dominos operational strategies

Download Dominos operational strategies

Post on 18-Nov-2014

598 views

Category:

Business

0 download

Embed Size (px)

DESCRIPTION

 

TRANSCRIPT

  • 1. INNOVATORS Page 1 Operations management Date: May 19, 2014
  • 2. INNOVATORS Page 2 Table of content 1 Executive Summary ...............................................................................................3 2 Operations Strategy.................................................................................................5 3 Product & Service Design ......................................................................................8 4 Process Design ......................................................................................................10 5 Planning and Control..............................................................................................14 6 Supply Chain Management ....................................................................................15 7 Quality Management ..............................................................................................15 8 Conclusion and Recommendations ........................................................................16
  • 3. INNOVATORS Page 3 1 Executive Summary This report has been prepared to analyze why dominos pizza in Islamabad is not being as successful as it is in other regions and other parts of world. Why pizza hut and McDonalds having more market share than dominos in Islamabad. As its the second largest pizza chain in United States. The processes and strategies such as operating system, Strategy and competitive setting, supply chain and quality of dominos are analyzed. Theoretical strategies have been applied to evaluate the companys operational strategy in terms of it product and service offering. The report is a result of team research, a store visit, interviews and insights from Dominos existing employees. The study evaluates how Dominos has been able to position itself as a leader in its market segment worldwide but not in Pakistan. Finally, upon identifying the areas of improvement in the companys existing strategy, the report proposes changes and recommendations that can be incorporated in order to further ensure operational efficiency thereby maximizing profits and increasing its value offering.
  • 4. INNOVATORS Page 4 2 Operations Strategy 2.1 Introduction Dominos is one the leading pizza delivery companies globally. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since1960, Dominos Pizza has successfully expanded from three outlets in the US to9, 350 stores operating in seventy countries. Dominos operation in Pakistan and overseas uses the franchise model. The parent company, Dominos Pizza LLC is head quartered in Michigan, USA. It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold. Figure 1: Dominos Franchise Model 2.2 Region problem: There are regions defined by the parent company and in this division they consider that in Pakistan there are Muslims living and Saudi Arabia also had Muslim population so they categorize Pakistan under master franchise of Saudi Arabia. Same taste pizza is selling in Pakistan as sold in Saudi Arabia those people have different taste and Pakistani people had different that is the main reason why dominos is not having market share in Pakistan .The pizza offering by dominos is not according to the Pakistani culture .
  • 5. INNOVATORS Page 5 2.3 Corporate Vision The Dominos Corporate Vision statement Passionate focuses on the following key areas: Being better than the competition Ensuring a quality product Providing excellent service Creating lasting relationships with its employees and the communities within which it operates. A clear corporate vision ensures that the company and its franchises can work towards meeting common goals thereby increasing its business in a potentially virtuous cycle overall global vision translates into specifics at a country level in a seamless manner so that the overall strategic vision is kept in mind at all times. 2.4 Mission Dominos pizza is the pizza specialist who consistently delights the customer with great taste and choice pizza with friendly, courteous team members providing prompt, safe delivery service 2.5 Dominos values During our visit to Islamabad franchise following five values were seen written on white board where all the employees was working 2.6 Core Competencies of Dominos Dominos core competencies have evolved over time. Their unique sets of strengths have helped the Company dominate the pizza food service industry, and a leader in the home delivery / take away.
  • 6. INNOVATORS Page 6 Core Competencies: Dominos 2.7 The Value Chain It is important to consider how a customer need drives Dominos to create the product. The customer need that drives the entire value chain is the need for a dependable take away restaurant, reasonably priced hot quality food and variety that suits the local palette. Dominos has focused on these key customer needs throughout the value chain, and has not allowed any digressions in this area. Its global operational model allows for lean stores, well-trained staff and flexibility at a country level to customize menus to suit customer tastes. Operational requirements have prompted the use of technology to make the customer experience more enriching, it has a history of firsts they were the first to use TV as a distribution channel, an online tracking system that allows customers to track the pizza order and a proprietary point of sale system. A combination of the Company level strategy and the Operational Strategy has resulted in Dominos having a reputation for reliability and consistent pizza quality) these strategies have ensured that Dominos continues to meet its customer needs. Dominos competitive advantgse-global leader in pizza take away/home delivery Unique Supply chain model : Better quality & consistency unique global model:allows flexibilty at the regional level level Leaner Stores : Better operating margins focussed on the core competency of delivery
  • 7. INNOVATORS Page 7 2.8 Product value chain Porters model which depicts Dominos operations as a collection of value-adding activities. The five primary activities are processes that are mainly concerned with the production of the products and services to the external customers. These are necessary to the business processes. The activities indicated as support activities are activities that are vital for the development of the appropriate transforming resources. These can be looked as value adding activities, for instance incorporating the use of technology such as being able to place orders by text message add to the convenience Dominos provides and increases the accuracy of order All these constitute the business processes of the organization. 2.9 Operations Strategy Implications (Store Level) Dominos operations strategy mainly focuses on the providing high service quality to the customer: 1. Minimize operations cost: To minimize the operating cost by improving the efficiencies and process at the stores. 2. Strategic store locations to facilitate the delivery service: To leverage the strategic location of the store in order to facilitate quick service to the customer and maximize the revenue. 3. Production oriented store designs: To utilize the production oriented store design in order to facilitate efficient production and quick service to the customer. 4. Efficient order taking, production and delivery: To execute an efficient operational process that includes order taking, pizza preparation, cooking, boxing and delivery. 5. Use of Dominos PULSE point-of-sale system: Use of Dominos PULSE system to improve operating efficiencies, provide corporate management with easy access to financial and marketing data and reduce time consumption and expenses. 6. Product and process innovations: To promote an innovative culture that increases both quality and efficiency. 7. A focused menu: To maintain a focused menu that is designed to present an attractive quality offering to customers, while minimizing order errors, and expediting the order taking and food preparation processes. 8. A comprehensive store operations evaluation program: To utilize a comprehensive store audit program to ensure that stores are meeting both as the expectations of the customers.
  • 8. INNOVATORS Page 8 2.10 Major competitors 1. Tehzeeb bakers 2. Pizza hut 3. Italian pizza 4. Papa salis 3. Product & Service Design 3.1 Introduction Dominos has positioned and established itself as the pioneer in the pizza delivery service. They are giving different offerings for different segments like local favorites, Global favorites, Premium pizzas, kids corner and designers pizza .A fair degree of flexibility is available where customers can customize their pizza and can choose to purchase combos thereby providing better value for money. Additional items such as soft drinks accompany these choices. Dominos has successfully implemented this concept of mass customization by catering to customers individual needs through unique combinations. Dominos standard product and services offering is universal across the world quality pizza delivery in approximately thirty minutes. 3.2 Failed Product and Product Re-design: Dominos openly acknowledge shortcomings and use cu