Domino__1_.edited.docx.pdf

Running head: DOMINO’S PIZZA INCORPORATION
Domino’s Pizza Incorporation
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DOMINO’S PIZZA INCORPORATION 2
Domino’s Pizza Inc. that is also branded Domino’s is a multinational pizza restaurant
chain that is based in America. The corporation was established in the year 1960. The company’s
headquarters are in Ann Arbor, Michigan, and incorporated in Delaware. In 2018, the chain
turned out to be the largest seller of pizza across the globe following sales. The mission of
Domino's Pizza Inc. is the maintenance of high standards of the global chain of pizza delivery in
the United States and offer the experience of outstanding products with outstanding customer
service, remaining to be the exceptional persons serving the best pizza across the globe, selling
more pizza and having more fun (DOMINOS PIZZA: Mission and Vision, 2019). The vision of
the corporation is to be the best operator Domino's Pizza system with the best talent, number one
in pizza, and number one in people.
All corporations exhibit stakeholders like specific, group, or organization. Domino's is a
successful establishment and is required to be aware of not only the needs but also the
dependence of his stakeholders. Domino's has several stakeholders that include customers,
franchise holders, employees, and shareholders. Regarding the employees as key stakeholders,
the corporation is facing class action that is centered on underpayment claims. The corporation is
said to be facing a class action that is emanating from in-store employees of staff as well as
delivery drivers whereby the said stakeholders claim that they have been facing underpayment
for about the past five years. The class action is said to have been filed in Federal Court and is
being funded by Therium Litigation Finance. It has been brought forward by a specialist law firm
called Phi Finney McDonald. Following the claim, from June 2013 to January 2018, the
corporation mandated the franchisees to remunerate delivery drivers and in-store employees in a
series of wrong employment agreements even though they should have been remunerated
following the Fast Food Industry Award 2010. The agreement lacked various entitlements, for

instance, 25% loading for casual employees, extra rates of penalty for operating after-hours, on
public holidays and weekends, allowances for laundry to help in the cleaning of uniform as well
as most delivery drivers and in-store employees became victims of underpayment as a result
(Domino's facing class action over underpayment claims, 2019). Following the corporation's
current corporate strategy and capability, Domino should defend the proceeding and hold
bilateral talks with the franchisees to make the correct agreement regarding how the employees
should be compensated hence avoiding the recurrence of the menace. The agreement between the
different parties will help in solving the hitches hence restoring the relationship for smooth
operations.
In 2017, the corporation faced claims that franchisees were demanding cash from
workers in return for their visas. Accusations that franchisees at the corporation contacted the
employees regarding the payment for the sponsorship of visas prompted employment lawyers to
make a reminder to businesses concerning the potential repercussions associated with the failure
to abide by the workplace and immigration laws. In response to the allegations, Domino's cited
that it was oblivious of the accusations of visa fraud across its networks but investigations
resumed with an immediate effect (Domino's hit by claims that franchisees are asking employees
for cash in return for visas, 2017). Following the corporation's current corporate strategy and
capability, Domino's should ensure that there are strict policies regarding visas to ensure that
employers do not create positions to obtain visas. There should be clear terms on what the
positions are and their description. The corporation should sit with the immigration department
to assess its requirements hence formulate the necessary policies to counter the fraud.
Domino's strategically relevant or success factors in the macro-environment include the
economic factors, social factors, political factors, technological factors, environmental factors,

and legal factors. Per their order of importance, the above factors can be ranked from the most
important to the least important as follows; political factors, economic factors, social factors,
technological factors, environmental factors, and finally, legal factors. The basis for my
arrangement is centered on the impact of each factor on Domino's Pizza Corporation. Political
plays the most significant role in the determination of the factors that can influence a
corporation's long term profits in various countries or markets. Secondly, macro-economic
factors like interest rates, savings rates, and inflation rates among others play a significant role in
the determination of the aggregate demand and investment in any economy (Domino's Pizza, Inc.
PESTEL / PEST & Environment Analysis [Strategy], 2019). The legal factors appear to be of the
least importance. In many nations, legal frameworks and institutions are said to be less robust
enough for the protection of intellectual property rights of corporations.
Domino's competitive forces include the threat of new entrants, suppliers' and buyers'
bargaining power, threats of substitute products as well as rivalry amongst existing firms. The
forces are strong because the firm is aimed at the innovation of new products and services, the
creation of efficient supply chains that have multiple suppliers, the creation of a broad customer
base, remaining service-oriented as opposed to product-oriented as well as creating sustainable
differentiation. Biotechnology is an industry factor that is driving great changes in areas such as
agrochemicals. Through biotechnology, Domino's has mobilized the standard of the pizza
industry to a great level. Domino's remains at the top as the market leader in the United States
market. The corporation is seconded by Pizza Hut. The third position is held by the Little
Caesars while Papa John's holds the fourth position. Domino's is said to bucking the trend. As a
market leader, the corporation is gaining market share and is posting same-store numbers that are
said to outpace the industry (Whitten, 2018). While Papa John's and Pizza Hut are still looking

for concrete footing, smaller actors may soon be taking bites of Domino's sales. Even though still
much smaller compared to Domino's, chains that are fast-casual such as Mod Pizza and Blaze
Pizza are rapidly growing and may soon prove to be substantial threats. The blaze has acquired
over 300 locations and backs from Lebron James hence more directly challenging Domino. It is
important to watch the technological factors to ensure that Domino's makes the necessary
adjustments the following technology hence a future factor to be watch ed at the present (Lucas,
2019). For instance, Papa John's is using post mates, third-party service as opposed to own
drivers to actualize its deal.
Domino’s has over 17,000 stores in over 90 countries across the globe and over 400,000
franchised and corporate team members across the globe. Over half of the corporation's sales
come outside the United States. The company's biggest pizza market for Domino's in the U.S. is
Texas while outside markets include India, UK, Australia, Mexico, Japan, Turkey, Canada, South
Korea, France, Germany, and Spain (Fun Facts - biz.dominos.com, 2015). Their U.S. generic
competitive strategy is the differentiation combined with a cost leadership strategy to attain
growth objectives. Domino's strategic goal in the global market is to become a global market
leader by 2020. The corporation is aimed at delivering the ultimate pizza ordering experience.
Their global competitive strategy towards the achievement of this goal is Domino's new brand
strategy that is to be an e-commerce company that sells pizza. Domino's employs the
differentiation strategy together with cost leadership strategies to gain market share (Willard,
2013). Through differentiation, the corporation ensures that its products are unique and hence
attractive to customers that lead to an augmented demand. Consumers prefer buying a superb
product at a lower cost hence the strategy is quite benevolent in expanding Domino's market
share.

The SWOT analysis is composed of strengths, weaknesses, opportunities, and threats.
Domino's strengths include good returns on capital expenditure, strong free flow of cash, and a
strong portfolio band among others. The corporation's weaknesses include the need for more
investment in technology to maintain the market shares, the firm is not very good at forecasting
product demand that translates into high rates of missed opportunities. The corporation also
exhibits restrained success outside its core business. Even though the corporation is amongst the
leading firms in the industry, it has encountered drawbacks in the movement of products to other
segments with its current culture. Examples of opportunities include the fact that new technology
offers an opportunity for the company to practice differentiated pricing strategies in new markets
that helps the firm in maintaining its loyal customers with excellent services. Additionally, the
company can obtain new customers from online channels. Some of the threats include a lack of
regular supply of innovative products, intense competition, and the fact that the corporation may
face lawsuits in different markets due to the different laws and constant fluctuations in the
standards of products in particular markets. Some of the key competitive factors that can be
identified from the value chain analysis are home delivery model, the speed in pizza preparation
as well as its delivery (Domino's Pizza SWOT Analysis Matrix [step by step] Weighted SWOT,
2020).
The competitive value of their core competence is embedded in the capacity to bring
about new products, their production as well as marketing. They exhibit no dine-in alternatives
that have substantially minimized their cost of operation. The corporation exhibits tangible assets
that increase its competitive value. For instance, the corporation possesses machinery, stock,
cash, and building among other assets that help in continuous product improvement hence
competitive advantage. Similarly, the corporation exhibits intangible assets that help in

increasing its competitive value hence competitive advantage, for instance, the company exhibits
trademarks, goodwill, brand recognition, trade names as well as customer lists that help in
increasing the competitive value of the intangible assets. Domino's capabilities play a crucial role
in enhancing the company's competitive advantage. For instance, the company is capable of
carrying out product differentiation that inclines its competitive advantage.
Domino’s annual revenue in 2018 was $3.433 billion while in 2019, the annual revenue
amounted to $3.619 billion hence an increase of about 5.42 percent (Domino’s Pizza Inc.
Revenue 2006-2019 | DPZ, 2019). The corporation’s annual net profit in 2018 amounted to
$0.362 billion while in 2019, the annual net profit amounted to $0.401 billion hence a substantial
increase of about 10.7 percent (Domino’s Pizza Inc. Net Income 2006-2019 | DPZ, 2019). The
top three rivals in the U.S. pizza market include the Domino’s, Papa John’s and Pizza Hut. The
market shares for the three rivals in 2018 were 29.3%, 7.2%, and 13.2% correspondingly
(Whitten, 2018). In 2019, the market shares in the United States were 31%, 9.2%, and 9.4%
respectively (Bloomberg, 2019). Concerning the life cycle, Domino’s and Papa John’s can be
said to be at the growth stage while Pizza Hut is at the maturity stage. This is because Domino’s
and Papa John’s are recently recording an increase in sales while Pizza hub is recording a decline
in sales.
In 2020, Domino's Pizza has unveiled a new strategy for its domestic and international
operations (MautzKey, 2020). Domino's will not be focusing on delivery anymore. In its place,
they have switched their attention to carry out orders, which are more lucrative since they do not
need to pay a driver (MautzKey, 2020). To support this current strategy, top management of
Domino's Pizza has begun boosting the number of Dominos stores locally and internationally
and will undertake renovation to their current stores (MautzKey, 2020). This implies that the

company will have a huge presence in both domestic and international markets. As a result,
customers will get what they want within a short period.
The current strategy is achievable because it just needs boosting the numbers of stores in
domestic and international markets. Also, the emphasis on carryout implies a captivating
opportunity to steal huge market share as the entire carry out the market is larger compared to
delivery. It is nearly 2.5 times bigger than delivery (MautzKey, 2020). According to MautzKey
(2020), this is an intriguing business strategy as Domino's is focusing on what is known for. The
company has returned to something it can better control, its physical stores, in both quality and
quantity (Hunt, 2020). By doing so, it is fishing a bigger market, based on the fact that carryout
is a more profitable and larger pie and they are going after a bigger share of it. This makes the
current strategy more realistic and achievable.
At the start of 2020, Domino's Pizza unveiled ambitious long-term objectives as part of
the plan to follow the current strategy. The Michigan based Pizza Company currently has more
than 1500 store worlds. It anticipates the global stores to grow by approximately 60% over the
next five years, with a target of 10,000 new chain stores by 2025 (MautzKey, 2020). That goal
will approximately double the current growth rate of 5,000 stores over the last five years
(MautzKey, 2020). Also, the company is projecting $25 billion in yearly sales internationally, a
number that would double the annual sales of $12 billion in 2017 (MautzKey, 2020). As a result,
the company expects both international and domestic store sales to grow by 3% to 6% over the
next five years (Domino's Pizza, 2020). This implies that the current strategy should be
implemented in line with these objectives.
These long-term objectives are achievable because DPZ has adopted an intriguing
strategy to achieve these long-term objectives. First, the company has unveiled to boost its

number of stores this year as one of the masters plan to achieve these objectives (MautzKey,
2020). Also, the company is focusing on carrying orders than delivery. The company is now
focusing on something it can adequately control, its physical stores (MautzKey, 2020). By doing
so, it endeavors to get a bigger market in terms of sales increase, based on the fact that carryout
is a more profitable and larger pie and them to get a bigger share of it. This makes the objectives
more genuine and attainable.
The organization chart structure of Domino's Pizza shows that the company 8 subsidiaries
and 82 executives as of January 2020 (Domino's Pizza, 2020). The DPZ's chief executive officer
is Richard Allison. The company has four operational functions such as corporate operations,
strategy and insights, finance, human resources, information, marketing, supply chain, and
international business segment (Domino's Pizza, 2020). It is noted that the company has a
decentralized organization structure, which makes it possible to implement strategies.
DPZ's decentralized structure is designed for strategy execution since it involves all
stakeholders during strategy implementation. This decentralized structure leads to a faster pace
of strategy execution as it facilitates faster and informed decision making (MautzKey, 2020). The
top management has allowed employees to give their opinions before the current strategy is
implemented. Also, the employees were fully involved in the planning process as the
organization structure requires. As a result, the decentralized organization structure is designed
for strategy execution since it encourages a faster speed of strategy execution.
The top current risks result from the Covid-19 pandemic. The disease has continued to
spread significantly across the world. Nearly every country has reported positive cases of
COVID-19 (Domino's Pizza, 2020). This global pandemic has made the company to close down
some of its global stores, especially in countries with higher cases of this virus. In the domestic

markets, the company has downsized its operations as the containment measures have made
compelled most of its customers to stay at home. Besides, the company is recorded a significant
decline in demand for Pizza as the pandemic upsurge (Domino's Pizza, 2020). People no longer
visit their favorite
SWOT Analysis Review
Based on the research on the strengths, weaknesses, opportunities, identified by the in-
laws it’s clearly noted that there are no changes in those parameters. Thus, the company is
supposed to focus on its strengths and opportunity, weaknesses and threat.
Financial Analysis vs. Top 2 of Domino’s Pizza competitors
An analysis of the financial position of the Domino’s Pizza Incorporation and its
performance is based on its financial statements officially held by the United States Security
Exchange Commission. The financial ratios of the Domino’s Pizza Incorporation
Annual Financials for Domino's Pizza Inc.
View Ratios
The fiscal year is January-December. All values USD millions. 2017 2018 2019 2
Sales/Revenue 2.22B 2.47B 2.79B 3
Cost of Goods Sold (COGS) incl. D&A 1.53B 1.7B 1.92B 2
COGS excluding D&A 1.5B 1.67B 1.88B 2
Depreciation & Amortization Expense 32.43M 38.14M 44.37M 5
Depreciation 24.1M 27.34M 29.57M 3
Amortization of Intangibles 8.33M 10.8M 14.8M 1
Gross Income 683.13M 767.69M 865.99M 1

2017 2018 2019 20
SG&A Expense 277.49M 313.65M 344.76M 3
Research & Development - - - -
Other SG&A 277.49M 313.65M 344.76M 3
Other Operating Expense - - - 3
Unusual Expense 8M - - -
EBIT after Unusual Expense 397.64M - - -
Non-Operating Income/Expense 900,000 - - 5
Non-Operating Interest Income 313,000 685,000 1.46M 3
Equity in Affiliates (Pretax) - - - -
Interest Expense 92.64M 110.07M 122.54M 1
Gross Interest Expense 92.64M 110.07M 122.54M 1
Interest Capitalized - - - -
Pretax Income 306.22M 344.66M 400.15M 4
Income Tax 113.43M 129.98M 122.25M 6
Income Tax - Current Domestic 111.71M 133.04M 116.09M 6
Income Tax - Current Foreign - - - -
Income Tax-Deferred Domestic 1.71M (3.06M) 6.16M (
Income Tax-Deferred Foreign - - - -
Income Tax Credits - - - -
Equity in Affiliates - - - -
Other After-Tax Income (Expense) - - - -
Consolidated Net Income 192.79M 214.68M 277.91M 3
Minority Interest Expense - - - -
Net Income 192.79M 214.68M 277.91M 3

2017 2018 2019 20
extra ordinaries & Discontinued Operations - - - -
Extra Items & Gain/Loss Sale Of Assets - - - -
Cumulative Effect - Accounting Chg - - - -
Discontinued Operations - - - -
Net Income After Extra ordinaries 192.79M 214.68M 277.91M 3
Preferred Dividends - - - -
Net Income Available to Common 192.79M 214.68M 277.91M 3
EPS (Basic) 3.58 4.41 6.05 8
Basic Shares Outstanding 53.83M 48.65M 45.95M 4
EPS (Diluted) 3.47 4.30 5.83 8
Diluted Shares Outstanding 55.53M 49.92M 47.68M 4
EBITDA 438.07M 492.18M 565.6M 6
The above file shows the official annual financial statement belonging to Domino’s Pizza
Inc. that was prepared for the fiscal year, 2018- 2019. It can be noted that sales revenue for the
financial year 2018- 2019 rose by a margin of 1.22 billion US Dollars (Manoj & Monica, 2019).
Also, the net income for the company rose by 63.23 billion US Dollars for the financial year
2018- 2019.
There are some companies which do fall under the same category sale of fast foods which
pose an extreme competition to the Domino’s Pizza Incorporation. KFC is one of the top 3
competitor companies for Domino's Pizza. The food company in question poses a lot of stif
competition to Domino’s Pizza since it’s characterized by some strengths and opportunities. Some

of the key strengths of the KFC include; it has a very high bend loyalty among its potential
clients, it offers a high number of fast-food products such as chicken wings, burgers among other
products.
Additionally, we also have Pizza Hut food and Beverage Company. It’s posing a lot of
competition for Domino's Pizza (Jham, & Tandon, 2012). Because it has some strengths and
opportunities. Some of the strengths of Pizza Hut include; it has got good marketing and
advertising approaches. Also, this food and beverage company prepares innovative and more so
hygienic food.
Key issue embedded in the Domino’s Pizza Incorporation that needs to be addressed
Domino's Pizza Incorporation has sold a terrible part of its not-excellent pizza. Possibly
it's cost, perhaps its comfort, or possibly there are simply parts of the nation (and world) where
scarcely tolerable pies draw an enormous crowd. Whatever the explanation Domino's has been
on a tear, posting amazing Q4 just as entire year results. Those positive numbers made the
organization's stock hop from an end of $117.61 on Feb. 24 to $132.90 on Feb. 25, after it
announced outcomes - a 13% bounce (DOMINO’S, 2020).. Offers have exchanged that go in the
weeks since proposing that the knock may not be a momentary spike because of good numbers.
Be that as it may, because Domino's had a decent year and the market remunerated those
outcomes doesn't imply that the organization has no issues ahead. It's entirely conceivable that
the conditions which helped its ascent could change, sending shares moving back off course
Strategic Alternatives for the future of Domino’s Pizza incorporation
 Increasing the number of its branches

The Domino’s Pizza Incorporation has opened up some of its branches in some counties. The
analysis of the performance of those branches which are already operational in those other
countries indicates that they are doing well. Therefore, the company has to establish more of its
branches in other nations to increase the rate of meeting the needs of its clients.
 Improving quality control management
The Domino’s Pizza Company is characterized by some lower levels of quality control
management of its processes. This has led to the loss of some of its clientele. Therefore, there is a
need for the company to enhance the control of the quality of its products to meet customer
demands.
 Incorporating the latest flavor into its food and beverages
The tastes and preferences of the clients keep changing and thus the Domino’s Pizza Company is
supposed to incorporate its clients preferred flavors (Holmes, 2014). By the company doing this,
they will increase their rate of customer retention as well as acquiring more clients.
An alternative strategy for the implementation
A strategic alternative that deems fit for the implementation by the Domino’s Pizza
Company is the one to do with improving the quality control management. This is because the
quality of the product is what drives the clients.
Proposal for an implementation plan
 Strategic Goal and Objective
The objective of the Domino’s Pizza Company is to be the leading global company in the
sale of quality and affordable fast food products to clients all over the world. The reason

behind the indicated goal and objective of the Domino’s Pizza Company is that its focus is to
acquire growth and expansion and at the same time serving the needs of its clients in a
satisfactory manner.
 Tactical/ Operational Plan
Domino's Pizza Company can implement its strategic plan by developing an operational plan.
An operational plan will act as a roadmap for the direction of the activities of the company. An
operation plan which I do propose for the Domino’s Pizza Company to implement is that of
restructuring the organ of the company’s unit of quality control (DOMINO’S, 2020). By the
company doing this, it will achieve quality product production. Consecutively, the quality
products delivered to the clients will relt in a positive reputation for the company.

Flow Chart of a Strategic Implementation Plan
Start
Redefine the issue
Define the Problem
Raise Capacity
Identify clear measurable objectives
Develop a Plan of Action
Develop Equity and Capacity
Revise Objectives
Modify the plan
the ppppeProgrss
No Necessary Change
Evaluate the plan
Implementing the Plan and monitor
everything e
Revise Actions

References
DOMINO’S, P. I. Z. Z. A. (2020). DOMINO’S PIZZA. NATION'S RESTAURANT
NEWS, 34(19), 120.
Holmes, W. C. (2014). U.S. Patent No. 6,755,122. Washington, DC: U.S. Patent and Trademark
Office.
Jham, V., & Tandon, S. (2012). Domino's Pizza India Ltd.: Driving Business Growth through
Consumer Engagement. Asian Case Research Journal, 16(01), 39-63.
Lopez, T. B. (2018). Southern Pizza, Inc.: The Case Of An Innovative Franchisee. Journal of
Business Case Studies (JBCS), 4(9), 43-48.
Manoj Kumar, J., & Monica, M. (2019). A Study on Employee Perception towards
Organizational Culture WR T Domino's at Jubilant Foodworks Ltd., Bangalore.
Willard, R. (2013). Diversity report and case studies. International Franchise Association.
Washington: IFA Educational Foundation.

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