Dominos Pizza: Analysis of Management Theories and Concepts

This report provides an analysis of the management issues at Dominos Pizza, specifically focusing on the challenges related to staff treatment and franchisee practices within the Australian market. The report identifies issues such as poor working conditions, excessive workloads, and a lack of employee consideration, stemming from a focus on profit maximization. To address these problems, the report suggests the implementation of systematic management theory, including participative leadership, to foster better coordination, planning, organization, and controlling. The study also emphasizes the importance of incorporating key management concepts, such as planning, organizing, staffing, coordinating, and controlling, to improve the overall management structure, enhance employee satisfaction, and ultimately, improve organizational performance. The report concludes by highlighting the need for a more balanced approach that considers both profitability and employee well-being, fostering a positive and productive work environment. The analysis uses a range of sources to support the arguments and provide evidence for the proposed solutions.

Running head: MANAGEMNET THEORIES AND CONCEPTS
Management Theories and Concepts
Name of Student
Name of the University
Author note

1
MANAGEMNET THEORIES AND CONCEPTS
Executive summary
The objective of the paper is to analyse the issues existing in Dominos Pizza and state some
solution to one key issue. Dominos faces problem in its staff management, as the staffs are not
happy with the type of treatment they get from their managers and they are overloaded with the
work due to profit maximization. Thus, they can follow systematic management theory such as
participative leadership to improve their management concepts such as coordination, planning,
organisation and controlling. This will give a proper structure to the organization to form its
strategy along with offering a better workplace. This will be beneficial for the organization to
make hero employee happy along with organizational profits, which the company solely aims.

2
MANAGEMNET THEORIES AND CONCEPTS
Table of Contents
Introduction......................................................................................................................................2
Analysis to Key Problems...............................................................................................................2
Solution to One Key Issue...............................................................................................................3
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

3
MANAGEMNET THEORIES AND CONCEPTS
Introduction
Dominos Pizza is one of the best pizza corners of the world delivering reasonable and
good quality pizza to the customers. It has wide range of products available for the customers
about 200,000 options from where the customers can select. The delivery time is also It has a
unique system of selling their pizza through franchisees system and depends a lot on their
franchisee partners. With the strategy and good management, system the company has grew at a
faster rate and offers great competition to other fast food chain in Australia. It has 600 retail
stores in Australia run by the franchise partners. The CEO of the company Don Meij Dominos
takes up the responsibility of growing the company even more and analyse the performance of its
partners (Dominos 2017). This paper will analyse the key issues faced in the management of
Dominos Pizza even with its continuous success. Further, it will provide solution to one key
issue that the company is facing using various management theories.
Analysis to Key Problems
Dominos has been growing considerably over the last 25 years due to its unmatched
service and high quality products. The company has also offered a high rate of customer
satisfaction by offering continuous product innovations and at a very reasonable cost. The
company followed the franchisee business model where it aims to grow sales and profit. The
CEO of the company also follows a good type of leadership bond with its workers as well as the
franchisee partners. He tries to follow the strategy of changing the negative effort to a positive
one. However, even with all these efforts the company is facing many problems within its
working environment and outside. It has been receiving many complaints about its franchisee
partners of some stores. This might also prove to be a reason for their downfall.

4
MANAGEMNET THEORIES AND CONCEPTS
1. The key challenges analysed in the dominos company in Australia are the poor treatment
of the staffs and cutting down some of its franchise stores due to this problem. This was
mainly due to lack of responsibility and management skills among the franchisee owner
of Australia Del Santo. He made the staffs work longer hours per day and also in a very
bad working condition (Greenblat and Greenblat 2017).
2. Staffs of the company are not getting good treatment from the business due to their
strategy and plan for expanding the business at the cost of exploiting their staffs. It was
noticed that in some of the franchisee stores the franchise head set a target for the
managers to reduce the cost of the company and increase sale at any cost. This forced the
managers to exploit their staffs by making them work for longer time each day and
cutting their payment based on fake penalties. This made the staffs feel discouraged to
work and give good performance. Moreover, they were also forced to work under poor
condition without proper ventilation.
3. The company only focused to increase their own sale and profit and offer good customer
service. This also helped the company to hide their poor management in front of their
customers. The health of the workers was also deteriorating under the condition they
worked because of absence of proper air condition, ventilation and place to work.
Further, it was seen when the issue went down to the CEO, he laid down various
franchisee for such exploitation and it costed to the company’s profit and unemployment.
This is because cutting down stores means the to lay out the staffs and workers working
in that store which increased the unemployment rate and downfall of productivity f the
business.

5
MANAGEMNET THEORIES AND CONCEPTS
Solution to One Key Issue
One of the key issues faced by Dominos is the ill treatment to the staffs discouraging
them to work. Staffs are one of the vital parts in the organisation and treating them well is
necessary and duty of the management. This is because they are the active part in the production
of the company and unhappiness among the staff might in turn affect the production of the
company and profit in long run. Thus, finding an appropriate solution to it is vital for the
organisation. It is seen from the present attitude of the staffs and the managers that the head of
the franchisee follow a bureaucratic management theory in which the head of the company
operates order on the juniors and fellow staffs. There is extreme hierarchy and authoritative
control in the organisation (Al-Safran et al. 2014). However, this did not work well in case of
Dominos. It has been argued by Hill, Jones and Schilling (2014) that in order to operate
successfully and keep their staffs happy it is important the company follow systems theory of
management in which they can maintain a type of system and realise that each work affects
various person of the organization. In systematic management theory, the franchisee will be able
to take actions after prior consultation with their staffs and managers. This will help them
understand the state of their managers and the staffs. It will also allow the staffs to feel safe and
motivate them to work in the company. Moreover, Tedeschi (2013) has put forward that
involvement of staffs and allowing them to convey their problems in front of higher authority
regard in a new system will in turn help the owners to think about the new strategy before
incorporating it. This will create a positive bond between the employees and the business head.
Other than incorporating systematic management theory, the company can also improve
their management problem by following other concepts of management in their activity. Some of
the management concepts are planning, organizing, staffing, coordinating and controlling

6
MANAGEMNET THEORIES AND CONCEPTS
(Geisler and Wickramasinghe 2015). This will not only help in solving their present issues and
help the organisation to work smoothly at every consequence. First concept is planning and it is
seen that it is due to lack of planning the company was unable to convey right message to their
franchisee partners about the policy of the company regarding cost saving. Thus, before taking
any decision the processes of the business should be planned and passed on so that everyone in
the organisation is aware of it. This will reduce the amount of staff exploitation and misconduct
of the business motive. Secondly, organising the work and strategy is important because every
company aims to increase its profit and reduce its cost. However, it was seen that due to lack of
organisation of company’s motive the franchisee owners took wrong step in reducing the cost of
the business. Coordination is yet another critical task in the business process as it reduces the
chances of error caused in Dominos Pizza Australia. The CEO of the company failed to
coordinate his motive of turning the negative to positive to the franchisee partners, which lead to
their downfall. Doleski (2015) has showed that lack of coordination lead to change of motive by
the franchisee owners in which they did not cared about the importance of staff in the business
and continued their exploitation to earn money. Lastly, according to DaSilva and Trkman (2014),
the most critical concept of management that is applied in every organisation is control.
Controlling the process of the business is good; however, it can happen that too much of control
on the wrong direction might lead to negative attitude of the worker and a failure of business
process. This happened in Dominos in which the owners had a lot f control on the workers and
the managers and forced them to work against their comfort level. This has put a negative impact
on the worker and they were willing to work. To gain the trust from the workers the organisation
needs to first reduce their control on them and sometime consider their needs while planning
their cost minimization and profit maximisation strategy. This will help them to gain their trust

7
MANAGEMNET THEORIES AND CONCEPTS
and increase the productivity of the workers. The company can also take up different business
model such as the distributor that can directly take the products from the company and supply it
to the customers. This will help them develop good employee management relationship.
Conclusion
From the above analysis, it can be deduced that even though Dominos Pizza has been
operating successfully in Australia with good consumer base and increasing level of revenue
every year yet the company was suffering from many drawbacks that might lead to their
downfall. The drawback was mainly due to poor management skills of the franchisee owners in
various stores and staff exploitation. Thus, a proper analysis of management concept is needed in
the organisation to improve their management skill and increase employee satisfaction. The
company should follow systematic management theory in the business in which they need to
incorporate every level of employees in the decision and planning process. Further, the business
should have good knowledge of management concept such as planning, coordinating, organising
and controlling. They should incorporate them successfully in their management environment so
that there is better flow of information in the business and this might lead to reduction in
employee exploitation.

8
MANAGEMNET THEORIES AND CONCEPTS
References
DaSilva, C.M. and Trkman, P., 2014. Business model: what it is and what it is not. Long range
planning, 47(6), pp.379-389.
Doleski, O.D., 2015. Integrated Business Model: Applying the St. Gallen Management Concept
to Business Models. Springer.
Dominos.com.au. (2017). Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. [online] Available at: https://www.dominos.com.au/ [Accessed 8 Sep. 2017].
Geisler, E. and Wickramasinghe, N., 2015. Principles of knowledge management: Theory,
practice, and cases. Routledge.
Greenblat, E. and Greenblat, E. (2017). Domino’s reports office death. [online]
Theaustralian.com.au. Available at:
http://www.theaustralian.com.au/business/companies/dominos-reports-death-at-brisbane-office/
news-story/689e31f6a7202ef5c0e228a98cf924f0 [Accessed 8 Sep. 2017].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Tedeschi, J.T. ed., 2013. Impression management theory and social psychological research.
Academic Press.
Al-Safran, E., Brown, D. and Wiseman, A., 2014. The Effect of Principal's Leadership Style on
School Environment and Outcome. Research in Higher Education Journal, 22.