BUSM3115 - Introduction to Management Dominos | Case Study

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
Name of the Student:
Name of the University:
Author Note:

2
INTRODUCTION TO MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Issue identification...........................................................................................................................4
Possible solution..............................................................................................................................5
Proposed solution.............................................................................................................................7
Recommendations............................................................................................................................8
References and Bibliography.........................................................................................................10

3
INTRODUCTION TO MANAGEMENT
Introduction
This study introduces management case study that explains mixed fortunes at Dominos.
In this particular assignment, emphasis has been given on understanding background of
Domino’s Pizza (Sheth and Sisodia 2015). The case study on Dominos Pizza was presented in a
way where several issues are identified that reveals that workers are not paid for overtime and
there is exploitation of human resources. The current segment identifies issues that are faced by
Domino’s in its operations. Domino’s is one of the Australian pizza chains with a network of
franchises and over 600 retail stores globally. In addition, the shares of Domino’s have surged
and best performers and making a lot of people wealthy. In the year 2016, Domino’s generated
total revenue of $939,976,000. The reality of life inside the Domino’s Pizza chain is not what is
portrayed to the general public. Most The present study explains probable solution where
Domino’s can mitigate the issues as identified in the case study (Armstrong et al. 2014).
Background
Domino’s has the biggest pizza menu in and across the world with more than 2,00,000
options that help in boosting the sales of Domino’s that is more than 90 million pizzas on annual
basis with a guarantee to deliver pizza within 15 to 20 minutes for an extra cost (He, Zha and Li
2013). The business model of Domino’s is based on franchisees growing sales with head office
taking a royalty from every sale where Australians chomp through 1 million of pizzas every
week. In addition, stores are bought and sold on a multiple of these sales and not on profits. It is
understood that more stores will help in generating more sales and that lead to gain profits for
head office (Sheth and Sisodia 2015).

4
INTRODUCTION TO MANAGEMENT
Issue identification
Poor Management Leadership- From the case study of Domino’s, several issues was
related that was hampering the reputation of the overall brand. To this, poor management
leadership is one of the issues that were clearly identified from the case study. The
business of Domino’s relies mainly on franchisees where they take up stores and increase
the sale of the brand. But, this was not the case with the one of the powerful franchises
and member of Franchisee Advisory Committee named as Del Santo. The leadership
style that was adopted by him was wrong and lead to harassing workers who are working
for their stores. On the other hand, Managing Director (Meij) of Domino’s follows
leadership style where he actually thinks behalf of people where more concentration is
given on training its workers so that they know how to work and learn each day. On the
contrary, being a store franchisee, Del Santo asks his store manager to reduce labor costs
by any means possible. The main issue was exploitation of human resources at Dominos
Pizza where staff members are not paid for their work and force them to work more
without pay. Other problem that was found at the time of audit of Dominos is the stores
of the company give rise to wage fraud. Franchisees mostly blame the head of office
system if anything went wrong and that lead to poor quality of food and delivery.