Organisational Strategy

This report discusses the concept of organisational strategy and its role in business expansion. It focuses on the case study of Domino's Pizza, analyzing the external challenges faced by the company in the UK market and its internal resources. The report also explores strategic options and directions for future growth in both the UK and international market.

Organisational Strategy

INTRODUCTION
Organisational strategy is defined as sum of all the actions and strategies adopted by
business so as to have their market expansion and business development as well. These strategies
are helpful for the business in implementing their strategic plan in effective manner. This report
has been prepared on the basis of Domino’s Pizza case study in which external, internal and
industry analysis has been taking place (Johnson, 2016).
MAIN BODY
Key challenges faced by the company in the external environment in the UK
In order to understand external environmental challenges of Domino’s, PESTLE analysis
has been elaborated as under:
Political factors
Domino’s Pizza is willing to expand their business in UK and for this they are opening 28
new stores across UK. Within political factors the company is having high threat of political
instability which is occurring due to Brexit agreement. On the other hand regulations regarding
minimum wages are proven to be a challenge for Domino’s Pizza as this may increase their over
cost and profitability in adverse manner. Similarly enforceability of several labelling and
packaging acts is also a challenge to Domino’s Pizza in UK to stay adhered to these rules and
regulations (Perera, 2017).
Economic factors
Within this factor Domino’s Pizza is facing various challenges as their success within UK
is wholly dependent on economic conditions within the country. In UK economic condition is
quite low due to Brexit as this is having directly impact over purchasing power of civilians due to
which private food industry is seeing their negative future. So this factor is having high challenges
for the business as they are having expansion plan within UK and die to these factors the company
is required to put more efforts on minimise their cost of the product (Bhosale and Deo, 2018).

Social factors
Domino’s Pizza is dealing with all class of people whether high, middle and upper middle.
They are having very efficient portfolio of their product through which they are able to grab their
customer in a very considerable manner. In current competitive world there are so many
competitors which are having differentiated products from Domino’s Pizza to cater to the
customer, this leads to changing demands of customer. For this Domino’s Pizza is having
challenge to deal with those needs and meeting them by introducing new flavours and products.
Technological factors
Domino’s Pizza is using high tech machines in their manufacturing process which helpful
for them to take out effective output and in saving time in production time so as to deliver their
pizzas and other products to customer in no time. On the other hand by increasing trend of social
media Domino’s Pizza is highly active on these platforms so as to promote their product by
distributing coupon and vouchers. Within this factor the major challenge which is faced by
Domino’s Pizza is threat of using obsolete technology within their machines this will cause them
high investment within their expansion process.
Legal factors
The company is required to enforce so many laws as UK is highly strict within application
of numerous laws such as food and safety law, employment laws, data protection laws etc. These
laws are causing additional cost to Domino’s Pizza in UK expansion programme as they are
required of legal officer who can handle this enforceability.
Environmental factors
UK government is highly focused on environment activist so they have very strict rules and
regulations for environmental protection processes usage within any business which in conducting
in UK. As Domino’s Pizza is having their plan to have market expansion within UK all these laws
are applicable to them and by adopting several measures to protect environment the company has
become a green company but on the other hand these processes requires additional investment in
making recycling plants and other equipment.

The internal business situation and resources of the company in the UK
Domino’s Pizza is willing to expand their business in UK by opening 28 stores within
numerous places in the country. Within this process it is essential that they recognise their own
business situation and procured resources in order to use them in more effective manner in their
expansion program. For this company is performing SWOT analysis in order to recognise their
strengths and weaknesses so as to utilise their market opportunities in more active ways (Gürel and
Tat, 2017).
Strengths
 The brand is having huge brand equity as the company is second largest pizza brand and
highly recognise for their on-time delivery. This strength of Domino’s Pizza is giving them
high market coverage and huge customer base by which it is easier for them to expand their
business in UK market.
 Domino’s Pizza is highly focused on introducing new segments and new products all the
time so as to retain their old customers and attract new one to enhance their customer base
and to consider high resources as well.
 Domino’s Pizza is having efficient supply chain management system as they produce pizza
dough inside which is giving additional product quality to their product so as to maintain
good relationship with customers within UK and other nations.
Weaknesses
 The company is having low number of stores as compared to their competitors within
UK which is the greatest weakness of Domino’s Pizza and for this they have come up
with a project to open 28 new stores within UK.
 Domino’s Pizza deals in franchises and they are facing numerous franchise issues such
as scam of legal scanner, which is breaking their robust management system in UK.
 They are not using full machines within production of their pizzas, some procedure are
performed by hands of their employees. This makes their procedure a bit unhygienic
and due to this they have to face legal obligation in UK as the country is highly focused
on food hygiene and labelling (Dhiari, 2017).
Opportunities

 Due to Brexit decision Domino’s Pizza is having high business opportunities within UK
which can give them more stability in expansion and profitability.
 Domino’s Pizza is a green organisation that means the company is highly active on
following environmental movements this movement is rendering immense opportunities to
the company within UK as people of this country are prone to use environmental friendly
products and processes.
 In current trend it has been seen that likelihood of packaged food has been increased so this
is giving high opportunities to Domino’s Pizza within UK market.
Threats
 Domino’s Pizza is having high market rivals such as Pizza hut and KFC which are giving
intense competition to Domino’s Pizza within their establishment in UK.
 Cost of material procurement is high for Domino’s Pizza as they are highly dependent on
their labour and UK is having pricy labour.
 People in UK are more likely to use healthy products and food items due to inclination
towards healthy habits, this is the major threat for the company as Domino’s Pizza is
dealing in fast food item which is junk for human body.
Competitive environments of the company in the UK and International market
Within market in UK and other countries Domino’s Pizza is facing tough competition due
to which all the dimension are required to be measured by Domino’s Pizza. So with the help of
porter’s five force model industry analysis of Domino’s Pizza can be drawn out in order to analyse
about their strategies to deal with different dimensions. Porter’s five force model for Domino’s
Pizza is elaborated as under:
Threat of new entry
This industry is having high barriers for entry of new entrants as high investment is needed
and there are so many companies which have already high grip over this industry which restrict
entry of a new comer within this industry. Domino’s Pizza is known for their innovation within
product so this force proven to be weaker for Domino’s Pizza as they are the market leader within
pizza industry.

Bargaining power of suppliers
Domino’s Pizza buys their raw material from various suppliers and when supplier is at
Domino’s Pizzanant position it can ruin position of Domino’s Pizza within marketplace. Similarly
they make deals with their supplier on competitive pricing basis and in order to control price
fluctuations they make deal for 7 years with their suppliers by deciding prices on pre contract basis
so as to control any price fluctuations which may affect their profit and cost in negative manner.
So from the discussion it is clear that Domino’s Pizza is having low bargaining power with
suppliers (Cleberg, 2019).
Bargaining power of buyers
Due to intense market competition Domino’s Pizza do not hold this force as customers are
having huge options by which they can satisfy their needs in prominent manner. In current time
customers are prone to compare prices of more than one product then only take buying decisions
so with this reference customers are holding huge power and in order to lower this pressure
Domino’s Pizza is concerned to introduce new products and ranges within their pizzas and other
eatable items. Furthermore Domino’s Pizza is giving exciting offers to their customers of new
stores so as to attract them and lower this power as well.
Threat of substitute
There are large number of substitute for Domino’s Pizza such as pizza hut, KFC and many
more. As Domino’s Pizza is operating their business at global level so they are competition with
local and multinational companies which are serving in the same industry. So within this context
Domino’s Pizza is emphasised on recognising core needs of their customer as customers are
having switching cost so it is very easy for them to switch their brand so for lowering this force
Domino’s Pizza is introducing new variants and segments in their product range.

Rivalry inside the existing competitors
Domino’s Pizza is a global company so they are having intense competition with local and
international food companies. There are so many rivals that are negatively hampering profit and
market share of Domino’s Pizza such as pizza hut, papa john’s, KFC, and many more. This factor
is having high impact on operation and strategies of Domino’s Pizza and to stay in the competition
Domino’s Pizza is coming out with new and innovative products at all times.
Strategic options and directions could the company pursue for the future growth both in the UK
and international Market
Domino’s Pizza is planning to expand their business within UK and Ireland so for this they
are recognising their strategies and options which can be beneficial for them in this expansion
process. In order to get to know about business direction Ansoff matrix can be used by Domino’s
Pizza which has been explained as under:
Product development: Within this concept Domino’s Pizza can go for developing their
product in the existing market. They can introduce new favours of pizzas and other offerings so as
to expand their market size.
Market penetration: Within this aspect Domino’s Pizza can develop new marketing
strategies so as to enhance their sales activities by lowering prices of their offerings increase sale
of their existing products within existing market.
Market development: Within this aspect Domino’s Pizza can expand their market within
new market with their existing products so as to stabilise their sales and capture more customer
from different market segments. In this demi can use segmentation in their markets and
accordingly use business strategy.
Diversification: This strategy is proven to be very risky as company is required to
introduce some new product within new market which is unrelated to their prior offerings. This
can give adverse circumstances to Domino’s Pizza in order to expand with a brand new product
(Tsatsoula, 2018).
Form the above case study it is analysed that Domino’s Pizza is willing to expand their
business in new markets of UK and Ireland, so market development can be the most appropriate

stategy for them in their expansion project. This will bring new innovation in business process and
organisational strategy which is helpful for Domino’s Pizza to get competitive edge within
marketplace and high business sustainability as well.
CONCLUSION
From the above report it can be summarised that it is required to analyse external and
internal market competencies by business if they are willing to expand their business within new
markets. This is helpful for them to sustain and retain their customer for longer duration so as to
acquire customer loyalty and high brand value within marketplace (Horne, Maynard and Ahmad,
2017).

REFERENCES
Books and journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical
review. Journal of International Social Research. 10(51).
Bhosale, P. and Deo, S., 2018. An examination of the inventory
management system at Domino’s Pizzanos.
Dhiari, H., 2017. CAN AN INDUSTRIAL ‘DOMINO’S
PIZZANO’CATALYST MEMORY AND ACTIVATE
DEVELOPMENT? (Doctoral dissertation).
Cleberg, C., 2019. Strategic Success: The Ansoff Matrix vs. The
Balanced Scorecard.
Tsatsoula, E., 2018. Application of Ansoff's Matrix-Methodology:
Marketing Growth Strategies For Products.
Horne, C.A., Maynard, S.B. and Ahmad, A., 2017. Organisational information security strategy:
Review, discussion and future research. Australasian Journal of Information Systems, 21.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.