Negative Media Attention on Domino's Australia: Strategic Problem and Analysis

This presentation focuses on the negative media attention faced by Domino's Australia due to underpayment of workers. It analyzes the strategic problem and provides recommendations to improve the organization's reputation.

Capstone - Strategic
problem and analysis

Table of Contents
• Introduction
• About Domino’s Issue
• Strategic problem that cause negative media attention
• Conducting analysis
• Set of strategic recommendations
• Conclusion

Introduction
Negative publicity of organisation in the media decrease the sales and
growth of the corporation. In order to increase the reputation and enhance
the customer base, the management of organisations needs to consider the
importance to public relations and present themselves precisely in front of
media. The following presentation will focus on Domino's Australia as they
were featured in the Australia media in negative light.

About Domino’s Issue
• The issue arises in the beginning
of 2017 where the management of
Domino's were highlights in the
Australian media due to there
underpayment of workers.

Cont..
• This was the serious issue that was discovered at the time where company
was enjoying high rate of profits and revenue.
• It was identified that the pizza chain has recovered AU $1.1 billion after
hearing continuously complaints of staff.
• It has also recovered $770,000 in unpaid wages and superannuation from its
completed audit of 15 stores and further audit is going in 41 stores.

Strategic problem that cause negative media
attention
• The reality of life inside the
Domino's Pizza chain is not what
is portrayed to the public.
• The management and manager
collaboratively formulate the
strategy in order to earn higher
revenue and profits.

Cont.…
• Domino's is the leading pizza chain in whole Australia and the organisation
improving many techniques in order to increase their sales and
organisational reputations.
• In early 2017, the management faced a issue related with the underpayment
of staff and worker in more than 15 stores in Melbourne and Sydney.

Cont..
• Del Santo who was one of the biggest and most powerful franchisees and a
member of Domino’s influential Franchisee Advisory Committee, told the
manager of more than 15 stores to cut the labour rate so in order to earn higher
revenue.
• The franchisee manager was found to be culprit for the issue arises in and this
issue attracts not only local media but also the international media.

Conducting analysis

Cont..
• The scam begins in 2015 and was identified in 2017 when many employees
complaints to the top management about the underpayment of wages and
exploitations of labour rights.
• It was identified that the pizza chain has recovered AU $1.1 billion after
hearing continuously complaints of staff.

Cont..
• The Group Chief Executive
Officer (CEO) & Managing
Director Don Meij formulate a
special task force in order to
analyse the reports and audit
committee has been formulated.

Cont..
• Domino's said it is withholding a total of $487,000 for wage back-
payments at those six stores.
• It was considered as the serious issue the management of Domino's faced
serious harm to their image.
• The issue attracts the media and it impacts negatively for the organisation.

Cont..
• It was identified that the complaints were genuine.
• Three Domino's franchisees who have an aggregate of six stores were no
longer a part of the business.
• Due to shutting down four franchisees, the management faced loss to the
company.

Cont..
• The underpayment of staff raised
in February 2017 which thrashed
the share prices of the
organisations.

Cont..
• Due to negative image, shareholders withdraw their holdings and
ultimately the share price of the organisation begins to decline.
• The management is trying their best in order improve their image by
formulating press conference and developing good image in front of
media.

Cont...
• Don Meji opted to forgo cash bonus of over $500000 because of the
underpayment scandal. Further, the management will raise the existing wages
of the staff so that their motivation and satisfaction can be increase.
• Thus, the management will able to regain their employee trust and support and
thus, they can accomplish their desired goals and objectives effectively and
efficiently.

Set of strategic recommendations
• It is recommended to the management to formulate strict provisions and
amendments which prevents employees exploitations.
• A special team must be formulated which helps the management to check all
stores financial positions.
• It is recommended to the top management to transform their wage policies
and make rules and regulations so that nobody would disobey it.

Cont..
• It is being advised to the management to build good public relations so that
their brand image can be improve in front of media.
• It is recommended to the management to terminate those managers or
workers who conduct illegal activities within the organisation or store.
• Workers faced issues in kitchen, thus, it is recommended to the management
to improve the work conditions in the organisation.

Conclusion
From the following presentation, it can be understood that in order to
increase the brand reputation in the market, it is very essential for the
management of organisations to formulate effective public relations with
media.

References
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Employment Standards in Australia: A Review of the FWO’s Activities from 2006-
2012. Centre for Employment and Labour Relations. Law Melbourne Law School.
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pp.563-575.
• Hoyle, S., 2017. The essential challenge of AI. Investment Magazine, (141), p.24.

Cont..
• Sanders, M., 2016. Yeah, nah the boys. Green Left Weekly, (1120), p.9.
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Online
• Christodoulou, M., and Ferguson, A., 2017. Domino's scandal: franchisee
selling visas . [Online]. Available through:<
http://www.smh.com.au/business/retail/dominos-scandal-franchisees-selling-
visas-20170211-guau8x.html

Cont..
• Domino's uncovers $1.1b in underpayments. 2017. [Online]. Available
through:<
https://www.sbs.com.au/news/domino-s-uncovers-1-1b-in-underpayments
>
• Guzman, D. M., 2017. Domino's Pizza under investigation over
underpayment claims. [Online]. Available through:<
http://www.afr.com/news/policy/industrial-relations/dominos-pizza-under-
investigation-over-underpayment-claims-20170203-gu4wz4>

Cont..
• Kainth, S., 2017. Domino's Pizza chain allegedly involved in visa
sponsorship scam. [Online]. Available
through:<https://www.sbs.com.au/yourlanguage/punjabi/en/article/2017/02/1
3/dominos-pizza-chain-allegedly-involved-visa-sponsorship-scam>
• Pash, C., 2017. Domino's has found that pizza workers were underpaid by
hundreds of thousands of dollars at 15 stores [Online]. Available through:<
https://www.businessinsider.com.au/dominos-has-found-that-pizza-workers-
were-underpaid-by-hundreds-of-thousands-of-dollars-at-15-stores-2017-8
>

Thank You