Vision and strategy to achieve vision

Vision and strategy to achieve vision

History:

Domino’s Pizza was started in the United States in 1960. Tom Monaghan formed his business with $500. Tom later merged his business with own brother. Then they launched pizza delivery outlet at Ypsilanti, Michigan. That time they given name as Dominick.

The three balls on domino’s logo shows the three outlets that Tom originally planned to open. After a little known operation now called franchising, Tom enabled more people to attract show interest in opening their own Domino’s Pizza outlets. After that people coming in dominos umbrella then he expanded the Domino’s chain right around the world, making the world’s biggest pizza delivery company and one of the largest of all quick service restaurant chains in the world.

Tom also encouraged all Domino’s pizza franchisees to engage positive relationships with the communities to whom they are serving, delivering something extra than great tasting pizza.

Today there are over 8,000 Domino’s Pizza stores in more than 50 countries, employing over 145,000 team members and involving over 2,000 franchisees. Globally Domino’s Pizza delivers more than one million pizzas every day. Domino’s Pizza opened its first UK store in Luton in 1985 and its first in the Republic of Ireland in 1991 in Dublin. There are 526 Domino’s stores in the UK and Ireland (as at 06 December 2009).

Mission:

Domino’s Pizza mission is to be the best pizza delivery company in the world.

Vision:

At Dominos Pizza it is our philosophy to exceed our customer’s expectations through our ten basics, Vision and Guiding Principles. As a leader in our field, we adhere to high ethical and moral business principles. We continually challenge ourselves to be the best. Our Vision is that we are…

“Exceptional people on a mission to be the best pizza delivery company in the world”

To be number one in pizza and number one in people. To achieve this vision, Domino use following strategy:

1. Put people first

2. Dominos Team Members are the backbone of the company. To become the best pizza delivery company in the world, we need to treat team Member accordingly: rewarding dedication and hard work with opportunities for personal growth and career progression.

3. Build the brand stores

4. Domino’s must continue to grow by looking for opportunities to strengthen its existing markets and building stores in the new markets. We must also continue to strength our brand through providing exceptional quality and service.

5. Achieve flawless execution

6. To exceed our customer’s expectations, Dominos need to strive to execute store operations flawlessly. Every order must go out the door quickly, correctly and at the highest quality possible, creating and maintaining loyal customer.

7. Maintain high standards

8. We have set very high quality standards. We must make sure those standards are being met at every step of the process.

Domino’s Values:

At Domino’s Pizza, values are summed up in a chant that’s sung in their stores:

“Sell more pizza, have more fun!”

Domino’s also have a aim to add value to the communities which they serve by designing their stores in a expressive manner, employing local people, showing respect for the environment, encouraging their team members to be caring citizens, taking their skills into schools and colleges and supporting local organisations Domino’s Pizza responds to hundreds of requests every year from organisations seeking help.

Domino’s priorities:

Recruiting and retaining the best people. Provide Consistent quality food on time, take great care of their customers, innovate in ways that matter to their team members and customers, ensure high image standards at their stores.

The Domino’s Pizza stores:

Till to date (06.12.2009)

UK And Ireland Total Stores: 600

Worldwide Total Stores: 8,000+

International Markets: 50+

Domino’s Pizza SWOT Analysis:

Strengths:

1. US leading pizza delivery company with more than 5,000 stores in US.
2. Have a global franchise operation in more than 3,500 in over 50 countries.
3. Have strong brand equity.
4. Very strong supply chain & distribution network.

Weakness:

1. Slow growing and declining same store sales.
2. Weakening bottom line.
3. Have a lot of Competition in market.

Opportunities:

1. Growing in markets particularly in India, China and Pakistan.
2. Leverage supply chain & distribution system to introduce new products.

Threats:

1. Frozen pizzas at supermarkets, supercenters, etc.
2. Changing habits towards healthier food choices.
3. Currency exchange fluctuations are affecting franchises business.
4. Intensive competition of small competitors.

Major competitors:

The UK pizza delivery and takeaway market consists of many small businesses and the big three firms: Perfect Pizza, with over 200 outlets, Pizza Hut which has 170 restaurants and also delivers to the customers. Pizza Express and Pappa Jones are big competitors. In Britain, pizzas are delivered by restaurants and a large range of outlets that also sell other food, like burgers and kebabs. It is estimated that there are as many as 4,000 pizza delivery companies.

Domino’s Innovation:

Domino’s Pizza is widely recognised as the pioneer of the pizza delivery concept. Over the years, we have invented, or been first to use, most of the equipment and systems now used as standard by our industry. We believe that taking an innovative and enterprising approach to business helps us to strengthen our market leadership. We are always on the lookout for innovations that improve our product and service and make our customers’ lives easier. Domino’s was the first to use a fibreglass tray for dough. Domino’s was the innovator behind the sturdy, corrugated pizza box, which prevents moisture from making the box soggy and stops the cheese sticking to the top during delivery. In 1999, Domino’s Pizza became the first pizza delivery company in the world to offer nationwide internet and interactive television ordering. Domino’s Heat Waveâ„¢ delivery bags were introduced to the UK in October 2000.

Hierarchical structure

Dominos hierarchical structure is consist of CEO and head of departments like Marketing, sales, food and service, IT , HR, Property, Flawless execution and finance Manager, They heads of department control their related staff according to nature of department. Dominos has thousands of staff. Due to higher staff Dominos providing maximum opportunities to people to get better future in Dominos. Dominos also helps to countries to cut down recession impact.

Strategy of Dominos pizza:

Domino’s Pizza Group (DPG) are committed that their supply chain play a important strategic position in helping the operations and increase growth of Domino’s Pizza outlet by giving good service and quality products at the right price. Domino’s aims and goals are improving the supply chain in twofold: (1) configuration the supply chain and remove none-value-added services and (2) decrease or remove the order-fulfilment and logistics performance that our stores need to do excellence.

Specially, DPG has an only one profit-sharing aim with their stakeholders. The services needs that we make a right between value added service and least cost distribution that gives our customers with right service and a high profit rate in business.

We straight forward believed that our commitment to give excellent service to our outlets, to help them decrease the demands of operating in difficulties and capitalistic market, and to do every possible to facility their profit ratio provide us the best sourcing unconventional. Therefore, it is crucial that we be the excellence in the business. Our strategic innovation would take charge us to that aims and goal.

Achieve Customer Satisfaction and Success: ingrain our customers and provide help those in their business growth increased.

Perfect the Supply Chain: complete monitoring on delivery systems-from the farmer’s field to the consumer’s main door. All foods and products coming from different part of the world but there is not difficulty to run the supply chain operations. Like some of countries Dominos buy products from them.

• Squid (Japan)
• Black Bean Sauce (Guatemala)
• Barbecued Chicken (The Bahamas)
• Capsicum (Australia)
• Lamb and Pickled Ginger (India)
• Fresh Cream (France)
• Chorizo (Portugal)
• Grilled Lamp (Netherlands)

Develop Individuals and Teams: hire skilled people, experienced, and keep the right people.

Products

Dominos make own dough, sauces, cheese and topping. In all those products Dominos has secret recipes. This is upper hand advantage to their competitors.

Dough

Dominos makes own dough for Dominos quality insurance for their customers. They never put in the freezer like others companies do. Dominos use one technique to make their pizza in good shape use stretch and slap for few seconds to make the pizza base. Dominos they are making around 2.3 million dough ball every 30 days in United Kingdom and Ireland. They deliver dough more than 880 miles away.

Sauce

Dominos also makes sauce with special recipe for their sauces. They made sauces with vine-ripened Portuguese tomatoes.

Dominos traditional sauce is also quite popular in their customers but Dominos want to give variety to the customers. Domino’s herby, veggie-A-Roma or tangy barbecue very popular in the customers.

Cheese

Dominos also makes their cheese and they mostly use mozzarella cheese for the customers. Dominos want when their customers have bite of pizza slices they feel like tradition pizza they are biting. Dominos uses 100% mozzarella cheese. On demand some customers want more cheese then they can order their special cheesy pizza “Delight Mozzarella.

Toppings

Dominos want their pizza looks more attractive and delicious when they have bite of pizzas.

They use pepperoni, ham, pineapple, and mushroom, specially ordered pizzas like Lamb Shish or Tandoori Chicken they use thick layer of topping. Dominos also required from the customer with their own choice in the pizza. That is why Dominos create one menu called “Create Your Own” selection.

Operation, Quality and Service:

They will look at most of related activities value-added and non-value-added-within the whole supply chain; it makes clear that various supply chain roles are best suited to perform special tasks. DPG provides the following services; dominos insure that they can do their best:

1. Entire management, planning for availability of food products, in store instruments, and goods.
2. Properly maintained the action of products all the right way to the picking area within the back side of the outlet.
3. Manufactured, delivery of fresh, readymade dough products.
4. Providing of the best pizza ingredients for our outlets.
5. Providing of the best tools and supplies for our outlets.
6. Manager of the outlet request of process, included exclusion of what product should be
7. Delivered and when.
8. Stock from the place of Domino’s control to the time of use by the outlet.

DPG’s supply chain is not very difficult. DPG has relatively few SKUs. Dominos has known customers, reachable demand information, and comparatively small distribution centres. The intricacy brings from the fast, high-volume, synchronous processes required to make plan, process, manufacture dough to order, route, pick, load, and deliver more than thousands of pizza deliveries per week.

DPG’s recent and planned operations are highly service maintained. GPG has a 10 to 15 hours order cycle from first order entry to deliver. Exact delivery time varies from 2 to 24 hours. DPG do not have an order rid of. In fact, we expect load after the truck have left, either sending through shipment or meeting the truck with the additional product. They try to minimise the error and right now ship more than 98 percent of our deliveries 100 percent correct. (That measured of order-fulfilment effectiveness and does not come product-quality conflict that would not be shows from the packaging. We are working with our suppliers to improve quality product at the outlets.) Right now, we’re maintaining that service level with more than 100 inventory turns a year.

When any store is closed this is failure of operation. How very less time the outlet is out of service, and no matter what demands nature has dealt. Domino’s Pizza stores, bad weather bring lot of opportunities. Our consumers depend on fresh, really hot delivered pizza when our customers are dealing with weather problems. Really bad weather, also bring unpredictable demand of orders, gives different type of problems in operation of DPG. Actually, about 16 store closings per year.

Specially designed operational strategy is to good way to treat the age of the five million pounds of dough that DPG produce and deliver to outlets every week. That highly fresh product performs differ throughout their shelf life. Too old or fresh dough shouldn’t be used in the outlet.

DPG routine delivery allows for the outlet to have lesser old dough left at the end of shelf life. Our aim and goal is to smooth the production of dozens of dough SKUs, that’s why when product is ready for delivery should be in good age and exactly to have the outlets needs. For example, when outlet has good amount of dough in stock then delivery is made on time, that’s why we deliver dough when they are young time of arrival. DPG’s IT arrangement provides solvents will provide a planning ways that gives us to perform this kind of innovative product planning.

Process Layout

There is a process layout with in dominos franchises. Due to process layout product flexibility relatively robust by disruptions easy supervision due to less complexity. Everything is available in same place easy to access within the lesser place.

Process mapping for Pizza making and selling:

This process mapping (Scientific Management) shows how to make pizza at outlet of the Dominos. First at outlet the dough received and related material at the outlet as raw material then they make dough and put in the cold room then move to front freezer of the outlet then ready to make pizza for the order. At last take the payment.

Respond to order at Dominos Pizza:

At Dominos they respond as order to make pizzas. First customer comes to Dominos ask for order then Dominos employees make pizza on customer request. As you can see this picture below, which clearly showing how dominos order to make and deliver to customer’s home or at outlet sale.

Performance, Management and Operation Improvement:

At Dominos they are fellow fundamental importance of the performance measurement to any operations managers and also relate performance measurement and improvement to each other and overall operation management.

Dominos has check and balance for franchiser because; they are the pillar of the company and company getting business from them.

Domino’s also strongly fellows Balance Scorecard Technique for performance measurement.

Dominos always try to improve performance in the staff and management. There is very strong performance check system in the company related to operation. In Dominos always try to improvement staff learning and skills through training courses.

Dominos also provide training courses to franchiser to get innovative and latest update regarding business.

Training and skills:

Dominos pizza believe The Company with the best people win

Dominos offers shorts course for their employees to provide its work to be done at top level.

These courses are:

Career development programs:

A journey that demand commitment and dedication need integrity, honesty, diligence, compassion, time listening, practicing and mastering.

These courses provides with an excellent foundation of time proven skills and knowledge on which we can build a successful career.

In the UK, training program is managed, developed and delivered from Milton Keynes by Dominos Pizza Group Head office.

Training structure:

Domino has the Moto “Domino’s make a sincere commitment to putting people first”

Training is structured around four accreditation levels.

1. First step of management (food and safety certification)
2. Training about opening and closing a store.
3. Training about how to runs a shift and responsibilities.
4. Training as a manager from phone order to products preparation from satisfying first level to last level. This course called management Development Program (MDP)

Problems identification within dominos franchises operation:

Although domino’s has an efficient supply chain management but it’s not enough to have a progressive business in market. The main problem which we think that dominos is facing regarding its franchises business. Dominos has too many franchises in the world which is not easy to handle. They allow franchises owner to run their business according to their own style. Its mean they just get the right to run the franchises by purchasing name of dominos. Most of dominos franchises owners and management is lacking in their operation within the store. We think the employees of different franchises are not motivated by them self due to less cooperation between management and lower employees.

The second Problem that we think is the stock of dough and raw material. Franchises order the stock by estimating the demand of future. Some time the demand and supply estimation is correct but not always. Franchisers often order more dough and raw material which means they have more stock in their store rooms. But if the demand for pizza will fall they will face problem in term of more cost because dominos do not use old dough, if the dough is more than 3 days than it will discard which raise the cost of franchisers and they will get less profit. This is all regarding to their operations which showing ineffectiveness.

The third problem is that, dominos franchises are facing the employee’s attitude toward customers. They are so rude with customers in their franchises. As compare to other fast food and pizza services the dominos services and operations within shop a bad. The employees performance are not well in shops it may be the cause of bad performance appraisal scheme. They feel less secure about their jobs and less motivated toward jobs.

The forth problem is that we think dominos franchises are facing internationally specially in South Asia that is low sale in home delivery market. Therefore in these areas they also provide a sitting arrangement to their customers but this will not enough because the cost of making pizza will more due to increase in store capacity? They also capture these markets too late although there is more capacity in this market but dominos is facing tuff competition with pizza hut and local pizza shops. The prices of pizza in local stores are low as compare to dominos pizza. So this is tuff to provide customers low price pizza with good quality.

Suggestions for improvement:

The suggestions for improvement of above problems are followings:

1. Dominos should control their franchises through proper rules and regulation. There should be some standard that will follow by franchisers in accordance to improve operations.
2. Dominos franchises should follow some forecast programme to meet their balance demand and supply.
3. There are some ethical issues within franchises that should be removed through proper regulation.
4. The performance of employees should be review weekly and monthly.
5. Dominos should improve their planning and control system in South Asia.
6. They should also review their marketing and sales complain periodically.
7. Less space capacity.
8. Low interaction with customers inside the outlet.
9. On most of outlet no sitting area and customers have of wait out the outlet. They should have sitting area where customer can enjoy their meals or pizzas.
10. On most of outlet no sitting area and customers have of wait out the outlet. They should have sitting area where customer can enjoy their meals or pizzas.

Conclusion:

So from the above discussion, we may conclude that dominos pizza is progressing well in the world especially in take away services and home delivery market. There logistics and supply chain management is working very fast and efficiently. They are also innovating new methods and products to improve their operations and services. There are some problems in operations of dominos but that will not too large. It could be solved through different changes in operations and regulations that we suggest them above.

Bibliography:

http://www.scmr.com/article/329235.

www.dominos.co.uk

www.dominos.uk.com

http://www.bitc.org.uk/resources/case_studies/afe_24_div_hmrc.html

http://press-releases.techwhack.com