Operational Issues Faced by Domino's During Internationalization

Domino’s
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Executive Summary
Operation management has become very important for contemporary organizations to
achieve long term sustainability. In the current trend of globalization, organizations have
been identified to be facing a number of operational issues. In this report, Domino’s is
considered and the various operational issues faced by this company during
internationalization have been identified. The identified structural issues are related to
people management, process layout and its supply chain network. The infrastructural
issues on the other hand were identified to be faced related to inventory management,
quality gaps and incorporating innovation into operation management. To overcome
these issues, Domino’s is provided with recommendations in this report.
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Contents
Executive Summary 2
Introduction 4
Domino’s About Us 4
Operation Management at Domino’s 4
Characteristics of Operational Processes 5
4V Model of Domino’s 7
Performance Objectives 8
Supply Chain Network 9
Summary of Issues 10
Structural Issues 11
Infrastructural Issues 11
Analytical and Feasible Recommendations 11
Conclusion 12
References 13
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Introduction
Operation Management (OM) is the process of managing various activities that are
required in the process of manufacturing products and services (Slack et al, 2010). The
transformation model is one of the core components of operation management, as it
involves in transforming the inputs to the required output products/services. In the
current era of extensive globalisation, many medium and larger companies started to
enter new markets in order to avail the different opportunities in it. Entering new
markets require internationalisation of all the key operations of an organisation, in which
organisations tend to face a number of challenges (Barnes, 2018). This report intends in
identifying the various challenges faced by the companies during internationalisation of
its operations.
In this report, Domino’s Pizza which is one of the leading pizza manufacturing
companies is considered in this report. Through Franchising, Domino’s has entered into
several markets like UK or European and Asian countries (Domino’s, 2019a). The
international operations of Domino’s are analysed in this report and the different
challenges faced by it are identified. This analysis of local and international operations of
Domino’s is under pinned by theoretical frameworks related to operation management
such as transformation model, 4V model supply chain network and quality gap model.
Based on the identified challenges some recommendations are provided as solutions for
Domino’s in this report.
Domino’s About Us
Domino’s Pizza Group PLC has started in the year 1960 by establishing first store in USA.
The business idea of Domino’s involves in delivering hot and fresh pizzas quickly and
safely along with protecting the local community (Domino’s, 2019b). The concept to
internationalise has started at Domino’s from the year 1985 itself, when the company
has established its first store in Luton, Bedfordshire, UK. Under this concept to
internationalise, Domino’s has entered into several Asian and European countries by
finally having 1,100 stores across six countries around the world (Domino’s, 2019c).
Operation Management at Domino’s
The operation management at Domino’s involves in the process of managing the
different resources used to convert input resources to output. Transformational model
specified by Barnes (2018) can better explain the impact of internationalisation on
operational management at Domino’s. Among resource based and market access
strategies of internationalization, Domino’s has been adopting market access strategy.
This market access strategy adopted by Domino’s has made the company to enter into
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