Report on Strategic Management of Dominos

Strategic Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) Financial position of Domino's...............................................................................................1
2) Market share...........................................................................................................................2
3) Industry life cycle...................................................................................................................3
4) Briefing about evidence..........................................................................................................4
5) Balance in the report...............................................................................................................5
6) Key success factors of Domino's company.............................................................................5
7) Analysis of competitive, internal and external resource and capabilities of Domino's..........7
8) PESTLE analysis Of Domino's.............................................................................................10
9) Ratio analysis of Domino's balance sheet.............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is a vital aspect for a company as it aids in achieving the desired
results. It is an art of formulating, implementing and evaluating the cross functional decisions of
business by which firm is able to achieve its specified objectives. It directs an enterprise
regarding how to work in an effective and efficient manner so that it can achieve competitive
advantages over its rivals as well as long term goals or targets (Chandes and Paché, 2010).
Business strategy entails that what should be done or not by which company can achieve its
desired result or outcome as well as tells about action plan that should be taken for reaching to its
decided destination.. This project is based on Domino's which is a large American pizza
restaurant chain that is founded in 1960. Its head office is in Ann Arbour, Michigan, United
States. It provides the best quality of services to its consumers so that their needs or wants can
be satisfied. This report will explain about the competitive strategy by which Domino's can
develop its current competitive position and will state about its strategy that is currently being
used by it for achieving the specified objectives.
1) Financial position of Domino's
For analysis financial position of the company, firm can take help of competitors and five
force model. In competitive analysis, firm analyses the position or market share of rivals as well
their policies that helps in achieving competitive advantages over its competitors because after
knowing about rivals, firm can make their strategy accordingly and will get attention of large
number of customers. Domino's main competitors are pizza Hut etc. At present, Domino's
financial position in the market is as follows-
Domino's Pizza is a multinational company which is operating their business through a
network of 9351 company owned and franchise whose store is located approx. in fifty states or
throughout the world. On 3rd March 2016, a preliminary announcement was done in which
Domino's stated that it has posted some documents for stakeholders and submitted to them in
National Storage Mechanism. Those papers are as follows-
 Annual Report and Accounts for the 52 weeks ended 27th December 2015
 Circular relating to the Annual General Meeting that are going to held on 20 April 2016
 Proxy forms for shareholders so that they can vote at AGM
1

From the report, it is concluded that it is working as a winning streak with first quarter
earnings in 2015. They are also trying to adopt the latest technology so that it can capture large
market share with Uber style pizza delivery tracking for smartphones and a pizza design service
called Pizza Mogul in which people creates themselves for earning money for sales. This
strategy is very helpful in recording high level earnings and share prices (CHUANG and Liao,
2010).
It is analysed that Domino's is a highly profitable company in a fast food retail industry.
In 2014, company started to raise their prices because of increasing its revenue but after some
time, they stopped to increase their charges, unsurprisingly, cash flow growth reduced. In June
2017, its net profit margin was 10.46%.
From above graph, it can be understood that in 2012 and 2013, Domino's gross profit is
increased by 4 and 2% while it was minimize by 1% in 2014 year just because of not having
good services.
So Domino's should focus on the quality of products or services so that it can generate
more revenue.
2
(Source 1: Domino's Pizza pricing policy, 2017)