week 8 G final

Running head: DOMINO’S PIZZA, INC. 1

DOMINO’S PIZZA, INC. 9

Domino’s Pizza, Inc. (DPZ

Student Name

Institution Affiliation

Domino’s Pizza, Inc. (DPZ

Domino's Pizza, Inc. (DPZ) was founded in the United States in the 1960s and now has more than 13,800 outlets in 85 countries across the world. With its "No. 1 in People, No. 1 in Pizza" vision and its mission statement is "Sell More Pizza, Have More Fun", DPZ aims to be the best pizza joint in the world. The Domino's Pizza of 2020 Domino's Pizza Enterprises (DPE) has a guiding principle: "Slow where it matters, swift where it counts." Even while DPZ is putting greater emphasis on delivering pizzas in a more secure and efficient manner by utilizing cutting-edge ordering platforms, the company is also committed to delivering tasty pizzas, spending quality time with clients, and offering exceptional customer service. New and improved recipes have been the focus of DPZ's most recent marketing effort, which aims to raise the company's product and brand awareness around the world (Edwards, 2021). The Domino’s Pizza is an outlet that showcases an immense growth over the years and it is promising that there would be more outlets that would be spread in various countries in the future. Domino's Pizza has an impressive mission statement that is much precise and communicates well about the company strategy and plan towards meeting the customers’ needs.

The vision is short and does not indicate well about the plans that are in place in guiding in being the leading pizza outlet. There is a challenge in both the mission and vision statement in following the criteria that requires showing the approach to follow in getting to the desired objective or goal as an organization. The organization culture is good and this has contributed much to the Domino's Pizza continuous successes including its expansion to other countries and regions. One of the most important aspects of every business is its mission and vision statements. It appears to be more of a slogan than a vision statement that "No. 1 in People, No. 1 in Pizza" is the current DPZ vision (Domino's, 2022). In addition, the inclusion of the word "Pizza" in its vision statement restricts DPZ to solely offering pizza goods, limiting the company's capacity to expand into other areas of the food business and adapt to shifting consumer tastes.

Outside Stakeholder Groups

The environmental ministry is a stakeholder that falls under the category of outside stakeholder and plays an important role in the regulations of the actions that occur within the organization. The key issue that the stakeholder is putting much effort about regulation is the issue of the environment that is much paramount for any organization to consider protecting the environment (Lutz, 2020). There should be no problem with the company's food processing and packaging, according to the Ministry of Environment. Replaced with biodegradable packaging, the usage of plastic has been eliminated. The amount of waste produced by dominoes will be reduced if this idea is implemented. In addition, the other advocacy group that is outside the company is the aspect that the company is paying the delivery drivers less than the minimum wage and this has become a threat to their reputation (Edwards, 2021). The delivery drivers filed a court case against the Domino's Pizza Inc. claiming that they have been receiving a low pay that was even lower than the minimum requirements. The company has put more efforts in working towards improving the employees pay especially the drivers to re-build their reputation and increase the customer retention (Kline, 2022). The new strategy came with their modification of their mission statement that incorporated the need of rewarding their employees on the contribution.

The mission statement is that: “To maintain exceptional brand loyalty and efficient customer service, through noteworthy franchisees, and innovative/ efficient delivery, while rewarding and developing employees within a fun atmosphere.” The strategy works to the best interest of the employees and also the customers. Advocating for the best service delivery for the employees and also protecting the interest of the community through a good environmental practices in terms of packaging and disposal places the company is a good place. In addition, Domino's Pizza Inc. considering the plight of employees was a move that was watched by everyone including the customers because everyone values an employer that rewards the contribution employees to the organization success (CNN Business, 2022). A well-motivated employee translates to a better service delivery because they would be serving the employees from their heart and ensure that there is value created by the end of the day.

External Environment

Domino's Pizza's activities in dozens of countries are affected by macroeconomic factors such as inflation, savings, interest, and foreign exchange rates, as well as the economic cycle. Additionally, the firm's competitive edge is being impacted by micro-environment elements such as competition standards. As a result, rising prices for raw materials lead to an increase in the overall cost of goods, which has a negative influence on the profitability of the companies that operate in such countries. Inflation is the leading factor that influence the Domino's Pizza's market and this is common in countries that are affected by political instability, war and massive corruption and have an impact on the pricing and other challenges (Edison, 2020). This well-known fast food chain has a worldwide reach and an extensive consumer base. Over its competitors in the pizza market, the Domino’s Pizza Company enjoys a significant advantage. Several factors contribute to its competitive edge, and while not all of them are long-term, most of them have allowed the company to improve its position in the market (CNN Business, 2022). The industry factors that drives change include the technological improvements that promote the operations of ordering and delivery of the ordered pizzas. The industry is dynamic in a manner that other firms focus on improving their time of delivery that matters most in the customer retention and loyalty. In the U.S market, Domino’s Pizza is a leading online pizza outlet that has taken over the 50% of the market followed by Pizza Hut and Papa Johns (Edison, 2020). In spite of the fact that food delivery services are now being used by thousands of restaurants across the United States, pizza delivery companies have remained steadfast in their refusal to use third-party delivery services. The existing rivals of the Dominos have been adopting the strategy that involves the third party delivering the pizzas to the customers making it difficult for them to compete with the leading Domino’s Pizza. The future factors is that Dominos is expected to grow further because during the pandemic its services was needed most and made huge sales and revenue and more is expected in the future.

U.S and Global Markets

On September 2018, there were Domino's Pizza shops in 83 countries, including the U.S. territories of Guam, Puerto Rico, and the U.S. Virgin Islands, as well as states with only partial international recognition, such as the Kosovo and Northern Cyprus. The Company also is present in Australia and Canada among other countries (Hall, 2021). The Domino’s Pizza competitive advantage is much evident in the United States where they help in franchising its business for expansion, all the digital orders run through the company operating system making it cheaper in terms of transaction costs and gives the company insight about the customers. Lowering the costs makes the product affordable and also delivery received early just like the other organization outlets using a common system (Hall, 2021). Domino's Pizza strategic goal is to be the leading pizza delivery outlet in the globe that meets the customer needs and preferences. The goal gives the company its competitive strategy because its uniqueness is experienced in the way it handles operations especially in delivering its products directly to the customer without going through a third party. I consider the competitive strategies worth for the organization success that is dealing directly with the customer and running digital orders using the common operating system because it facilitates efficiency and effectiveness in serving the customer interests.

Internal Analysis

SWOT Analysis

The SWOT analysis of Domino’s Pizza is important in guiding the operations of the company towards the right direction. The information about the company status is discussed below:

Strengths

Brand equity: The Company has established itself to be the leading pizza outlet and this was due to its good leadership in developing a recognizable brand that is characterized by quality product, good customer service, innovation and marketing (Pratap, 2021).

Global sales network: In terms of retail sales, Domino's has grown to be the world's largest pizza brand. The company now has a presence in 90 countries throughout the world (Pratap, 2021). Although it's popular in the United States, Domino's Pizza has also gained a cult following in other nations.

Supply chain management: Supply chain management is another one of Domino's many strongholds. Long-term success in the sector hinges on the ability to effectively manage the supply chain (Pratap, 2021). When other pizza chains have relied mostly upon their own supply chains to help them develop, Domino's has chosen to build its own.

Weaknesses

Franchising related issues is one of the weaknesses where the Domino’s does not allow the companies to have level of independence but follow the requirements of Domino’s Pizza.

Low income from international segment where the revenue is less than that of the other segments like the supply chain (Pratap, 2021).

The Domino’s Pizza has experienced negative social campaigns due to low pay in the past damaging reputation.

Opportunities

Digital technology is to be leveraged and increase order and delivery and this was evident during the pandemic where the company made more sales.

Cloud based capabilities strengthen the company competitive edge in managing vast amount of consumer data (Pratap, 2021).

International expansion was also experienced and has brought value in terms of success and revenue generation for Domino’s Pizza.

Threats

The COVID-19 was an economic threat that is still there and caused much losses in sales.

Competition is another challenging from rival firms like the Papa Johns that takes part of the market share (Pratap, 2021).

Regulatory threats like the minimum employees’ wages that the firm cannot meet due to tough economic issues.

Competitiveness

The competitiveness of Domino’s pizza is caused by factors that include a good supply management system and also the best delivery system that ensure that customers gets the ordered pizzas in time. Competitiveness in Domino’s is good and amazing that the firm expansion considers customer needs through use of data that is managed under cloud computing. The Domino’s intangible assets in 2021 is at $0.015 billion and a favorable return of tangible assets at 38.69 in 2021 (Macrotrends, 2022).

Domino's Pizza Inc. reported a year-over-year revenue rise of 11.75 percent to $4.371 billion in the twelve months ending September 30, 2021. An increase of 13.78 percent from 2019 brought Domino's Pizza Inc. yearly revenue to $4.117 billion in 2020 (Macrotrends, 2022). Profit in 2020 was $491 million and $998 million. Fast-food pizza chain Domino's (DPZ) controls 22% of the US QSR industry and 20% of the global market for the fast-food pizza chain. Nearly $18 billion in global sales are generated by the company's 18,380 franchised outlets. The competitors including the Papa Johns and Pizza Hut taking less than 10% market share each.

The stage of the company is the maturity stage because they have established massive assets, expansion, development of multiple store and generating huge revenue making it stable.

References

10K- 2021. Domino’s Pizza, Inc. (DPZ). Retrieved 2 April 2022, from https://materials.proxyvote.com/Approved/25754A/20220302/AR_493369/INDEX.HTML?page=6

CNN Business. (2022). DPZ - Domino's Pizza Inc Shareholders - CNNMoney.com. Retrieved 2 April 2022, from https://money.cnn.com/quote/shareholders/shareholders.html?symb=DPZ&subView=institutional

Domino's. (2022). Domino’s Mission and Vision Statement Analysis. Retrieved 2 April 2022, from https://mission-statement.com/dominos/

Edison. (2020). Domino’s takes 50% of pizza delivery market, leading Pizza Hut (29%) and Papa Johns (21%). Retrieved 2 April 2022, from https://medium.com/edison-discovers/dominos-takes-50-of-pizza-delivery-market-leading-pizza-hut-29-and-papa-johns-21-6f8c11ef03a3

Edwards, J. (2021). Domino’s Pizza Delivery Drivers Offered Settlement in Wage Theft Suit. Retrieved 2 April 2022, from https://topclassactions.com/lawsuit-settlements/employment-labor/dominos-pizza-delivery-drivers-offered-settlement-in-wage-theft-suit/#:~:text=Class%20Action%20Lawsuit%20Alleges%20Domino's,and%2058%20cents%20per%20mile.

Hall, M. (2021). Porter's 5 Forces vs. PESTLE Analysis: What's the Difference?. Retrieved 2 April 2022, from https://www.investopedia.com/ask/answers/041015/whats-difference-between-porters-5-forces-and-pestle-analysis.asp

Kline, D. (2022). Domino's Pizza Stock Faces a Major Problem (And, It's Not The Noid) - TheStreet. Retrieved 2 April 2022, from https://www.thestreet.com/investing/dominos-faces-major-challenge-pizza-dominance

Lutz, A. (2020). Domino's Pizza CEO says the company has to start paying more. Retrieved 2 April 2022, from https://www.businessinsider.com/dominos-pizza-ceo-on-pay-2015-4?r=US&IR=T

Macrotrends. (2022). Domino's Pizza Inc Revenue 2010-2021 | DPZ. Retrieved 2 April 2022, from https://www.macrotrends.net/stocks/charts/DPZ/dominos-pizza-inc/revenue#:~:text=Domino's%20Pizza%20Inc%20revenue%20for%20the%20twelve%20months%20ending%20September,a%205.42%25%20increase%20from%202018.

Pratap, A. (2021). DOMINO'S SWOT ANALYSIS 2021. Retrieved 2 April 2022, from https://notesmatic.com/dominos-swot-analysis-2021/