Corporate Strategy and Governance Assessment: Domino's Group Report

This report examines the corporate strategy and governance of Domino's Group, a major player in the fast-food industry. It begins with an introduction to corporate strategy and governance, emphasizing its importance for organizational functions and stakeholder management. The report includes a rationale for studying Domino's Group, followed by a literature review that explores key concepts and frameworks related to corporate governance. The research methodology is described, including data collection methods and sampling techniques. A Gantt chart outlines the project timeline. The summative assessment delves into Domino's Group's background, reviews the issues it faces, and provides a detailed discussion of primary and secondary research findings. The report identifies challenges such as complex operations and strategic issues within various departments. It also includes a stakeholder analysis matrix. Finally, the report offers recommendations and conclusions based on the research, providing insights into improving corporate strategy and governance within Domino's Group.

Corporate Strategy and
Governance

TABLE OF CONTENTS
FORMATIVE ASSESSMENT........................................................................................................1
Introduction............................................................................................................................1
Rationale.................................................................................................................................3
Literature Review...................................................................................................................3
Research Methodology...........................................................................................................4
Gantt Chart.............................................................................................................................4
SUMMATIVE ASSESSMENT.......................................................................................................7
Introduction............................................................................................................................7
Background of Company........................................................................................................7
Reviews of issues...................................................................................................................8
LITERATURE REVIEW................................................................................................................9
DISCUSSION OF THE SECONDARY AND PRIMARY RESEARCH UNDERTAKEN........12
CRITICAL REVIEW OF THE RESULTS...................................................................................16
Primary research...................................................................................................................16
Secondary research...............................................................................................................26
RECOMMENDATIONS AND CONCLUSION..........................................................................27
REFERENCES..............................................................................................................................29

FORMATIVE ASSESSMENT
Introduction
For management of company, it is very important that the control and governance of all
the rules and regulations, code of conduct as well as the entire procedure of working should be in
an organized manner. There are various types of corporate strategies and it provides a systematic
framework for organisational functions and operations such as growth strategy, stability, and
diversification strategy. Strategy is an art of devising plan and strategies to achieve goals and
objectives (Tricker and Tricker, 2015). Only planning strategy is not enough for company, it is
also very essential that it should be properly controlled or governed as well as managed in a
systematic manner. There are different types of people or stakeholders that are attached towards
company as they have interest and share into policies, systems and procedures such as customers,
employees, suppliers, government, society and shareholders. Therefore, it is very essential for
company that they inherent their stress and focus on rendering satisfaction as well as optimum
profit to shareholders of company. It is only possible if organisation has systematic, organized
and proper system of management as well as control on their operational and functional
procedures and policies (Ferkins and Shilbury, 2015).
Hence, corporate strategy and governance is are essential needs within Domino's Group
Plc. to make their system and performance effective and efficient. The top management of
Domino's Group has to take strategic decisions to govern and manage the corporate strategy.
Main aim or intention to make corporate strategy and its governance is to achieve success in the
future for long run. In addition to this, these strategies will also help the shareholders of
Domino's Group to explain rules and regulations of company. In order to invest capital and
spend money on investment, sustainability, social, political and environmental factors must be
considered. Domino's Group is a complete statutory body that is based on master franchise of
international fast food pizza delivery chain. They are providing healthy and hygienic fast food
since 1960 (Nakpodia, 2018).
Shareholder Analysis Matrix
1

Name of
Shareholde
rs
Impact
State the
impact of
project on
them?
(Low,
Medium or
High)
Influence
State the
influence
they will
have on the
project (Low,
Medium or
High)
State the
importance of
the
stakeholder?
What is the
role of
stakeholders
in blocking of
project?
Strategy for
engaging the
stakeholders
Customers High Medium Enhancing the
sales of
company
Making
complaints
about quality
of service after
the reports
Information
and feedback
meetings in
every 3
months
Employees Medium High Pursuing the
policies and
procedures
Going for
strike
Quarterly
round-table
discussions
Community Medium Medium Allowing
taking raw
materials from
society and
community
Stopping to
take funds and
materials
Half yearly
press meetings
Suppliers Low High Maintaining as
well as
managing
supplies for
company
Not providing
materials as
and when
needed
Monthly
meeting
Shareholde
rs
High High Allocation of
capital on time
Not providing Quarterly
2

Name of
Shareholde
rs
Impact
State the
impact of
project on
them?
(Low,
Medium or
High)
Influence
State the
influence
they will
have on the
project (Low,
Medium or
High)
State the
importance of
the
stakeholder?
What is the
role of
stakeholders
in blocking of
project?
Strategy for
engaging the
stakeholders
when required funds press meetings
Rationale
In this present report, Corporate Strategy and Governance have been taken due to
increasing significance within company. Domino's Group has been chosen for assessment of
corporate strategy and governance of company in this report. Domino's Group is the leading fast
food chain in UK as well as in world. It is earning around £474.6 million in 2017 and
approximately 1,749 employees are working in company. Thus, it is necessary to study the
components as well as issues which are governing corporate report for all companies (Klettner,
Clarke and Boersma, 2014). For example: Domino's group will be facing issues relating to
conflicts or any disturbance in between employees of organisation. Conflict is not a small thing
as it affects the image of organisation. Domino's Group has to make strategies and policies to
avoid these issues and problems coming internally within organisation. There are various
problems that company is facing such as lack of policy arrangement, gender and caste issues,
unhealthy environment and atmosphere of company as well as many others. Thus, it is very
important to make a matrix or difference in between issues that are important to be considered or
not very essential to consider and which should be included in corporate governance for which
strategies are prepared (Benton, 2016).
Literature Review
According to Formentini and Taticchi (2016), the word corporate governance refers to
the relations, mechanisms as well as procedures that help corporation to control and direct along
3

with balancing of interest and share of shareholders of company. It is important that the policies
and procedure which company is formulating should be followed in a proper and systematic
manner. If these policies and procedures are obeyed in a strategic or definite manner then there
will be no problem and issue arise within organisation. The primary or fundamental aim of
corporate governance is to facilitate efficacious and impressive management that delivers the
long term success of company. It is the system that assists management to control and direct
towards achieving goals and objectives.
As per Rothaermel (2015), in the UK, it is a part of legal system for listed organisation’s
corporate governance. Company will achieve the highest growth if there is proper and systematic
corporate governance within firm’s operations and functions. In order to sustain in the world of
competition, it is very important to use strategies of corporate governance. For company's
management, it is very crucial to have strategic control and governance of all the rules and
regulations, code of conduct along with the process of operation should be in designed manner.
Research Methodology
Research Methodology is an important part of research proposal as well as for carrying
out whole study. It is very important to use correct methods of study so that research will be
conducted properly (Hill, Jones and Schilling, 2015).
Data Collection- Data collection is one of the most essential parts of research as without
collection of data, research project cannot be completed. There are two types of sources for
collecting data such as primary and secondary. Both these sources are used in this research study.
Sampling- Sampling is a process that is used for statistical analysis in which
predetermined number of observations are taken from a large population. In this research study,
simple random sampling will be used by the researcher. Data will be collected by 20 employees
of Domino's Group (Hill, Jones and Schilling, 2015).
Data Analysis- Data analysis is also the most important part of study. It is the process to
make the raw information into meaningful one. Thematic analysis will be used by researcher to
make the research study successful.
Gantt chart
Task Name Duration Start Finish Predec
essors
4

Task / Duration in week 6 days 7/26/18 08/02/18
Selection of topic 2 days 7/25/18 7/28/18
Project development 1 day 7/29/18 7/31/18 2
Formulating aim and
objectives 3 days 7/30/18 08/03/18 3
Carrying out literature
review 11 days 08/02/18 8/18/18 2,4
Developing Research
methodology 5 days 08/02/18 08/10/18 3
Conducting primary research 4 days 08/09/18 8/16/18 4,6
Data investigation 2 days 8/15/18 8/18/18 7
Valuation of data 3 days 8/19/18 8/23/18 7
Conclusion and
recommendations 1 day 8/19/18 8/20/18 8
Submission of draft 2 days 8/20/18 8/22/18 8,10
Final submission 1 day 8/20/18 8/22/18 10
5

Illustration 1: Gantt chart
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SUMMATIVE ASSESSMENT
Introduction
The way organisation is governed refers to Corporate Governance. It is a technique or
method that directs as well as manages company in a right manner. Its actual meaning is to carry
out business according to the desire of company’s stakeholders. There are many benefits of
corporate governance as if company has effective and good corporate governance, company will
achieve corporate success along with economic growth. Addition to this, a powerful corporate
governance maintain as well as enhance the level of confidence that results in increasing profit
margin of company. Corporate Governance also helps company in raising capital effectively and
efficiently. Company's share price also has a positive impact by making strategies of corporate
governance.
In general words, corporate governance is making balance in between the interest of
consumers, suppliers, shareholders, community, etc. (McAlister and Ferrell, 2016). This report
will cover a short introduction of company’s background. Furthermore, reviews of issues which
company is facing relating to corporate governance will also be included in this report. In
addition to this, literature review on strategies and corporate governance will also be discussed in
this assignment. Besides this, a detailed discussion over primary and secondary research to
examine and ascertain problems or issues will be included here. At last, recommendations and
action will also be depicted in this report.
Background of Company
Domino's is the second biggest franchised chain of pizza in USA. Domino's Group is a
public limited company which is traded as LSE: DOM. This company falls under the industry of
food and beverages. It was found in the year 1957 by Tom Monaghan along with James
Monaghan who is his brother. Both are American entrepreneurs. Domino's name is evolved
when Tom Monaghan has become the sole owner of company. Its first outlet is in Ypsilanti,
Michigan, Unites States and the first name of Domino's Company is Dominick. Its headquarters
are located in Milton Keynes, England, UK. Domino's Group has long food chain serving in
more than 850 countries at present. It is famous for its products which are pizza, desserts, sides
and drinks. Domino's also hold their interest in the master franchisees for Domino's Pizza in
Norway's and Sweden. It has branches as well as exclusive rights to control and manage
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operations in many countries such as Germany, Switzerland, Ireland, United Kingdom,
Luxembourg and Liechtenstein. The shares of Domino's are listed in London Stock Exchange.
Apart from all these, Domino's has more than 660 stores in England. In 2017, its revenue
is £474.6 million. More than 1700 employees are working in Domino's. The most attractive
feature of Domino's is that its menu depends on the location. Menu is designed according to local
taste of people such as Squid which is very famous in Japan. Tuna and Sweet Corn is very
popular in British trend and Pickle ginger is very preferable dish in India and many others. On
the other hand, food of Domino's is healthy as well as hygienic (Edmans, 2014).
Reviews of issues
Domino's Group is the biggest food industry across world. There are various issues faced
by company. Corporate Governance as well as strategic issues that are faced by company within
different departments and sectors. Domino's is managing very huge sectors of departments as
because company has very big operation which become very complex to manage. Food industry
is famous for health and hygiene issues. Domino's also faces the issue of price as its value of
products is very high. In addition to this, Domino's Pizza was named as an edible food rather
than real food as its ingredients and substances do not help. Domino's has a policy on Friday i.e.
buy one get one. This policy has led to great challenges to company as it was find that there is
great difference in the quality of pizza in normal days as compared to BOGO days. After that,
complaints made this policy to be discontinued.
Apart from that, company is also facing financial issues, lack of skills and knowledgeable
employees, performance and monitoring, etc. Commodities fluctuating cost, labour and rent
inflation are also the major challenges faced by company while its operations and functions. The
chain of Pizza is also influenced by the high cost of wheat, dairy and flour. Moreover, company
is also facing issues of high rates of substitution and high market entry. Company is facing high
competition from McDonald's. Both have tight competition as both of them are leading
companies in the food industry across world (Giannakopoulou, Thalassinos and Stamatopoulos,
2016).
In order to control or overcome those issues, Domino's is making effective strategies and
corporate governance so that they will make their stakeholders satisfied and happy. Top
management of company is ensuring impressive monitoring at workplace. To accomplish or
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execute the mission and vision, it is essential to overcome those issues and encourage more
people towards them.
LITERATURE REVIEW
Corporate Governance
Corporate governance includes various processes and activities developed within a
business which assists to maintain effective and disciplined working environment in an
organisation. For increasing the reputation of brand and creating goodwill among various
competitors, it is essential for organizations to develop effective corporate frameworks, policies,
rules and regulations. According to Du Plessis, Hargovan and Harris (2018), in order to achieve
success and competitive advantages in current business environment, it is important for both;
small and large companies to have an organizational board. This board of organisation has
various top level managers who develop different policies and frameworks which are needed to
be followed strictly by every employee at the workplace. These frameworks and polices direct
each and every activity within a business or organisation to gain success within highly
competitive marketplace (Corporate Governance, 2017).
A major objective of developing corporate governance is balancing interest of various
stakeholders which are connected with the organisation directly or indirectly. Filatotchev and
Nakajima (2014) stated that there are various stakeholders associated with a business or
organization such as employees, staff, suppliers, government, shareholders, society, investors or
customers. The corporate governance also offers effective framework for achieving business
objectives and goals. It focuses on every part of management from internal control or action
plans to corporate disclosure to performance management.
ArAs (2016) states that corporate governance is an important part of every organisation
which controls or governs internal activities through various rules, policies or regulations which
help in achievement of business goals and objectives effectively. Board of directors within an
organisation are known as the primary stakeholders who highly influence corporate governance.
Shareholders are electing directors and are appointed by other members of the board. These
directors further represent shareholders of a company or organisation. The board is responsible
for making various significant decisions related to business for example executive compensation,
dividend policy and corporate officer appointments. Khan (2017), said that companies that
consist of a less stable board structure faces many problems in sustaining its position within a
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market. Integrity, reliability as well as obligations related to shareholders may be doubted due to
unstable corporate governance. Underpinning and tolerating any kind of illegal activity in the
organisation can develop scandals which are harmful for every business.
For example – in 2015, Volkswagen was caught in a scandal for rigged engine emissions
test in Europe and America. Mallin, ed. (2016) stated that an effective and stable corporate
governance helps in increasing the brand value and position among its competitors, stakeholders
and shareholders. A smooth and fair organisation attracts as well as motivates its shareholders to
enhance their investment in the business. An efficient governance within a company develops
specific and clear sets of controls and rules which have aligned incentives for stakeholders,
officers and directors. According to Davies, (2016) corporate strategies and governance play an
important role within an organisation or company which helps to gain high level of
sustainability. Edmans, (2014) stated that, Directors and managers need to ensure that both;
strategies and governance are effectively assigned together. This will also assist the management
to achieve its objectives and goals respectively. The major goal of developing corporate
governance is balancing interest of various stakeholders which are connected with the
organisation directly or indirectly.
Corporate Strategy
According to Driver and Thompson (2018), corporate strategy is a plan of action that is
concerned with how company creates values across various businesses. A good and effective
corporate strategy leads company to get success in the long run. In order to maximize the margin
of profit, corporate strategy plays an effective role. Corporate strategy of company
communicates the entire vision and mission as well as goals of organisation. In order to achieve
long term success, company used to make corporate strategy. It is the fundamental part of plan of
strategic management. It is very important to formulate precise plans and strategies to sustain
and remain in the competitive world. Peters and Romi (2014), stated that there is huge
interconnection in between strategies and corporate governance. They are justified by company's
management so that company can operate effectively and efficiently. Corporate strategy should
be directed towards the achievement of objectives and goals of company. Due to its
uncleanliness and broad open boundaries, corporate strategy is totally different from other kinds
of plan of action.
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