Study Explains Mixed Fortunes At Dominos Essay

Question:

Discuss About The Case Study Mixed Fortunes At Dominos?

Answer:

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).

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

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.

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 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.

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

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 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.

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.

References

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.

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.

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