Principles of Operations Management: Domino's Pizza Strategic Report

This report provides a detailed analysis of Domino's Pizza's operations management. It begins with an introduction to the company, its operational manager roles and responsibilities, and core operational activities such as demand forecasting, supply chain management, quality management, and innovation. The report then explores the interrelationship between these operational activities, including planning, direction, and coordination, and their impact on production and other departments. It further examines current trends affecting Domino's Pizza, such as store sales, store footprint, and capital spending. The report also includes an external and internal environmental analysis using SWOT and PESTLE frameworks to identify strengths, weaknesses, opportunities, and threats. The report concludes by discussing resource allocation and conducting a strategic analysis of the operations functions, offering insights into how Domino's Pizza supports its long-term strategic goals and navigates its competitive landscape. This comprehensive analysis offers valuable insights into the company's operational strategies.

Principles of
Operations
Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction of organisation....................................................................................................1
2. Explanation of operational manager roles and responsibilities...............................................1
3. Core operational activities of Domino's Pizza.........................................................................3
4. Interrelationship between the operational activities................................................................3
5. Current trends..........................................................................................................................5
6. External and Internal environmental analysis..........................................................................5
7. Internal and External factors of organisation...........................................................................7
8. Operation management and it supports to long-term Strategic goal.......................................8
TASK 3............................................................................................................................................9
Determine the appropriate allocation of resources for operation management...........................9
TASK 4..........................................................................................................................................13
Conduct a strategic analysis (SRA) on the operations functions of an organisation.................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operation management can be defined as a process which is focused by business entities
for the purpose of administrating all the business practices for the purpose of reaching long term
strategic goals. It is focused by managers in companies to covert labour and material in product
and services and then generates higher profits. There are various principles of operation
management such as reality, humility, success, change, accountability, quality control etc. which
should be focused by all the top level executives for attaining growth for business. All of them
can provide higher level of visibility in to the operations so that effective decision for future
could be formed appropriately (Savino, Manzini and Mazza, 2015). For better understanding of
the concept of operation management a restaurant named Domino's Pizza is selected. It was
founded by Dominick DiVarti, Tom and James Monaghan in year 1960. It is one of the largest
restaurant chains which are operating business all around the world. This assignment covers
various topics such as understanding of impact of business environment on operations and the
purpose of operations in support of organisational strategy. Additionally, appropriately allocation
of resources for operation management along with strategic risk analysis on the operation
functions are also covered in this project.
TASK 1
1. Introduction of organisation
Domino's Pizza is a fast food restaurant chain which is execution operational activities in
different locations around the world. CEO of the enterprise is Richard E. Allison. It is public
limited company which is operating business under food delivery franchising industry. It
operates business in around 16000 locations and the operations are carried out with the help of
more than 290000 staff members (Choi, Wallace and Wang, 2018). There are various types of
items which are sold by it to the customers. These are pizza, pasta, dessert, chicken wings,
submarine sandwiches etc. The entity is growing continuously because of its good market image
and high quality of eatables and beverages which are sold by it to the customers.
2. Explanation of operational manager roles and responsibilities
Operational manager is a person who is responsible to make sure that all the operational
activities are performed systematically. In Domino's Pizza there are various individuals are
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working on this job profile for the purpose of executing the operations in systematic manner.
There are various roles and responsibilities of them which are as follows:
Roles: Operation managers are one of the key personnel in upper level of management which
makes sure that company performs with full productivity. Their role involves keeping control on
multiple areas of the business and its operation. Some of the rules of the operation manager of
Domino's Pizza are as follows:
Workflow and staffing: The basic role that operation manager perform is to handle the manpower
requirement of the different department of organisation. They play a major role in working with
HR of the company to select and train employees along with handling issues (Vivaldini and
Pires, 2016). As they are aware of the needs of department they are effective in adjusting the
workflow and fulfilling the staffing demand to improve performance of operation.
Monitor inventory and supply chain: another role that operation manager performs is to
supervise supply chain processes and track inventory for the operations. They are also
responsible for properly stalking the finished product and delivering it to the retailers to meet the
demand. Each and every department is busy in their specific processes while operation manager
supervise the entire process and interfere to make adjustment.
Responsibilities: this is a requirement of the job provide profile of operation manager in the
organisation. It is their duty to comply with all these responsibilities so that organisation can
perform with full productivity. Some of them are as follows:
Frame policies and strategies: one of the major responsibility that operation manager in any
organisation perform is to make strategies that align with companies vision and mission
statement. They are also responsible for framing policies for different departments so that rules
and laws are fully implemented in the operations of the Domino's Pizza.
Working with senior stakeholders: operations manager roles are concerned with supervising and
controlling overall operations and thus is it it is needed that it works with upper level
management of the organisation (Cotrim, Leal and Filho, 2017). This is one of the major
responsibility as oral strategies are framed so that operations can function smoothly and achieve
organisation objectives.
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3. Core operational activities of Domino's Pizza
Domino’s Pizza production process is well structured and design according to customers
demand. There is stepwise process by which cool operational activities of production is carried
out in the organisation. The steps are as follows:
Demand forecasting: in order to plan demand and manage inventory it is important that
demand is forecasted effectively. This forecasting is then communicated to production
department of Dominoes which also increases overall supply chain and its efficiency. It also
helps companies to control its inventory Stop distribution, optimise orders on the basis of
distribution and meeting quality standards.
Supply chain management: Dominos consider make to stalk approach on the basis of just-in-
time technique. The sales organisation to make orders when there is demand so that stock cost is
kept minimum (Davis and et. al., 2018). Through this approach demands are met faster along
with certain advantages like consistency in Quality, effecting by buying power to reduce cost of
fluctuating prices and minimising issues of packing material.
Quality management: in Dominoes quality is maintained so that brand image can be improved
and industrial laws are regulated. There is agreement between suppliers and Domino's Pizza
regarding the quality of raw material and packaging. Along with this controlling system check
the safety and consistency Of food ingredients. There is a mechanism which analysed and check
samples and monitor customer feedback to maintain quality.
Innovation: this with application of radical innovation by the dominoes in its supply chain
system Mr the technique of viral marketing introduced by Domino's Pizza is one of the greatest
example of position innovation. The process of delivering pizza in 30 minutes has a great
creative approach. Along with this it is important that product is protected from my sure,
physical damage, heat and stickiness (Soto-Silva and et. al., 2016).
In all the above are the core operation activities that are carried out by Domino's Pizza in order to
be effective in its operations and meet the specifications demand of the customer.
4. Interrelationship between the operational activities
Operation are integral part of the organisation and strategies are made accordingly to achieve
objectives. So there is a need that different operational activities into relate with each other so
that proper management can be achieved. The interrelationship or as follows:
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Planning: operation management has responsibility to call collaborate with other departments
and their heads so that planning for the overall operations can contribute to the long-term
strategy of company. This also helps to assist functional component of the strategies and
activities are planned according so that they can contribute to the overall performance of the
organisation. This into relationship includes deter mining policies for management, budget and
support services (Lelieveld, Holah and Gabric, 2016). This into relationship shows that Dominos
Pizza ensures that all functional units are aligned with the direction for effective overall
operations.
Direction: to ensure that the plan is this effective operation management is also responsible to
provide direction to different departments. There is a need that all departments complete their
functions according to the planning so that productivity golden standards are achieved. There's
also need That necessary corrections are taken so that quality standards can be met. This shows
into relationship in coordination between the operation management and other departments of
Domino's Pizza.
Coordination: operation management also assist in achieving organisational strategy goals with
the help of coordinating functions of various functional unit of the company. The sales in
improving efficiency by maintaining relationship between the department and even allow them
to operate independently. In this operation management please a major role in coordinating and
directing the activities in maintaining relationship between the different departments of the
Domino’s Pizza.
Production and other departments: an organisation is a system of several soft departments
which work together to achieve organisational objectives. Manufacturing department or the
production unit uses raw materials, machinery to turn it into Finnish product which has some
value for customers (Syed, 2016). All such sub-systems are interdependent and maintain
relationship in order to make production department efforts successful. There are number of
activities that are interlinked between production and other departments so that they can
effectively meet ever changing demand of consumer for Domino's Pizza.
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5. Current trends
Domino's Pizza is currently facing challenges in protecting its position in the industry and
expanding into international markets. To overcome this company is focusing on these trains so
that it can have sustainable competitive advantage in the industry. Some of them are as follows:
Store sales: Company is witnessing slow growth rate in the stores in recent years. Still the
company is enjoying out growing strategy due to its wide profit margin. Does it will help
company to attract investors with the vision of capturing market share with the growth rate of
store sale. Still there are many untapped areas where Domino's Pizza can expand its operations to
increase its international market share through its outlet.
Store footprint: The recent growth in the store in different global locations with the help of
operation management. The management of the company believes that there are future growth
and development opportunities as well to efficiently operate larger chain of restaurants
(Chalbaud and Tigert, 2017). Company is adding new stores every year to capture international
market and other untapped market which has potential for growth. Company is aggressively
analysing different segments to penetrate into the market with growth opportunities along with
financial strength for new launches.
Capital spending: there is rise in products moving in operation over the last five years which
also help in building new supply change in the market. There is a need that Domino's Pizza
spend on innovation so that digital delivery and ordering can be enhanced. As there is a need that
company regulate its capital state spending and make effective planning to accelerate its growth
rate.
6. External and Internal environmental analysis
SWOT Analysis: This analysis helps in identifying strengths and weaknesses of
organisation so that opportunities and threats are find out.
Strengths
Its main strength is delivering services within
30 minutes otherwise pizza is delivered free of
cost.
In order to attract middle and lower class
customer Domino's Pizza offers low price
Weaknesses
one of major weaknesses is company is not
successful in creating effective ambience in
their outlets to attract customers (Eaidgah and
et. al., 2016).
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menu. There is no facilities like birthday events and
business launch party which it lack from its
competitors.
Opportunities
there is opportunities for Domino's Pizza to
redesign its outlets so that better environment
and floor space can be provided.
Like other restaurant it should include take
away facilities to capture more customers as
well (Harrison and Lock, 2017).
Threats
Major threat is competitors like Pizza Hut
which have better facilities and menu to
capture market share.
New chain of restaurant are entering into the
market and thus creating threat for Domino's
Pizza.
PESTLE Analysis: It provides complete understanding about challenges that company faces
from external factors and are not in control of organisation as well. Thus it has major impacts on
business and its operations from ever – changing environment.
Political: These are factors related to political aspects which have impact on long – term
profitability on business in the country in which it operates. Being global chain of restaurant
there are number of factors that has impact on its operations like political stability, level of
corruption, safety regulations, interference of state. They have both positive and negative impact
on Domino's Pizza as their actions and strategies should align with these factors.
Economic: these include factors like inflation rate, interest-rate call my canonic cycle of
the country, savings rate, etc. This has impact on companies growth rate, Labour cost, skill level
of workforce and comparative advantage in the industry. In case of Domino's Pizza Factor like
financial market which affect the capital raising in the local market for the company (Nair,
Jayaram and Das, 2015). The growth of the Country also affects the development of company in
the particular region it operates. Does, it has both positive and negative impact on the decision
making of the company.
Social: this includes factors like believes, attitude, customs and behaviour that impacts
the buying process of consumer. In order to have competitive advantage in the industry Domino's
Pizza need to understand the customers in their given target market. For this company need to
understand class structure, culture, attitude, demographics and spending habits Of the consumer.
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Technological: In the recent year technology kill development has disrupted the
industries which also has impact on the Domino's Pizza. There is a need that it should analyse
this technology kill aspects so that it can have competitive advantage. For this company need to
understand recent development and technology by its competitors, cost structure and impact of
change structure in service sector.
Legal: there are number of frameworks and rules that protect the intellectual property and
lead industry in terms of legal aspect. It is important that form carefully evaluate all the related
factors before entering into country. There are a number of laws that Domino's Pizza needs to
analyse like discrimination law, Data protection, health and safety law, consumer protection act,
etc. These frameworks create impact on the decision making of the company as these need to
align all its operations which would compile to all these rules (Carter and Price, 2017).
Environmental: there are different environmental stand dirt which have impact on the
corporate social responsibility of the industry there are different laws and rules which company
needs to abide to avoid any legal action. Before entering into a region it is necessary that
Domino's Pizza analyse factors like climate change, waste management, environmental pollution
rules, air and water pollution regulations, renewable energy, etc. All these have impact on the
operations of Domino's Pizza as there is need of strategies and course of action which leads to
compile with all above laws.
7. Internal and External factors of organisation
Operations management comprises of processes like planning, directing, controlling and
change management so that there is continuous improvements to achieve higher productivity.
Principles of operations management are fundamentals for daily work to understand factors for
decision making related to planning processes (Schönsleben, 2018). There are number of
internal and external factors that has impact on operations of organisation, some of them are
follows:
Internal factors: Managers and leaders have control over such elements of organisations and
have significant impact on business operations:
Leadership: It refers to all those factors that takes decisions related to human resources,
marketing, budget, sales, etc. Such helps company to have clear vision for future growth and
strategies for course of action to achieve it. In Domino's Pizza leadership have impact on creating
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structure that makes employee empower along with directing them to meet organisational
objectives. This has major impact on selecting appropriate leadership style according to
situations and need of organisation.
Employees: These are human resource of business and treated as assets thus it is
important that relations are maintained with effective communication. To ensure this Domino's
Pizza managers provides training and encourage personnel to participate in decision making.
This also impact on HR department policies and procedure so that talented and skilled personnel
are employed and retain for long.
External factors: These elements of business environment are not in control of management
thus affect majorly the decision making process of organisation:
Customers: It is important that business understand needs and expectations of buyers so
that it have sustainability in market place. Domino's Pizza conduct research with the help of
feedback forms to understand changing taste and preferences of consumers and offers product
accordingly (Mahadevan, 2015). This has impact on designing and manufacturing products
which are acceptable by customers in market place in which business operates.
Competitors: There are number of other companies who offer similar products in market
place with less prices and same quality. This is one of major aspect of external environment
which have major impact on business operations of Domino's Pizza. This has impact on
strategies while dealing with competitors, employing promotional activities, etc.
8. Operation management and it supports to long-term Strategic goal
Operation management has major role to provide plans for operation and functions of the
organisations were that resources can be optimally utilise. Operations strategy is define specific
policies so that company can have long-term competitive advantage (Slack and Brandon-Jones,
2018). Operation management is one of the central function which is responsible for managing
resources effectively.
Operation management directs the operations of the overall business to achieve this
strategy goal of the organisation. It helps in framing strategies which are straight forward
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directed to the long-term advantage of the organisation. In case of Domino's Pizza planning
activity of operation management is directed to words achieving customer demand and
specifications so that company can regain its position in the industry again.
Operation also assistant supply chain management by effectively managing suppliers in the
market and maintaining relationships so that cost can be controlled. In case of Domino's Pizza
innovation is maintaining the supply chain management so that stock cost can be minimised and
demands can be achieved effectively (Slack, N., 2018). The relationship between the different
functional departments with the help of operation management align all activities of the business
to go to strategy goal attainment. Not every decision of the operation marmalades to long-term
strategy achievement but it is also help in managing routine activities of organisation. A business
which is constantly moving to her just started it direction ultimately leads to long-term
competitive advantage in the industry. This is one of the basic idea between the operation
management leads to ultimate achievement of organisational goals. Operational processes of
Domino's Pizza Leeds each and every function to have continuous improvement so that quality
can be maintained and there is continuous innovation in the process which will lead to long-term
strategy goal accomplishment.
TASK 3
Determine the appropriate allocation of resources for operation management
Resources management strategies: Strategies of resource management linked with the
business practices where focus on the attracting, developing, rewarding and holding staff
members for the advantage of both the staff member as individual and entire business activities.
To achieve all the goals required to human resource management department focus on the
activities and help for the goals of the rest of company (Choi, Cheng and Zhao, 2016). These
strategies mainly applied by the Domino's effectively to achieve their goals and objectives in
appropriate manner. As a result it helps to apply resources at right place, at right time in the right
quantity as per the requirement. To identify all the better resources apply the VRIN model that
helps to recognise different types of resources.
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Resource based view: The resource based view is defined as a model which sees
resources as key to superior firm performance. When resources exhibits VRIO attributes, the
resources allows a business to achieve and sustain competitive advantage. To analysis the
different resources of the company apply the VRIO model in the context of Domino's. It is a tool
that is applied to find out different abilities of an organisation (van Aken, Chandrasekaran and
Halman, 2016). There are focusing on different four aspects which as assessed by the manager
like valuable, rare, inimitable and organised. For Domino's consist of four all elements is as
follows:
Capabilities Valuable Rare Inimitable Organised
Financial
Resources
✔ ✗ ✗ ✗
Distribution
network
✔ ✔ ✗ ✗
Arrange Funds ✔ ✔ ✔ ✗
Brand image ✔ ✔ ✔ ✔
 Valuable: There are focusing on those factors which is valuable for the company such as
financial resources are highly valuable that supports to business in investment to gain
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