Prepared for:

Mrs. Cherrie Prelle D. Pascual

Prepared by:

Rafanan, Alison Keith G.

Castillo, Ashley Kate

Dela Cruz, Jocel Kate

Domrigue, Alejah Keith

Gines, Christine Mae C.

Pisang, Cleo Yvonne

I. Current Situation
A. Current Performance
 The Domino’s story began in 1960, when Tom and James Monaghan
opened the first “DomiNick’s” store in Michigan, USA. After trading his
brother James a Volkswagen Beetle for his half of the business in 1961,
Tom changed the store name in 1965 from Domi-Nick’s to Domino’s
Pizza Inc.
 With the company mission statement as “Exceptional franchisees and team
members on a mission to be the best pizza delivery company in the world.”
 The three dots on the logo represent the three stores that Tom originally
planned to open. By 1978, there were 200 pizzerias in operation. By 1989,
there were 5,000 Domino’s store already.
 Domino’s Pizza concentrates and believes in doing the right thing, putting
people first, creating inspired solutions, championing our customers, and
growing and winning together.
 By sorting through its index websites, Domino’s Pizza is cost-efficient
store model, characterized by a delivery- and carryout-oriented store
design, with moderate capital requirements and a menu of quality,
affordable items.
 Domino’s PULSE point-of-sales system is designed to improve operating
efficiencies for their franchisees and their corporate management. The
incorporation relies to its core principle- “a purpose inspired and
performance-driven company with exceptional people who are committed
to feeding the power of one pizza at a time.”

B. Strategic Posture
1. Mission
- “To be the leader in delivering off-premise pizza convenience to
consumers around the world.”
2. Objectives
 Going above and beyond on quality and great value
 To innovate and consistently deliver a better food experience
 To produce the best for less
  To set the bar high, train, and never stop learning
 We are not ordinary, we are exceptional.
3. Strategies
- To reach out to more customers, Domino’s Pizza utilises a fortressing
strategy. This means that it reduces the delivery radiuses and puts more
stores nearby. It operates mainly in-house delivery executives instead of
relying on third-party online food delivery apps.

II. Strategic Managers

A. Board of Directors
1. David A. Brandon is the Chairman, Patrick Doyle as President, CEO,
and Director of the Board of Directors, and 9 more executives. A total
of 11 top executives.
2. Owns international stores and reports revenues on their own personal
financial statement.
3. It provides four business segments: domestic company-owned store,
domestic franchise stores, and domestic supply chain international.
4. Dominos operates from a functional structure with Doyle. Dominos
international store had the highest growth in revenue.

B. Top Management
1. Dominos 11 top executives, mostly vice-presidents.
2. The international division includes financial information for the
worldwide supply chain centers.
3. The number of stores growth is the highest outside the USA.
4. Provide profit-sharing to ensure divisions viable. It also operates 6
supply chain centers outside the USA.
5. The company’s owned stores serve as testing grounds for new
merchandise, future layout changes for stores, and potential additional
franchise.
III. External Environment
(EFAS Table; see Exhibit 1)
A. Societal Environment
1. Economic
 Domino’s pizza offer limited product (T)
 Domino’s pizza competitors offers more product in their menu (T)
 Offers cheaper price incomes in franchise (O)
 Domino’s Pizzas do not offer more product in their menu. (T)
 Domestic stores voted to increase their advertising revenue
contribution to 5.5 percent in 2011. (O)
 Barriers to entry are relatively low for the restaurant industry, but
rivalry (competitiveness) among firms are exceptionally high. (T)
2. Political
 Government agencies pressure pizza stores to label all products with
nutrition information. (T)
 Trademark and patent protection laws are not as sophisticated in
developing countries. (T)

IV. Internal Environment

(IFAS Table; see Exhibit 2)
A. Corporate Structure
 They only focus on pizza. (W)
B. Corporate Culture
 Domino’s Pizza have a simple and effective layout. (S)
C. Corporate Resources
1. Marketing
 Domino’s Pizza is an attractive franchise option. (S)
 Domino’s domestic stores contributed 5.5 percent of all retail sales to
support national and local advertising campaigns. (S)
2. Finance
  Domino’s Pizza faces competition from international and local
pizzas store. (W)
3. Operations
 Domino’s Pizza have backward control to their supplies. (S)
4. Human Resource
 Domino’s has 4,540 stores operated by 1,026 franchises and 388
company owned stores. (S)
5. Information System
 Domino’s requires PULSE system to all their stores. (S)

V. Analysis of Strategic Factors

A. Situational Analysis (SWOT) (SFAS Matrix; see Exhibit 3)
1. Strengths
 Domino’s Pizza is an attractive franchise option.
 Domino’s Pizza have backward control to their supplies.
 .Domino’s has 4,540 stores operated by 1,026 franchises and 388
company owned stores.
2. Weaknesses
 They only focus on pizza.
 Domino’s Pizza faces competition from international and local
pizzas store.
3. Opportunities
 Offers cheaper price incomes in franchise.
 Domestic stores voted to increase their advertising revenue
contribution to 5.5 percent in 2011.
4. Threats
 Barriers to entry are relatively low for the restaurant industry, but
rivalry (competitiveness) among firms are exceptionally high.
 Domino’s pizza competitors offers more product in their menu.

B. Review of Current Mission and Objectives

 - Their company mission has been a decade old and was never changed.
Based on our review, we don’t want for the current mission and objectives
will be changed. Even though having a limited variations in their menu,
Domino’s Pizza has expand their operations and diversified products
support its core business. Domino’s Pizza has proven their mission
statement “To be the leader in delivering off-premise pizza convenience to
consumers around the world” for they now have the title of the leading
pizza chains.

VI. Strategic Alternatives and Recommended Strategy

A. Strategic Alternatives
1. Growth Strategy: Domino’s Pizza should consider to offer more product
and to merge their business outside the United State. This strategy is
preferred and achievable because it allows Domino Pizza to be
acknowledge/recognize and to expand grow more.
a. Pros: The benefits of this strategy is that it expand the operation to the
business. USA and international to in touch competition through
mergers with other companies.
b. Cons: The disadvantage of this strategy is the large investment
required to acquire new business.
2. Stability Strategy: Domino’s Pizza has a strong digital business, great
tasting pizza, strong delivery infrastructure and innovative technology. So,
all of these things let this company’s position still on top against its all
competitors. The stability enable to maintain its product and services and
business growth.
a. Pros: The advantage of this strategy is that to secure and maintain
Domino’s Pizza market share stability through existing competitive
advantage and competency among competitors.
b. Cons: The disadvantage of this business is that they do not acquire to
expand and explore different product throughout their existence.

B. Recommended Strategy
1. Pursue growth and quality control activities
 - It must keep up the capability and competitiveness of the business if they
want to keep its position on top in the market. It is advisable to enhance
not just their online delivery app but also their capacity to handle more
dine-in orders.
- Although Domino’s Pizza is enjoying solid competitive moving forward,
they should think to increase their efficiency when it comes to accepting of
orders.

VII. Implementation
A. Domino’s Pizza, emerging opportunities or even liability are the factor that
must consider for future endeavours to establish their company.
B. Sufficient communication. Communication should be used in new business
and other branches globally. Domino’s Pizza should maintain its effective and
efficient technology that means to do so.

VIII. Evaluation and Control

 They should balance dine-in rather than focusing on carry out in delivery.
 Domino’s Pizza cannot control the rapid increase of their competitors if they
would not join the trend.
 Domino’s Pizza should maintain control over delivery process.
 Domino’s Pizza should maintain their beautiful service from in door to
delivery.
 Domino’s Pizza should evaluate the best menu to maintain the top.
 EXHIBIT 1: EFAS Table for Domino’s Pizza 1960

Internal Factors Weight Ratin Weight Comments

g ed
Score
OPPORTUNITIES
 Offers cheaper price incomes in 0.15 5 0.75 Opportunity is given by
franchise. offering them with cheaper
price
 Domestic stores voted to increase 0.14 5 0.7 Increase of advertising small
their advertising revenue revenues to become known
contribution to 5.5 percent in
2011.
THREATS
 Domino’s pizza offer limited 0.15 2 0.3 Their menu has little
product. variations to choose from
 Domino’s pizza competitors 0.15 3 0.45 Competitors offers more
offers more product in their menu. product
 Domino’s Pizzas do not offer 0.10 3 0.3
more product in their menu.
 Barriers to entry are relatively low 0.11 5 0.55 Many competitors show up,
for the restaurant industry, but rivalry increases
rivalry (competitiveness) among
firms are exceptionally high.
 Government agencies pressure 0.10 2 0.2 They have small amount of
pizza stores to label all products nutrition facts with their
with nutrition information. menu
 Trademark and patent protection 0.10 2 0.2 Laws in other countries are
 laws are not as sophisticated in far different from other
developing countries. developing franchise areas

TOTAL: 1 3.45

EXIBIT 2: IFAS Table for Domino’s Pizza 1960

Internal Factors Weig Ratin Weig Comments

ht g hted
Score
STRENGTHS
 Domino’s Pizza have a simple 0.10 1 0.1 This helped them to process and
and effective layout. execute efficiently their delivery
and carry out orders compared to
many competitors.
 Domino’s Pizza is an attractive 0.15 5 0.75 Competitive advantage to be a
franchise option. franchise option in the QSR
 Domino’s domestic stores 0.11 4 0.44 Growth of Domino’s campaigns
contributed 5.5 percent of all helped a lot of national and local
retail sales to support national and companies
local advertising campaigns.
 Domino’s Pizza have backward 0.15 5 0.75 Time and money efficient.
control to their supplies.
 Domino’s has 4,540 stores 0.15 3 0.45 Even with the high competition
operated by 1,026 franchises and in the market, Domino’s
388 company owned stores. continue to grow and expand.
 Domino’s requires PULSE system 0.14 5 0.7 PULSE system maximize
to all their stores. efficiencies and provide timely
financial and marketing data.
WEAKNESSES
 They only focus on pizza. 0.10 5 0.5 A big disadvantage for them due
to the increasingly health-
minded customers
  Domino’s Pizza faces competition 0.10 2 0.2 Unforeseen growth of
from international and local competition makes it hard for
pizzas store. them to achieve their mission
statement
TOTAL: 1 3.89

EXHIBIT 3: SFAS Table for Domino’s Pizza 1960

Internal Factors Weight Rating Weight Shor Inte Lon Comments

ed t rme g
Score diat
e
S1. Domino’s Pizza is an 0.15 5 0.75 x Competitive
attractive franchise advantage to be a
option. franchise option in
the QSR
S2. Domino’s Pizza have 0.15 5 0.75 x Time and money
backward control to efficient.
their supplies.
S3. Domino’s has 4,540 0.11 4 0.44 x Even with the high
stores operated by 1,026 competition in the
franchises and 388 market, Domino’s
company owned stores. continue to grow and
expand.
W1. They only focus on 0.05 5 0.25 x A big disadvantage
pizza. for them due to the
increasingly health-
minded customers
W2. Domino’s Pizza 0.10 2 0.2 x Unforeseen growth
faces competition from of competition
international and local makes it hard for
pizzas store. them to achieve their
mission statement
O1. Offers cheaper price 0.15 5 0.75 x Opportunity is given
incomes in franchise. by offering them
with cheaper price
O2. Domestic stores 0.10 2 0.2 x Increase of
voted to increase their advertising small
advertising revenue revenues to become
contribution to 5.5 known
percent in 2011.
T1. Barriers to entry are 0.05 3 0.15 x Many competitors
relatively low for the show up, rivalry
restaurant industry, but increases
rivalry (competitiveness)
among firms are
exceptionally high.
T2. Domino’s pizza 0.14 5 0.7 x Competitors offers
competitors offers more more product
product in their menu.
TOTAL: 1 4.19