Domino.edited

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Lincoln University College**We aren't endorsed by this school

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BUSINESS MGT504

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Management

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Jan 14, 2025

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Uploaded by ProfessorLightning14901

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Table of ContentsIntroduction.................................................................................................................................................2An Organizational Strategy Analysis of Domino's Pizza Group....................................................................3A significant event that affected Organization............................................................................................4Evaluation of the Mitigation of Hazards......................................................................................................6The Advantage of Competition....................................................................................................................7Conclusion and Recommendation.............................................................................................................10References.................................................................................................................................................11

Introduction1960 saw the founding of the well-known American pizza chain Domino's Pizza in Ypsilanti, Michigan. Tom Monaghan and his brother James established the organization from a modest pizzeria known as DomiNick's. Tom Monaghan acquired his brother's stake in the company in 1965. He changed its name to Domino's Pizza Inc. Subsequently, he franchised the brand and opened additional locations to expand the business. Domino's has established worldwide recognition and a solid standing by providing superior pizzas and exceptional customer support. Domino's Pizza operates more than 17,000 locations in more than ninety countries, positioning it as one of the most sizable pizza chains globally. Innovation persists at the Ann Arbor, Michigan-based company, which introduces novel menu items and technological advancements to enhance the clientele experience. Ensuring the punctual and effective delivery of superior pizzas to its clientele is the principal objective of the organization (Park et al., 2012).Moreover, Domino's Pizza has garnered acclaim for its dedication to innovation, as evidenced by its technological advancements in the worldwide fast-food industry, including web-based ordering in 1999 and a pizza tracker in 2008. Moreover, the organization has recently investigated emerging technologies, including autonomous delivery vehicles (Suganda et al., 2021). Despite this, the company's sixty-year ascent to its current status as a global innovation and transformation leader was noticeable. The organization encountered numerous pivotal historical occurrences that demanded outstanding crisis management and change implementation. By analyzing a previous occurrence of this nature, this article seeks to ascertain how the organization overcame the obstacle by applying the John Kay Competitive Advantage Framework. Before that, the subsequent section will provide an overview of Domino's organizational strategy as a whole.An Organizational Strategy Analysis of Domino's Pizza Group A novel approach to doing business has been developed by Domino's Pizza, which emphasizes the speedy delivery of pizzas of superior quality. "You got 30 minutes" was the firm's motto, and

it was critical to the success of the business model it used. To continue with the topic of decision-making, Domino's Pizza bases its strategic choices on data and the input it receives from customers. The organization makes significant investments in data analytics to comprehend customers' preferences and recognize industry trends. The organization adjusts its product offers, marketing tactics, and operational processes based on the data it accumulates (Burton, 2011). As an example, Domino's Pizza released a new pizza recipe in 2009 as a reaction to the input it received from customers. This helped the firm enhance both its sales and the happiness it provided its customers. Domino's Pizza has a centralized organizational structure, and the business model in place is franchising. Ann Arbor, Michigan, serves as the company's headquarters, managing all operations and making strategic choices for the worldwide organization. There is a local workplace in each state that monitors the activities that take place in the United States. Through this structure, the company can maintain a constant brand identity, even granting character franchisees a positive degree of autonomy in selection-making positions. As an additional factor of interest, Domino's has been evaluating its organizational structure to beautify its aggressive side (Kumar, 2017). This includes investigating new technologies and making investments in delivery chain control to shorten shipping instances and simplify tactics so that they are more efficient. Richard Allison, Chairman and Chief Executive Officer of Domino's Pizza, has been in charge of the firm since 2018. While he became involved in the corporation's price, the primary emphasis became on improving the quality of the products and offerings it offered while concurrently increasing its footprint worldwide. Allison has taken several steps to accomplish these targets, consisting of making investments in the era to lessen the time it takes to supply merchandise and beautify the overall experience for clients.In its distinctive organizational tradition, Domino's Pizza strongly recognizes the significance of cooperation and collaboration. "Dominoids" are the company's people, and they are recommended to collaborate to accomplish shared targets and share their minds and suggestions (Burton, 2011). The company fosters a sturdy work way of life and a dedication to excellence amongst its body of workers members. In addition, the employer has utilized gamification strategies to beautify the engagement and motivation of its workers (Lawanda et al., 2018). It has been suggested by Hight and Wood that an organization's culture has a crucial impact on the retention of employees, and Domino's is experiencing the same phenomenon—a number of factors, including Domino's Pizza's employees' success worldwide development. A single

mistake may set off a chain of events that might have catastrophic repercussions for the company even though it is built on a solid basis (Hight, 2018). In the next section, we will talk about a particular instance that brings attention to this danger, and the following parts will provide an overview of the numerous strategies that Domino used to navigate this circumstance successfully.Significant events that affected the organization "A contamination Trouble: Domino's Pizza Facing Public Protests Over Disturbing Video"During the process of recuperating from the pandemic in February 2024, a distressing video emerged on social media, precipitating a reputational crisis for Domino's Pizza. The video, titled "Behind the Scenes: Unsanitary Practices at Domino's," portrayed employees at a prominent town Domino's Pizza location participating in flagrant instances of contamination.A personnel member was found on video cleansing their nose before kneading pizza dough without gloves or training in appropriate hand hygiene. The video, accompanied by a vital statement denouncing the unhygienic behavior, rapidly disseminated through multiple social media structures, provoking a vast public outcry and revulsion.People were talking hate about the incident, with the focus being on the restaurant that had allowed an egregious disregard of the safety measures that had been put in place. People were "boycotting" Domino's Pizza when the video went viral, reaching over a million views in hours and sparking a Twitter war.

Domino's Pizza was devastated as the damage quickly became apparent. Buyers stopped purchasing the image due to the enormously unfavorable response created by the ugly picture. The agency stock has been affected by investor worry caused by the logo's muted image or the potential unfavorable outcome caused by the brand's tarnished reputation and capabilities. Following a series of unfortunate events, Domino's Pizza was the pioneering business that halted operations in affected regions to conduct comprehensive cleaning and disinfection. In light of this, the company issued an apology via various public media sources and promised to strengthen food safety protocols and enhance employee training to prevent such events in the future. The damage to Domino's Pizza's image was irreparable and immutable; the upheaval it caused was long-lasting, not brief. Also, just seeing the emblem did not make me feel better about the food's safety when it was made according to these guidelines. As a result, many customers continued to patronize rival restaurants or cook their meals at home beginning in February 2020 as a precaution. During the worldwide pandemic epidemic, this strategy used a specific case study to highlight the need of rigorous cleanliness measures in healthcare institutions. It became clear that social media had the potential to distort public perception of businesses and influence audience sentiment. That is why, in this age of digitization, producers should seize every opportunity, take the initiative to manage risks and react swiftly to the problems that arise. Evaluation of the Mitigation of Hazards This evaluation will examine Domino's Pizza's crisis control, especially focusing on its organizational tradition, communications talents, and management prowess.Leadership Proficiency:

CEO Patrick Doyle of Domino's Pizza spearheaded the business enterprise's response to the disaster by implementing expeditious and resolute measures to rectify the scenario. Doyle issued a public apology on YouTube within 48 hours of the video's book, pledging to take on-the-spot measures to prevent a recurrence of the incident. Additionally, he seemed in a mess of media interviews, exhibiting forthrightness and a readiness to count on responsibility for the instances. Doyle's management amidst the disaster garnered colossal acclaim and is mentioned for its contribution to restoring the company's standing (Veil et al., 2012).Communications: The response that Domino's Pizza supplied to the trouble became additionally outstanding by using green communication techniques. A public apology was issued with the agency's aid through social media structures, and purchasers were informed about the movements that had been taken to remedy the matter. In addition, they actively participated in proactive media members of the family by making themselves handy for interviews and information conferences so that they could respond to queries and clear up troubles. Furthermore, the organization created a new advertising campaign that emphasized its determination to be exceptional and protective, which assisted in regaining clients' acceptance as accurate (Young & Flowers, 2012).Culture of the Organization:Domino's Pizza's organizational subculture became substantially altered because of the catastrophic event. Before the crisis, the agency had a robust way of life that recommended innovation and risk-taking, which had contributed to the organization's fulfillment for some time. Conversely, the crisis delivered the need to set a better focus on protection and exceptional. As a response, the firm applied new protocols and approaches to ensure that every meal practice was executed in a way that became both safe and hygienic. This shift within the firm's lifestyle was mirrored in the advertising and marketing and the message that the corporation evolved, which now emphasized the company's dedication to niceness and safety, primarily other things.

The Advantage of CompetitionThe Distinct competencies framework advanced by John Kay is a strategic management approach that identifies the center talents necessary for an enterprise to create and hold a competitive gain. According to Kay, the fulfillment of an employer is dependent on its ability to cultivate and capitalize on a distinct series of capabilities that rivals with comparable competencies cannot copy. Architectural abilities, reputational competencies, and modern competencies are the three classes that make up the framework. Architectural competencies relate to the corporation's potential to develop and manage complex systems, reputational capabilities allude to the business enterprise's emblem and popularity, and innovation refers to how agencies provide you with new technologies and solutions. According to Kay (1995), this framework gives corporations a beneficial tool that allows them to recognize and deal with their precise strengths—as a result, generating fees for their stakeholders.Innovation: The first skill that sets a company apart is innovation. According to Kay (1995), innovation is developing new goods, processes, or services that give a company an advantage over its competitors. Domino's pizza delivery company has used several cutting-edge technologies to improve the overall customer experience. These technologies include mobile apps and online ordering systems that enable consumers to personalize their Pizza and monitor its delivery status in real time (Nilofer et al., 2017). Domino's Pizza has also used drones to deliver pizzas in some places on occasion. These forward-thinking offerings have enabled Domino's to separate itself from its rivals and strengthen its customer relationship (Bamburry, 2015).Reputation Second among the distinguishing capabilities is one's reputation. According to Kay (1999), reputation is the perceived value of an organization's goods or services. This value is generated via the quality of the brand image and the level of pleasure experienced by customers. Domino's Pizza has established a solid reputation for providing goods of superior quality and outstanding customer service. Deivanai's study found that consumers prefer Domino's Pizza because it is of

higher quality and tastes better. The survey data also showed that consumers prefer delivery services when shopping in person. With such a strong reputation, Domino’s was able to recruit and retain customers who are loyal to the brand (Deivanai, 2013).Architecture:Architecture is the third distinct factor. Kay (1999) defines architecture as the framework of a company's operations that allows it to deliver goods and services. Supply chain management is a crucial component of Domino's business model. The company's centralized supply chain structure allows for maintaining control over the goods' quality and consistency (SULE et al., 2020). Using this route, Domino's has cut delivery times while keeping customers happy. Due to its stellar reputation and forward-thinking business and building processes, Domino's can stay competitive. The company's well-organized system for delivering hot, freshly made pizzas to consumers is another reason for its stellar reputation for product quality and customer service. The corporation has also implemented several innovative technological initiatives to serve its customers better. Even though the fast food business is quite cutthroat, Domino's has developed and differentiated itself from its competitors (Jham, 2012). The unique attributes that Domino's has have allowed them to achieve this are as follows: Change Management Impact to Organizational Goals and ObjectivesIn order to overcome the impact of the mission, Domino's used a multi-pronged strategy that included adjustments to coverage, human resources, time, communications, and logistics. Redesigning its communication approach became one of the most essential modifications that Domino has made. Using social media, the company spoke with customers, apologized for the

issue, and updated them on how it handled the situation. In addition, Domino's used a robust monitoring system that enabled them to quickly detect and respond to negative remarks made on social media. Finally, a specific shift occurred in the contemporary world due to the introduction of cutting-edge technical solutions, particularly in food education and quality control. The newly launched Domino's app informed consumers of the whereabouts and status of their orders in real-time and who was accountable for ensuring timely delivery (Bill Taylor, 2016). It was also determined that the company would update its HR policies and institute new training sessions emphasizing sanitary and safe food handling. Distributing the kits reminded all staff members of the significance of following established protocols and maintaining rigorous personal hygiene practices. Achieving the current trend is possible with the help of a seasoned management team and sound financial standards. The company survived the disaster and has emerged more robust and adaptable than before, thanks to changes in relations, operations, human resources, and logistics. However, the issue has narrowed the focus to one side, and that side has used Pizza Hut's trademark to redefine the company's image. Furthermore, the company's ability to endure such intense and ongoing criticism demonstrated, in essence, the need to maintain the utmost standards of food safety and quality. Thus, Domino's has refocused its efforts on education and training and implemented new high-quality management practices, all with an eye on these areas. Conclusion and Recommendation In conclusion, Domino's Pizza has emerged as one of the most successful pizza chains in the world, with over 17,000 shops in more than 90 nations. The company has become famous for providing extraordinary pizzas and high-quality customer support while focusing on handing them over quickly. The agency's records-pushed choice-making, centralized organizational shape, decisive leadership, and collaborative subculture have contributed to its achievement. However, the February incident at a Domino's Pizza save in Japan, in which personnel were filmed carrying out unsanitary behavior, highlights the potential lousy effect of social media on the food industry. The incident prompted massive damage to the popularity of the enterprise and

caused a decline in sales. Despite this, the organization efficaciously navigated the crisis, using techniques such as taking immediate action, leveraging social media, and introducing new initiatives to rebuild consideration with its clients. Domino's Pizza's capability to handle the crisis demonstrates its commitment to innovation and its potential to conform to challenging situations, ensuring its continued success in destiny. The following are the strategies that other companies can adopt from the Dominos Crises Management analysis.RecommendationsStrengthened Employee Training and Supervision: Businesses must recognize that this is critical for food safety, sanitation, and staff training policies. Such programs must be developed not once but constantly. Maintaining skilled and well-prepared personnel to investigate major infractions would not only prevent future imitations but also put them out of business. Aside from ongoing monitoring and quality control, this is an excellent technique to ensure regulatory compliance and risk avoidance.Enhanced Crisis Preparedness Planning: Organizations should engage in complete crisis preparedness plans that include defined processes and communication techniques for dealing with anticipated crises. Companies that proactively identify and analyze risks may establish effective reaction strategies to mitigate the impact of crises on brand reputation. Regular exercises and simulations also assist in maintaining preparedness and resilience in the face of unexpected circumstances.Improve Delivery Infrastructure and Logistics: Businesses should prioritize investments in delivery infrastructure and logistics to provide efficient and dependable service. With rising demand for delivery services, especially in the aftermath of the epidemic, improving delivery routes, expanding delivery fleets, and utilizing technology for real-time tracking may all improve customer experience and satisfaction. Companies may distinguish themselves in a competitive market by simplifying delivery processes and reducing delivery times while satisfying changing customer expectations for convenience and dependability.

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SULE, M.R.B.P., RUSDI, D.N.A.B., KLANA, N.A.B. and RUSHDI, M.A.M.B.M., 2020. THE IMPACT OF SUPPLY CHAIN MANAGEMENT TOWARDS CUSTOMER SATISFACTION AT DOMINO. Kay, J., (1995). Foundations of corporate success: how business strategies add value. Oxford Paperbacks. Veil, S.R., Sellnow, T.L. and Petrun, E.L., 2012. Hoaxes and the paradoxical challenges of restoring legitimacy: Dominos' response to its YouTube crisis. Management Communication Quarterly, 26(2), pp.322-345. Young, C.L. and Flowers, A., (2012). Fight viral with viral: A case study of Domino's Pizza's crisis communication strategies. Case Studies in Strategic Communication, 1(1). How Domino's Pizza reinvented itself. Harvard Business Review. (2016, November 28). Retrieved April 10, 2023, from https://hbr.org/2016/11/how-dominos-pizza-reinvented-itself