HR assignment essay help: Domino’s HRM strategy development and Initiatives

 Introduction

This report presents the analysis of the growing trends of pizza industry. In this competitive business environment there are several pizza brands that are leading the national and the international market. The different types of pizza Brands that have been emerging in market are Pizza Hut, Domino’s, Papa John’s little caesars and many more. Domino’s is an U.S based Pizza Brand which is present in 65 countries of the world. It holds the second position in U.S market after pizza Hut. In this report we will explain how Domino’s have been creating its market position by formulating different business strategies and coping up with the challenges. The business strategies of Domino’s were to address the complaints related to the taste deficiency, launch the Oh yes we did it campaign, and reformulating of the pizza recipe. It had to deal with challenges such as negative reputation because consumers started to complain about Domino’s product due to low quality of ingredients and its taste. In the mean time consumers had been conscious for factors like obesity and health concerns. To maintain competitiveness, it tried to improve its image by the means of advertisement showing the footage of their kitchens where chefs were preparing variety of Pizzas (Guardian News and Media Limited    2012).

General Environment

Domino’s was facing severe competition because several other pizza brands were emerging in market. It also started Total Satisfaction Guarantee scheme for their customers. It had to manage its business in environment by dealing with gasoline increased costs, unemployment rates, lower disposable incomes, and declining in the dollar value. Several stores were opened and it started to trade in NYSE (Integrated Company Analysis   2010). Domino’s business was divided into three business segments such as domestic stores, supply chain and international. They had framed a strategy to earn profits by the royalty payment system. Though many substitutes are emerging in the market but it remains the part of American culture. In General Business environment it is facing direct competition from Pizza Hut, Papa John’s. It has maintained its competitive edge by delivering pizza in small hours. Routing strategies were framed to avoid the late deliveries (Domino’s IP Holder LLC   2012). Domino’s could compete well because the David Brandon helped in innovating and expanding its business in U.S and global market by providing new variants to its Pizza (Queen Mary, University of London     2011).

Industry Structure

Its structure is supported by world Resource Center to help all the functions like Marketing Legal, Human Resource and franchise Development. This industry operates by opening the multiple franchise stores in different locations. It has been manufacturing and supplying dough by supply centers (Wikinvest     2008). The organization focus on two main strengths areas such as like better quality pizza and fast delivery. Its organizational structure is based on three pillars such as low cost store design, franchising and integrated supply chain. It has been segmenting its market by supplying inexpensive pizzas quickly. It wants to be a leader in booking online pizza’s and provide the deliveries. The leadership team is focused in strategic decision making process. The marketing division is used to develop its brand image. E-commerce activities are handled by the IT Department. The Food service department is involved in sourcing ingredients and identifying new equipments (Biz/ed    2012).

History of Domino’s

Domino’s is the second largest pizza chain outlets in US. It was founded by two brothers James Monaghan & Tom with borrowed equity in 1960. Later on James sold his stake to Tom and tom renewed pizzeria and gave a new name known as Domino’s (Recipe Pizza    2010). Tom implemented simple menu concept to increase his profits and sales for next thirty years. In 1968 five franchise locations were explored to expand the business. It also introduced delivery guarantee on 1973 with a half hour and half a dollar off (Business Wire   2012). In 1970’s some new changes was made such as decentralization of operations, new logo, and different acquisitions. Domino’s entered into international market in 1980’s by opening 500 stores. It also opened its company websites in 1998 and Tom sold its 98% stake to Bain Capital. 

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