Report on Business Model of Domino's
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Added on 2020-06-03
Report on Business Model of Domino's
Added on 2020-06-03
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BUSINESSMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................3Background..................................................................................................................................3Issues faced by the company........................................................................................................3Possible solutions.........................................................................................................................5Proposed plan...............................................................................................................................6RECOMMENDATIONS.................................................................................................................8CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONA business's management is the bridge to its success in the business environment. Thereport includes a study about one of the most successful fast food chains in the world, Domino's.The report focuses on the business model of Domino's and the problems faced by the company inthe current scenario. The report also suggest the possible solution to the problems and proposed aviable solution after evaluation of all the alternatives. BackgroundDomino's is an Australian fast food company. Its has a business model based onfranchisees based on sales of the franchisee. The company earned a revenue of around $939million in the year 2016 which is 2500 percent of its revenue in 2005, which is when it wasestablished. The company grew by a large hike in a decade which is considered as the largestgrowth. The main head office earns via royalty on the every sale of the pizza (Woodcock, 2011).The more the stores, the better will the network get and the sales of the company hike through it.Domino's is known to be having the biggest range in the pizza making industry. The franchiseesales a total of 90 million pizzas in a year. Its has a scheme to deliver pizza in less than 20 minwith extra charge on the delivery. Domino's is known for its cheap pizza with a high quality,which gives the company popular name in the food industry.The company faces a serious challenge from the competitors which demands to lower theprices even further gives the franchisee a low profit or no profit and some times even loss toconjure. The company upgraded its technology to get an edge over the competitors. Thecompany runs in Australia, New Zealand and Europe and earns great revenues from there. Thenew in store computer systems help the managers to monitor the working of the employees. Thescreens, which is visible to every individual in the store, is programmed to show the statisticalknowledge of the average pizza for every employee and how long it's taking to get a pizza outthe door. Store managers get a quarterly bonus based on how much they improve store earnings.Issues faced by the companyNegative impact of activities and management culture in the organization. Besides being one of the largest chain in the world domino's facesvariousproblemwithin its business (Pitt, Napoli and Van Der Merwe 2017).3 | P a g e
Franchisees:The current business model allows it to sustain rapid and swift growththrough the franchisee providing royalty to the head office and with new franchiseebeing bought. Its franchise model is divided into three parts which are as follows: Domino's Pizza LLCMaster FranchiseSub FranchisesSub FranchisesSub FranchisesTable 1: Domino's Franchise Model Source: Operation Strategy (2017)In accordance, with the help of this model, the company audited its every stores locatedacross the globe and terminated four franchisees for doing fraud in wages and salary. The auditassisted the business in identifying the unlawful activities which are carried forward by thestored just to fulfil the greed.The growth is facing hindrances with unsatisfied franchisee ownersand stress being regulated from the owner to the workers in the franchisee. The company selectsfranchisee owners carefully and the policy framed holds responsible the franchisee owners forunsuccessful running of the store. The bad management in the franchisee is the held toresponsibility of a non profitable business franchisee (McGrath, 2010). The business modelallows the company to take royalty on every sale the franchisee makes. This enables the headoffice a large amount of royalty from a franchisee.Worker unhappiness: The pizza chain is extended globally and is serving customersatisfaction since ages but the unhappiness of its employees cannot be portrayed inpublic. The manager of business analysed that there are few stores where illegal practicesare continuing which includes, illegal sponsorship of workers, favouritism, abusivebehaviours with workers and many more. Further when the manager discussed thisproblem with the top management, the team identified that there are many more activitieswhich are leading towards unhappy behaviour of staff which are, less working hours thanactual hours which are defined by the firm, dictating employees and increments withoutmeasuring performance. Positive impact of activities and management culture in the organization4 | P a g e
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