Introduction From “Get the Door, it’s Dominos” to “Fresh, hot pizza delivered in 30 minutes or less guaranteed,” Domino’s Pizza continues to reinvent their slogans like their business strategy (Domino’s Pizza, 2015). Domino’s Pizza, once synonymous with home delivery, uses strategic management tools to manage resources and processes to continue to thrive in the ever changing world. Most businesses are affected by unexpected and sometimes uncontrollable internal and external factors. Internal factors would include retention rates, policies, and the work culture. Political, economical, and environmental factors that negatively impact an organization are considered external issues. For these reasons, an environmental analysis was conducted …show more content…
For any organization, the environment consists of the set of external conditions and forces that have the potential to influence the organization, “(Mastering Strategic Management Saylor Academy, 2016, p. 20). In the case of Domino’s Pizza, the external environment consists of rivals such as Pizza Hut and Pappa Johns and the ongoing changes of social media trends and technology. Domino’s Pizza operates within a competitive supply chain industry that thrives on great marketing, good food, and competitive prices. However, the food chain industry is commonly affected by external forces like government regulations and economical changes. In 2015, when the federal government increased minimum wages to $10.00, several chain franchises suffered. Domino’s Pizza, however, increased wages to keep the “right people” in accordance with maintaining the competitive advantage. Strategically, employing the “right people” proves to increase performance levels while maintaining healthy employment levels of quality …show more content…
The interactions include potential new threats of new entrants and substitutes and bargaining power of suppliers and buyers (Mastering Strategic Management Saylor Academy, 2016, p. 25). Domino’s Pizza faces tough competition because the food franchise market is saturated. For Domino’s Pizza, a strong force of competitive rivalry is based on the following external factors, high number of firms and consistent low costs. The high availability of substitutes or other pizza restaurants, causes lowers the bargaining power for Domino’s Pizza. Suppliers also have a major impact on a firm. The large population of suppliers weakens the impact on the organization. Supplies like flour and meat are in abundance within this industry. The threat of substitute products is high. The threat of local pizza shops or pizza chain restaurants with competitive prices raises major issues for Domino’s Pizza. New entrants would affect Domino’s Pizza’s market share. The impact of new entrants is relatively low as capital costs are moderate for new food chain
Mamma Jo’s Pizza should accommodate their employee, Ahmad, and his need due to the fact that he wears his beard specifically for religious reasons. For discrimination based on religion, under Title VII of the Civil Rights Act, Mamma Jo’s Pizza has the duty to “reasonably accommodate” employee’s “sincerely held” religious practices unless doing so would cause undue hardship to Mamma Jo’s business. If wearing a beard is a sincerely held religious practice for Ahmad, then Mamma Jo’s should make reasonable adjustments to the work environment that will allow him to fully practice his religion as long as these adjustments are not more than mere inconvenience. An example of an accommodation that Mamma Jo’s could make is a job reassignment. Mamma Jo’s no beard policy can be argued to be a business necessity for employees dealing with the food, so Ahmad could possibly do other tasks away from the food such as working at the cash register, answering the phone, or other clerical work.
Such factors may include threat of new entrants, power of suppliers, power of buyers, product substitution, and the intensity of rivalry among competitors (Hitt, Ireland, & Hoskisson, 2013). Since Chipotle was opened in 1990, they have already become a well-established company within the industry. In order for Chipotle to continue having a competitive edge in the market, they must heavily compete with companies or restaurants such as Qdoba that offer a wider variety of menu options for lower prices. Chipotle directly works with suppliers, usually in local areas, to permit more competitive prices to buy their products. Since Chipotle focuses so greatly on product quality, the supplier’s power plays an enormous role in Chipotle’s ability to obtain their raw
The first strategy they should build on is their brand name, Papa Johns. They might not be number one in what is a very large market place but number three is not bad. People know the name Papa John but it is still not as prevalent as Pizza Hut or Domino's. Granted it has not been the marketplace near as long and does not have the brand loyalty of the top two but keep in mind where they have come in a much shorter period. Most of the brand loyalty of the top two comes from habit of repeat business and remember that habits can be broken. To do so you have to put your brand out in the eye of the consumer to remind them that they have options. It takes only one chance to start a new habit. By taking advantage of the brand status you do hold is how you grow your customer base.
Millennials might become the generation that die before their parents, and it is because of health related issues. The U.S begun this unhealthy downwards spiral in the 70’s when kids started coming home to empty houses, and working people would come home very late and tired. People needed an alternative to cooking that was fast and cheap, which is where the processed food industry began and exploded. Now, most people would believe that the food industry is the most culpable. However, that person should have learned personal responsibility. This generation of 18 to 26 year olds could be the solution to this problem. Millennials are going to be the future parents and lawmakers who could improve the way health is viewed here in the United States. In order to fix this problem of obesity and obesity related diseases, millennials must take personal responsibility and make healthier choices, as well as pass on what they learn to future generations.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
• Considering the two forces of competition and predict what McDonald’s Corporation might do to improve its ability to address these forces in the near future.
Workforce Challenges: Unlike the competitors TP did not try to make pizza delivery as easy as possible. In order to cope with a high employee replacement, TP instead sought to upgrade both its entry-level employees and the responsibilities they handled. Together with performance measurement systems, employees could be evaluated.
The system adopted by 7-eleven maximizes the threat for new entrants. That’s means that threat of new entrants of 7-Eleven is low. It is because 7-Eleven has already reached economies of scale through maintaining a strong customer base and brand loyalty. Over the years, 7-Eleven has increases their customer and brand loyalty. The access to latest technology and capital investments in the same ensures that the barrier for entries for new entr...
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
Domino’s Pizza is operated internationally through a network of 10,255 company-owned and franchise stores, located in all 50 states and more than 70 international markets (Domino’s Pizza Annual Report 2012). There are three business segments which is domestic stores, domestic supply chain and international. The core operation of this company is delivering pizza. Based on number of units and revenue, they rank second largest pizza company in the world. It carry tagline of ‘you got 30 minutes’ in December 2007 to deliver pizza in that time but it is late they will get free pizza or voucher. Free pizzas not apply to all country (Adamy, 2007).
The restaurant industry has become quite competitive in recent times. In an effort to cut costs restaurants are taking serious measures to improve their performance in relation to their competitors. Two of the most important steps that restaurants have undertaken in recent years are:
Analysis of the external environment is very important for the development strategy of the organization and a very complex process requiring a process tracking and assessment factors and also the establishment of links between those factors and the strengths and weaknesses as well as opportunities and threats. External environment has its complexity and uncertainty. It is obvious that without knowing the environment the organization can not exist. The organization studies the environment in order to secure a successful progress towards its goals.
This report provides an analysis and evaluation of strategy implementation used by California Pizza Kitchen (CPK) and discusses the effectiveness of their strategy through organization design, control systems, people and culture. My research concluded that CPK relies on control systems to undertake a majority of the company’s operational activities and that human resources and organizational culture must support the strategy implemented, which it does in in the case of CPK.
Organizational change is the altering of organizational structures and business strategy. As consumer preferences change, competition increases, and the economic environment fluctuates, business need to adapt to these changes to remain competitive. The management of Home Plus, a regional discount store, has proposed an increase of high-end products and a significant reduction in discount packaged goods. This is a change from the original business strategy in which the primary offerings were discount products. Before implementing the proposed strategy, Home Plus management must consider the benefits of the change and the consequences that may occur. As a member of the management team at Home Plus I disagree with the proposal to increase high-end