BUSM 4192 Introduction to Management - Dominos Case Study
Added on 2020-03-07
10 Pages2306 Words341 Views
Leadership ManagementStatistics and Probability
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DOMINO’S CASE STUDY 1DOMINO’S CASE STUDYCourse Professor’s Name Institution Location of Institution Date
DOMINO’S CASE STUDY 2DOMINO’S CASE STUDY1.IntroductionEffectiveness in leadership entails a lot of things. One has to ensure that there is profit maximization while at the same time there is minimal employee exploitation. In addition,no matter what hierarchical position a leader belongs to, he or she should make sure that there is closeness with those who rank lower so that he or she may not fail to notice their struggles or difficulties. Several companies only have the illusion that their workers are satisfied whereas this is never the case. As most companies adopt the system of increasing their sales by the use of franchises, the probability that workers are suppressedor neglected becomes quite high. A look at the Dominos company gives some insight on the leadership challenges faced by most companies today and some of the remedies that can be useful in solving these challenges.2.Background InformationThe story behind the founding of the company is inspiring and also interesting in equal measure. The idea came from two brothers namely Tom Monaghan and James. They opened a joint pizzeria in the year 1960. James soon sold exchanged his half of the sharesfor the car that they used for deliveries, a Volkswagen saloon. His brother would use this money to purchase three other shops, which would soon grow into what is today one of the largest companies in Australia with a global reputation (Bell et al., 2013). The successstory of these pizzerias is symbolically represented in the company logo by three dots. Toms company reached the Australian market in 1983 with the first shop being located inSpringwoods. Its establishment was quite rocky but soon it managed to dominate the
DOMINO’S CASE STUDY 3market through master franchising Upon its listing in the stock market, it turned out to be one of the largest companies with more than 2000 stores (Dunn, 2012).3. Issues and ProblemsDominos is faced with a lot of problems, most of which can be attributed to the type of management that the organization has. Not only does the company have a C.E.O who is not aware that there is exploitation in the franchises, it is also evident that he thinks that the company has one of the best policies for its employees. He unfortunately thinks that the problem can be solved by the use of latest technology, in line with what Taylor in his scientific theory advocates for. This leadership style however limits decision making to just a few characters (Wrege and Greenwood, 1991). The purchase of the computer screens helps in monitoring the problem but does not solve the underlying leadership challenges. Moreover, the focus of the company is clearly on the growth of sales of the franchises as opposed to profit making. The structure of the company is clearly mechanistic. Such structures result in the centralization of power and consequently the distrustful management (Jones and Jone, 2010). This is the most probably the cause for unethical practices such as the recycling of dough that deserve to be discarded by the company. The stiffness in competition is also a notable cause for the poor working conditions by most of the workers as reflected in the case of Josef Yap who is stressed as a result of the long working hours coupled with the lack of proper aeration in the work environment. Apparently, reporting the situation to those who rank higher than those in charge of the franchises is very difficult. This is one of the disadvantages of autocratic leadership which is practiced in the firm. It denies subordinates the avenue to express themselves without fear( De Hoogh et al,2015). One can easily be victimized for doing
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