Management Analysis Of Dominos Pizza: Key Issues And Solutions

Analysis to Key Problems

Discuss about the Management Analysis Of Dominos Pizza.

Dominos Pizza is one of the best pizza corners of the world delivering reasonable and good quality pizza to the customers. It has wide range of products available for the customers about 200,000 options from where the customers can select. The delivery time is also  It has a unique system of selling their pizza through franchisees system and depends a lot on their franchisee partners. With the strategy and good management, system the company has grew at a faster rate and offers great competition to other fast food chain in Australia. It has 600 retail stores in Australia run by the franchise partners. The CEO of the company Don Meij Dominos takes up the responsibility of growing the company even more and analyse the performance of its partners (Dominos 2017). This paper will analyse the key issues faced in the management of Dominos Pizza even with its continuous success. Further, it will provide solution to one key issue that the company is facing using various management theories.

Dominos has been growing considerably over the last 25 years due to its unmatched service and high quality products. The company has also offered a high rate of customer satisfaction by offering continuous product innovations and at a very reasonable cost. The company followed the franchisee business model where it aims to grow sales and profit. The CEO of the company also follows a good type of leadership bond with its workers as well as the franchisee partners. He tries to follow the strategy of changing the negative effort to a positive one. However, even with all these efforts the company is facing many problems within its working environment and outside. It has been receiving many complaints about its franchisee partners of some stores. This might also prove to be a reason for their downfall.

1. The key challenges analysed in the dominos company in Australia are the poor treatment of the staffs and cutting down some of its franchise stores due to this problem. This was mainly due to lack of responsibility and management skills among the franchisee owner of Australia Del Santo. He made the staffs work longer hours per day and also in a very bad working condition (Greenblat and Greenblat 2017).
2. Staffs of the company are not getting good treatment from the business due to their strategy and plan for expanding the business at the cost of exploiting their staffs. It was noticed that in some of the franchisee stores the franchise head set a target for the managers to reduce the cost of the company and increase sale at any cost. This forced the managers to exploit their staffs by making them work for longer time each day and cutting their payment based on fake penalties. This made the staffs feel discouraged to work and give good performance. Moreover, they were also forced to work under poor condition without proper ventilation.
3. The company only focused to increase their own sale and profit and offer good customer service. This also helped the company to hide their poor management in front of their customers. The health of the workers was also deteriorating under the condition they worked because of absence of proper air condition, ventilation and place to work. Further, it was seen when the issue went down to the CEO, he laid down various franchisee for such exploitation and it costed to the company’s profit and unemployment. This is because cutting down stores means the to lay out the staffs and workers working in that store which increased the unemployment rate and downfall of productivity f the business.

One of the key issues faced by Dominos is the ill treatment to the staffs discouraging them to work. Staffs are one of the vital parts in the organisation and treating them well is necessary and duty of the management. This is because they are the active part in the production of the company and unhappiness among the staff might in turn affect the production of the company and profit in long run. Thus, finding an appropriate solution to it is vital for the organisation. It is seen from the present attitude of the staffs and the managers that the head of the franchisee follow a bureaucratic management theory in which the head of the company operates order on the juniors and fellow staffs. There is extreme hierarchy and authoritative control in the organisation (Al-Safran et al. 2014). However, this did not work well in case of Dominos. It has been argued by Hill, Jones and Schilling  (2014) that in order to operate successfully and keep their staffs happy it is important the company follow systems theory of management in which they can maintain a type of system and realise that each work affects various person of the organization. In systematic management theory, the franchisee will be able to take actions after prior consultation with their staffs and managers. This will help them understand the state of their managers and the staffs. It will also allow the staffs to feel safe and motivate them to work in the company. Moreover, Tedeschi (2013) has put forward that involvement of staffs and allowing them to convey their problems in front of higher authority regard in a new system will in turn help the owners to think about the new strategy before incorporating it. This will create a positive bond between the employees and the business head.

Solution to One Key Issue

Other than incorporating systematic management theory, the company can also improve their management problem by following other concepts of management in their activity. Some of the management concepts are planning, organizing, staffing, coordinating and controlling (Geisler and Wickramasinghe 2015). This will not only help in solving their present issues and help the organisation to work smoothly at every consequence. First concept is planning and it is seen that it is due to lack of planning the company was unable to convey right message to their franchisee partners about the policy of the company regarding cost saving. Thus, before taking any decision the processes of the business should be planned and passed on so that everyone in the organisation is aware of it. This will reduce the amount of staff exploitation and misconduct of the business motive. Secondly, organising the work and strategy is important because every company aims to increase its profit and reduce its cost. However, it was seen that due to lack of organisation of company’s motive the franchisee owners took wrong step in reducing the cost of the business. Coordination is yet another critical task in the business process as it reduces the chances of error caused in Dominos Pizza Australia. The CEO of the company failed to coordinate his motive of turning the negative to positive to the franchisee partners, which lead to their downfall. Doleski (2015) has showed that lack of coordination lead to change of motive by the franchisee owners in which they did not cared about the importance of staff in the business and continued their exploitation to earn money. Lastly, according to DaSilva and Trkman (2014), the most critical concept of management that is applied in every organisation is control. Controlling the process of the business is good; however, it can happen that too much of control on the wrong direction might lead to negative attitude of the worker and a failure of business process. This happened in Dominos in which the owners had a lot f control on the workers and the managers and forced them to work against their comfort level. This has put a negative impact on the worker and they were willing to work. To gain the trust from the workers the organisation needs to first reduce their control on them and sometime consider their needs while planning their cost minimization and profit maximisation strategy. This will help them to gain their trust and increase the productivity of the workers. The company can also take up different business model such as the distributor that can directly take the products from the company and supply it to the customers. This will help them develop good employee management relationship.

Conclusion

From the above analysis, it can be deduced that even though Dominos Pizza has been operating successfully in Australia with good consumer base and increasing level of revenue every year yet the company was suffering from many drawbacks that might lead to their downfall. The drawback was mainly due to poor management skills of the franchisee owners in various stores and staff exploitation. Thus, a proper analysis of management concept is needed in the organisation to improve their management skill and increase employee satisfaction. The company should follow systematic management theory in the business in which they need to incorporate every level of employees in the decision and planning process. Further, the business should have good knowledge of management concept such as planning, coordinating, organising and controlling. They should incorporate them successfully in their management environment so that there is better flow of information in the business and this might lead to reduction in employee exploitation.

References

DaSilva, C.M. and Trkman, P., 2014. Business model: what it is and what it is not. Long range planning, 47(6), pp.379-389.

Doleski, O.D., 2015. Integrated Business Model: Applying the St. Gallen Management Concept to Business Models. Springer.

Dominos.com.au. (2017). Domino’s Pizza | Order Pizza Delivery Online | Food Delivery & Takeaway. [online] Available at: https://www.dominos.com.au/ [Accessed 8 Sep. 2017].

Geisler, E. and Wickramasinghe, N., 2015. Principles of knowledge management: Theory, practice, and cases. Routledge.

Greenblat, E. and Greenblat, E. (2017). Domino’s reports office death. [online] Theaustralian.com.au. Available at: https://www.theaustralian.com.au/business/companies/dominos-reports-death-at-brisbane-office/news-story/689e31f6a7202ef5c0e228a98cf924f0 [Accessed 8 Sep. 2017].

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Tedeschi, J.T. ed., 2013. Impression management theory and social psychological research. Academic Press.

Al-Safran, E., Brown, D. and Wiseman, A., 2014. The Effect of Principal’s Leadership Style on School Environment and Outcome. Research in Higher Education Journal, 22.