SOE09401 - Strategic Management in a Global Context
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Running Head: STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 0
Strategic Management In A Global Context
(student name)
11-14-2018
Strategic Management In A Global Context
(student name)
11-14-2018
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 1
Contents
Domino’s Pizza: a case study in organizational evolution..............................................................2
Q1. Porter’s five-force model..........................................................................................................2
1. Competition within the industry...........................................................................................2
2. New potential entrants into the industry...............................................................................3
3. Power of customers...............................................................................................................3
4. Power of suppliers................................................................................................................4
5. Substitute’s products threat...................................................................................................4
Q2. Value chain analysis.................................................................................................................5
Value chain activities...................................................................................................................5
Value chain linkages: core competencies....................................................................................8
VRIN criteria...............................................................................................................................9
Q3. Organizational culture.............................................................................................................10
Q4. Domino’s Ansoff’s matrix......................................................................................................14
Recommendation for future growth options..............................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................19
Contents
Domino’s Pizza: a case study in organizational evolution..............................................................2
Q1. Porter’s five-force model..........................................................................................................2
1. Competition within the industry...........................................................................................2
2. New potential entrants into the industry...............................................................................3
3. Power of customers...............................................................................................................3
4. Power of suppliers................................................................................................................4
5. Substitute’s products threat...................................................................................................4
Q2. Value chain analysis.................................................................................................................5
Value chain activities...................................................................................................................5
Value chain linkages: core competencies....................................................................................8
VRIN criteria...............................................................................................................................9
Q3. Organizational culture.............................................................................................................10
Q4. Domino’s Ansoff’s matrix......................................................................................................14
Recommendation for future growth options..............................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................19
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 2
Domino’s Pizza: a case study in organizational evolution
Q1. Porter’s five-force model
This is a business analysis model that will evaluate the attractiveness of the industry in which
an organization is operating. This model was explained initially in Michael Porter’s book in
1980. The industry structure of an organization and its corporate strategy is analyzed with the
help of five forces that are undeniable and play an important role in shaping every industry and
market worldwide (Mandere & Indiasty, 2014). In the case of Domino’s pizza, the pizza industry
will be analyzed, based on the following five forces:
1. Competition within the industry
Three major competitors of Domino’s are Pizza Hut, Papa John’s, and Little Caesar Pizza.
Pizza Hut- it is one of the most prominent competitors of Domino’s. Dominos’ is
number one in US delivery section but the top company in the pizza segment is Pizza
Hut. The company is older than Dominos but has targeted 95 countries with 13,000
stores. It majorly focuses on various Pizza, which is ready to eat, where the customer
can customize the toppings option as per their local culture and taste. Moreover, the
company is focusing over more competitive priced items in the menu, and likes to be
known for “pizza pasta and wings brand” (Porter & Heppelmann, 2014)
Papa John’s – considering pizza delivery segment, this company ranked at third
position after pizza hut and Domino’s. John Schnatter established the company in
1984. It has targeted more than 32 countries in 52 states, with more than 3,646
restaurants owned and franchises. This company operates within six segments, which
Domino’s Pizza: a case study in organizational evolution
Q1. Porter’s five-force model
This is a business analysis model that will evaluate the attractiveness of the industry in which
an organization is operating. This model was explained initially in Michael Porter’s book in
1980. The industry structure of an organization and its corporate strategy is analyzed with the
help of five forces that are undeniable and play an important role in shaping every industry and
market worldwide (Mandere & Indiasty, 2014). In the case of Domino’s pizza, the pizza industry
will be analyzed, based on the following five forces:
1. Competition within the industry
Three major competitors of Domino’s are Pizza Hut, Papa John’s, and Little Caesar Pizza.
Pizza Hut- it is one of the most prominent competitors of Domino’s. Dominos’ is
number one in US delivery section but the top company in the pizza segment is Pizza
Hut. The company is older than Dominos but has targeted 95 countries with 13,000
stores. It majorly focuses on various Pizza, which is ready to eat, where the customer
can customize the toppings option as per their local culture and taste. Moreover, the
company is focusing over more competitive priced items in the menu, and likes to be
known for “pizza pasta and wings brand” (Porter & Heppelmann, 2014)
Papa John’s – considering pizza delivery segment, this company ranked at third
position after pizza hut and Domino’s. John Schnatter established the company in
1984. It has targeted more than 32 countries in 52 states, with more than 3,646
restaurants owned and franchises. This company operates within six segments, which
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 3
are Domestic commissaries, domestic restaurant, domestic franchises, variable
interest entities, international operation, and various other business units.
Little Caesar’s – this in the pizza industry stands out to be at the fourth position. A
family-owned enterprise franchises and owned 2600 units in the United States and 11
various nations. The major positioning of the company is opening up stores in strip
malls and is considered as the fastest growing restaurant chain in the United States in
2009. The company was popular for two for one Pizza, this marketing campaign
initiated in 1971, however, in 1975 became an everlasting fixture (Betton, 2017).
2. New potential entrants into the industry
Another force that influences the market of the pizza industry is new firms that are entering
into the market. They are affected and do affect the organization and its strategy. The strategy
that Domino’s follow to tackle this force is economies of scale, which will help the firm in
lowering the fixed cost of each unit produced. Through innovation in services and products, was
another strategy to handle this force. For example, new flavors, additional products, capture a
new market, use of advanced technology like a mobile application. New entrants are less
comfortable while entering into such a dynamic industry, where already global leaders have
maximum market shares and goodwill. It was significantly reducing the opportunity for
extraordinary revenues or profits for new entrants, which eventually discourage new players over
the industry (Dobbs, 2014).
3. Power of customers
Buyers bargaining power, in another force that affects Domino’s strategy and sale. The
customer would like to pay a minimum price for the best quality product. This is something that
creates pressure on Domino’s, as the switching cost for the customer is nil. To tackle this,
are Domestic commissaries, domestic restaurant, domestic franchises, variable
interest entities, international operation, and various other business units.
Little Caesar’s – this in the pizza industry stands out to be at the fourth position. A
family-owned enterprise franchises and owned 2600 units in the United States and 11
various nations. The major positioning of the company is opening up stores in strip
malls and is considered as the fastest growing restaurant chain in the United States in
2009. The company was popular for two for one Pizza, this marketing campaign
initiated in 1971, however, in 1975 became an everlasting fixture (Betton, 2017).
2. New potential entrants into the industry
Another force that influences the market of the pizza industry is new firms that are entering
into the market. They are affected and do affect the organization and its strategy. The strategy
that Domino’s follow to tackle this force is economies of scale, which will help the firm in
lowering the fixed cost of each unit produced. Through innovation in services and products, was
another strategy to handle this force. For example, new flavors, additional products, capture a
new market, use of advanced technology like a mobile application. New entrants are less
comfortable while entering into such a dynamic industry, where already global leaders have
maximum market shares and goodwill. It was significantly reducing the opportunity for
extraordinary revenues or profits for new entrants, which eventually discourage new players over
the industry (Dobbs, 2014).
3. Power of customers
Buyers bargaining power, in another force that affects Domino’s strategy and sale. The
customer would like to pay a minimum price for the best quality product. This is something that
creates pressure on Domino’s, as the switching cost for the customer is nil. To tackle this,
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 4
Domino’s strategies to build a large customer base, which will help the company in two ways,
first to diminish the threat of customer bargaining power and second is to gain the opportunity to
streamline its production process and sales. Moreover, this threat was reduced by constant
innovative product development, because customers expect a discount on stable products and if
the company is introducing new products without any discount, it was acceptable by the buyers.
New products will be helpful in reducing the existing consumer defection to its competitors
(Gaudin, 2018).
4. Power of suppliers
A company is accruing raw material from various sources that are different suppliers. This
can make supplier in a dominant position, which can hamper the profit margin of Domino’s. To
reduce this threat, the strategies used by the company were creating an efficient supply chain,
which includes various suppliers, exploring new designs with different material, even if the
prices increase of some raw material then the organization can go for another alternative material
(Zhao, Wu, & Sha, 2015).
5. Substitute’s products threat
Substitute products are something that can be replaced by one product and fulfill the needs of
the customer. This is one of the major concern while strategizing. The major substitute of
Domino’s is McDonald’s or KFC, which is offering a burger and is able to fulfill the similar
need of consumers as Domino’s. To handle this situation, the strategies made by Domino’s are
becoming service oriented instead of just focusing over product, the company tries to understand
the customer’s core needs instead of concerning on what customer is purchasing. This threat can
be reduced by increasing the switching cost for customers (Porter, How smart, connected
products are transforming competition, 2014).
Domino’s strategies to build a large customer base, which will help the company in two ways,
first to diminish the threat of customer bargaining power and second is to gain the opportunity to
streamline its production process and sales. Moreover, this threat was reduced by constant
innovative product development, because customers expect a discount on stable products and if
the company is introducing new products without any discount, it was acceptable by the buyers.
New products will be helpful in reducing the existing consumer defection to its competitors
(Gaudin, 2018).
4. Power of suppliers
A company is accruing raw material from various sources that are different suppliers. This
can make supplier in a dominant position, which can hamper the profit margin of Domino’s. To
reduce this threat, the strategies used by the company were creating an efficient supply chain,
which includes various suppliers, exploring new designs with different material, even if the
prices increase of some raw material then the organization can go for another alternative material
(Zhao, Wu, & Sha, 2015).
5. Substitute’s products threat
Substitute products are something that can be replaced by one product and fulfill the needs of
the customer. This is one of the major concern while strategizing. The major substitute of
Domino’s is McDonald’s or KFC, which is offering a burger and is able to fulfill the similar
need of consumers as Domino’s. To handle this situation, the strategies made by Domino’s are
becoming service oriented instead of just focusing over product, the company tries to understand
the customer’s core needs instead of concerning on what customer is purchasing. This threat can
be reduced by increasing the switching cost for customers (Porter, How smart, connected
products are transforming competition, 2014).
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 5
Q2. Value chain analysis
Value chain activities
(Source: (Smartsheet, 2018)
Value chain analysis, as shown in figure 1 is a particular set of activities conducted by a
company that initiated from procuring raw material, process converting into final goods, and
finally, reach to end consumers (Puck & Mudambi, 2016). Domino’s has its unique value chain
bifurcated into two parts that are primary activities and support activities.
Primary activities:
Inbound logistics- this activity includes purchasing raw material like dough, sauce,
cheese, spaghetti, fruits and vegetable, salt and pepper. These products too, have varieties
like ranges of sauce that are the regular, white, and sweet sauce. It is the strength for
domino’s, as the firm maintains a minimum of four days of stock, they have small cold
Q2. Value chain analysis
Value chain activities
(Source: (Smartsheet, 2018)
Value chain analysis, as shown in figure 1 is a particular set of activities conducted by a
company that initiated from procuring raw material, process converting into final goods, and
finally, reach to end consumers (Puck & Mudambi, 2016). Domino’s has its unique value chain
bifurcated into two parts that are primary activities and support activities.
Primary activities:
Inbound logistics- this activity includes purchasing raw material like dough, sauce,
cheese, spaghetti, fruits and vegetable, salt and pepper. These products too, have varieties
like ranges of sauce that are the regular, white, and sweet sauce. It is the strength for
domino’s, as the firm maintains a minimum of four days of stock, they have small cold
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 6
storage at every store, and most importantly, level of inventory is monitored through POS
data using centrally.
Operations- operations include, pizza dough is prepared and other ingredients are
procured through other commissionaires that include topping and seasoning and then
distributed to various stores of Domino’s. At outlets, the customization is done, as per
customer requirement and flavor. According to customer order, the salads and pasta are
prepared using raw material. Everything is done in a particular time span because the
company claims to make food available in provided time. This is a major strength for the
company as everything is done on time while considering the quality standard of the
product.
Outbound logistics- the logistics are a major activity of the company, initially, it is
required to transport bases of pizza from a centralized location to the store, which is done
through refrigerated trucks. In addition, either delivery boy or vans deliver the prepared
food to the customer doorstep.
Marketing and sales- where sales and marketing are considered the company has a strong
social media presence, which turns out to be the strength of the company. Moreover, the
marketing campaign is conducted domestically according to the country the company is
operating and targeting. Various discounts options and coupons are provided, to influence
customers to have food from Domino’s.
Service- it is the activity, which the company majorly focuses. The services include
providing hot pizza at the doorstep of the customer within a specified time. It also
includes providing customer service at the outlet and make the customer feel happy and
comfortable by providing the best taste of food in a healthy environment. Online service
storage at every store, and most importantly, level of inventory is monitored through POS
data using centrally.
Operations- operations include, pizza dough is prepared and other ingredients are
procured through other commissionaires that include topping and seasoning and then
distributed to various stores of Domino’s. At outlets, the customization is done, as per
customer requirement and flavor. According to customer order, the salads and pasta are
prepared using raw material. Everything is done in a particular time span because the
company claims to make food available in provided time. This is a major strength for the
company as everything is done on time while considering the quality standard of the
product.
Outbound logistics- the logistics are a major activity of the company, initially, it is
required to transport bases of pizza from a centralized location to the store, which is done
through refrigerated trucks. In addition, either delivery boy or vans deliver the prepared
food to the customer doorstep.
Marketing and sales- where sales and marketing are considered the company has a strong
social media presence, which turns out to be the strength of the company. Moreover, the
marketing campaign is conducted domestically according to the country the company is
operating and targeting. Various discounts options and coupons are provided, to influence
customers to have food from Domino’s.
Service- it is the activity, which the company majorly focuses. The services include
providing hot pizza at the doorstep of the customer within a specified time. It also
includes providing customer service at the outlet and make the customer feel happy and
comfortable by providing the best taste of food in a healthy environment. Online service
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 7
is the biggest strength due to which the Domino’s sale has reached so high. Moreover, the
online order can be through its website and application, where discounts are also offered
to the customer.
Support activities:
General administration- it includes all back-office work, that is financial reports, it is
neither any strength nor weakness of the firm, but the administration is also essential to
manage for effective working among all the departments.
Human resource management- this is considered a great strength for the company. The
management of human capital is very strong of Domino’s. Appropriate training for
preparing food is provided to employees, as taste must be according to standard, and
same in every outlet. Moreover, delivery boys are also motivated to reach out to the
customer in time and handle food with due diligence for the maximum satisfaction of the
customer.
Technology development- this is the major strength for the company, Domino’s gain
global technology advantage, through Domino’s tracking system, corrugated pizza box,
order over the phone, application for I phone and Android phones, hotter delivery
through Heatwave delivery bags, vehicle delivery that includes technology to keep food
hot and fresh.
Procurement – the raw material is been procured from the local places which are best for
that particular ingredient. For example, if tomatoes are good of one state, and corns of
another, then these two different ingredients are procured from a different source and
then distributed the best material to the outlets. The time span is also considered while
is the biggest strength due to which the Domino’s sale has reached so high. Moreover, the
online order can be through its website and application, where discounts are also offered
to the customer.
Support activities:
General administration- it includes all back-office work, that is financial reports, it is
neither any strength nor weakness of the firm, but the administration is also essential to
manage for effective working among all the departments.
Human resource management- this is considered a great strength for the company. The
management of human capital is very strong of Domino’s. Appropriate training for
preparing food is provided to employees, as taste must be according to standard, and
same in every outlet. Moreover, delivery boys are also motivated to reach out to the
customer in time and handle food with due diligence for the maximum satisfaction of the
customer.
Technology development- this is the major strength for the company, Domino’s gain
global technology advantage, through Domino’s tracking system, corrugated pizza box,
order over the phone, application for I phone and Android phones, hotter delivery
through Heatwave delivery bags, vehicle delivery that includes technology to keep food
hot and fresh.
Procurement – the raw material is been procured from the local places which are best for
that particular ingredient. For example, if tomatoes are good of one state, and corns of
another, then these two different ingredients are procured from a different source and
then distributed the best material to the outlets. The time span is also considered while
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 8
procuring so that there is no issue of shortage of raw material in any outlet. The inter-
store transfer is also available in case of an uncertain situation (Christopher, 2016).
Value chain linkages: core competencies
The linkages between human resource management, technology development, and
services create major core competencies for Domino’s.
Core competencies of the company include the best customer service, as it is one of the
largest pizza company in the delivery segment. It is an industry leader for customer satisfaction.
This shows that the service of the company is really strong and efficient. However, human
capital management and technology development are another competitive advantages of the
company that is working for providing the best service to the customers. Therefore, it can be said
that the support activities of technology development and human resource management which is
linked with a primary activity, services, which eventually result in the core competencies of the
company (Amara & Traore, 2016).
One of the competitive advantages of the firm is innovation, which is the result of good
human resource management and advanced technology. The main motive of the company is to
provide customer hot food at their home, within a specified delivery time. For this, the advanced
technology used is online ordering, where with a click customer can order food from the Outlet.
For keeping food hot, heat wave bags to delivery, with vehicles include a panel to keep food hot
until the customer. To offer customer same taste with high quality can only be provided through
a proper training to chefs and other employees. These linkages result into the satisfied customer
service (Oke & Prajogo, 2016).
procuring so that there is no issue of shortage of raw material in any outlet. The inter-
store transfer is also available in case of an uncertain situation (Christopher, 2016).
Value chain linkages: core competencies
The linkages between human resource management, technology development, and
services create major core competencies for Domino’s.
Core competencies of the company include the best customer service, as it is one of the
largest pizza company in the delivery segment. It is an industry leader for customer satisfaction.
This shows that the service of the company is really strong and efficient. However, human
capital management and technology development are another competitive advantages of the
company that is working for providing the best service to the customers. Therefore, it can be said
that the support activities of technology development and human resource management which is
linked with a primary activity, services, which eventually result in the core competencies of the
company (Amara & Traore, 2016).
One of the competitive advantages of the firm is innovation, which is the result of good
human resource management and advanced technology. The main motive of the company is to
provide customer hot food at their home, within a specified delivery time. For this, the advanced
technology used is online ordering, where with a click customer can order food from the Outlet.
For keeping food hot, heat wave bags to delivery, with vehicles include a panel to keep food hot
until the customer. To offer customer same taste with high quality can only be provided through
a proper training to chefs and other employees. These linkages result into the satisfied customer
service (Oke & Prajogo, 2016).
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 9
VRIN criteria
The linkages that lead to core competencies were identified in the previous section, these
linkages fulfill the criteria of VRIN framework propounded by Jay Barney, in 1991 (Chatzoglou
& Chatzoudes, 2018).
VRIN is a framework focuses over four qualities:
Value – the linkage between technology development and service creates core
competencies for the company which will fulfill the criteria of “value” element in this
framework
Rareness – according to this element, a core competency that is rarely provided by a
competitor. In case of Domino’s delivery service fulfill the criteria. Pizza hut, being one
of the major competitors of Domino’s can gain an advantage in fulfilling its customer
satisfaction at their outlet, but when the service considering doorstep approachability, no
pizza firm can beat Domino’s.
Imitability– this element considers a core competency, which the competitors cannot
imitate. Domino’s advanced technology like the pizza tracker is not imitable by their
competitors, which fulfill the “imitability criteria of VRIN framework
Non-substitutable- it consists of a resource that cannot be replaced by any other source.
The human capital of Domino’s fulfill this criterion, as a human resource of the firm is its
competitive advantage, which leads to innovation, and eventually enhances customer
satisfaction (Choi & Park, 2016).
VRIN criteria
The linkages that lead to core competencies were identified in the previous section, these
linkages fulfill the criteria of VRIN framework propounded by Jay Barney, in 1991 (Chatzoglou
& Chatzoudes, 2018).
VRIN is a framework focuses over four qualities:
Value – the linkage between technology development and service creates core
competencies for the company which will fulfill the criteria of “value” element in this
framework
Rareness – according to this element, a core competency that is rarely provided by a
competitor. In case of Domino’s delivery service fulfill the criteria. Pizza hut, being one
of the major competitors of Domino’s can gain an advantage in fulfilling its customer
satisfaction at their outlet, but when the service considering doorstep approachability, no
pizza firm can beat Domino’s.
Imitability– this element considers a core competency, which the competitors cannot
imitate. Domino’s advanced technology like the pizza tracker is not imitable by their
competitors, which fulfill the “imitability criteria of VRIN framework
Non-substitutable- it consists of a resource that cannot be replaced by any other source.
The human capital of Domino’s fulfill this criterion, as a human resource of the firm is its
competitive advantage, which leads to innovation, and eventually enhances customer
satisfaction (Choi & Park, 2016).
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 10
Q3. Organizational culture
A culture is something that influences the organization as a whole, it the way people work,
communicate, within an organization. The cultural web analysis is a framework or model that
explain the organizational convictions, paradigm and assuming in a firm that is clear by means of
six elements. The six elements include stories, symbols, rituals and routines, organizational
structures, power structures, control systems, and symbols (Alvesson, 2016).
Stories – This element explains organizational culture, which is constantly communicated
within the organization. As this element is about communication in the organization, the
culture of dominos includes free communication across the organization. In case of
dissemination of information to the staff, the methods used are email, posters, notice
boards, and pamphlets. The innovation is always encouraged in the organization,
therefore the free flow of ideas are communicated by the staff and to the staff (Collins &
Benard, 2018).
Symbols- the element of this model illustrate the recognizable sign ort expressing of the
company like corporate identity, the logo, office building, company cars, dress code,
language, and functions. Considering this element, Dominos has a globalized logo in blue
and red color that makes it expressible, moreover, all the delivery vehicles have the logo
of Domino’s to publicize the brand.
Q3. Organizational culture
A culture is something that influences the organization as a whole, it the way people work,
communicate, within an organization. The cultural web analysis is a framework or model that
explain the organizational convictions, paradigm and assuming in a firm that is clear by means of
six elements. The six elements include stories, symbols, rituals and routines, organizational
structures, power structures, control systems, and symbols (Alvesson, 2016).
Stories – This element explains organizational culture, which is constantly communicated
within the organization. As this element is about communication in the organization, the
culture of dominos includes free communication across the organization. In case of
dissemination of information to the staff, the methods used are email, posters, notice
boards, and pamphlets. The innovation is always encouraged in the organization,
therefore the free flow of ideas are communicated by the staff and to the staff (Collins &
Benard, 2018).
Symbols- the element of this model illustrate the recognizable sign ort expressing of the
company like corporate identity, the logo, office building, company cars, dress code,
language, and functions. Considering this element, Dominos has a globalized logo in blue
and red color that makes it expressible, moreover, all the delivery vehicles have the logo
of Domino’s to publicize the brand.
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 11
(Source: (Dominos, 2018)
Power structure- this element is directly linked to the paradigm, as the powerful human
resource of a company is considered to directly influence the ideas and core assumptions
within an organization. Considering this element, Domino’s major competitive advantage
observed is human resource management, which means the company has people who are
in a powerful position to influence ideas within Domino’s. For example, the
organizational manager has the responsibility of outlets in-group, like there are four or
five outlets, of which he will manage the work, and is considered the most experienced
person in the outlet, who has total knowledge of the restaurant or outlets (Huckin &
Berkenkotter, 2016).
Organizational structure- as per this element, a company has a hierarchal composition,
that links the relationship between human resources, which construct the layers of the
form, although, informal power structure, is also part of the organizational structure.
Domino’s has an organizational structure, where CEO and executive managers are
largely responsible for new innovative ideas, that are executed by lower-level managers,
but the culture of Domino’s always welcome ideas from all the sources like salesmen, or
lower staff members. The company follows multicultural staff within an organization
because Domino’s is a global player; the staff is from various culture and nations.
Therefore, culture is enabled according to the strategy of the company (Wass & Harrison,
2017).
Control system- this element considers the way a company is being controlled and
managed. The financial system, rewards, and quality systems are included in this
element. As already discussed, the administration of Domino’s is very strong, which fully
(Source: (Dominos, 2018)
Power structure- this element is directly linked to the paradigm, as the powerful human
resource of a company is considered to directly influence the ideas and core assumptions
within an organization. Considering this element, Domino’s major competitive advantage
observed is human resource management, which means the company has people who are
in a powerful position to influence ideas within Domino’s. For example, the
organizational manager has the responsibility of outlets in-group, like there are four or
five outlets, of which he will manage the work, and is considered the most experienced
person in the outlet, who has total knowledge of the restaurant or outlets (Huckin &
Berkenkotter, 2016).
Organizational structure- as per this element, a company has a hierarchal composition,
that links the relationship between human resources, which construct the layers of the
form, although, informal power structure, is also part of the organizational structure.
Domino’s has an organizational structure, where CEO and executive managers are
largely responsible for new innovative ideas, that are executed by lower-level managers,
but the culture of Domino’s always welcome ideas from all the sources like salesmen, or
lower staff members. The company follows multicultural staff within an organization
because Domino’s is a global player; the staff is from various culture and nations.
Therefore, culture is enabled according to the strategy of the company (Wass & Harrison,
2017).
Control system- this element considers the way a company is being controlled and
managed. The financial system, rewards, and quality systems are included in this
element. As already discussed, the administration of Domino’s is very strong, which fully
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 12
supports the strategy of organization and primary activities conducted. The Domino’s
culture includes believing in teamwork, a disciplinary environment that leads to a
complimenting company’s strategy. According to Domino’s culture, employees
motivation is highly considered and financial reward is the best way to do so. Moreover,
the inequality in the rewarding system is highly discouraged within the organization
(Argyris, 2017).
Rituals and routine- this element include organizational events that emphasize the true
importance of that event for the organization. In Domino’s one of the very important
event is training, the company is a global organization, and the work is to be done
according to particular standards, for which providing training to employees is very
important. This element is largely responsible and affects the strategy of maximum
customer satisfaction through delivery service is supported. Many people conduct the
training as if crew trainer is an individual who is responsible for providing training to
crewmembers and shares his knowledge and experience within the organization to crew
person. This could include the knowledge of how to prepare a dish according to the
standardized form. After passing the stage of crew training, the member of the crew
become crew trainer, and will further provide that training to other employees. Training
manager provides lessons to crew trainers and passes on his experiences and knowledge
with trainees (Morris, 2018).
All the elements of Domino’s cultural web and paradigm were considered, and it can be said
that the organizational culture influences the performance of the organization. The organizational
culture of Domino’s provides maximum support, for successful implementation of the strategy of
the company. The company has a strong organizational culture, which creates a strong
supports the strategy of organization and primary activities conducted. The Domino’s
culture includes believing in teamwork, a disciplinary environment that leads to a
complimenting company’s strategy. According to Domino’s culture, employees
motivation is highly considered and financial reward is the best way to do so. Moreover,
the inequality in the rewarding system is highly discouraged within the organization
(Argyris, 2017).
Rituals and routine- this element include organizational events that emphasize the true
importance of that event for the organization. In Domino’s one of the very important
event is training, the company is a global organization, and the work is to be done
according to particular standards, for which providing training to employees is very
important. This element is largely responsible and affects the strategy of maximum
customer satisfaction through delivery service is supported. Many people conduct the
training as if crew trainer is an individual who is responsible for providing training to
crewmembers and shares his knowledge and experience within the organization to crew
person. This could include the knowledge of how to prepare a dish according to the
standardized form. After passing the stage of crew training, the member of the crew
become crew trainer, and will further provide that training to other employees. Training
manager provides lessons to crew trainers and passes on his experiences and knowledge
with trainees (Morris, 2018).
All the elements of Domino’s cultural web and paradigm were considered, and it can be said
that the organizational culture influences the performance of the organization. The organizational
culture of Domino’s provides maximum support, for successful implementation of the strategy of
the company. The company has a strong organizational culture, which creates a strong
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 13
competitive advantage. Moreover, the firms consist of multicultural teams, which lead to gain
advantage through core competencies. At times, it can be difficult to manage, but it eventually
turns out to be advantageous for the company.
competitive advantage. Moreover, the firms consist of multicultural teams, which lead to gain
advantage through core competencies. At times, it can be difficult to manage, but it eventually
turns out to be advantageous for the company.
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 14
Q4. Domino’s Ansoff’s matrix
According to the Ansoff’s matrix, this matrix focuses over observing business future, and
determines available potential strategies to the organization into three area that are market
development, product development, and market penetration (Aksoy, 2018). These are explained
as following:
Market penetration- market penetration is considering an existing product into an existing
market, for this strategy the manager focus to increase its market share with running
products. Domino’s consider pizza’s as the product to aim for enhancing market share of
the company. For this strategy, the capability identified in the previous section, of
technology development will be best suited. The core capability of the company includes
advanced technology to provide the best service to the customers. The online delivery
system will consider the same product for the same market, but attract those customers
who consider eating in a comfortable environment at their home or workplace. Even if
the person is busy to visit the outlet and have pizza, he or she can get the desired food
with just a click or through the order on the telephone. Moreover, the food received will
be hot guaranteed, which means those customers are approachable to consume Domino’s
pizza without any additional cost of travel. With the technological advancement of
tracking, the company can ensure customer satisfaction and timely delivery of the
package. With this, the new customers are attracted and the company retains existing
customers (Shaw, 2012).
Market development- market development is the strategy of the company to serve a new
market with the existing product; this can be done by existing marketing and channel of
Q4. Domino’s Ansoff’s matrix
According to the Ansoff’s matrix, this matrix focuses over observing business future, and
determines available potential strategies to the organization into three area that are market
development, product development, and market penetration (Aksoy, 2018). These are explained
as following:
Market penetration- market penetration is considering an existing product into an existing
market, for this strategy the manager focus to increase its market share with running
products. Domino’s consider pizza’s as the product to aim for enhancing market share of
the company. For this strategy, the capability identified in the previous section, of
technology development will be best suited. The core capability of the company includes
advanced technology to provide the best service to the customers. The online delivery
system will consider the same product for the same market, but attract those customers
who consider eating in a comfortable environment at their home or workplace. Even if
the person is busy to visit the outlet and have pizza, he or she can get the desired food
with just a click or through the order on the telephone. Moreover, the food received will
be hot guaranteed, which means those customers are approachable to consume Domino’s
pizza without any additional cost of travel. With the technological advancement of
tracking, the company can ensure customer satisfaction and timely delivery of the
package. With this, the new customers are attracted and the company retains existing
customers (Shaw, 2012).
Market development- market development is the strategy of the company to serve a new
market with the existing product; this can be done by existing marketing and channel of
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 15
distribution or new are involved. In case of Domino’s, the company has always tried to
increase the market, either by increasing outlets in the international market, capturing the
new market in the untapped nation through franchising. The new market has also be
tapped by changing the delivery options, by using the capabilities of technology
development, the online delivery was included to the system that has tapped a new
market, this has increased the customer base. This includes a customer who prefers the
food at their doorstep. This has also included a tracking system so that the delivery can be
tracked. In addition, all these are done to attract customers and increase the reliability of
the company according to the customer (Hilman & Alkasim, 2018).
Product development – this strategy includes new products to offer in the existing market.
The major considering in this strategy is “time to market,” that means the time needed to
develop a new product to return the cost rapidly. Considering capabilities of Domino’s,
human capital management compliments this strategy, as the product development
includes innovation. The company culture includes innovation, and everyone is free to
share ideas related to the products. The company has focused over the same product line,
but the new products are included after a long time, for example, increases in the variety
of deserts, introducing new flavors in the topping of pizza. Change in ingredients, which
are the use of different pizza base, say cheese base, or thin crust base. This eventually
leads to a new product. Moreover, the wraps, garlic bread, and their varieties can be
included in this strategy (Chiang, Chen, & Ho, 2016).
Recommendation for future growth options
Health conscious group- to capture a new market, the future growth opportunity includes
targeting a new customer segment, which is a health-conscious group of customers. The
distribution or new are involved. In case of Domino’s, the company has always tried to
increase the market, either by increasing outlets in the international market, capturing the
new market in the untapped nation through franchising. The new market has also be
tapped by changing the delivery options, by using the capabilities of technology
development, the online delivery was included to the system that has tapped a new
market, this has increased the customer base. This includes a customer who prefers the
food at their doorstep. This has also included a tracking system so that the delivery can be
tracked. In addition, all these are done to attract customers and increase the reliability of
the company according to the customer (Hilman & Alkasim, 2018).
Product development – this strategy includes new products to offer in the existing market.
The major considering in this strategy is “time to market,” that means the time needed to
develop a new product to return the cost rapidly. Considering capabilities of Domino’s,
human capital management compliments this strategy, as the product development
includes innovation. The company culture includes innovation, and everyone is free to
share ideas related to the products. The company has focused over the same product line,
but the new products are included after a long time, for example, increases in the variety
of deserts, introducing new flavors in the topping of pizza. Change in ingredients, which
are the use of different pizza base, say cheese base, or thin crust base. This eventually
leads to a new product. Moreover, the wraps, garlic bread, and their varieties can be
included in this strategy (Chiang, Chen, & Ho, 2016).
Recommendation for future growth options
Health conscious group- to capture a new market, the future growth opportunity includes
targeting a new customer segment, which is a health-conscious group of customers. The
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 16
people who are more health conscious generally avoid having pizza due to more of fat
included in the product. This group can be focused by using the human resource of the
company. The chefs of the company can have ideas for this purpose, for example, use of
brown bread in making a pizza base, and include wheat pizza base, introducing wraps and
pizza that are full of good nutrients. This could be done by reducing the serving of cheese
or even avoid using cheese for such products. The beverages menu can be included which
include green tea other than soft drinks.
Fresh and organic ingredients- the ingredients used in making any food product is fresh
and not frozen one. This will attract many customers who are very concerned about the
quality of ingredients used. The flavors must not be the preserved ones, instead, the
organic ingredients can be used, which will retain existing customers and attract new
customers.
Technology advancement- technological development is one of the core capability of
Domino’s, this can be used to enhance the use of technology while providing service to
the customer. More advanced technology is another opportunity for the company to gain
a competitive advantage.
Physical outlets- this is an area where Domino’s lack from its major competitor, that is
Pizza Hut. This brings the opportunity for the company to use its capability of best
service and human resource management, to enhance the customer base at the outlets as
well. This can be done by opening up the outlets at the place where people generally visit,
like shopping complex, movie theater, so that the customers visiting there can be a target
and attracted to consume pizza from Domino’s
people who are more health conscious generally avoid having pizza due to more of fat
included in the product. This group can be focused by using the human resource of the
company. The chefs of the company can have ideas for this purpose, for example, use of
brown bread in making a pizza base, and include wheat pizza base, introducing wraps and
pizza that are full of good nutrients. This could be done by reducing the serving of cheese
or even avoid using cheese for such products. The beverages menu can be included which
include green tea other than soft drinks.
Fresh and organic ingredients- the ingredients used in making any food product is fresh
and not frozen one. This will attract many customers who are very concerned about the
quality of ingredients used. The flavors must not be the preserved ones, instead, the
organic ingredients can be used, which will retain existing customers and attract new
customers.
Technology advancement- technological development is one of the core capability of
Domino’s, this can be used to enhance the use of technology while providing service to
the customer. More advanced technology is another opportunity for the company to gain
a competitive advantage.
Physical outlets- this is an area where Domino’s lack from its major competitor, that is
Pizza Hut. This brings the opportunity for the company to use its capability of best
service and human resource management, to enhance the customer base at the outlets as
well. This can be done by opening up the outlets at the place where people generally visit,
like shopping complex, movie theater, so that the customers visiting there can be a target
and attracted to consume pizza from Domino’s
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 17
Conclusion
From the case study of Domino’s, it can be concluded that the company was established
in 1960 by James and Tom Monaghan. It is part of the pizza industry, with various other
competitors. The ownership of the company was changed in 1998 and David Brandon became
CEO and Chairman of the company. The company business segments were domestic store,
international and domestic supply chain services. The pizza was a popular product offered by the
company that serves a wide demographic of customers. The competition was very high. The top
company in the pizza industry was Pizza Hut, but Dominos was first and largest pizza delivery
company. Other competitors include Papa John’s pizza and Little Caesars, at the third and fourth
position in the industry.
The industry is very attractive as it is a growing industry and while considering Porter’s
five force model, the competition is very high, the new entrants are rarely there due to the
influence of the global leaders, the customer bargaining power can influence Domino’s, but this
can be handled by introducing new products to the market. The bargaining power of suppliers is
also very much, because the suppliers are providing raw material to many companies, and can
bargain with the company, but the company can tackle this by dealing with a numerous number
of suppliers. One of the major issues is the threat of substitute products that will affect the
Domino’s sale by full filling the need of customer like McDonald's.
Value chain analysis of Domino’s was conducted, where the primary activities and
support activities of the organization were observed and the core capabilities of the companies
were analyzed. Between both types of activities, the linkages between the value chains of
Conclusion
From the case study of Domino’s, it can be concluded that the company was established
in 1960 by James and Tom Monaghan. It is part of the pizza industry, with various other
competitors. The ownership of the company was changed in 1998 and David Brandon became
CEO and Chairman of the company. The company business segments were domestic store,
international and domestic supply chain services. The pizza was a popular product offered by the
company that serves a wide demographic of customers. The competition was very high. The top
company in the pizza industry was Pizza Hut, but Dominos was first and largest pizza delivery
company. Other competitors include Papa John’s pizza and Little Caesars, at the third and fourth
position in the industry.
The industry is very attractive as it is a growing industry and while considering Porter’s
five force model, the competition is very high, the new entrants are rarely there due to the
influence of the global leaders, the customer bargaining power can influence Domino’s, but this
can be handled by introducing new products to the market. The bargaining power of suppliers is
also very much, because the suppliers are providing raw material to many companies, and can
bargain with the company, but the company can tackle this by dealing with a numerous number
of suppliers. One of the major issues is the threat of substitute products that will affect the
Domino’s sale by full filling the need of customer like McDonald's.
Value chain analysis of Domino’s was conducted, where the primary activities and
support activities of the organization were observed and the core capabilities of the companies
were analyzed. Between both types of activities, the linkages between the value chains of
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 18
Domino’s result into core capabilities are Human resource management, technology
development, and service.
Then the organizational culture of the company was considered, it was observed that the
organizational culture is more towards innovation, and the free flow of communication among
the organizational hierarchy. To analyze this, six elements of cultural web and paradigm were
considered and it was analyzed that the culture of Domino’s is supportive in the successful
implementation of Strategies.
Lastly, the Ansoff's matrix was considered for the study of business future potential
strategies with regard to three elements. The company majorly focuses the marketing penetration
strategy by enhancing market share by targeting current market with an existing product that is
pizza. Market development strategy of the company focus on serving the same product in the
international market that is untapped. Some of the recommendations to gain future opportunities
were targeting health-conscious customers, including organic and fresh ingredients.
Domino’s result into core capabilities are Human resource management, technology
development, and service.
Then the organizational culture of the company was considered, it was observed that the
organizational culture is more towards innovation, and the free flow of communication among
the organizational hierarchy. To analyze this, six elements of cultural web and paradigm were
considered and it was analyzed that the culture of Domino’s is supportive in the successful
implementation of Strategies.
Lastly, the Ansoff's matrix was considered for the study of business future potential
strategies with regard to three elements. The company majorly focuses the marketing penetration
strategy by enhancing market share by targeting current market with an existing product that is
pizza. Market development strategy of the company focus on serving the same product in the
international market that is untapped. Some of the recommendations to gain future opportunities
were targeting health-conscious customers, including organic and fresh ingredients.
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STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 19
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International Journal of Innovation Management, 1850039.
Alvesson, M. (2016). Organizational culture. New York: Sage.
Amara, N., & Traore, N. (2016). Adding value to companies' value chain: Role of business
schools scholars. Journal of Business Research, 1661.
Argyris, C. (2017). Integrating the Individual and the Organization. London: Routledge.
Betton, P. (2017). Competitive Strategy: Creating and Sustaining Superior Performance. Macat
Library.
Chatzoglou, P., & Chatzoudes, D. (2018). ). The role of firm-specific factors in the strategy-
performance relationship: Revisiting the resource-based view of the firm and the VRIO
framework. Management Research Review, 46.
Chiang, Y., Chen, W., & Ho, C. (2016). Application of analytic network process and two-
dimensional matrix evaluating decision for design strategy. Computers & Industrial
Engineering, 237.
Choi, D., & Park, D. (2016). Innovative service concept generation based on integrated
framework of design thinking and VRIO: the case of information supporting system for
SMEs in Korea. In Proceedings of the 18th Annual International Conference on
Electronic Commerce: e-Commerce in, 23.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
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Collins, M., & Benard, R. (2018). Criterion-related validity of the cultural web when assessing
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Business and Retail Management Research.
Huckin, T., & Berkenkotter, C. (2016). Genre knowledge in disciplinary communication:
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Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 32.
Dominos. (2018). welcome. Retrieved from https://biz.dominos.com/: https://biz.dominos.com/
Gaudin, G. (2018). Vertical bargaining and retail competition: What drives countervailing
power? The Economic Journal, 2380.
Hilman, H., & Alkasim, S. (2018). The mediating effect of cost leadership on the relationship
between market penetration, market development, and firm performance. Journal of
Business and Retail Management Research.
Huckin, T., & Berkenkotter, C. (2016). Genre knowledge in disciplinary communication:
Cognition/culture/power. London: Routledge.
Mandere, M., & Indiasty, C. (2014). he application of Porter’s five forces model on organization
performance: A case of cooperative bank of Kenya Ltd. European Journal of Business
and Management, 75.
Morris, J. (2018). Is this the culture of academies? Utilising the cultural web to investigate the
organisational culture of an academy case study. Educational Management
Administration & Leadership, 12.
Oke, A., & Prajogo, D. (2016). ). Supply chain processes: Linking supply logistics integration,
supply performance, lean processes and competitive performance. International Journal
of Operations & Production Management, 220.
STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT 21
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business review, 64.
Porter, M., & Heppelmann, J. (2014). How smart, connected products are transforming
competition. Harvard business review, 64.
Puck, J., & Mudambi, R. (2016). A global value chain analysis of the ‘regional
strategy’perspective. Journal of Management Studies, 1076.
Shaw, E. (2012). Marketing strategy: From the origin of the concept to the development of a
conceptual framework. Journal of Historical Research in Marketing, 30.
Smartsheet. (2018). value chain model. Retrieved from smartsheet:
https://www.smartsheet.com/value-chain-model
Wass, V., & Harrison, C. (2017). Changing the culture of assessment: the dominance of the
summative assessment paradigm. BMC medical education, 73.
Zhao, Z., Wu, D., & Sha, D. (2015). Bargaining power of suppliers and buyers, and accounting
conservatism—Evidence from chinese manufacturing listed companies. Journal of
Financial Risk Management, 11.
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