Managing Operations of Domino’s

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.

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.

Managing Operations of Domino’s 2
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

Managing Operations of Domino’s 3
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.

Managing Operations of Domino’s 4
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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).

Managing Operations of Domino’s 5
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

Managing Operations of Domino’s 9
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-

Managing Operations of Domino’s 10
 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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Supply Chain
The organization Domino’s have an approach that is for the effective management of
their supply chain which is make-to-stock approach. This approach has been adopted as the
company has a lean production policy along with stock control. They also have a
management policy which is for the just in time stock. Domino’s has a very innovative and
modern model of supply chain which ensures that the different purchases which are made in
the different franchises all around the world are managed centrally. Domino’s has a supply
chain network which is known as Domino’s supply chain services. This subsidiary is fully
owned and is responsible for supplying the dough, kitchen equipment and various raw
materials which includes the different ingredients that are helpful in the production process.
This also includes the machinery which is required for production (Narayanan,
Balasubramanian and Swaminathan, 2010). Other important aspects of the supply chain-
 Domino’s has a centralized department of buying, this enables the company to
leverage their power of buying, which also facilitates them with an opportunity to
negotiate for all their different purchases. The scale on which the purchases take place
also determines whether the suppliers will be included in the Domino’s supply chain
services. For example, Domino’s has a very close relationship with Coca-Cola. Coca-
Cola is more like a partner than a supplier and are also a part of the Domino’s supply
chain services. This has happened because Domino’s agreed to the terms of selling
only Coca-Cola products in all their stores in the entire world.
 Domino’s has a centralized system that helps in ensuring the quality of products
which are being used for the food. Also the supply of similar kitchen equipment and
machinery makes the task of training the staff very easy.
 Domino’s has a large purchasing power due to their wide market. This helps the
company to hedge appropriate prices, especially during the time of price fluctuations.

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This also enables them to utilize and apply their bargaining abilities and power with
the suppliers (Reimann and Ketchen, 2017).
 Domino’s has centralized their supply chain services in their master franchises too.
Here to understand this better, example of the United Kingdom has been taken for
better understanding.
 All the foodstuff and the raw material in the UK is prepared at Milton Keynes,
which serves as the central commissary.
 From here the raw material is forwarded to the distribution centers, which are
situated in Penrith, Nass & Milton Keynes.
 The distribution centers, then supply these foodstuffs to the individual stores
mostly once in three days. But the supply of the stores also depends on the
requirements of the stores which are tracked through the Domino’s PULSE
system (Riley, 2010).
 Importance of Forecasting: Forecasting is also an important role in the supply chain
of dominos. The different methods of forecasting which the company utilizes is for
the smooth working of the supply chain. With the help of forecasting, the company is
able to recognize trends which influence the operations of the supply chain. Some of
these trends are very helpful in bringing alteration in the supply chain which further
helps the organization. Forecasting is also utilized by Domino’s in calculating the
seasonal shifts in the demand. The management then makes some changes which are
finalized after the seasonal forecast.

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Scrutinizing of the Business Quality
Domino’s has a huge pressure on them for maintaining the quality of their products as
it is important for their brand image and for maintaining loyal customers of the company.
There is more added pressure on them as the pizza world widely is identified as a food which
is “unhealthy”. Domino’s has a supply chain of their own and there is a process which is
followed strictly. From the central commissary, the raw materials are sent to the distribution
center. And from there they are forwarded to the individual stores and which happens at
every third day. This regularly movement of food stuff helps in preventing over pilling and
also completely supports the just in time philosophy. This is a good approach as it helps in
maintaining the quality of their each product as all the raw materials used are fresh and
nothing is stale (ROTH and MENOR, 2009).

Managing Operations of Domino’s 15
Domino’s also has a procedure which is applicable for the approval of all their
supplies. Through this process all the food products have to go through fulfilling all the
standards and requirements which are stated by the company to their suppliers. They also
have a food technology, which they utilize for their each product, ensuring that all the food
stuff supplied to them is of high quality standards, is safe and also legal.
Domino’s also ensures that all the products and foodstuffs are risk assessed and the
wide variety of products which they use fulfills the global standards of BRC that are for food
safety. They also use the food technology standards which are also utilized for checking the
quality. Regular assessments are also conducted on all the suppliers. Quality checks are also
performed on various samples which have been taken for analysis and also on the delivery
products. The quality check is also conducted through the feedbacks which have been
received by the consumers.
Domino’s performs a lot of activities which are important for the quality check of the
product. But the organization does very little for checking the quality of the service which is
provided to the customers. Customer service is very crucial as it is through it that helps in
forming loyal customers for the company (Sulek and Hensley, 2010).
Recommendations for the Alternative Managing Operations
Amongst all the popular food chains in the world, Domino’s stands on the 12th
position. Different food chains are ahead of it due to the new strategies which they are
applying with the changing trends in the society and the world. There is an emergency in
Domino’s that is asking for new strategies which have to be implemented to increase their
world ranking (Yagci, 2011).

Managing Operations of Domino’s 16
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The most appropriate model which should be implemented for improving the
performance of Domino’s is the Slack Model. This model is best for prioritizing performance
and is based on a criteria which is effective for winning orders. This model will also be
helpful for Domino’s to resolve issues which it is currently facing due to high competition.
 Excess Zone: Domino’s has the habit of giving their customers a lot of discounts.
This is their strategy to attract more customers. Now, the various offers of discount
due help in attracting customers, but a large number of discounts, leads to less margin
of profit and above all tends to reduce the brand image in the people’s eyes. Domino’s
has to bring a control over their discount offers which will definitely not affect their
sales (Corsinovi and Gaeta, 2015).
 Appropriate Zone: The Company has a very strong image of an unmatched and
effective home delivery. The highest efficiency in delivering food has helped him in
staying ahead of its competitors. The “30-minute-delivery” has given the company a
solid image in the eyes of the customers. This is the biggest strengths of Domino’s
which also shows and creates a balance between their competitors and Domino’s.

Managing Operations of Domino’s 17
 Improvement Zone: Domino’s has to do something which will inform people about
their quality products. They have to build new strategies which help in exhibiting and
popularizing their quality standards, through means of advertisement or any other
medium which broadcast and publicize the quality of their products (Cucchiella and
Koh, 2012).
 Urgent Action Zone: Domino’s has to build diverse and new plans which will help in
checking their customer services. The various competitors of Domino’s have been
successfully in taking away their customers due to the competitor’s effective customer
services. Also, the product design of the company is asking for improvement and
urgent actions (Jabbour, 2009).

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Evaluation of the New Strategies
It is very important for the Domino’s to regularly evaluate the performance of the new
strategies which has been implemented for the betterment of the company.
 All the new strategies which have been implemented can be effectively evaluated
through a keen observation or monitoring. Monitoring of the changes which have
taken place after the implementation, will inform about the different aspects clearly.
For example, monitoring of reduction of the discount which are given by the company
on sales will help in evaluating the customer’s perspective (Tachizawa and Wong,
2015).
 Evaluate the customer service through a quality call or a service call to the customer.
Ask them about their experience and also the improvements which are needed by the
company.
 Conduct surveys and question the customers the different aspects which make
Domino’s better from its competitors and what are the areas in which it lacks behind
(Talib and Randhir, 2017).
Conclusion
After analyzing the different aspects of operation management of Domino’s, it can be
said that the company is in a situation of flux. The company has shown a lot of innovation
with the increasing competition, but all of them were push-based, whereas they should
always be pull-based. The company is building strategies which are more of a catching up
attempt rather than excelling the competitors and reaching bigger heights. Domino’s has to
bring changes which are intuitive and also customer-oriented, which will help in gaining its
lost customers and forming new ones.

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