Assignment 06.

1: Midterm Case Study

Selene De León

National American University

MT4450 Strategic Management

Professor Rolland Story

18th December 2022

 The global coronavirus pandemic showed that the companies that performed best
during the confinement had the technology to adapt quickly to the sudden change in
consumer behavior. This is the case of Domino's Pizza, which long before the pandemic
was declared, bet heavily on adapting its business model to the digital economy. It
implemented its own ordering system and a service that completely avoided direct contact
between customers and employees. Citing Thompson, Peteraf, Gamble and Strickland
(2021) “Analysts felt that Domino’s was, however, better positioned to tackle the crisis as
delivery was not new to its business. Banking on its strong delivery infrastructure,
Domino’s launched contactless delivery in January 2020 whereby consumers could choose
the contactless delivery option while ordering food online.”

Zero-contact or contactless was nothing new for the pizza company, in 2016
Domino's had already launched a robotic delivery model in collaboration with Starship
Technologies, started delivering pizzas by self-driving robots in some Dutch and German
cities. But that was not all in New Zealand was the first company to deliver pizza with an
unmanned aerial vehicle DRU Drone, in conjunction with U.S. drone delivery company
Flirtey. (Thompson, et al. 2021, p. C-252)

The most recent strategies used by Domino's Pizza to continue and increase its sales
date back to 2018, mentioned by Thompson, et. al. (2021) “the company announced that it
was adding 150,000 HotSpots to its delivery locations, which would allow pizza to be
delivered to customers at a beach, park, museum, etc., without the need for a physical
address.”

It also launches a driverless pizza delivery pilot in 2019, partnering with robotics
company Nuro; to deliver pizzas to Houston residents who ordered online. (Thompson, et
al. 2021, p. C-253)

The result of these strategies as cited by Thompson, et. al. (2021) “in 2019,
Domino’s recorded total sales of $14.3 billion, with international markets accounting for
$7.3 billion. It had more than 17,000 stores in over 90 markets. In the United States,
Domino’s had 6,126 stores, of which 5,784 were owned by franchisees. Analysts felt that
Domino’s was a poster boy for globalization and franchising with 104 consecutive quarters
of positive same-store sales growth. As of March 2020, Domino’s and its franchisees
employed around 400,000 people worldwide.”

The way the pizza chain handled the impact of the confinement can really serve as a
model for other businesses in a contactless future, in which operations are increasingly
decentralized. Domino's placed special emphasis on innovation in recent years, and this
allowed it to receive more than half of its orders before the lock-in, mainly through digital
channels or applications installed on mobile devices. In the case of the U.S. market, these
electronic platforms - Google Home, Facebook Messenger, Apple Watch, Amazon Echo,
Twitter and Domino's Hotspots - accounted for 65% of sales. (Thompson, et al. 2021, p. C-
255)

On the other hand, according with Thompson, et. al. (2021) there are important
issues facing Domino's current management. Although Domino's was highly regarded for
its no-touch delivery strategy during the COVID-19 pandemic, it faced critical backlash
from critics and some of its employees for keeping its stores open in the face of the
confinement of its stores.

A Domino's employee starts a campaign against the company, accusing it of

endangering its employees at a time when all countries had decreed the closure of their
establishments (especially prepared foods) urging residents to stay at home to stop the
spread of COVID-19, and at the same time argued that a pizza restaurant is not essential in
times of pandemic, when people can prepare their own food at home. (Thompson, et al.
2021, p. C-257)

Many lawsuits continued to appear against the company, Olías (2020) in a report for
a Spanish newspaper mentioned that several employees anonymously claimed that they
were being forced to work putting their lives at risk and many of the premises were
overcrowded and in unhealthy conditions, they did not have the necessary equipment for
disinfection. And delivery drivers were risking their lives even more, because the
company's zero-contact initiative was not really working, many customers were still paying
for orders in cash and not with digital payments.
 In European and Latin countries, employees of the pizza franchise reported that
many of them were not paid their salaries during the most critical months of the pandemic.
Because they were not part of the staff involved in home delivery. (Olías, 2020)

These employees claim that they are forced to go to work sick for fear of losing
their jobs, while the company refuses to accept and deal with the situation.

Lawsuits continued to surface, this time in the UK, Angharad Maddock “accused
the company of firing her for raising concerns about the lack of face masks, hand sanitizers
and social distancing in the store. Domino's refuted these allegations. A spokesperson for
Domino’s said that in addition to introducing contactless delivery, frequent handwashing
and increased sanitization, the company had stopped its collection service and cash
handling. It had also put screens in place and hazard tape on the floor “to help with social
distancing for team members to adhere to.” (Thompson, et al. 2021, p. C-257)

The criticism of Domino's did not cease when a female employee died in Scotland
infected by coronavirus. Even so, the company decided not to close its restaurants, claiming
that they played an important role in keeping people at home during the pandemic as
mentioned by Thompson, et. al. (2021).

Another new incident on April 12, 2020, Thompson, et. al. (2021) “a Domino's
store in the Crenshaw district of Los Angeles was temporarily closed for a thorough
disinfection after four of its employees tested positive for COVID-19.” A group of workers,
faced with the situation, filed an emergency complaint with the Los Angeles County
Department of Public Health, demanding to close the store temporarily and allow exposed
workers to be quarantined for 14 days with pay.

According with Thompson, et. al. (2021) another problem faced by the company
was “In mid-April, a pizza delivery boy tested positive for COVID-19 in New Delhi, India,
which led to 72 homes being quarantined as a precautionary measure. Domino’s issued a
statement saying that this incident had nothing to do with it. The company reiterated that
100 percent of its delivery was “zero contact delivery” and that its employees in its stores
were being temperature screened daily and followed hand washing protocols. Besides, the
company was sanitizing restaurants, bikes, pizza boxes, and hot bags every four hours, it
said.”

In order to better analyze this case study, a SWOT analysis of it is detailed below

Strengths Weaknesses

1. Strong brand image. 1. Franchising related issues.

2. Before and during the pandemic its contactless 2. Problems and criticisms that are still being
delivery style, and continues to develop. faced in the post-pandemic period.
3. Technological Innovation: it is the leader in 3. Considered junk food and unhealthy.
online and mobile ordering, strong digital 4. Low income from international segment.
consumer base. 5. Poor salaries in the operational area.
4. Product innovation: introduced new products to
its menu in the United States.
5. Marketing: invests a large sum in advertising
and promotions (some of them developed
during the CO-VID 19 pandemic.)
6. Focus to supply chain management.
7. Domino’s stores were franchise-owned.

Opportunities Threats

1. Growing market of digital technology. 1. Big competitors such as Pizza Hut, McDonald's,
2. Cloud-based (achieve more from its existing Burger King, Subway, KFC, Taco Bell and
capabilities and use its consumer data to drive Papa John's Pizza.
higher ROI) 2. Economic threat due to the pandemic.
3. Focus on market research. 3. Currency fluctuations.

Figure 1: Own elaboration: SWOT Domino´s Pizza.

Strengths:

a) Strong brand image.

One of Domino's Pizza's strengths as highlighted by Pratap (2021) is its brand

equity. “The company has established itself as the leading brand in the QSR pizza category
globally. However, its leadership position and strong brand equity are the results of a focus
on product quality, customer service, innovation, and marketing.”

b) Contactless

As mentioned above, due to the coronavirus pandemic, Domino's Pizza made a

strong commitment to adapt its business model to the digital economy. It implemented its
own ordering system and a service that completely avoided direct contact between
customers and employees.
 As Thompson et. al. (2021) mentions “with health concerns growing due to the
COVID-19 pandemic, Domino’s decided to bank on its strong delivery
infrastructure and in January 2020, it announced its plans to offer contactless
delivery. This meant that the pizza chain delivery person would deliver the food to a
consumer without any contact or interaction between them in a bid to ensure safety.
Explaining the contactless delivery policy to its consumers, Allison (CEO,
Domino’s Pizza) said, “We also want to make sure that customers know that we
will deliver any way they choose. Whether they prefer a delivery left at the front
door or at a reception desk, our delivery instruction box is the place to put any
special directions. We know many people would like to choose contactless delivery
right now and we want customers to know we’re here to deliver.” (Thompson, et al.
2021, p. C-249)

“Analysts appreciated Domino’s strategy of gaining a larger portion of the pie

during the COVID-19 lockdown. They opined that Domino’s strong delivery
infrastructure in addition to its having a strong digital consumer base helped it to
capitalize on the contactless delivery trend. They pointed out that smaller
independent pizza chains and restaurants lacking the resources stood to lose their
share. According to Saleh, contactless delivery might not be a gamechanger but the
service would become “table stakes and par for the course” in the pizza industry as
the coronavirus was spreading continuously.” (Thompson, et al. 2021, p. C-257)

The company is still committed to this zero-contact system, as it has invested

resources and effort in its delivery and takeout model. It has focused on working in
collaboration with companies such as Starship Technologies to further develop its robotic
delivery model (delivering pizzas by self-driving robots by drones). The company
announced a partnership with Nuro in 2019 to further its exploration and testing of
autonomous pizza delivery (robot cars to deliver pizzas) to residents in Houston.

c) Technological Innovation

In a highly competitive environment, a crucial factor that can support companies in

achieving additional growth and building a superior competitive advantage is technological
innovation. Digital innovation is critical to Domino's long-term success and growth in the
fast food and restaurant sector, as stated by Pratap (2021).

It is worth noting that Domino's has not limited its innovations to products only. For
example, its revolutionary Pizza Tracker allows customers to follow the progress of their
order online from the moment they click the "Place Order" button or hang up the phone
until Domino's delivery expert knocks on their door (Domino's, 2021).

In the research Dominos Pizza Annual Report, (2021) illustrations that in 2020, the
company achieved more than 50% of its total sales through digital channels. The popularity
of digital channels also grew during the pandemic. In 2020, Domino’s added a GPS tracker
to its system so the customers can track the progress of their food from the time they placed
the order to the final delivery.

d) Product innovation

Product innovation has also helped the company expand its customer base and grow
its sales and revenue. The company has kept adding new products to its menu to expand the
number of choices available to Domino’s customers worldwide.

Thompson et. al. (2021) cited that “in 1989 the company introduced pan
pizza and breadsticks in the United States. In late 1993, it introduced the Ultimate
Deep Dish Pizza and Crunchy Thin Crust Pizza. In 1994, it rolled out another non-
pizza dish—Buffalo Wings. Though Domino’s did not experiment with its menu for
years, it had adopted innovative ways of managing a pizza store.” (Thompson, et al.
2021, p. C-251)

In 2020, according to Pratap (2021), Domino's Pizza introduced new menu items in
the United States. These products included chicken wings (new and improved) and new
specialty chicken taco pizzas and cheeseburgers. These products were positively received
by customers.

e) Marketing Invests
 Each year, the company invests a large sum in advertising and promotions. In the
US, each store contributes 6% of its net sales to advertising. The company mainly uses
digital channels for promotion including paid digital channels and social media.

During the pandemic it has maintained a strong brand image that has helped the
company remain the choice of customers worldwide, achieved by launching family
promotional packages just like its competitors according to Thompson, et. al. (2021)
“Torchy’s Tacos started offering Family Packs and Black Bear Diner Family Packs and
specially-priced Family Meals. KFC started offering a $30 Fill Up deal (instead of its $20
Fill Up deal) claiming that it would be enough to feed a family of four for two meals. Pizza
Hut promoted the Big Dipper for $12.99; McDonald’s sold a Double Big Mac with four
patties instead of two, while Taco Bells promoted its massive “Tripleupa”.

f) Supply Chain Management

Dominos Pizza Annual Report, (2021) mentions that Domino's, rather than relying
exclusively on external suppliers, has focused on developing its own supply chain, which
has enabled the brand's subsequent growth; as supply chain management is critical to long-
term success.

“Domino's Pizza operates 21 regional dough manufacturing and supply chain centers in the
U.S., two fine dough manufacturing facilities and a vegetable processing center in the U.S.,
and five dough manufacturing and supply chain centers in Canada” (Dominos Pizza Annual
Report, 2021)

g) Domino’s stores were franchise-owned.

The owner of Domino's awarded about 90% of the franchise contracts to employees
who had worked as managers in Domino's. The company awarded ownership to qualified
individuals after they had successfully managed a pizzeria for one year and completed a
training course. ((Thompson, et al. 2021, p. C-252)

This can be seen as an advantage because they know the whole process and
administrative and management of how to lead the company to success; and knowing all
the processes would be much easier to operate it.
Weaknesses:

a) Franchising related issues

While the franchise business model has a number of advantages, it also has
disadvantages. It is not very easy to monitor and control franchisees around the world.
Particularly, quality control becomes a difficult job. Domino's often faces this problem. For
example, an additional district magistrate's court in Shahjahanpur in India has fined
Domino's and its supplier a large sum of money because a cheese sample used in a pizza
failed a laboratory test (Singh, 2018).

b) Problems and criticisms that are still being faced in the post-pandemic period.

During the pandemic there were quite severe criticisms, accusations and lawsuits
from many Domino's employees around the world and its more than 6126 franchisee-
owned restaurants according to Thompson, et. al. (2021).

That creates a negative image for their customers and many of us wonder where is
the Corporate Social Responsibility of this company. The news that appeared in
newspapers and on TV left a lot of discontent, employees who were not paid during the
pandemic, forced to work when everyone else was safe at home, this can result in loss of
brand loyalty and credibility.

In order to contra rest their negative image Domino’s take another initiative,
according with Thompson, et. al. (2021) The pizza giant launched an initiative called
‘Feeding the Need’ in USA donate at least 200 pizzas to people in their communities that
more needed. Also in New Zealand, Domino’s started the “Meals For Seniors” during the
coronavirus pandemic.

c) Considered junk food and unhealthy.

Although the demand for fast food orders increased during the pandemic, as many
people had to do their studies and work from home, ordering a pizza takes less time than
preparing a meal. But there is also a sector of the population that takes care of their health
and fitness, Domino's is neglecting in Latin American markets this sector within its menu
does not offer salads or any option reduced in calories as do its competitors McDonald's or
Pizza Hut. I personally make this observation as a consumer and inhabitant of a Latin
American country like Paraguay.

d) Low income from international segment.

According with the research from Pratap (2021) “While the company has expanded
internationally to 90 markets and has more than 11000 stores operational internationally,
the problem is that the international segment still generates only a small close to 6% of its
total net revenue (as in 2020). Either the company needs to grow its number of stores
operational in the international markets or it must run company-owned stores there to grow
its revenue from the international segment.”

e) Poor salaries in the operational area.

Since 2018 Domino's has had to face collective lawsuits in Australia for paying below legal
wages to its workers.

This is a weakness as it generates discontent from the workforce and an underpaid worker
is not going to perform adequately and make the effort to maintain high quality standards
that favor the pizza chain. (La Vanguardia, 2019)

Opportunities:

a) Growing market of digital technology.

The pandemic triggered several changes and challenges for the business world,
especially the restaurant sector that could no longer open its doors to the public. Some of
these changes are lasting and will remain even after the pandemic. Particularly during the
pandemic, people's reliance on digital technology for shopping and entertainment
increased. More and more people in all countries were ordering essentials and food over the
Internet because of the confinement.

As previously mentioned Domino's has enjoyed growth during this period driven by
increased sales from digital channels. By 2020, more than half of its sales were made
through digital channels. (Pratap, 2021) “Also in the future, digital technology will
continue to play a greater role in people's lives and as such, apart from sales, the use of
digital technology for marketing, customer engagement and service is expected to increase.
Domino's must continue to invest in building stronger digital capabilities if it is to
strengthen its business model and acquire superior growth.”

b) Cloud-based

In the research from Pratap (2021) stated that Domino’s also processes a vast
amount of consumer data daily. In this regard, cloud technologies can help the company
grow the efficiency of its business model and acquire faster growth.

Pratap (2021) recommends the company take more advantage of its current
capabilities and use its consumer data to get a greater return on investment in its marketing
campaigns.

c) Focus on market research.

As mentioned by Pratap (2021) Consumers' preferences and market tendencies are

constantly changing and any company that wants to maintain its competitive position and
market share must be focused on what its customers demand. “Continuous market research
is critical to maintaining a company's competitive advantage, regardless of the industry
sector in which it operates. Domino's must also focused on market research, as it operates
in a highly competitive industry”

Threats

a) Big competitors

The restaurant market has become very complex and competitive Some of the
company's main rivals are Pizza Hut, Papa John's and Little Caesar's.

“Competitive pressure has resulted in the need to focus more on quality, innovation
and incorporation of (non-standard) menu items, technological innovation, marketing and
customer service. All these factors are driving up Domino's operating expenses and
reducing its profitability.” (Pratpa, 2021)

Moreover, due to increased rivalry, maintaining their market share requires

companies to devote additional capital and resources to marketing, supply chain
management and HR management, as well as to technological innovation and investing
efforts in CSR. Competition can also become a barrier to growth in key markets and
breaking this barrier will require the company to intensify its efforts in marketing and in all
the above-mentioned areas.

b) Economic threat due to the pandemic

The pandemic has triggered a recession or economic slowdown that could prove dangerous
for Domino's and its rivals around the world. It is true that the pandemic raised
unemployment rates and that translated into lower spending on non-essential items,
including fast food. (Dominos Pizza Annual Report, 2021)

As Dominos Pizza Annual Report, (2021)points out, people's dependence on digital

technology grew during the pandemic and initially helped Domino's to achieve higher sales
but, simultaneously, if the recessionary impact of the pandemic lasted longer, the result
would be lower sales in the long run; that at least in the Latin American market,
entrepreneurs are experiencing a decline in online sales, due to the economic downturn
caused by the COVID-19 Pandemic.

c) Currency fluctuations.

Domino's operates an important part of its business abroad, due to the fact that it
operates under the franchise model, so the fluctuations of the dollar can be highly damaging
and impact the economy growth of its business and profitability.

“Unfavorable currency fluctuations could lead to increased prices to customers

outside the U.S. or lower profitability to our franchisees outside the U.S. or could result in
lower revenues for us, on a U.S. dollar basis, from such customers and franchisees.”
(Dominos Pizza Annual Report, 2021)

Before making recommendations, it is important to consider the results of my own

financial analysis of the company, using at least three relevant financial ratios from Table 1
of the "Guide to Case Analysis".

Profitability ratios

Gross profit margin: According with Thompson et. al. (2021) “this ratio shows the
percentage of revenues available to cover operating expenses and yield a profit. Higher is
better and the trend should be upward.” (Thompson, et. al. 2021, p. CA-5)

Operating profit margin (or return on sales): “Shows the profitability of current
operations without regard to interest charges and income taxes. Higher is better and the
trend should be upward.” (Thompson, et. al. 2021, p. CA-5)

Free cash flow: “A quick and rough estimate of the cash a company’s business is
generating after payment of operating expenses, interest, taxes, dividends, and desirable
reinvestments in the business. The larger a company’s free cash flow, the greater is its
ability to internally fund new strategic initiatives, repay debt, make new acquisitions,
repurchase shares of stock, or increase dividend payments.” (Thompson, et. al. 2021, p.
CA-5)

In this Domino's Pizza Case Study according to the table shown by Thompson et.al
(2021) that in the year 2020 (divided into three periods) shows an Overall Gross Profit
+7.7% in the first period from (Dec 30, 2019 to Jan 26, 2020), in the second period from
(Jan 27, 2020 to Feb 23, 2020) it drops to +5.8% and in the third period from (Feb 24, 2020
to Mar 22, 2020) it drops again to +4.2%.

Doing a quick calculation of Operating Profit Margin, according to the table shown
by Thompson et.al (2021) we find that in 2017 it had a margin 0.19, in 2018 it decreases to
0.15, and in 2019 it decreases again to 0.11.

Domino's profit and gross margin ratios tell us that the company's profitability is not
optimal, there is still work to be done. Although it is a company that achieved the perfect
recipe during the pandemic, continuing its business and not being affected as much as other
companies in the restaurant industry. There is no doubt that the pandemic has triggered a
recession or economic slowdown that could prove dangerous for Domino's and its rivals
around the world.

The Free Cash Flows in the year 2017 is 105,804 and for 2018 they have a little
increase 121,693 and in 2019 have a decrease 114,379.

The company is slowly rebounding despite the lawsuits and the corporate image it
conveyed during the 2018 lawsuits in many markets, as it paid low wages to its employees.
Now it is going to be a constant challenge to show the world that the pandemic leaves a
learning and a role model to resist adversity as Domino's Pizza did at the time.

As Thompson, et. al. (2021) “In March 2020, the pizza giant’s Australian division
had already taken on over 2,000 people to serve consumers in the country. “While many
local, state, and federal governments [are issuing orders that close] dine-in restaurants, the
opportunity to keep feeding our neighbors through delivery and carryout means that a small
sense of normalcy is still available to everyone. . . Our corporate and franchise stores want
to make sure they’re not only feeding people but also providing an opportunity to those
looking for work at this time, especially those in the heavily impacted restaurant industry,”
said the CEO Allison.

By analyzing the SWOT matrix to explain the company's situation and understand
what risks and opportunities it has, the following recommendations are made.

Domino´s Pizza became one of the biggest examples of digital transformation. The
recommendations are: directly it would be to continue the business which is basically to
serve quality food at a competitive price, with simple access to ordering and efficient
service (continue with its contactless delivery model) as more and more people have
become accustomed to this type of service, enhanced by technological innovations.

Continue technological innovation as it has been doing, as it is vital for all

companies in all sectors. In 2008, Domino’s started an online application called Pizza
Tracker, which enabled consumers to track the delivery of their pizzas in real time.
(Thompson, et. al. ,2021, p.252) In 2010, they made the strategic decision to develop their
own online ordering platform and over the next five years, they launched the mobile app
that covers 95% of smartphones and tablets in the United States. In 2016, more than half of
U.S. sales were through digital platforms. And as we know, this trend has been on the rise
since the pandemic began.

Improve the experience of shoppers who use apps to order their products by
increasing the number of promotions, discount coupons and other incentives.

Since it is using drones to make deliveries in other European countries and in the
United States, implement the same in Latin American countries to improve its image and
for the company to be committed to environmental impact.

Correct handling of food, stricter hygiene measures, so that their safety is not
affected, and thus remedy the negative impact that arose from the demands of employees
during the pandemic.

Another important recommendation would be to counteract the negative image that

healthy meals are not served at your chain by adding salads and low-calorie options to your
menu. Since more and more people are choosing healthy options in fast food restaurants
because they want to take care of their health.

In addition, due to the increase in chronic diseases such as diabetes and

hypertension, there are many consumers who prefer to feed their children healthily, for this
reason it would be important to follow the trends of current market behavior, and have a
healthy option in all its restaurants. If they have been able to modify their menus and adapt
them to market demands, this would be an excellent recommendation, at least in Latin
American markets.

Strategic Planning is established based on the current situation, the strategy or

direction, establishing the possible routes through which courses of action can be followed
particular, that is, Strategic Planning allows for an orderly transition to the future.

For Thompson et al. (2021), the process of formulating and executing a strategy
comprises five integrated activities:

1. Carry out a strategic vision that focuses the company in the long term; that is, it
defines the goals that the organization wishes to achieve within a specific period.

To be able to reach more international markets with technological innovations that

improve our customers' experience. And to be a competent brand recognized for its high-
quality products and good customer service.

Also anticipate obstacles (how to overcome difficulties as it has been doing over the
years): It is important to carry out long-term planning, where the possible obstacles are
taken into account and also to know the possible alternative

possible solutions, since there is too much rivalry in this sector.

2. Set goals that measure performance and record the company's progress toward
the desired long-term direction.

Financial objectives:
 Increase sales by 10% and reduce costs by 5%.
 To increase the profitability of the organization by 15% through an increase
in global sales.
Growth Objectives:
 Open new branches in different international markets by 2023.
Competitive objectives:
 Hiring of personnel to carry out market analysis to identify locations where
new points of sale can be opened.
 Improve customer service through the possibility of online shopping.
 Make customers aware of new products and future promotions.
 Loyalty of current customers with programs that show more initiative in
CSR.
 Conduct market research to identify the profile of today's consumers, who
are becoming more demanding and demanding of healthy food.
 Make use of social networks to position the organization in the minds of
future consumers.
 Execute long-term plans in order to anticipate the threats to the sector.
 Expand the premises to provide better customer service and attract new
consumers after the pandemic.

3. Formulation of a strategy that guides the organization in the strategic direction

and allow you to reach a certain goal. It consists of the path that will be used to achieve the
proposed objectives.

Continue the strategy of permanent innovation both in the products offered and in
customer service. As mentioned above, expand their menu, and add products for those who
care about their health.

Improve the experience of shoppers who use apps to order their products by
increasing the number of promotions, discount coupons and other incentives. To the same
line of action that will lead to credibility and loyalty, thus achieving a permanent and
lasting relationship between the company and its customers.

Achieve a better positioning in the minds of consumers, improving the image and
perception that the market has of the products offered by Domino's Pizza.

Continue the strategy of technological innovation in all areas and sectors, for
example in delivery, as well as continuing to innovate to shorten the waiting time for a
customer to order and place an order to receive at home or eat at the restaurant.

4. To carry out the selected strategy efficiently and effectively.

Create strategies to attract new markets through:

Implementing 3X2 promotions one day a week, since due to the pandemic the
number of orders increased, especially fast food orders.

Implement the sale of alcoholic beverages in its restaurants, since in the Latin
American market, it only offers Coca Cola brand products.

Create a product designed for children to attract more consumers.

Create a healthy fitness menu: add salads and low calories.

Achieve customer loyalty with the brand.

Implement a Customer Relationship Management program where customer loyalty

is achieved by providing discounts or gifts for discounts or gifts on birthdays and special
dates.

Implement CSR programs to achieve brand loyalty, with a focus on social,

economic and environmental commitment.
 5. Track progress, evaluate performance and implement corrective actions on the
vision,
mission statement, objectives, strategies or approach of the corrective action on the
vision, mission statement, objectives, strategies or approach to strategy execution in
according to actual experience, changing conditions, and new ideas and
opportunities.

Some indicators that will allow Domino's Pizza to know if the new strategies
developed are really being fulfilled and if the objectives are being reached are:

After the promotions to expand your market it would be important to evaluate how
much sales grew, if sales increased with the incorporation of alcoholic beverages in the
menu, since when people drink wine or beer they tend to spend more time in the restaurant
and may increase sales of pizzas or garlic sticks.

Another indicator to evaluate would be to contrast the number of products

incorporated in the menu, how many sales it produced in children and how many sales were
made by people looking for the healthy option and thus decide if it is necessary to continue
adding products in order to increase sales and profitability.

Promote advertising campaigns emphasizing the CSR measures implemented by

Domino's Pizza Evaluate and contrast products sold after the campaign / Products sold
before the campaign.

Reference List

Dominos Pizza Annual Report (2021) Form 10-K. Retrieved from:

https://stocklight.com/stocks/us/accommodation-and-food-services/nyse-

dpz/dominos-pizza/annual-reports/nyse-dpz-2021-10K-21676433.pdf

Olías, L. (2020, April 16). Domino’s Pizza deja a empleados sin horas de trabajo en plena
 crisis: «Mi salario es de cero euros en abril». Retrieved from: elDiario.es.

https://www.eldiario.es/economia/dominos-pizza-empleados-trabajo-

erte_1_2719274.html

Pratap, A. (2021, 30 octubre). DOMINO'S SWOT ANALYSIS 2021. Notesmatic.

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Singh (2018) El queso de Domino no pasa la prueba de laboratorio, se impuso una multa de

9.5 rupias lakh, disponible Retrieved from:

https://timesofindia.indiatimes.com/city/bareilly/adm-court-imposes-fine-of-rs-

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Strategy: The Quest for Competitive Advantage: Concepts and Cases.

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Vanguardia (2019) Trabajadores australianos demandan a Domino's Pizza por salarios

bajos.

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