Strategic Analysis Report: Domino's Pizza's New Zealand Operations

This report provides a strategic management analysis of Domino's Pizza in New Zealand, examining both its internal and external environments. The analysis begins with an executive summary and table of contents, followed by an introduction that outlines the report's objectives, limitations, and scope. The background of Domino's Pizza, including its origins and expansion into New Zealand, is then discussed. The internal analysis delves into the company culture and values, core competencies, and competitive advantages, including its use of technology and innovative delivery methods. Porter's generic strategies are also explored. The external analysis covers the microenvironment using the 4 Ps of the marketing mix (Product, Promotion, Price, Place) and the macroenvironment through a PEST framework (Political, Economic, Social, Technological). The attractiveness of the fast food industry is assessed, and the influence of stakeholders is evaluated. The report concludes with a results-based approach, recommending changes to the business model to attract customers, supported by references to relevant academic literature. The report is based on secondary information available online.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS
Executive Summary
This report is based on the analysis of the internal and the external
environment of Domino’s Pizza in New Zealand. The industry in which the
organization operates is also analysed in the report. The background of
the company and the culture is also discussed in detail. The core
competencies of the organization and its capabilities are also analysed in
the report. The generic strategy of the organization is also discussed in the
report in detail. The level of attractiveness of the fast food industry is
analysed in the report. The changes that are recommended in the
business model for attracting the customers is finally recommended in the
analysis.

2STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Part A.................................................................................................3
Introduction........................................................................................3
Background.......................................................................................3
Internal analysis................................................................................4
Company culture and values.........................................................4
Core competency...........................................................................5
Competitive advantage..................................................................6
Porter’s generic strategies.............................................................6
External analysis...............................................................................6
Micro environment analysis of Dominos based on 4 Ps of
marketing mix...........................................................................................6
Macro environment analysis of New Zealand fast food industry
based on PEST framework......................................................................7
Analysis of the attractiveness of the industry....................................8
Evaluation of the influence of stakeholders......................................9
Part B...............................................................................................10
Outcomes and results-based approach..........................................10
Changes recommended for the business.......................................11
References......................................................................................12

3STRATEGIC MANAGEMENT ANALYSIS
Part A
Introduction
The report will be based on the analysis of a dairy organization in
New Zealand named Dominos. The major purpose of the report is to
analyse the background and the internal environment of the organization.
The external environment in which the organization has its operations and
the ways by which this environment affects its profitability will be analysed
in the report. The attractiveness of the industry in which the organization
has its operations will be a major part of the analysis in the report. The key
stakeholders of the organization will be analysed and discussed in detail in
the report. The main limitation of the report is based on the research
based capabilities. The entire analysis of the organization will be based
only on the secondary information that is available on the internet (Aguinis,
Edwards & Bradley, 2017). The scope of the report is based on the
insights that it will provide about the environment in which it has its
operations.
Background
Domino’s Pizza, Inc. which now holds the brand name of Domino’s
is a pizza restaurant which has its origins in America and the organization
was established in the year 1960. The headquarter of the pizza chain is
located in Domino’s Farms Office Park in Ann Arbor, Michigan. The
organization has received the position of the greatest pizza seller in the
world in the year 2018 with respect to the total sales. The international
expansion of the organization started in the year 1983 with the
international store of the pizza chain opening in Winnipeg, Manitoba,
Canada (Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. 2018). The organization opened its 100th operating store in the

4STRATEGIC MANAGEMENT ANALYSIS
same year. Domino’s Pizza chain is considered to be the largest chain of
pizza makers in New Zealand in terms of the huge network that has been
formulated by the organization in the country. The company also holds the
largest chain franchised stores in New Zealand. The first Domino’s Pizza
store was opened in Springwood, Queensland, Australia in the year 1983
(Barkema & Chvyrkov, 2017). The organization further showed huge
growth which led to the opening of several stores in other areas of
Australia. The organization entered the pizza market of New Zealand in
the year 1993. The franchise of the organization was purchased by Silvio’s
Dial-a-Pizza which was later converted to Domino’s Pizza. The operations
of the organizations were combined in the year 1995. The current of senior
management which is operating in Domino’s presently had been
formulated in the year 2001. After the merger that had taken place in
Domino’s in the year 2001, Dominos owned 128 franchised stores and 59
corporate stores in New Zealand. Domino’s Pizza thereby went on to
become the second largest pizza making organization in New Zealand
(Bettis et al., 2016).
Internal analysis
Company culture and values
The culture that has been created in Domino’s Pizza Enterprises
Limited or more commonly known as Domino’s is said to be quite unique
in nature. The organization had found its recipe of success in the year
2016, 13 years after Domino’s entered the New Zealand Pizza market.
The restaurant was able to find a recipe of success and was able to open
100th store in Meadowbank, Auckland. The store count of the organization
had increased by 15% in the last 18 months. The main reason behind the
success of Domino’s Pizza in New Zealand is the passion of the New
Zealanders for the brand and the ways by which the products are
delivered to them (Borland et al., 2016). The passion of the various
franchisees who are a part of the entire operations of Domino’s is related

5STRATEGIC MANAGEMENT ANALYSIS
to the operation of the successful model of business. The organization has
been successful in becoming much more than a simple food delivery
restaurant.
The organizational culture is mainly based on the activities of the
people within the premises of the organization itself. The employees of
Domino’s belong to various cultures and thereby Dominos can be
considered as a multicultural organization. New Zealand is a country
where the people come from various countries from different parts of the
world (Daspit et al., 2017). The development of business in the country will
be thereby related to the communication process between the employees
who belong to various cultures. Dominos teaches the employees about
professional ethics, social ethics and the individual ethics as well.
Values of Dominos – Treating people the way by which they wish to
be treated. Producing the best for the least. Measuring, managing and
sharing the important things. The process of thinking big and growing. The
process of incentivising the things that they wish to change. Setting the
bar high and providing training to the employees. The process of
promoting from within the organization. The main value is related of
Dominos is related to the thought that they are not ordinary and the
operations of the organization are exceptional in nature (Engert et al.
2016).
Core competency
The major core competency of Domino’s Pizza has been the high
quality products that are provided to the customers. The organization has
thereby been able to use new technologies and innovative methods to
provide the best services to the customers. The business method of
Domino’s has been quite disruptive in nature with which the organization
has been successful in implementing the ground-breaking technologies for
providing the best services that are provided to the customers. The major

6STRATEGIC MANAGEMENT ANALYSIS
resources that have been acquired by Dominos in New Zealand are the
high-end IT systems so that the stores can be improved (Frynas & Mellahi,
2015). The new IT systems have been provided to the franchises of the
organization in New Zealand. The marketing communications of Dominos
have been improved with the help of the digital technologies that have
been implemented in the corporate stores and the franchise stores of the
company. The high brand value that has been gained by Dominos is
another huge asset for the proper operations of the organization (Gamble
& Thompson, 2014).
Competitive advantage
The pizza and fast-food industry of New Zealand is dominated by
Dominos with the help of the modern technologies that are used by the
company in the process of delivery. The organization was the first in using
drones for the purpose of delivering food to the customers. The
organization has partnered its operations with Flirtey for launching the
commercial drones in the market. The company is further investigating in
the new and the innovative methods of delivering products to the
customers. These innovations have helped Dominos to create a
competitive position in the food industry (Hill, Jones & Schilling, 2014).
Porter’s generic strategies
The generic strategy that has been used by Dominos in the New
Zealand fast food industry is related to differentiation that is created by the
company with the help of its products. The organization mainly focusses
on the high quality and the better ingredients. The company maintains its
advantage in the market by offering better products as compared to the
others in the industry (Hubbard, Rice & Galvin, 2014).

7STRATEGIC MANAGEMENT ANALYSIS
External analysis
Micro environment analysis of Dominos based on 4 Ps of marketing
mix
Product – Dominos is known in the market for providing fresh and
high quality pizza to the customers. The products of the organization
include both the non-vegetarian and vegetarian variety. Dominos has used
the unique concept which is related to the usage of local flavours so that
they can capture the market.
Promotion – Dominos has implemented the idea of maintaining
contact with the customers so that the company can be taken to new
heights. Dominos checks the competitors and keeps their news to
formulate its strategies (Karadag, 2015).
Price – The major target of the products that are offered by the
organization are the lower middle class and middle class customers. The
pricing policy of Dominos is consistent and uniform in nature.
Place – Dominos has maintained a channel with the customers and
the orders are placed with the help of calls or internet. The delivery boys of
the company are considered to be heroes as they are able to provide the
products to customers within the stipulated time (Meyer, Neck & Meeks,
n2017).
Macro environment analysis of New Zealand fast food industry based
on PEST framework
Political factors – The trends and demands of the customers
affect food industry. The restaurants of the fast food industry in New
Zealand are trying to add healthier options to their menu as the various
public health related policies have changed. The current policies in the
country encourage the intake healthy and quality food.

8STRATEGIC MANAGEMENT ANALYSIS
Economic factors – The unemployment rates and the state in
which the country has its operations affect the food related industry. The
industry has depicted great expansion in the past few years. The taxation
rates, the interest rates and the consumer spending relates to the
operations of the fast food industry (Michael, Storey & Thomas, 2017).
Social factors – The trends the shifts that has been experienced in
the society have affected the needs and demands of the customers. The
demands for whole foods and organic foods has also increased. The
lifestyle of the younger generation has changed and they have shifted
more towards the healthier food options.
Technological factors – The changes that have occurred in the
external technologies have affected the operations of organizations like
Dominos. The technologies are used for the production food items and
products and the packaging based facilities. Dominos has used the
technologies for delivering food to the customers with the help of drones
(Morschett, Schramm-Klein & Zentes, 2015).
Analysis of the attractiveness of the industry
Threats of the new entrants – The new entrants in the restaurant
industry brings innovation and new ways are also introduced. This has
increased the pressure on the operations of Dominos in the industry. The
challenges need to be balanced by Dominos by building the effective
barriers to maintain its competitive edge.
Bargaining power of the suppliers – The raw materials that are
used in the restaurant are procured from huge number of suppliers. The
suppliers who are in the dominant position in the industry can affect the
profit margins and revenues of Dominos in the market. The suppliers who
are powerful in the industry have the ability to extract high prices from
restaurants. Dominos needs to build an effective supply chain to solve this
issue (Sakas, Vlachos & Nasiopoulos, 2014).

9STRATEGIC MANAGEMENT ANALYSIS
Bargaining power of the buyers – The buyers of the restaurant
industry are powerful in nature and have the ability to put immense
pressure on the profitability of Dominos. The bargaining power of the
buyers of Dominos is therefore considered to be high. The customers
have the power of ask for discounts and other offers from the restaurant.
Threats of the substitute products – The fast food industry is
growing with a fast pace and the customers are provided with huge
number of options. This factor has created huge pressure on the prices
that are provided by Dominos to the customers. The quality of the product
is the main point of differentiation from the other fast food organizations in
the New Zealand fast food industry (Simon, Fischbach & Schoder, 2014).
Rivalry among the existing organizations – Dominos has been
facing intense competition which can further drive the prices down. The
overall profitability of Dominos is based on the competition that is provided
by the other organizations. The intense rivalry in the fast food industry has
further increased the size of the market with huge number of players
(Stead & Stead, 2014).
Evaluation of the influence of stakeholders
The stakeholders of the organization are the customers and the
employees. Dominos has always given utmost importance to the
satisfaction of the customers and the ways by which the company can
gain their loyalty and retain it forever. The organization thereby aims at
providing the highest levels of satisfaction to the customers so that they
can maintain their competitive advantage and profitability in the fast food
industry. The satisfaction levels of the customers are analysed with the
help of feedback that is collected by the company (Trigeorgis & Reuer,
2017).
The employees are also major stakeholders of the organization and
form a major part in the operations. Dominos considers the employees to

10STRATEGIC MANAGEMENT ANALYSIS
be the major driving forces of the organization. They form the pillars of the
organization and further help in the fast food organization to provide
utmost satisfaction to the customers. The organization ensures that the
employees represent the culture of the fast food chain in the ways by
which they provide great food to the customers (Wheelen et al., 2017).
The two practical examples that can be provided with respect to the
stakeholders of Dominos are as follows,
The sales of Dominos had fallen in the year 2009 and the
share prices of the organization had also reduced in the
process. The company had however recaptured the
customers and became the largest pizza chain in the entire
world. The organization has further increased its focus on
the customers. The strategy of the organization had changed
and customer service had become the core strategy
(Domino's Pizza | Order Pizza Delivery Online | Food
Delivery & Takeaway. 2018).
The employee engagement related activities in Dominos had
been affected by the gamified training process. The
employees in the company feel a type of competitive urge
which improves their performance in the industry. The
various aspects that have led to better engagement of the
employees is the competition between them. The employees
are motivated to complete their course and improve the
scores. The curiosity of the employees is increased with the
fun-filled activities and their engagement increases as well
(Domino's Pizza | Order Pizza Delivery Online | Food
Delivery & Takeaway. 2018).

11STRATEGIC MANAGEMENT ANALYSIS
Part B
Outcomes and results-based approach
Outcomes and results based management strategy is based on the
type of management where the organizations take decisions related to the
results or feedback that is obtained from the various organizational
processes. The feedback that is obtained by the organizations thereby
maps the services, products and the business processes as well. This
type of management policy can also be defined as the result based
management (Trigeorgis & Reuer, 2017).
For example, Dominos had collected feedback from the customers
regarding the products that are offered to them. The management thereby
termed the products to be boring and tasteless on their social media.
Further, the organization aimed at creating new items which were added
to the existing line of products. This had helped the company in increasing
its sales and bring back their lost position in the fast food market of New
Zealand (Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. 2018).
Changes recommended for the business
Dominos has always positioned itself in the market as the best
delivery option that can be given to the customers. The organization has
provided huge emphasis on the delivery based services that are provided
to the customers. However, this strategy is not helping Dominos to rise
against the huge competition that it has in the fast food industry. The huge
number of delivery options that are provided by other organizations to the
customers has reduced the importance that was held by Dominos in the
past. The organization thereby needs to make changes in the entire
business model. The fast food chain needs to concentrate its resources on
the opening of full service restaurants so that the customers are able to
spend more time within their establishments. The delivery options that are

12STRATEGIC MANAGEMENT ANALYSIS
provided by the organization also needs to be put in place. This will help
Dominos to retain its loyal customers and further increase the customer
base so that it can sustain its profitable operations.

13STRATEGIC MANAGEMENT ANALYSIS
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