The report provides a strategic plan for Domino's Pizza Enterprises in the fast-food industry. It includes a macro and micro analysis, SWOT analysis, and business strategies. Find comprehensive study material on strategic management at Desklib.
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Running head: MANAGEMENT Strategic Management Name of the student Name of the university Author Note:
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2 MANAGEMENT Executive Summary The report is based on the strategic plan for the Domino’s Pizza Enterprises in the fast- food and food takeaway industry. The report has provided a macro as well as a micro analysis of the business organization in Australia. The analysis has been done by means of doing a SWOT analysis as well as a PESTEL analysis. The different kinds of the organizational analysis along with the providence the different business strategies of the organization have helped the business to ensure success.
3 MANAGEMENT Table of Contents 1. Introduction..................................................................................................................................5 Background of the Business........................................................................................................5 2. Assumptions................................................................................................................................6 3. External Analysis.........................................................................................................................6 3.1 Macro Environmental Analysis.............................................................................................7 3.2 Micro Environmental Analysis..............................................................................................8 3.2.1 Key Success Factors...........................................................................................................9 3.2.2 Industry Analysis................................................................................................................9 3.2.3 Analysis of the Competitors...............................................................................................9 4. Stakeholder Analysis.................................................................................................................10 5. Internal analysis.........................................................................................................................10 5.1 Company performance.........................................................................................................10 5.1.1 Triple Bottom Line...........................................................................................................10 5.2. Competitive Advantage......................................................................................................11 5.2.1 Evaluation/Assessment of the Current Strategies.............................................................11 5.2.2 VRIO Analysis..................................................................................................................11 5.3 SWOT Analysis...................................................................................................................11 5.4 Long term viability of the business.....................................................................................12
4 MANAGEMENT 6. Business Strategic Goals............................................................................................................12 6.1 Short Term Corporate Goals................................................................................................12 6.2 Long Term Corporate Goals................................................................................................12 6.3 Short Tem Business Unit Goals...........................................................................................12 6.4 long Term Business Unit Goals...........................................................................................13 7. Possible Strategic Options.........................................................................................................13 7.1 Theory related to corporate level strategies and their development....................................13 7.2 Specific possible strategies for the future............................................................................13 7.2.1 Possible Corporate Level Strategies.................................................................................13 7.2.2 Possible Business Unit Strategies.....................................................................................13 References......................................................................................................................................15
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5 MANAGEMENT 1. Introduction The following report is based on the strategic plan for the Domino’s Pizza Enterprises in the fast-food and food takeaway industry.The report has highlighted an external as well as internal analysis alongside a stakeholder analysis of the business in Australia. Each of the different strategic analyses has been divided accordingly to make the report more precise and informative in nature. The external analysis has been divided into the macro and the micro environmental factors which will be examined by the Porter’s Five Force Analysis. on the other hand, the internal analysis will be performed by means of the SWOT Analysis, Value Chain analysis and the VRIO framework. Background of the Business Domino’s Pizza was founded in the year 1960 and has been one of the largest producers and sellers of different kind of pizzas. The food chain has its main headquarter in Michigan, USA and has a large number of different stores all across the globe. In the year 2018, February, it became the largest pizza seller in terms of sales. The Australia headquarter of the company is located in Queensland. With an annual revenue of around A$150.68 million and lose to 30,000 employees, the management of the company maintains the tag of one of the largest in the island nation of Australia. The first store of the company was opened in year 1935 and since then had rapid expansion around the country. This massive expansion plans helped the business to currently own more than 700 stores in the country.There are different kinds of the issues that plague the organization. First of all there are a number of different local companies that are providing substitute products to the customers. The slow rise of the other companies and hr loss of market share has been the major issues for the organization for a number of years. Apart from
6 MANAGEMENT this the low pricing strategy of the other companies has also been a source of major problem for the business organization. 2. Assumptions Domino’s Australia is a highly reputed food chain in Australia. It has been assumed that a number of different sources both internal as well as external is equally capable of leaving a mark on the company. The balance of both the internal as well as the external sources helps the organization to ensure the success of the business accordingly.The economic strength of Australia has supported the growth and sustainability of the different kinds of the fast food chains like Domino’s. The stable economy of the country has been the main reason behind the rise of the business organization in Australia. 3. External Analysis PESTEL Analysis a.Political Analysis-The political stability of Australia has helped the organization to ensure the success of the business in a proper an effective manner. b.Economic Analysis-The economic stability of Australia has been one of the main reasons behind the success of the food corporations of the business. c.Social Analysis-The people of Australia has great liking for fast food therefore the fast food industry has a great market in the country. d.Technological Analysis-The use of the online applications and the use of the other technology has been one of the major advantages for the fast food chains of Australia.
7 MANAGEMENT e.Environmental Analysis-The management of the fast food organizations adheres to all the different environmental standards that are structured by the federal Government of Australia. f.Legal Analysis-The organizations involved in the fast food chain abide by the different legal guidelines set out by the federal Government of Australia. 3.1 Macro Environmental Analysis The macro environmental analysis of the business has been verified by means of the PESTEL analysis. The company is free from any political interference just because of the political stability of the country. The foreign investors and the business partners are quite encouraged at the presence of a political hassle free environment. On the other hand, the economic factor has a high rate of influence over the financial performance of the business. The company had a financial crisis during the recession period which led to the absence of the economic stability in the business. The management of Domino’s Australia has been able to achieve new means of fulfilling the needs of the customers in the most proper manner. The changes have been identified according to the social context. The loyalty program and the Reward card has been the best example to promote social development for Domino’s Australia. The management of Domino’s Australia has been able to innovate and implement different technology to the retail sector which has been helpful for them to increase their business in the most proper and effective manner. The legal factors of the business include the different types of the taxation policies related to the smooth recruitment of the people. The management of the business, in addition to these legal aspects also considers the food licensing requirementsthatareimportantforthecompanytoensurebusinesssuccess.lastlythe
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8 MANAGEMENT management of the company practices socially responsible and sustainable business practices to ensure sustainability of the business organization. 3.2 Micro Environmental Analysis The micro environmental analysis of the organization will reveal the different kinds of the internal analysis of the organization using the Porter’s Five Force Analysis. The analysis has been represented by a short yet compact table given below; Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products Rivalry among the competitors Low pricing strateg yof other compa nyand promot ing wide scale innovat ion has beena source of worry forthe compa ny Innovation of new products andservices providesold customers the reason to buy food products from Domino’s Australia Buyers areoften a demandin glot. They wantto buythe best offerings available by paying the minimum priceas possible. Thisput pressure on Dominos profitabili tyinthe long run. There are threats from substitute products as similar products are present inother organizat ions. The managem ent has to be service oriented and must increase the switching costof the customer s Rivalry among the existing playersis a cause of great concern. the company hasto build strategies thatare unique and different andhelp the business togain success
9 MANAGEMENT 3.2.1 Key Success Factors The management of the organization must ensure the success of the business by building an efficient supply chain and a large base of customers. The company must also remain service oriented and increase the switch of the core of the customers. Following all these different recommendations, the company will be able to gain success in the market. 3.2.2 Industry Analysis ThePorter’sfiveforceanalysisofthefollowingreporthashighlightedthekey perspectives of the external business analysis. It can be said that Domino’s Australia, though a largely successful and experienced food chain market in Australia, the company is in threat of losing the status to other business organization like McDonalds. However, any investment into the company is always welcomed as because the company has been able to make sure about the effectiveness of the business. On the other hand the Porter’s Force analysis is helpful in analyzing the market specific factors such as the bargaining power of the buyers, the suppliers, the rivalry in the market, the threats of new entrants, threat of substitutes in the market 3.2.3 Analysis of the Competitors The competitor analysis of the organization has been provided in the assignment 1. The table used to complete the competitor analysis has clearly shown Pizza Hut to be the main competitor of the company. However McDonalds which has recently got into the pizza business has also been a source of worry for the management of Domino’s. On the other hand both KFC and Starbucks are not direct competitors of Dominos in Australia.
10 MANAGEMENT 4. Stakeholder Analysis The stakeholder analysis of Domino’s Australia has clearly defined about the wants and needs of the stakeholders of the organization comprising of the employees, owners and the customers of the business. The organization has to develop itself by considering the demands of these group o stakeholders to provide a better query solving approach and gain the best results in the market along with serving the best food to the customers. therefore an effective stakeholder analysis is the key to the success of the business in the market. 5. Internal analysis The internal analysis of the brand helps the organization to gain an idea on the internal strength, weaknesses, opportunities and threats that can be faced by the business organization. The internal analysis is useful to formulate a proper and effective strategy that can be helpful for the success of the business organization. 5.1 Company performance 5.1.1 Triple Bottom Line The triple Bottom Line framework has identified the measures taken by the management of Domino’s in Australia to address the environmental concerns. Some of the major measures that have been taken up by the organization include concentration of the sustainability of the food, engaging socially and offering the best quality food. Apart from this the company has also started to use plastic and non-bio degradable materials. Regarding the planet, they have focused on the energy improvements, the waste reduction through improving the supply chains. They have also improved their transports and reduced their carbon footprints on the environment.
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11 MANAGEMENT 5.2. Competitive Advantage 5.2.1 Evaluation/Assessment of the Current Strategies The global recognition of the Domino’s brand is the main reason behind the success of the organization. The quality and variety of the food along with the great service offered to the customers stands out as the main talking point for the organization. 5.2.2 VRIO Analysis RESOURCESVALUERAREIMITATIONORGANIZATIONCOMPETITIVE ADVANTAGE Distribution and Logistics Yes No Canbe imitated Yes Yes Corporate Strategy Yes No Canbe imitated Yes Yes Opportunitie sforBrand Extension Yes, Niche Market No Cannotbe imitated High Marketin g budget willbe required Yes Brand Awareness Yes No Cannotbe imitated easily Yes Yes, Well reputed global brand 5.3 SWOT Analysis The major strength of the organization is the networking channel as well as the capability of the organization to provide prompt services. The weaknesses of the organization include the likes of decreasing sales and low staff rates. Apart from this the company has lots of opportunity to expand its market in the country and also overseas. However, the increasing influence of KFC, McDonalds and some other business organizations can be said to be serious threats to the business.The opportunities for expansion in New Zealand and also in other parts of Western Australia provide the company a scope for new business chances.
12 MANAGEMENT 5.4 Long term viability of the business The external analysis of the business has been a great learning experience in this report. The external analysis including the likes of SWOT analysis, Triple bottom Line and VRIO analysis has helped the organization to analyze the business in the most proper and effective manner. The use of the SWOT analysis, Triple Bottom line and VRIO analysis help to identify the inner condition of the brand. The company has stuck to its commitment to the people and the environment. It can be assumed that it will take the company to higher level in future. 6. Business Strategic Goals 6.1 Short Term Corporate Goals The short term corporate goal of the organization is as follows; Maintaining Workplace Diversity 6.2 Long Term Corporate Goals The long term corporate goals of the organization will be to; To be the best operator of Domino’s pizza system across the globe Introduction of training program for the employees to ensure success 6.3 Short Tem Business Unit Goals The short term business unit goals of the organization are as follows; People first policy Become the largest pizza vendor of Australia Centralized business operations
13 MANAGEMENT 6.4 long Term Business Unit Goals The long term business unit goals of the organization are as follows; Business expansion Research and Innovation Maintenance of quality of goods Maintenance of the store atmosphere 7. Possible Strategic Options 7.1 Theory related to corporate level strategies and their development Thetheoriesrelatedtothestrategicdevelopmentofthecompanywillhelpsthe organization to ensure the success of the Company. Inclusion of new and developed technology Removal of barriers Enhancing capabilities 7.2 Specific possible strategies for the future 7.2.1 Possible Corporate Level Strategies The possible corporate level strategies of the business organization are as follows; a.To ensure the presence of a proper and efficient supply chain b.Creation of new stores 7.2.2 Possible Business Unit Strategies The possible business unit level strategies are as follows;
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14 MANAGEMENT a.Revenue generation b.Increase in employee participation
15 MANAGEMENT References Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018).Implanting strategic management. Springer. Dominos.com.au. (2019).Domino's Pizza | Order Pizza Delivery Online | Food Delivery & Takeaway.[online]Availableat:https://www.dominos.com.au/[Accessed15May 2019]. Lasserre, P. (2017).Global strategic management. Macmillan International Higher Education. Michalak, T. P., Rahwan, T., & Wooldridge, M. (2017, February). Strategic social network analysis. InThirty-First AAAI Conference on Artificial Intelligence. Moutinho, L., & Phillips, P. (2018). Strategic analysis. InContemporary Issues in Strategic Management(pp. 46-79). Routledge. Noe,R.A.,Hollenbeck,J.R.,Gerhart,B.,&Wright,P.M.(2017).Humanresource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Papulova,Z.,&Gazova,A.(2016).Roleofstrategicanalysisinstrategicdecision- making.Procedia Economics and Finance,39, 571-579. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017).Strategic management and business policy(p. 55). Boston: pearson.