Case Study on Domino's Management Issues

This case study analyzes the management issues faced by Domino's Pizza, focusing on employee dissatisfaction, poor leadership, and exploitation of human resources. It identifies key problems within the franchise model and proposes solutions such as job redesign and transparent communication to improve employee morale and operational efficiency. The study emphasizes the importance of treating employees fairly and addressing grievances to enhance overall business performance.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Issue identification...........................................................................................................................4
Possible solution..............................................................................................................................5
Proposed solution.............................................................................................................................7
Recommendations............................................................................................................................8
References and Bibliography.........................................................................................................10

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Introduction
This study introduces management case study that explains mixed fortunes at Dominos.
In this particular assignment, emphasis has been given on understanding background of
Domino’s Pizza (Sheth and Sisodia 2015). The case study on Dominos Pizza was presented in a
way where several issues are identified that reveals that workers are not paid for overtime and
there is exploitation of human resources. The current segment identifies issues that are faced by
Domino’s in its operations. Domino’s is one of the Australian pizza chains with a network of
franchises and over 600 retail stores globally. In addition, the shares of Domino’s have surged
and best performers and making a lot of people wealthy. In the year 2016, Domino’s generated
total revenue of $939,976,000. The reality of life inside the Domino’s Pizza chain is not what is
portrayed to the general public. Most The present study explains probable solution where
Domino’s can mitigate the issues as identified in the case study (Armstrong et al. 2014).
Background
Domino’s has the biggest pizza menu in and across the world with more than 2,00,000
options that help in boosting the sales of Domino’s that is more than 90 million pizzas on annual
basis with a guarantee to deliver pizza within 15 to 20 minutes for an extra cost ( He, Zha and Li
2013). The business model of Domino’s is based on franchisees growing sales with head office
taking a royalty from every sale where Australians chomp through 1 million of pizzas every
week. In addition, stores are bought and sold on a multiple of these sales and not on profits. It is
understood that more stores will help in generating more sales and that lead to gain profits for
head office (Sheth and Sisodia 2015).

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Issue identification
Poor Management Leadership- From the case study of Domino’s, several issues was
related that was hampering the reputation of the overall brand. To this, poor management
leadership is one of the issues that were clearly identified from the case study. The
business of Domino’s relies mainly on franchisees where they take up stores and increase
the sale of the brand. But, this was not the case with the one of the powerful franchises
and member of Franchisee Advisory Committee named as Del Santo. The leadership
style that was adopted by him was wrong and lead to harassing workers who are working
for their stores. On the other hand, Managing Director (Meij) of Domino’s follows
leadership style where he actually thinks behalf of people where more concentration is
given on training its workers so that they know how to work and learn each day. On the
contrary, being a store franchisee, Del Santo asks his store manager to reduce labor costs
by any means possible. The main issue was exploitation of human resources at Dominos
Pizza where staff members are not paid for their work and force them to work more
without pay. Other problem that was found at the time of audit of Dominos is the stores
of the company give rise to wage fraud. Franchisees mostly blame the head of office
system if anything went wrong and that lead to poor quality of food and delivery.

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Possible solution
Employee dissatisfaction- One of the possible solution that can be adopted by Domino’s
is to check over the facts whether employees are happy working for their stores. Human
resource is one of the assets to the company that should be properly managed and efforts
should be made to listen to their needs and expectations rather than only thinking of sales
and profits. At Domino’s, employees are highly dissatisfied with their pay scale where
they are working for longer hours but not getting paid for extra hours even.
Figure: Response to employee dissatisfaction
(Source: Baker, M.J., 2014)
Voice- The employee feels dissatisfied if they cannot voice or speak up their own opinion at
workplace. Same is the case of Domino’s where employees cannot have their own say or
opinion regarding any of the company operations.
Loyalty- It is condition where employees wait for better condition or improvements by
trusting the organization and management to perform the right thing.

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Neglect- It is condition where employee feel worsen that include lateness,, reduced effort as
well as increased error rate.
Exit- It is the condition where dissatisfaction is expressed through behavior that is directed to
leave any organization.
Organization value or culture- The organization work culture if equally important for
any employees who are working for Domino’s. The managing director of Domino’s
believes in changing the business model frequently so that they are ahead of competition
in the market. Organization value or culture is really important so that employee feel
relaxed, composed and content while working at Domino’s.
Communication- Communicating the right information to the right employees is the best
solution that needs to be adopted in the stores of Domino’s. The management of these
stores is only thinking how to increase profits by any means possible. The possible
solutions are customer communication as well as job redesign. It is important to undergo
the immediate issuing of press release for discussing the mishappenings, conducting
aggressive advertising as well as communication and employee training. The Company
should conduct interview via television as well as radio stations for discussing the events
and reassuring the public what situation need to be handled. Promotion is one of the
possible solutions that Domino’s should adopt in their business operations. Embarking on
vigorous promotions as well as giveaways for regaining rapport from the customers.
Domino’s has always been a company who based its offerings on convenience (Sheth and
Sisodia 2015). The company is trying to gain competitive advantage over other
companies by having both convenience as well as flavor lovers on their side. It will be

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Revising the Job Content
Analyzing the job related information
Reshuffling job related tasks and duties
Altering the job elements
Reforming job description and specification
Training employees for adjusting to job redesign
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difficult task to keep up both convenience and new recipe as it will be highly costly
affair. The old famous deal of 30 minutes or free had been their trademark for several
years. With the new developments of a recipe, it is noted that Domino’s is swaying away
from convenience as well as moving towards flavor (Brown and Churchill 2014).
Proposed solution
From the above listed possible solution, communication can be selected as the best
proposed solution that can solve any major issue that prevails at Domino’s. The proposed
solution that should be adopted by Domino’s is Job Redesign and this can be illustrated by use of
Herzberg Two factor theory.

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Figure: Job Redesigning at Domino’s Pizza
(Source: Baker, M.J., 2014)
Person marketing include activities that need to be undertaken for creating, maintaining
or changing attitudes and behavior for targeting consumers towards specific people (Armstrong
et al. 2015). Domino’s Pizza does not pay much attention to the staff members and found to be
not abiding by the policies and procedures. Most of the workers are underpaid and they are not
even paid for extra hours worked by the employees. Employees work for longer hours for the
company but they are not gets paid for that time or hours (Czinkota and Ronkainen 2013). This
action gives rise to dissatisfaction in the minds of employees.
Domino’s Pizza faced problem in their operational activities such as loss of customers as
well as profits. There are alternative solutions mentioned in the above question that is generated
to solve problem of Domino’s. Possible solution to the above problem is job redesigning of
activities (He, Zha and Li 2013). A proper plan was formulated for implementation of probable
solution. Therefore, contingency plan was put in place for any types of precautionary measures.
Recommendations
Strategy 1: Treat employees equally
The first strategy that should be used by Domino’s is treating each employee equally and
paying for what they work. At stores, the employees who want to work for longer hours should
be paid that lead to employee satisfaction. It is recommended to Domino’s that Senior Leaders
should meet every month for discussing the commodity market outlook as well as how to
manage purchase and supplier relationships in an effective way. It is suggested that Domino’s

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pizza should extend the menu as well as try to increase the taste as well. Domino’s pizza should
launch many national advertisements that highlight how they reinvented their entire business
model. Domino’s pizza should make use of technology like Online Pizza tracker as well as
iPhone application and online ordering. It is suggested to Domino’s for implementing the new
flavor as well as also keeps the 30 minutes or less bargain guarantee. Both convenience and
flavor is costly affair where the amount of large profit in sale at the beginning of the process.
Both the convenience as well as new pizza together would make for a great solution. In addition,
the break-even that could be obtained with this that would succeed over the previous pizza
recipe.
Strategy 2: Transparent communication
The next strategy that should be adopted by Domino’s is enhancing transparent
communication where each employee can speak up their thoughts, opinions and grievances to the
upper level management or any level of management they desire to. Employee grievances should
be addressed by the management so that they feel their importance in the company and that will
make them work more for the organization and become a true asset to the company. Addressing
employee’s grievances and complaints can solve a lot of major problem in the stores.

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References and Bibliography
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Brown, T.J. and Churchill, G.A., 2014. Basic marketing research: Customer insights and
managerial action. Cengage learning.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Hair Jr, J.F. and Lukas, B., 2014. Marketing research (Vol. 2). McGraw-Hill Education
Australia.
Hartley, S., 2015. Domino's dominate with digital design. Busidate, 23(3), p.2.

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He, W., Zha, S. and Li, L., 2013. Social media competitive analysis and text mining: A case
study in the pizza industry. International Journal of Information Management, 33(3), pp.464-
472.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.