Strategic Management Report: Analysis and Planning for Domino's Pizza

This report presents a comprehensive strategic plan for Domino's Pizza Enterprises, focusing on the Australian market. It begins with an executive summary and introduction outlining the report's purpose: to analyze Domino's strategic position, identify key issues, and recommend strategies for future growth. The report includes a detailed external analysis using PESTEL and Porter's Five Forces, examining political, economic, social, technological, environmental, and legal factors, as well as the competitive landscape. An internal analysis, including SWOT and VRIO frameworks, assesses the company's strengths, weaknesses, opportunities, and threats, alongside its competitive advantages. Stakeholder analysis considers the needs of employees, owners, and customers. The report then defines corporate and business unit goals, proposes strategic options, and develops an action plan for implementation. The analysis covers both short-term and long-term goals, considering corporate-level and business unit strategies, and concludes with a summary of key findings and recommendations, offering insights into Domino's strategic direction for the next 5-10 years. The report is based on the case study methodology. The student has formulated intended and/or formation of emergent strategies for the organisation at the corporate level, and at one of the organisation’s business unit to meet its purpose, vision and goals for the next five years.

Running head: MANAGEMENT
Strategic Management
Name of the student
Name of the university
Author Note:

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Executive Summary
The report is based on the strategic plan for the Domino’s Pizza Enterprises in the fast-
food and food takeaway industry. The report has provided a macro as well as a micro analysis of
the business organization in Australia. The analysis has been done by means of doing a SWOT
analysis as well as a PESTEL analysis. The different kinds of the organizational analysis along
with the providence the different business strategies of the organization have helped the business
to ensure success.

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Table of Contents
1. Introduction..................................................................................................................................5
Background of the Business........................................................................................................5
2. Assumptions................................................................................................................................6
3. External Analysis.........................................................................................................................6
3.1 Macro Environmental Analysis.............................................................................................7
3.2 Micro Environmental Analysis..............................................................................................8
3.2.1 Key Success Factors...........................................................................................................9
3.2.2 Industry Analysis................................................................................................................9
3.2.3 Analysis of the Competitors...............................................................................................9
4. Stakeholder Analysis.................................................................................................................10
5. Internal analysis.........................................................................................................................10
5.1 Company performance.........................................................................................................10
5.1.1 Triple Bottom Line...........................................................................................................10
5.2. Competitive Advantage......................................................................................................11
5.2.1 Evaluation/Assessment of the Current Strategies.............................................................11
5.2.2 VRIO Analysis..................................................................................................................11
5.3 SWOT Analysis...................................................................................................................11
5.4 Long term viability of the business.....................................................................................12

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6. Business Strategic Goals............................................................................................................12
6.1 Short Term Corporate Goals................................................................................................12
6.2 Long Term Corporate Goals................................................................................................12
6.3 Short Tem Business Unit Goals...........................................................................................12
6.4 long Term Business Unit Goals...........................................................................................13
7. Possible Strategic Options.........................................................................................................13
7.1 Theory related to corporate level strategies and their development....................................13
7.2 Specific possible strategies for the future............................................................................13
7.2.1 Possible Corporate Level Strategies.................................................................................13
7.2.2 Possible Business Unit Strategies.....................................................................................13
References......................................................................................................................................15

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1. Introduction
The following report is based on the strategic plan for the Domino’s Pizza Enterprises in
the fast-food and food takeaway industry. The report has highlighted an external as well as
internal analysis alongside a stakeholder analysis of the business in Australia. Each of the
different strategic analyses has been divided accordingly to make the report more precise and
informative in nature. The external analysis has been divided into the macro and the micro
environmental factors which will be examined by the Porter’s Five Force Analysis. on the other
hand, the internal analysis will be performed by means of the SWOT Analysis, Value Chain
analysis and the VRIO framework.
Background of the Business
Domino’s Pizza was founded in the year 1960 and has been one of the largest producers
and sellers of different kind of pizzas. The food chain has its main headquarter in Michigan,
USA and has a large number of different stores all across the globe. In the year 2018, February,
it became the largest pizza seller in terms of sales. The Australia headquarter of the company is
located in Queensland. With an annual revenue of around A$150.68 million and lose to 30,000
employees, the management of the company maintains the tag of one of the largest in the island
nation of Australia. The first store of the company was opened in year 1935 and since then had
rapid expansion around the country. This massive expansion plans helped the business to
currently own more than 700 stores in the country. There are different kinds of the issues that
plague the organization. First of all there are a number of different local companies that are
providing substitute products to the customers. The slow rise of the other companies and hr loss
of market share has been the major issues for the organization for a number of years. Apart from

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this the low pricing strategy of the other companies has also been a source of major problem for
the business organization.
2. Assumptions
Domino’s Australia is a highly reputed food chain in Australia. It has been assumed that a
number of different sources both internal as well as external is equally capable of leaving a mark
on the company. The balance of both the internal as well as the external sources helps the
organization to ensure the success of the business accordingly. The economic strength of
Australia has supported the growth and sustainability of the different kinds of the fast food
chains like Domino’s. The stable economy of the country has been the main reason behind the
rise of the business organization in Australia.
3. External Analysis
PESTEL Analysis
a. Political Analysis- The political stability of Australia has helped the organization to
ensure the success of the business in a proper an effective manner.
b. Economic Analysis- The economic stability of Australia has been one of the main
reasons behind the success of the food corporations of the business.
c. Social Analysis- The people of Australia has great liking for fast food therefore the fast
food industry has a great market in the country.
d. Technological Analysis- The use of the online applications and the use of the other
technology has been one of the major advantages for the fast food chains of Australia.

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e. Environmental Analysis- The management of the fast food organizations adheres to all
the different environmental standards that are structured by the federal Government of
Australia.
f. Legal Analysis- The organizations involved in the fast food chain abide by the different
legal guidelines set out by the federal Government of Australia.
3.1 Macro Environmental Analysis
The macro environmental analysis of the business has been verified by means of the
PESTEL analysis. The company is free from any political interference just because of the
political stability of the country. The foreign investors and the business partners are quite
encouraged at the presence of a political hassle free environment. On the other hand, the
economic factor has a high rate of influence over the financial performance of the business. The
company had a financial crisis during the recession period which led to the absence of the
economic stability in the business. The management of Domino’s Australia has been able to
achieve new means of fulfilling the needs of the customers in the most proper manner. The
changes have been identified according to the social context. The loyalty program and the
Reward card has been the best example to promote social development for Domino’s Australia.
The management of Domino’s Australia has been able to innovate and implement
different technology to the retail sector which has been helpful for them to increase their
business in the most proper and effective manner. The legal factors of the business include the
different types of the taxation policies related to the smooth recruitment of the people. The
management of the business, in addition to these legal aspects also considers the food licensing
requirements that are important for the company to ensure business success. lastly the

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management of the company practices socially responsible and sustainable business practices to
ensure sustainability of the business organization.
3.2 Micro Environmental Analysis
The micro environmental analysis of the organization will reveal the different kinds of
the internal analysis of the organization using the Porter’s Five Force Analysis. The analysis has
been represented by a short yet compact table given below;
Threat of new
entrants
Bargaining power
of suppliers
Bargaining
power of buyers
Threat of
substitute
products
Rivalry among
the competitors
 Low
pricing
strateg
y of
other
compa
ny and
promot
ing
wide
scale
innovat
ion has
been a
source
of
worry
for the
compa
ny
 Innovation of
new products
and services
provides old
customers the
reason to buy
food products
from
Domino’s
Australia
 Buyers
are often
a
demandin
g lot.
They
want to
buy the
best
offerings
available
by paying
the
minimum
price as
possible.
This put
pressure
on
Dominos
profitabili
ty in the
long run.
 There are
threats
from
substitute
products
as similar
products
are
present
in other
organizat
ions. The
managem
ent has to
be
service
oriented
and must
increase
the
switching
cost of
the
customer
s
 Rivalry
among the
existing
players is
a cause of
great
concern.
the
company
has to
build
strategies
that are
unique
and
different
and help
the
business
to gain
success

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3.2.1 Key Success Factors
The management of the organization must ensure the success of the business by building
an efficient supply chain and a large base of customers. The company must also remain service
oriented and increase the switch of the core of the customers. Following all these different
recommendations, the company will be able to gain success in the market.
3.2.2 Industry Analysis
The Porter’s five force analysis of the following report has highlighted the key
perspectives of the external business analysis. It can be said that Domino’s Australia, though a
largely successful and experienced food chain market in Australia, the company is in threat of
losing the status to other business organization like McDonalds. However, any investment into
the company is always welcomed as because the company has been able to make sure about the
effectiveness of the business. On the other hand the Porter’s Force analysis is helpful in
analyzing the market specific factors such as the bargaining power of the buyers, the suppliers,
the rivalry in the market, the threats of new entrants, threat of substitutes in the market
3.2.3 Analysis of the Competitors
The competitor analysis of the organization has been provided in the assignment 1. The
table used to complete the competitor analysis has clearly shown Pizza Hut to be the main
competitor of the company. However McDonalds which has recently got into the pizza business
has also been a source of worry for the management of Domino’s. On the other hand both KFC
and Starbucks are not direct competitors of Dominos in Australia.

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4. Stakeholder Analysis
The stakeholder analysis of Domino’s Australia has clearly defined about the wants and
needs of the stakeholders of the organization comprising of the employees, owners and the
customers of the business. The organization has to develop itself by considering the demands of
these group o stakeholders to provide a better query solving approach and gain the best results in
the market along with serving the best food to the customers. therefore an effective stakeholder
analysis is the key to the success of the business in the market.
5. Internal analysis
The internal analysis of the brand helps the organization to gain an idea on the internal
strength, weaknesses, opportunities and threats that can be faced by the business organization.
The internal analysis is useful to formulate a proper and effective strategy that can be helpful for
the success of the business organization.
5.1 Company performance
5.1.1 Triple Bottom Line
The triple Bottom Line framework has identified the measures taken by the management
of Domino’s in Australia to address the environmental concerns. Some of the major measures
that have been taken up by the organization include concentration of the sustainability of the
food, engaging socially and offering the best quality food. Apart from this the company has also
started to use plastic and non-bio degradable materials. Regarding the planet, they have focused
on the energy improvements, the waste reduction through improving the supply chains. They
have also improved their transports and reduced their carbon footprints on the environment.

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5.2. Competitive Advantage
5.2.1 Evaluation/Assessment of the Current Strategies
The global recognition of the Domino’s brand is the main reason behind the success of
the organization. The quality and variety of the food along with the great service offered to the
customers stands out as the main talking point for the organization.
5.2.2 VRIO Analysis
RESOURCES VALUE RARE IMITATION ORGANIZATION COMPETITIVE
ADVANTAGE
Distribution
and Logistics
 Yes
 No
 Can be
imitated
 Yes
 Yes
Corporate
Strategy
 Yes
 No
 Can be
imitated
 Yes
 Yes
Opportunitie
s for Brand
Extension
 Yes,
Niche
Market
 No
 Cannot be
imitated
 High
Marketin
g budget
will be
required
 Yes
Brand
Awareness
 Yes
 No
 Cannot be
imitated
easily
 Yes
 Yes,
Well
reputed
global
brand
5.3 SWOT Analysis
The major strength of the organization is the networking channel as well as the capability
of the organization to provide prompt services. The weaknesses of the organization include the
likes of decreasing sales and low staff rates. Apart from this the company has lots of opportunity
to expand its market in the country and also overseas. However, the increasing influence of KFC,
McDonalds and some other business organizations can be said to be serious threats to the
business. The opportunities for expansion in New Zealand and also in other parts of Western
Australia provide the company a scope for new business chances.

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5.4 Long term viability of the business
The external analysis of the business has been a great learning experience in this report.
The external analysis including the likes of SWOT analysis, Triple bottom Line and VRIO
analysis has helped the organization to analyze the business in the most proper and effective
manner. The use of the SWOT analysis, Triple Bottom line and VRIO analysis help to identify
the inner condition of the brand. The company has stuck to its commitment to the people and the
environment. It can be assumed that it will take the company to higher level in future.
6. Business Strategic Goals
6.1 Short Term Corporate Goals
The short term corporate goal of the organization is as follows;
 Maintaining Workplace Diversity
6.2 Long Term Corporate Goals
The long term corporate goals of the organization will be to;
 To be the best operator of Domino’s pizza system across the globe
 Introduction of training program for the employees to ensure success
6.3 Short Tem Business Unit Goals
The short term business unit goals of the organization are as follows;
 People first policy
 Become the largest pizza vendor of Australia
 Centralized business operations