Bow Valley College MGMT1101: Dominos Research & Analysis Paper

This research and analysis paper examines Dominos, a leading global fast-food company. It begins with a summary of Dominos' history, operations, and financial performance. The paper then delves into a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats, and formulating strategies based on this analysis. It explores environmental constraints, including political, economic, social, technological, legal, and environmental factors, and how Dominos addresses them. The paper identifies key stakeholders and their impact on the company. It analyzes Dominos' organizational structure, highlighting its hierarchical and mechanistic design. It also examines employee motivation strategies, applying Vroom's Expectancy theory and Maslow's needs hierarchy. Finally, the paper provides recommendations for Dominos, including product bundle adjustments, business-level strategy improvements, and the implementation of controls and training programs.

Final Project-Research & Analysis Paper
– Part II
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Table of Contents
Summary....................................................................................................................................1
SWOT -Formulating strategies..................................................................................................1
Environmental Constraints.........................................................................................................2
Stakeholders...............................................................................................................................3
Organizational Structure and Design.........................................................................................4
Motivating Employees...............................................................................................................5
Recommendations......................................................................................................................6
Controls and Recommendations................................................................................................6
References..................................................................................................................................8
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Summary
Dominos is one of the leading companies around the globe. The company was
founded back in 1960, and after its introduction, the company never look back, presently, the
company is operating in more than 85 countries. The company deals with food items.,
however, it specializes in pizza. More than 31,0000 number of employees are serving the
company as of 2019 estimates and revenue earned by company 2019 is US$3.618 billion
(Pratap, 2018).
In this research analysis, the themes include analysis of SWOT for strategies,
environment, stakeholders, structure and employees. This research will also suggest some of
the recommendations to Dominos. Thus, these themes will help to gather knowledge about
how organizations operate.
SWOT -Formulating strategies
Undertaking the SWOT analysis on Dominos, it can be observed that the company
have several strengths in its operational management. Company is recognized as top delivery
corporations across the globe and along with this company even ranked in 5th position as a
fast-food brand. The company thus can utilize its global position to extract maximum profit
by generating more customer base under its purview at a worldwide scale. The company can
even use its branding to gain customer loyalty; this increase in loyalty will aid the company
to achieve sustainability in its business process (Kuchinka et al., 2018). Strengths like the
adoption of a reasonable pricing strategy can also help the company to enjoy the maximum of
the market share in the fast-food business both in domestic location and in international
locations. Latest technology usage by the company is another strength identified, and the
company can take advantage of it by reducing its business costs (annualreports.com., 2018).
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The weakness of the company shows that the company has failed to update its
products as per changing consumer habits. Competitors like KFC and Mc Donald's have
updated their menu list and introduced new products (Bhosale & Deo, 2018), but Dominos
failed to do so. From this perspective, the company must protect itself from losing customer
base. The company must introduce innovative products to its menu. The company must also
set up its stores by including more square feet’s.
Opportunities like the inclusion of the latest technologies can help a company to
provide better customer services, and this will, in turn, help the company to touch customer
satisfaction points. Dominos store set up in the elite locations is also an opportunity for the
company because this strategy will help the company to increase its customer base (Teoh,
2019). Introducing the health-conscious menu is also an opportunity that the company may
consider to include health-conscious customers (Taylor, 2016).
Threat from competitors is the biggest threat that Dominos is facing, and for
protection from this threat, the company must devise its strategies every quarter. Growing
health consciousness is also a significant threat for Dominos, and from it, the company can
protect itself by adopting the usage of organic products in its food production management.
Environmental Constraints
Pestle analysis of Dominos shows that the company is being affected by several
environmental factors. Political factors like regulations related to wages, hygiene, food
quality impact the performance of the company. Trade barriers of different countries also
harm the business process. Economic factors like inflation rate, economic growth, interest
rate affect the company's business. Exchange rate fluctuation, however, affects more to
Dominos. Social factors like change in consumer preferences jeopardise the company.
Technological factors like self-checkout from stores, CRM system affects the company's
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performance management (Kumar & Rajasekhar, 2018). Legal factors like food regulation of
different countries impact the company. Environmental factor-like reducing carbon emission
affects the performance of the company.
Dominos is operating in different locations, and for this reason, the company has to
assure it works by taking into considerations the impact of various constraints upon the
business process. Company to combat the exchange rate fluctuations issue has adopted the
strategy of converting its revenue into national currency and pay its suppliers across the
globe. For addressing the environmental factors like reducing carbon emission, Dominos has
adopted the CSR activities in its production management (annualreports.com.,2018). For
tackling the social factor like change in consumer preference, the company has adopted a
strategy of introducing health-conscious food items in its menu. For minimizing the effect of
legal considerations, a company from its initial days have always operated by remaining to be
within the regulatory frameworks. The biggest challenge is created by economic factors such
as a change in economic growth, inflation rate. These economic factors have resulted in a loss
of customer base for the company.
Among these constraints faced by Dominos, the technological factor has resulted in
opportunities for the company. The increase in customer base, upgradation in employee
productivity, better supply chain management all are due to the incorporation of the latest
technology by the company.
From the above, it can be assessed that Dominos has been able to tackle its constraint
in the right manner. However, it should be noted that for sustainability company must devise
more innovative strategies to combat its challenges that are arising due to environmental
factors like economic factors.
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Stakeholders
Key stakeholders of the company are shareholders of the company, owners such as
the sole traders, partners, management and the employees, suppliers, customers, banks, other
financial organizations and government. Different stakeholder of the company impact in a
different manner; however, if special effects are considered, then it can be observed that
employees are the most influential ones. Employees performance impact organization
directly because here, the customer's interactions are direct. Costumers are also impactful
because they influence the revenue earning part of the company. Partners, sole traders impact
the market share. Suppliers affect the supply management system while the shareholders and
creditors such as banks affect the company from an investment point of view. The
governmental body and the management system affect the company from functional aspects.
Thus, all the stakeholders have their influence on the functioning of the company.
Among all the stakeholder's company should prioritize its suppliers, customers and
the employees most. Employees and supplier's prioritization will help the company to
perform better because their better performance is directly linked to the production process of
the company. While prioritizing customers by considering all their requirements will help the
company to maximize its revenue.
Organizational Structure and Design
The organizational structure of Dominos is a hierarchical one. Dominos operates in
across the globe, so here this structure usage is a viable one because hierarchical structure
promotes better coordination. It can be observed that a mechanistic structure prevails, within
Dominos. This feature of the mechanistic structure is evident from the diagram below, which
depicts the organizational structure of Dominos. In the diagram, it is clear that the company
undertakes a centralized leadership approach. The CEO of the company is positioned at the
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prime position, which controls other departments such as CFO, Supply chain, HR, CIO,
Marketing, COO and the sales team. These different teams then headed by their respective
managers of various departments. These departments mainly consist of food and services,
human resources, sales, marketing, finance and property. Different managers have their role
within the stores. In stores, the store manager is placed at the supreme position and other
works under him.
Diagram: Organizational structure of Dominos
(Source: Akhter, 2019)
From the above setting within Dominos, it can be assessed that the company achieved
its success due to its centralized structure. The mechanistic structure of the company shows
that efficiency within the company is assured and this efficiency is helping the company to
control and manage the coordination level between departments of the organization (Ahmady
et al., 2016).
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Motivating Employees
In Dominos, the motivational theories like Vroom's Expectancy theory and the
Maslow's needs of the hierarchy can be applied. Maslow's needs theory application within
Dominos will help the employees to meet their requirements and at the same time attain
satisfaction by fulfilling their needs. Employees need if filled then the company will pave
towards growth. Dominos can appeal to trust employees because this will increase the
motivation level within the employees, and the employees will attain high self-esteem. Now
if Vroom's Expectancy theory is applied, then it can be observed that employee's performance
level will upgrade due to the introduction of the reward system within the company (Lloyd &
Mertens, 2018). A company by following this theory can introduce Quarterly reward system
for the employees based on their performance.
Recommendations
After the research, it can be recommended to Dominos that company must devise its
product bundle and take into consideration the local ingredients of different countries where
it operates. This suggestion will add a more competitive edge to the company.
The business-level strategies must be improved to capture more market share at the
global scale. The company must introduce some unique approach such as local dish within
the menu. The company can accomplish this suggestion by involving local chefs into its
business process who will guide the company. This recommendation will help the company
to serve people at diverse locations.
Controls and Recommendations
Business plans will be monitored by using the quarterly check process and any change
within the program will be tackled with a feasible strategy.
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Feedforward control will be used because this will aid to be aware of anticipated
issues (Simanjuntak, 2018). The company can provide training to its employees for uplifting
their skills and along with this company may also track its progress on quarterly basis
(Tismal et al., 2016). In this way, the effectiveness will be ensured by the control. The
feedforward control will help Dominos to achieve its objectives, and this can be done by
tracking the performance level of the company.
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References
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational
structure. Procedia-Social and Behavioral Sciences, 230, 455-462. Retrieved from
https://www.sciencedirect.com/science/article/pii/S1877042816311582 accessed on
5.04.2020
Akhter, K. (2019). The role of digital marketing platform (Facebook, Instagram, Twitter) on
the success of Domino’s Pizza Bangladesh. Retrieved from
http://dspace.bracu.ac.bd/xmlui/handle/10361/12112 accessed on 5.04.2020
annualreports.com. (2018). 2018 Annual Report. Retrieved from
http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_DPZ_2018.p
df accessed on 5.04.2020
Bhosale, P., & Deo, S. (2018). An examination of the inventory management system at
Dominos. Retrieved from http://researcharchive.wintec.ac.nz/6263/ accessed on
5.04.2020
Kuchinka, D. G., Balazs, S., Gavriletea, M. D., & Djokic, B. B. (2018). Consumer attitudes
toward sustainable development and risk to brand loyalty. Sustainability, 10(4), 997.
Retrieved from https://www.mdpi.com/2071-1050/10/4/997 accessed on 5.04.2020
Kumar, G. S. D., & Rajasekhar, A. J. (2018). Drone Based Service System using Internet of
Things (IoT) Technology. Retrieved from
https://pdfs.semanticscholar.org/32df/53d982df3951beed35f392f3ac7012c9bc1c.pdf
accessed on 5.04.2020
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Lloyd, R. A., & Mertens, D. (2018). Expecting more out of Expectancy Theory: History
urges inclusion of the social context. International Management Review, 14(1), 28-43.
Retrieved from http://americanscholarspress.us/journals/IMR/pdf/IMR-1-2018/IMR-
v1-n1-2018-4-19.pdf#page=28 accessed on 5.04.2020
Pratap, A. (2018). Domino's Pizza Number of Employees. Retrieved from
https://notesmatic.com/dominos-pizza-number-of-employees/ accessed on 5.04.2020
Simanjuntak, D. A. (2018). The Role of Feedforward Control System in Improving
SMEs\'Performance. European Research Studies Journal, 21(3), 378-390. Retrieved
from https://www.ersj.eu/dmdocuments/2018_XXI_3_30.pdf accessed on 5.04.2020
Taylor, B. (2016). How Domino’s pizza reinvented itself. Harvard Business Review.
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Teoh, W. (2019). The Market Risk on Domino's Pizza Incorporation's Peformance. Retrieved
from https://mpra.ub.uni-muenchen.de/id/eprint/97244 accessed on 5.04.2020
Tismal, A., Awais, M., & Shoaib, O. (2016). On job training and its effectiveness: An
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