Dominos Pizza

Strategic Management Plan

BY

Sumreen Arshad (Roll# 20145)

Ujala Ishfaq (Roll # 20101)

Ajmal Khan Kakar (Roll # 20156)

MBA 3.5-years
In
Human Resource Management

G.C University Faisalabad

DEC 2017
 Executive Summary
Dominos Pizza, Inc. is the second largest pizza chain in the world with operations in
over 70 nations and over 10,200 stores as of March 2013. Dominos trails only Yum
Brands Pizza Hut in store numbers and global presence. Dominos specializes in takeout
and delivery of pizza and more recently chicken wings and sub sandwiches, but so far
does not offer a dine in experience for customers. Lacking seating inside greatly reduces
margins and startup costs for franchisees and allows products to be sold cheaper to more
price-conscious buyers. Dominos operates under three business segments:
1. Domestic Stores
2. Domestic Supply Chain
3. International
The Domestic Supply Chain produces and/or supplies over 99 percent of all franchisee
stores and accounts for over half of company- wide revenue. Founded in 1960, Domino
has headquartered in Ann Arbor, Michigan.
The report provides an in-depth analysis of the past performance, current performance,
industry analysis, external analysis and internal analysis. These analysis models include
SWOT analysis, Internal Factors Evaluation, External Factors Evaluation, Competitive
Profile Matrix, SPACE, BCG Matrix, IE Matrix, SWOT Matrix and Quantitative
Strategic Planning Matrix (QSPM). The scores of these models will explain the strategic
position of the company. The score of the IFE is 2.92 indicating that Dominos is an
internally strong organization. EFE Score of 2.86 indicating that Dominos is availing the
external opportunities and avoiding external threats. The score of our company in CPM is
2.69 where as our competitor has 3.41 that mean they should implement defensive
strategy, SWOT Matrix suggests that Dominos should import new technology so that
they can penetrate the market. According to SPACE Dominos is at aggressive quadrant
and the company should use its strength in marketplace. The IE Matrix proposed to have
hold and maintain strategy. QSPM comparison, product development strategy should be
implemented because of high total value.
The report evaluates how dominos has been able to position itself as a leader in its
market segment it provides an appreciation of the companys efforts to continuously
evolve in the changing market conditions by incorporating new product design and
innovative to stay at par with its competitors.
Finally assessing current company situation and megatrends a SAVED strategy that will
help the company maintain its sustainable competitive advantage in the coming years has
also been detailed in this report. factor

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 Acknowledgment
We have the pearl of our eyes to admire blessing of the compassionate and omnipotent
because the words are bound, knowledge is limited and time is short to express His
dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with
potential and ability to complete this report and make a material .contribution towards the
deep oceans of knowledge
First we avail this opportunity to bow our head before ALLAH almighty in humility .who
given us the wisdom and perseverance for completing this piece of report
We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel
highly privilege to ascribe the most and ever burning flame of my gratitude and deep
scene of devotion to the Prof. DR.M. Shahid Tufail who taught us Strategic
Managements Report with heart and gave a guideline to this report.

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 Dedication

Every Challenging work needs self-efforts as well as guidance of elders especially those
who were very close to our heart.
Our humble effort we dedicate to our sweet and loving

Father and Mother,

Whose affection, Love, encouragement and prays of day and night make us able to get
such success and honor, along with all hard working and respected

Teachers

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 Table of Contents
A Brief Overview ................................................................................................................. 1
Overview .......................................................................................................................... 1
Organization Structure .................................................................................................. 1
Board of Directors ......................................................................................................... 1
Top Management........................................................................................................... 1
SWOT Analysis ................................................................................................................ 2
Mission-Vision Statement ................................................................................................ 3
Mission .......................................................................................................................... 3
Vision ............................................................................................................................ 3
STAGE: 1st INPUT STAGE .............................................................................................. 4
Internal Factor Evaluation (IFE) Matrix ........................................................................... 4
Interpretation ................................................................................................................. 5
External Factor Evaluation (EFE) Matrix ........................................................................ 6
Interpretation ................................................................................................................. 6
Competitive Profile Matrix (CPM)................................................................................... 7
Interpretation ................................................................................................................. 7
STAGE: 2 ND -----MATCHING STAGE ........................................................................... 8
SWOT MATRIX .............................................................................................................. 8
Interpretations................................................................................................................ 9
The Strategic Position and action Evaluation Matrix (SPACE) ..................................... 10
Calculation .................................................................................................................. 10
Interpretation ............................................................................................................... 11
The Internal and External Matrix ................................................................................... 12
Interpretation ............................................................................................................... 12
STAGE: 3rd ----- Decision Stage ...................................................................................... 13
Quantitative Strategic Planning Matrix (QSPM)............................................................ 14
Interpretations.............................................................................................................. 15
Conclusion ...................................................................................................................... 16
Recommendation ............................................................................................................ 17
Appendix ........................................................................................................................ 18
A Brief Overview
 Overview
Dominos is the second largest pizza restaurant in the world and operates in more than
85 markets. On average, Dominos sales are more than 1.5 pizzas each day globally.
Tom and James brothers purchase the DomiNicks pizza stores and entered the pizza
business in 1960. In 1965, Tom was the only owner and renamed the store as
Dominos Pizza. The company has franchising system that has 200 stores in 1978.
Today, Dominos has more than 13,800 stores and 5,000 of them are at outside the US.

Dominos Pizza consists of four business segments that are:

Domestic Company-Owned Stores

Domestic Franchise
Domestic Supply Chain
International

The main competitors of the company are Pizza Hut, Papa Johns, Little Caesars, and
local pizza producers. In addition, there are many substitute products that compete
with Dominos Pizza. These are McDonalds, KFC and so forth.

Organization Structure

Board of Directors
David A. Brandon is the Chairman of the Board of Directors. The board of directors
of the company consists of eight people with Brandon.

Top Management
David A Brandon is the Chairman and J. Patrick Doyle is the President and Chief
Executive Officer of the company. There are four Chief Officer in Dominos Pizza
and totally, top management of the company consists of fourteen people with
Chairman and CEO.

1
 SWOT Analysis
Strength, Weakness, Opportunity and Threat of Dominos Pizza

Strengths Weaknesses

Strong Brand Equity. Calorie of Products

Proven Business Model (Franchising) Awareness of Food Nutrition

Strong Marketing Not being able to sit down for in-house dining

Product and Technological Innovation Staff career restriction

Supply Chain System Decreasing Sales in Mature Market

Quick Delivering System

Pricing Range

Online Food Ordering System

Opportunity Threats

Expansion into New Markets Direct and Indirect Competition (Pizza Hut
Growing Fast-Food Market
and McDonalds)
Population of India and China
Substitute Products
New Preferences in Pizza
Most of the people are actively using online Changing habits in food choices
sales
Increasing costs

Local pizza seems as better quality

2
 Mission-Vision Statement

Dominos Pizza Business Vision and Mission of the Company

Mission:
Maintaining high standards of the international chain of pizza delivery and
provide the experience of an excellent product with excellent customer service.
Exceptional People serving the best pizza in the world.
Sell more pizza, Have more fun.

Vision:
To be the best operator Domino's Pizza system with the best talent.
Number one in pizza.
Number one in people.

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STAGE: 1st ------- INPUT
STAGE
EFE (External Factor Evaluation Matrix)

IFE (Internal Factor Evaluation Matrix)

CPM (Competitive Profile Matrix)

`
 Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted

score

Strengths
Strong brand equity 0.15 4 0.60

Proven business model (Franchising) 0.09 4 0.36

Strong marketing 0.05 3 0.15

Product and technological innovation 0.07 3 0.21

Supply chain system 0.10 4 0.40

Quick delivering system 0.10 4 0.40

Pricing range 0.05 3 0.15

Online food ordering system 0.05 3 0.15

Weaknesses
Calorie of products 0.06 2 0.12

Awareness of food nutrition 0.10 1 0.10

Not being able to sit down for in-housing 0.08 1 0.08

dining
Staff career restriction 0.03 2 0.06

Decrease sales in mature market 0.07 2 0.14

Total (IFE) Score 1.00 2.92

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Interpretation:
IFE matrix is used to evaluate the Strengths and Weaknesses of Dominos Pizza. The IFE
score clarifies that Dominos is at the good position to use its strengths and reduce its
weaknesses. (IFE score is greater than 2.50)
IFE Score of 2.92 indicating that Dominos is an internally strong organization, It
represent that it is excellent in its over all internal strategies when it comes to explore
straights and weaknesses, overall the main straighten is financial supported by Dominos
Pizza.

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 External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted

score

Opportunities
Expansion into new market 0.08 2 0.16

Growing fast food market 0.12 4 0.48

Population of India and China 0.11 2 0.22

New preferences in pizza 0.05 4 0.2

Most of the people are actively using 0.07 2 0.14

online

Threats
Direct and indirect competition 0.15 4 0.60

Substitute products 0.15 3 0.45

Changing habits in food choices 0.07 3 0.21

Increasing costs 0.08 2 0.16

Local pizza seems as better quality 0.12 2 0.24

Total (EFE) Score 1.00 2.86

Interpretation:
EFE matrix identifies the Opportunities and Threats of Dominos Pizza. According to
EFE score, Dominos is capable to respond to opportunities and threats in the
marketplace. (EFE score is greater than 2.50)
EFE Score of 2.86 indicating that Dominos is taking the external opportunities and
avoiding external threat quite well. However there is room for improvement it well.

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 Competitive Profile Matrix (CPM)

DOMINOS PIZZA HUT PAPA JOHNS

Critical
Success Weight Rating Weighted Rating Weighted Rating Weighted
Factors Score Score Score
Advertising 0.09 3 0.27 3 0.27 3 0.27

Healthy food 0.04 2 0.08 3 0.12 2 0.08

options
Global existence 0.10 3 0.30 4 0.40 1 0.10

Store locations 0.08 3 0.24 4 0.32 2 0.16

Eating area in 0.05 1 0.05 4 0.20 1 0.05

stores
Brand 0.13 3 0.39 4 0.52 2 0.26
awareness

Financial profit 0.11 2 0.22 4 0.44 1 0.11

Customer 0.09 2 0.18 3 0.27 2 0.18

loyalty

Market share 0.09 3 0.27 4 0.36 1 0.09

Product quality 0.07 3 0.21 3 0.21 2 0.14

Top 0.06 2 0.12 2 0.12 2 0.12

management

Price 0.09 4 0.36 2 0.18 3 0.27

competiveness

Total 1.00 2.69 3.41 1.83

Interpretation:
The main competitors of Dominos Pizza are Pizza Hut and Papa Johns. In Competitive
Profile Matrix, Dominos Pizza and its rivals were compared. Pizza Hut has power among
competitors in terms of critical success factors.
The overall score of our company is 2.69 where as our competitor has 3.41 which is huge
than our company. The company should improve their internal and external factors to
beat their competitor.

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STAGE: 2 ND -----MATCHING
STAGE
SWOT Matrix

SPACE Matrix

BCG/IE Matrix

`
 SWOT MATRIX
STRENGTHS
INTERNAL 1) Strong Brand Equity.
FACTORS 2) Proven Business Model
(Franchising)
3) Strong Marketing
4) Product and Technological
Innovation
5) Supply Chain System
EXTERNAL
FACTORS
OPPORTUNITIES S-O STRATEGIES
1) Expansion into New 1) Creating new types of pizzas
Markets to meet the preferences of
customers (S4, O4)
2) Growing Fast-Food
2) Increase marketing
Market
expenditure to gain more
3) Population of India and market share in fast-food
China market(S3,O2)
4) New Preferences in Pizza 3) Increase sales over the
5) Most of the people are Internet order by providing
actively using online special promotions (S8, O5)
4) Using Franchising in India
sales
and China to gain
competitive advantage (S2,
O3)
THREATS S-T STRATEGIES
1) Direct and Indirect 1) Reducing the product price to
Competition (Pizza Hut compete with substitute
product (S7, T2)
and McDonalds)
2) With well-defined marketing
2) Substitute Products strategy and brand power,
3) Changing habits in food "act local" strategy should be
choices used.
4) Increasing costs 3) Gaining competitive
5) Local pizza seems as advantage with directing
better quality people to use tech. (S4, T1)
WEAKNESSES
1) Calorie of Products
2) Awareness of Food
Nutrition
3) Not being able to sit down
for in-house dining
4) Staff career restriction
5) Decreasing Sales in Mature
Market
W-O STRATEGIES
1) In India and China
operations, dining area
should be applied as a
pilot (W3, O3)
2) Producing new pizza
varieties with new and
low calorie vegetables
(O4, W1, W2)
W-T STRATEGIES
1) Producing healthier
product to catch the
habits of customers
(W1, T3)
2) Reducing the price of
product to increase
sales and gain
competitive adv. (T1,
W5)
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Interpretations:
Critical Region is WO. Dominos can import new technology to reduce its cost of
production. Company can thus be able to penetrate in the market and capture more shares
by improving quality of goods and services, and provision of goods at lower prices.

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The Strategic Position and action Evaluation Matrix (SPACE)

Internal Strategic Position External Strategic Position

Competitive Advantage CA Rating Industry Position IP Rating
Market share -2 Growth Potential 6
Product Quality -2 Financial Stability 5
Customer Loyalty -4 Resource Utilization 4
Technological know-how -2 Profit Potential 4
Control over Suppliers and
Distributors -1 Easy of Entry into Market 3
Average -2.2 Average 4.4
X-Axis strength 2.2
Financial Position FP Rating Stability Position SP Rating
Leverage 4 Rate of inflation -3
Liquidity 4 Technological Changes -3
Working Capital 5 Competitive Pressure -3
R.O.I 5 Barriers to Entry into Market -4
Cash Flow 4 Price Elasticity of Demand -4
Average 4.4 Average -3.4
Y-Axis strength 1.0

Calculation:

Total X axis score = X + (-X)

= (IP) + (-CA)
= (4.4) + (-2.2)
= 2.2

Total Y axes score = Y + (-Y)

= (FP) + (-SP)
= (4.4) + (-3.4)
= 1.0

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SPACE Diagram:

Strategic Position and Action Evaluation (SPACE) Matrix of Dominos Pizza.

3 FP
2.5
Conservative Aggrasive
2
1.5
1
0.5

CP 0 IP
-3 -2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3
-0.5
-1
-1.5
-2
-2.5
Defensive Competitive
-3
SP

Interpretation:
Dominos Pizza is at the Aggressive quadrant same as the market leader Pizza Hut. The
company should use its strength in marketplace. It can be seen as following Pizza Hut,
but it is necessary.

Market development
Penetration
Product Development Strategies

are suitable for Dominos.

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 The Internal and External Matrix
IE of Dominos Pizza:

EFE = 2.86

IFE = 2.92

High
3.0-4.0 I II III

3.0

EFE Medium
2.0-2.99 IV V VI

2.0

Low
1.0-1.99 VII VIII IX

1.0

EFE TOTALWEIGHTED STRONG(3.0 4.0) AVG.(2.0 2.99) WEAK (1.0 1.99)

SCORE 4.0
3.0 2.0 1.0

IFE

Interpretation:
The IE Matrix has 9 Cell and 9 Quadrant. This matrix use both value. IFE score and EFE
score. So we can measure our company position where it lies its quadrant and which
strategy will be used for future. The IFE Score of Dominos is 2.92 and EFE Score is 2.86
and company lies in III, V, and VII quadrant. That why company used Hold and Maintain
Strategy.

Hold and Maintain Strategy:

Market Penetration
Market Development

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STAGE: 3rd ----- Decision Stage
Quantitative Strategic Planning Matrix (QSPM)

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 Quantitative Strategic Planning Matrix (QSPM)

Strategic Alternative

WEIGHT Strategy 1 Strategy 2

Product Market
Development Development

KEY FACTORS W AS TAS AS TAS

STRENGTHS

Strong Brand Equity 0.15 4 0.60 4 0.60

Proven Business Model (Franchising) 0.09 2 0.18 4 0.36

Strong Marketing 0.05 1 0.05 3 0.15

Product and Technological Innovation 0.07 4 0.28 2 0.14

Supply Chain System 0.10 2 0.20 2 0.20

Quick Delivering System 0.10 2 0.20 3 0.30

Pricing Range 0.05 3 0.15 2 0.10

Online Food Ordering System 0.05 1 0.05 2 0.10

WEAKNESSES

Calorie of Products 0.06 4 0.24 1 0.06

Awareness of Food Nutrition 0.10 4 0.40 1 0.10

Not being able to sit down for in-house dining 0.08 1 0.08 2 0.16

Staff career restriction 0.03 1 0.03 1 0.03

Decreasing Sales in Mature Market 0.07 3 0.21 4 0.28

OPPORTUNITIES

Expansion into New Markets 0.08 4 0.32 4 0.32

Growing Fast-Food Market 0.12 4 0.48 4 0.48

Population of India and China 0.11 3 0.33 4 0.44

New Preferences in Pizza 0.05 4 0.20 2 0.10

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Most of the people are actively using online
sales 0.07 1 0.07 1 0.07

THREATS

Direct and Indirect Competition (Pizza Hut

and McDonalds) 0.15 4 0,60 4 0.60

Substitute Products 0.5 3 0.60 3 0.45

Changing habits in food choices 0.07 3 0.28 2 0.14

Increasing costs 0.08 2 0.16 3 0.24

Local pizza seems as better quality

0.12 3 0.36 1 0.12

TOTAL 6.07 4.45

Interpretations:
QSPM is used to evaluate the two strategies that are optional. Product Development and
Market Development strategies are evaluated in terms of SWOT values of the Dominos
Pizza. According to QSPM comparison, product development strategy should be
implemented because of high total value.

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Conclusion:
It is evident at this point that Domino's Pizza Incorporation has a good brand image,
which is one of its strongest points. In addition, the company has had a good history
despite a few lawsuits and criticisms on taste. Domino's strategies are quite effective and
have worked to improve the sales of the company as well as its competiveness in the
market. However, the company faces major threats that might put the future of the
company to dire test. The sociocultural changes that continue to occur in the world today
require that the company make rapid changes and continuous monitoring of the lifestyles
of the people in various parts of the world: especially where they operate. Their level of
competition in the fast food industry is growing stronger day by day and maintaining
loyal customers is the ultimate strategy for any business in the industry today.

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Recommendation:
Within the short term, Dominos should focus on making more coupons available to their
customers. They could also offer specials times or reasons. This would help combat their
tough competition as well as their declining sales. The company can also focus on
improving their online ordering procedures. In addition, Dominos could also improve
their strategies of pizza delivery. In the end, Dominos should focus on improving their
customer base, which would increase their market share. They could also look into
making new products specific to the location of the store as well as adding more variety
to their menus with the changes in tastes and preferences of their customers.
Dominos has continued to produce fantastic revenues over the past few years. However,
Dominos can use various strategies in order to increase their customer base as well as
international expansion in the end. For example, they could offer new menu items
specific to the store location, open more stores around the world, and develop new
products. All of the strategies would continue to better their brand recognition across the
world. By offering new menu items that are specific to the locations that their stores are
located, customers can experience dominos superior products as well as maintain their
countries local customs and culture. For example, Dominos can expand further into
India and offer better products that do not contain beef. They can create products that
include more poultry items such as chicken, duck, and other items. In addition, Dominos
could also offer more white sauce products on their menu rather than the traditional red
sauce that the majority of their products contain. By offering more products, it would
allow for Domino is to open more stores in different areas of the world.
Dominos could expand their stores into new parts of the world. By doing so, this would
create numerous jobs for the local public. If Dominos was able to create stores in third-
world countries, it could have the possibilities to boost the countries revenues, as well as
stimulate the local economy. By doing so, it would better help customers live their lives
because they could afford a cheaper food as well as work for Dominos and create money
for their family. If Dominos could expand into different areas around the globe; they
could increase their already strong financials as well as create a stronger customer base.
By having a wider range of customers, Dominos can create more products that would
better suit their customers wants.
New products in any business can turn into a competitive advantage for any business. For
example, they could compete with Pizza Hut by creating a Piz zone or they could
compete with Little Caesars by creating a quick and easy pizza that would be ready to eat
in less than ten minutes. In addition, Dominos could offer soups, salads and other such
items that could complement their main course meals. They could pull everything
together and market certain items parts of the world, whether new or old, and increase
their brand name across the globe. But with all the challenges that are facing Dominos,
they have experienced many situations that have made them become a better company,
which will help them in the long run become an even greater one.

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Appendix:

DOMINOS STRATEGIC MANAGEMENT PLAN

Interview Officer Name: ______________________________

Designation: ______________________________
Organization: ______________________________

Q.1 Can you tell me briefly about the History, Introduction, Mission and Vision
Statement of your Company?
________________________________________________________________________
________________________________________________________________________
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________________________________________________________________________

Q.2 How many direct competitor you have in the market and if any A or C grade
competitor that become threat for you?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.3 How many branches of Dominos Pizza in Pakistan?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.4 What are the major Object, Values, Mission and Vision Statement?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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Q.5 How many supporting and main department you have?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.6 What are the basic characteristic of your target marketing. Explain in detail?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.7 What is your strategic plan to maintain your strategic position?

________________________________________________________________________
________________________________________________________________________
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________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.8 Are you providing incentive to your employees?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Q.9 In your point of view what is the importance of internal factors as well as external
factors in an organization?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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