Abstract
Domino’s Pizza, is an international Pizza delivery corporation headquartered in Washington Dc, United States Found in 1960, Domino’s is the second largest Pizza Chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets and all 50 U.S. States. The menu features Pizza, Pasta, oven baked sandwiches, wings, boneless chicken, sodas, and a variety of dessert item. Knowledge management, customer relationship management, and business intelligence systems will help preserve the knowledge of older employees for future business operations, bring in a new generation of customers, and guide management in making the best strategic decisions in future operations. By merging the Domino’s Pizza unique, classical offerings with Information Age innovations, the business will not only benefit from information technology, but also actively contribute to the World Wide Web’s online community.
Organizational Structure
To analyze the organizational structure of Domino’s Pizza we must analyze firstly the group who owns Domino’s Pizza in Washington Dc. Domino’s Pizza is a leading U.S. Casual dining and fast food restaurant group, composed of a mix of owned brands. In the following parts we will analyze with more details this group. In exhibit 1, we can describe the current organizational structure of a franchise located in Washington DС.
Balance Scorecard
Through the balance scorecard, we will try to translate the company’s vision and mission into real objectives, in a briefly way we will ungroup and classify the main objectives of the company into four different perspectives as we as find out which objectives are satisfied by the project. According to Kaplan (2012) the four perspectives of the scorecard permit a balance between short and long term objectives, between outcomes desired and the
performance drivers of those outcomes.
According to Kaplan (2012) the four perspectives of a balanced scorecard includes: The Financial Perspective: This perspective addresses the financial impact of priorities chosen, plans executed, decisions made and actions taken by the management team. For Domino’s pizza this perspective in totally based on try to produce the best for less in terms of costs, Increase Market Share and profits, achieve revenue growth each year and try to match the gap between cost estimate and project budget. The Customer Perspective: Here we address issues around the themes of customer satisfaction and customer retention. Corporate level measures might include performance data from form all customer surveys, loyalty indices, market segment growth and performance measures against key drivers of customer satisfaction. For Domino’s pizza the customer is in the middle of every thought, the goal is improve customer experience and satisfaction to 100% maintaining the maximum respect for them. Internal Business Perspective: In the Internal Business Perspective, measures are developed around the key processes in the organization.
It is here that those processes that the organization must excel at because they correlate with customer satisfaction are identified dandmonitored to ensure that standards and targets are being met. Internally, the main challenges for Domino’s pizza are continuously changing and innovating, and embracing diversity by recruiting and retaining the best people. The company also aims at trying to be environmental friendly and rising awareness about social responsibility at the same time. Growth and Learning: In this last perspective, the challenge of identifying measures that link to long term growth and success are identified. For the organization as a whole, as well as for project management managers, issues such as new skill and competency acquisition, employee morale, process improvement and enhanced value to the customer are all addressed in this future focused perspective. For Domino’s pizza this is a vital perspective for its business model, Values as never stop learning or innovate in ways that matter to the team members and customers are the basis of Domino’s pizza.
The pizza industry is a highly competitive and mature market. There are many pizza makers ranging from local pizzerias to international franchises. With the current health kick in today’s society as well as economic downturn, many companies are being forced to make healthier, cheaper products. Many other companies are introducing salads into their menu. The popularity of the Internet as well as mobile commerce is transforming the traditional ways of ordering a pizza. In the U.S. pizza market there are many companies exist but among them Domino’s pizza ranks as a strongest pizza delivery company. Domino’s pizza is a U.S. home delivery and take a way pizza business that was founded in 1960 in U.S. pizza restaurant. Today, Domino’s pizza operates around 650 outlets in the U.S (both owned and franchised) that reach 12 million households.
According to DBK, Domino’s pizza is the market leader in the pizza delivery market in the U.S., with a 70% share. Competition was becoming tougher in terms of restaurants and at home, even more so in the latter case due to progress made in preparing precooked foods. All types of restaurants competed with Domino’s Pizza, but the groups are organized. Within the pizza segment included; Domino’s pizza which is the market’s biggest shareholder and another company from Zena group called Pizza Móvil, from the Ibersol group in Spain, which was focused largely on consumption on the premises. Domino’s Pizza’s competitors in the delivery and take away sector were Chinese restaurants, small operators and Fast Food chains such as McDonalds or Burger King.
Domino’s Pizza new product
Sales of a new pizza product were estimated for two versions (Domino’s pizza with toppings (“kit”) or pizza only). Responses were very different for consumers who had used a previous Domino’s Pizza product, fresh pasta, from those who were non-users. Total population was 95.5 million U.S. households. Domino’s Pizza use share at the time of the pizza introduction was estimated at 25%. Thus, 22.92 million users and 72.58 million non-users. For the Domino’s pizza kit option, a concept test indicated 30% top box and 57% second box for users, 15% and 59% for non-users. BASES estimated trial as .8 x top box + .3 x second box, yielding estimates of .411 for users and .297 for non-users. (For the pizza only option, the estimates were .320 and .222). Based on the marketing plan, awareness was estimated at 60% for users and 30% for non-users. Availability was estimated at 58% for all. Thus, adjusted trial rates were 14.3% for users and 5.2% for non-users (11.1% and 3.9% for pizza only). The concept test indicated average purchase amounts of 1.2 units for the kit and 1.1 for pizza only.
Thus, sales from trial were estimated at 3934 million for users and 4529 million for non-users (2799 million and 3113 million for pizza only). BASES supplied the favorable responders from the concept test with samples of the product and called them back. Repeat rates were estimated at .22, with two purchase occasions. Sales from repeat rates were estimated at 1442 million from users and 1660 million from non-users (1120 and 1246 for pizza only). Total sales were estimated from trial plus repeat for users plus non-users (plus sales of toppings for the kit option), based on estimated retail and factory prices. The estimates were factory sales of $57.763 million for the kit and $35.264 million for pizza only. BASES results indicate accuracy within +/- 20%. Given the estimated breakeven point of $45 million in factory sales, the estimates did not look favorable for the pizza only option, which would have to be on the very high side of error to be profitable. On the other hand, the kit option was estimated to be profitable even with the worst error. (An examination of the sensitivity to the assumed Contadina market share estimated the breakeven point could be reached by the kit option if Contadina reached a 7% market share.)
As a manager of Domino’s pizza you should estimating demand for the firm’s product which is an essential and continuing process. After all, decisions to enter new market, decisions concerning production, planning production capacity, and investment in fixed assets inventory plans as well as pricing and investment strategies are all depends on demand estimation. The estimated demand function provides managers with an accurate way to predict future demand for the firm’s product as well as set of elasticities that allow managers to know in advance the consequences of planned changes in prices, competitors’ prices, variations in consumers’ income, or the expected changes in any of the other factors affecting demand. As managers you may not need to estimate demand by yourself, especially in big firms. You may assign such technical tasks to their research department or hire outsider consulting firms (outsourcing) to do the job. However, a manager does need at least to have some basic knowledge of econometrics, to be able to read and understand reports.
Conclusions
The Domino’s Pizza has the potential to not only stay in business, but also improve business success by leveraging information systems into its daily business practices. By pursuing a focused differentiation strategy, promoting the unique, established menu items that only the Domino’s Pizza has to offer, the business will mitigate the obstacles presented by the restaurant businesses’ high competition, new entrants, and buyer power. Knowledge, Customer Relationship, and Business Intelligence management systems will contribute to all aspects of the business. Mobile coupons will give customers incentives to come into the Domino’s Pizza as well.
