Domino's Australia Media Crisis: A Strategic Problem Analysis (MBA)

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Added on  2023/03/22

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This presentation delves into the strategic problems faced by Domino's Australia, specifically focusing on the negative media attention stemming from the underpayment of workers in early 2017. The analysis highlights how the pursuit of higher profits led to the exploitation of labor rights, resulting in significant financial and reputational damage. The presentation further details the internal investigations and actions taken by Domino's management, including the formulation of a task force and the termination of franchisees involved in the scandal. The analysis also explores the impact on the company's share prices and the efforts to rebuild public trust through improved public relations and wage policies. The presentation concludes with strategic recommendations, including stricter provisions against employee exploitation, improved financial oversight, and enhanced public relations, all aimed at preventing future crises and restoring Domino's brand image. Desklib provides access to similar presentations and solved assignments for students.
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Capstone - Strategic
problem and analysis
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Table of Contents
Introduction
About Domino’s Issue
Strategic problem that cause negative media attention
Conducting analysis
Set of strategic recommendations
Conclusion
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Introduction
Negative publicity of organisation in the media decrease the sales and
growth of the corporation. In order to increase the reputation and enhance
the customer base, the management of organisations needs to consider the
importance to public relations and present themselves precisely in front of
media. The following presentation will focus on Domino's Australia as they
were featured in the Australia media in negative light.
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About Domino’s Issue
The issue arises in the beginning
of 2017 where the management of
Domino's were highlights in the
Australian media due to there
underpayment of workers.
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Cont..
This was the serious issue that was discovered at the time where company
was enjoying high rate of profits and revenue.
It was identified that the pizza chain has recovered AU $1.1 billion after
hearing continuously complaints of staff.
It has also recovered $770,000 in unpaid wages and superannuation from its
completed audit of 15 stores and further audit is going in 41 stores.
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Strategic problem that cause negative media
attention
The reality of life inside the
Domino's Pizza chain is not what
is portrayed to the public.
The management and manager
collaboratively formulate the
strategy in order to earn higher
revenue and profits.
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Cont.…
Domino's is the leading pizza chain in whole Australia and the organisation
improving many techniques in order to increase their sales and
organisational reputations.
In early 2017, the management faced a issue related with the underpayment
of staff and worker in more than 15 stores in Melbourne and Sydney.
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Cont..
Del Santo who was one of the biggest and most powerful franchisees and a
member of Domino’s influential Franchisee Advisory Committee, told the
manager of more than 15 stores to cut the labour rate so in order to earn higher
revenue.
The franchisee manager was found to be culprit for the issue arises in and this
issue attracts not only local media but also the international media.
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Conducting analysis
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Cont..
The scam begins in 2015 and was identified in 2017 when many employees
complaints to the top management about the underpayment of wages and
exploitations of labour rights.
It was identified that the pizza chain has recovered AU $1.1 billion after
hearing continuously complaints of staff.
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Cont..
The Group Chief Executive
Officer (CEO) & Managing
Director Don Meij formulate a
special task force in order to
analyse the reports and audit
committee has been formulated.
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Cont..
Domino's said it is withholding a total of $487,000 for wage back-
payments at those six stores.
It was considered as the serious issue the management of Domino's faced
serious harm to their image.
The issue attracts the media and it impacts negatively for the organisation.
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