Domino's Operations: Supply Chain, Value Chain & Strategies

This report provides a comprehensive analysis of Domino's operations management, focusing on the value chain, supply chain, and quality control. It examines Domino's corporate vision, global objectives, order qualifiers and winners, and the value chain activities that contribute to its success. The report also scrutinizes the business quality, particularly at the store level, highlighting operational layouts and the PULSE system. Domino's make-to-stock approach, centralized supply chain services, and forecasting methods are discussed in detail. The report concludes with recommendations for alternative managing operations and an evaluation of new strategies, providing insights into how Domino's can further optimize its processes and maintain its competitive edge in the global market.

Managing Operations of Domino’s 0
Title: Managing Operations of Domino’s
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Managing Operations of Domino’s 1
Executive Summary
This assignment has been prepared with an approach of understanding management
operations in an organization which is service based. The key objectives include the
importance of the value chain, supply chain and quality. All these aspects have to be keenly
observed and examined to gain a deeper understanding. This assignment has taken Domino’s
as the organization which have a huge service base and all the aspects have been keenly
examined. The different aspects have provided with some new strategies which are the need
of the hour for Domino’s. This assignment has provided with ample amount of information
which should be applied for effectively managing operations of a company.

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Contents
Introduction................................................................................................................................2
A Real World Service Business Operations...............................................................................3
Corporate Vision....................................................................................................................3
Performance of Existing Business Operations...........................................................................5
Global Objectives...................................................................................................................5
Order Qualifiers & Order Winners........................................................................................5
The Value Chain....................................................................................................................6
Value Chain of Product..........................................................................................................8
Corresponding Operations Layout (Store Level).......................................................................9
Supply Chain............................................................................................................................12
Scrutinizing of the Business Quality........................................................................................14
Recommendations for the Alternative Managing Operations..................................................15
Evaluation of the New Strategies.............................................................................................18
Conclusion................................................................................................................................18
References................................................................................................................................19

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Introduction
Operations management is a process of administrating business activities to create a
high level of effectiveness in the practices of an organization. The operation management is
basically concerned with the utilization of resources effectively that will help in increasing
the profits of an organization to the maximum level. Domino’s is a global organization which
has the most effective pizza delivery services. The organization functions effectively because
of its unique and successful operational model, which has helped the organization to establish
a business with three outlets into 9,350 outlets, all functioning properly in seventy countries
all over the world. The company Domino’s Pizza LLC, which is situated in Michigan holds
the control and supply of the raw materials to all the master franchises in different countries.
A Real World Service Business Operations
Corporate Vision
The vision statement of the Domino’s focuses on a few key areas which are-
 To always be better than their competitors.
 Providing high standards of quality product.
 Facilitating the customers with excellent services.
 Building loyal customers.

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The vision of an organization enables the company with a clear approach, which is
towards fulfilling those aspects to gain potential customers and increase the profits of the
company (Bakshi and Pinker, 2018).

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Performance of Existing Business Operations
Global Objectives
The main global objectives of the company are-
 More expansion in the international market by effectively targeting the right
audiences.
 The expansion in the variety of the products.
 An effective model which enables excellent delivery services for 24 hours.
 The perfect utilization of the company owned stores, especially in Australia and the
United States of America. This will also help in testing new innovations in these
regions and can be further applied in the world market depending on their success
rate.
 The company’s human resource strategy aims at increasing investments in the areas of
training and also for auditing the store. This has the main objective of increasing
standards of quality in products and achieving more consistent services.
 The company also has a knowledge management strategy which focuses on the master
franchises to use their knowledge and understanding of the local market and their
cuisines for any additional products (BRADLEY and CONWAY, 2009).
Order Qualifiers & Order Winners
Order qualifiers are the basic standards which a product has to meet, for qualifying to
be used as a selling product. Domino’s has a strict standard, which is applied to the each
product and have to go through a process of qualification.
Order winners are the standards which are achieved by a product due to its high
purchasing. The success of a product gets it the final place in the menu of the company
(Chase, 2010).

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The Value Chain
For acquiring better knowledge about the different managing operations, it is vital to
understand the different driving forces which enables Domino’s to create a product. The
value chain of the organization is carried by different driving forces which includes-
 A reliable take away restaurant which has high standards of efficiency.
 A reasonable price system for better quality.
 A wide range of variety which is offered according to the preference of the local
market (DuHadway and Dreyfus, 2017).
Domino’s has successfully garnered loyal customers by focusing on these three key
aspects in their value chain and has not permitted any type of digressions affect their working

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system of the value chain, unlike its competitors. The competitors are using a mixed model
which does not allow them to focus on the core activities as their attention is drawn towards
multiple aspects that are unimportant. The operational model of Domino’s on the global level
focus on a highly skilled staff, lean store and flexibility depending on the various taste buds
in a country (Flynn, Koufteros and Lu, 2016). Domino’s identifies the need for using the
technology for enhancing the customer experience and that’s why the company has also
launched their online application for better customer service. The effective amalgamation of
the company level strategies and the operational strategies has provided the Domino’s with a
reputation of strong reliability and consistency.

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Value Chain of Product
All the activities which are performed by the Domino’s have a main focus on value
adding activities. There are five primary activities which are involved in the working of the

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company which have the key focus on product production and external customers. The
external customers and the services provided to them are paramount for the process to
function perfectly. The company has categorized their activities in many parts and the most
important one amongst them is the support activities. These support activities are very
important for the transformation of the resources. The convenience they provide to their
customers is another important process which helps in forming a strong foundation. All these
are the various processes of Domino’s that helps the organization to effectively expand and
operate in various countries (Gkliati, 2014).
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Corresponding Operations Layout (Store Level)
The main focus of the Domino’s is in providing high quality products and services. The
following corresponding operations are performed in a store-

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 Minimizing the Cost of Operations: Domino’s reduces the operational cost, by
continuously improving their efficiencies and also slowly and gradually bringing an
improvement in their various processes which are a part of their working store.
 Store Locations are Strategically Finalized: Domino’s finalizes the location of their
stores after a strategic plan, which focus more on quick delivery to the customer and
different ways to increase their profits (Gligor, 2016).
 Store Designs are Production Oriented: Domino’s has a main focus on providing
excellent services to the customers. In this attempt the company has a store design
which is production oriented, to serve the customers with better quality and services.
 Efficient Delivery Process: The delivery process has a number of stages, which are
taking orders, preparing the order, boxing and then delivery. The store’s staff work in
a coordination to smoothly work through this process.
 Dominos PULSE System: Domino’s has a PULSE system which has been
incorporated to improve their operating efficiency. This is also helpful in providing
easy access to data associated with finance and marketing that further helps in
improving the corporate management of the company.
 Process & Product Innovation: Domino’s encourages and support different
innovation processes and products which are very helpful in improving the quality
and efficiency in the company (Harvey, Heineke and Lewis, 2016).
 Focused Menu: Domino’s has a well-planned menu that focuses on the needs of the
customers and the quality which is being offered to them. The menu which is
finalized should also have minimum possibilities for errors and it should also be
expediting the complete delivery process specially the order taking process and the
preparation of the order.

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 Evaluation Program for Store Operations: Domino’s has to successfully audit the
store performance and for this they have an evaluation program for the operations of
their stores, also in context with the customers ensuring that all their needs and
expectations are fulfilled (Jerbrant, 2013).
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