a well known organisation who provides effective services to their customers.
So the number of customers and their own income is directly provide appropriate amount in
economy growth.
 Positive Aspects – Through appropriate strategy and planning Domino's can attain
appropriate income that will easily contribute proper amount in economy growth.
9

 Negative Aspects – Infatuation and high tax rate are negatively impact on business
process and its development.
Social factors – These factors are identify for customer's demand and also their
requirement from a particular organisation. Social factors are impact on producing and delivery
process of Domino's that requirements to be done according to market want.
 Positive Aspects – If Domino's can make exact research on market then they will easily
analyse marketing demand to fulfil them easily.
 Negative Aspects – These elements are depends on improper services as well as quality
of products which can develop negative affect on reputation of company. It is known as
negative aspect of firm that harm its required growth and income as well.
Technological factors – These are most important factors that are used to build opportunities
and also may be risk for company. There is a need of Advance technology to implementing in
business procedure to getting desired outcomes easily. For Domino's it is required to adopt
innovative ideas to attract more customers toward their products and services as well.
 Positive Aspects – Advance technology always helps to reach on exact path whether
company can achieve the development of business and generate more revenue. .
 Negative Aspects – Improper knowledge and untrained staff can not attain its advantages
and it can negatively affect on business procedure and employees productivity.
Environmental factors – For a firm it is required to build quality services for their customers
that will not negatively affect on their health. These factors are based on change in weather,
climates and season that make changes in customer's demand and their choice toward a firm. To
minimise these effects Domino's needs to build exact strategy that reduce its negative approach
on firm's activities.
 Positive Aspects – Sometimes changes in customers demands provides opportunity for a
firm to show case variety of their products that they can offer to customers easily.
 Negative Aspects – Seasonal, climate and weather changes are negatively affect on
business procedure and its services as well.
P5 Conduct external and internal analysis
External and internal analysis of an organisation can be done by conducting SWOT
analysis of the firm. It encompasses specifying the prime objective of the firm and determine all
internal and external factors whether are they supportive or unfavourable to attain its mission and
10

vision. Below describe the strength, weaknesses, opportunities and threats of mentioned business
organisation: -
SWOT analysis of Domino's Pizza: -
STRENGTHS
Domino's is world's largest pizza brand which
is most recognised by customers. Globally, the
firm is linked with good quality food as well as
on time deliveries.
The business organisation has an efficient
business model by its operating years.
Domino's business model is associated with
international and domestic franchise royalties,
revenue from from supply chain and retail
chains. Thus, simplicity in store level and
flexibility in store operations gives the
company a broad advantage over rivals.
Another major strength of Domino's is, it is
continuously invested in technology and
innovation for seeking long term growth. In
2016, more than 50% sales of the firm was
came through digital platform, recently, it has
launched zero clicking order.
The business unit is highly remained on
generating new products so as to attract new
customers and obtain the old ones. The main
innovation of Domino's are – Handmade Pan
Pizza, Stuffed Chessy bread, Parmesan Bread
Bites etc.
Its faster than expected services delights the
people and aids the firm to differentiate from
others. The organisation is also trying to attract
WEAKNESSES
As compared with Pizza Hut, the range of
Domino's Pizza is very low. Pizza Hut operates
over 100 markets where as Domino's served
only in 85 markets.
Another weakness of the company is, instead
of being innovative in its business model,
Domino's is involved in franchisee related
issues. In addition, cause of high franchised
outlets, the company has to deal with quality
control and further operational obstacles.
High calorie and high far food is not so good
for people, it increases obesity among them.
Expensive prices of products as compared with
small competitors.
11

middle class people for improving sales and
extend market area.
OPPORTUNITIES
Introduction of new flavour additives and pizza
toppings which are region specific that can be
an effective stride for the company.
Growing and diversifying presence in
emerging markets.
Strengthening its outlets network through
penetrating in current market will help the
organisation to driven up its revenues.
THREATS
Intense competition with national and
international players.
The government and NGOs are aware about
health as well as people also like what to
consume and what to neglect; it can affect the
business of Domino's.
P6 How strength and weaknesses are interrelated with external factors
In a corporate association all working activities are interconnected with each other. Firm's
strength and weaknesses are depend upon external factors, i.e. political, social, economical and
environmental factors. As if the SWOT strategy of the company supports it to sustain high
competitive edge. On the other hand, if the business organisation has strong and healthy political
relations with a country it can easily expand its business over there which expand market area
and presence of the firm. Domino's Pizza will not follows all terms and conditions of a nation
and produce in illegal manner thus it cannot survive successfully in market for long term period.
Furthermore, if UK government eradicate certain tax rates and rebates among products
and services of the firm the its business organisations easily perform at there. In context of social
elements, if an organisation does not fulfils its social responsibilities, i.e. not serving quality
added products and using previously expired raw materials then it can affect customers
purchasing decision and reducing its market image. Social responsibilities also entails with,
managers should recognise needs and wants of people and then served them products
accordingly. Sometimes social development is helpful in develop has positive affect on business
and its performance. Along with this, the prime strength of Domino's Pizza is it is using new and
innovative techniques in its manufacturing process so as to provide faster delivery services to
people. It helps in improving buyer's trust and faith upon the brand which extend its global
presence as well.
12

CONCLUSION
It has been concluded from above mention report that business environment is one of the
crucial aspect that highly affect firm's growth and success. It is essential for managers to analyse
all those external and internal factors which can put a more affect on activities of business and
functional area. In addition, on the basis of their size and purpose business organisations are
divided into three parts, such as- public private and voluntary sectors. In which public sector
organisations works under control of government whereas private sectors establish to gain high
sales revenues and competitive advantages. Apart form this, the organisational structure of
Domino's diversify into various departments, i.e. finance, human resource, marketing etc. In
order to examine macro environmental factors, company should conduct PESTLE analysis
whereas SWOT analysis has been conducted in order to measure external and internal factors.
13

REFERENCES
Books and Journal
14

15

16