Case Analysis: Domino's Pizza

“Becoming a franchisee is an odd combination of starting your own business and going to work for someone else” (Schlosser 94).In Eric Schlosser’s Non-fiction book, Fast Food Nation, Schlosser reasons that fast food has widened the gap between the rich and the poor, started an obesity epidemic and propelled American cultural imperialism abroad. While the idea of a franchiser/ franchisee relationship appears to be nothing but beneficial, it has a serious drawback, which is the release/ acceptance of certain issues out of each party’s control. This, in turn causes other companies to try to develop new ways of forming this relationship. Subway, for example uses “Development Agents” to help ease tensions.

It owns the sole master franchise privileges for the Domino 's trade name and system in several parts mainly in Australia, New Zealand, France, Belgium, The Netherlands, Japan and the Principality of Monaco. Globally, it sells more than 1 million pizzas a day in roughly 1300 stores across 6 countries, 9000 in over 60 countries and 600 over Australia and New Zealand. It functions as a quick service pizza restaurant whereby it is differentiated because QSR retailers are recognized as acquiring incorporated management with required standard menus and pricing unlike smaller outlets.

“Employee voice” is a key to a successful business, says Nita Clarke. Many people may feel reluctant to talk about their opinions due to various reasons. One explanation could be that they are afraid their opinions may be

Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America. 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. Founded in 1960, Domino's Pizza is the recognized world leader in pizza

Manny Flavors Cookie Company (MFCC) is a reputable family owned business that has been in operations since 1889. Now in its fourth generation of ownership, MFCC’s sales have flourished and it is important that the business continue to grow to its fullest potential. Despite the success of the company, MFCC is currently experiencing problems on the operating floor. Willie Keepum, Vice President of Operations at the company, wishes to terminate all of the employees because he believes that many of the employees have a negative attitude and have become complacent about the quality of the product. Disregarding the opinions of the mid-level managers, he believes that firing the employees will show the workers who is in charge because there is nothing anyone can do to make the employees motivated to work. The current paper will explain the problems that MFCC face and how these problems may affect the company in its future business endeavors. Then, there will be an explanation of how a change in leadership style can benefit the organization more than terminating any employees. Lastly, alternative solutions will be stated to resolve the problems faced by workers and leaders on the operating floor of MFCC.

The employee’s of Perfect Pizzeria have become de-motivated and is resulting in poor performance and job satisfaction. The business is quite basic; there is a store manager, an assistant manager, and a few managers for the night shift. It also has a head manager, which reports directly to the regional supervisor of the organization. Employee’s that work for this company have no formal training for their position, most are college students and a few are part-time high school student workers and are all being paid at minimum wage, with the exception of the manager, which is a full time employee. The manager is paid a fixed salary amount and receives an incentive monthly based on productivity.

Pizza Hut got their start in 1958 when two brother borrowed $600 from their mother open a pizza place in Wichita, Kansas. Since, then Pizza Hut has grown from just one pizza place to having them in over 100 countries today. I believe what make this pizza company so successful is their hospitality and their quality of food.

Addams (2016) stated that in 1997, “Pizza Hut filed a lawsuit against Papa John’s logo and brand for making false advertising” (Trivia section, para. 3). Even though the court initially ruled in support of Pizza Hut’s claim, the decision was overturned on appeal in favor of Papa John’s (Addams, 2016). Besides the Pizza Hut’s lawsuit, Papa John’s experienced a decline in sales for the first time in the early 2000s and thus, the organization “laid off 45 people at its headquarters” in 2004 (Wolfson, 2013, Learning the Business section, para. 23). Moreover, the company’s national headquarters was forced to save money by turning off the heat (Wolfson, 2013). These changes in the business prompt its founder (i.e., Schnatter) to relinquish his position as chief executive officer (CEO) in 2005 (Wolfson, 2013). However, Schnatter was able to return as CEO in 2008 and positioned the corporation as one of the largest pizza restaurants in the United States by more than tripling its stock price from 2008 to 2013 (Wolfson, 2013).

Needless to say, the issue at hand has some of the employees speaking there concerns and opinions.

It is and American company founded in 1960s. It is located in more than 9300 locations in more than 65 countries.The menu varies with main and side dishes but its primary focus is pizza. The first menu expansion commenced in 1989 and that new product launch costs approximately $25 million. (Wikepedia).In 1973, Domino introduced its first delivery guarantee promising delivery within ‘a half an hour or a half dollar off’. Other introductions like the belt-driven pizza oven,new logo and decentralisation of operations led to the company’s growth. This continued in the 1980s as Domino Pizza opened its international locations in 1983 in Winniepeg,Canada and Brisbane,Australia. The revenue increased on a rather constant mode from 2006 to 2016 as shown in the figure 1

Opening a franchise brings a brand name and materials to a business to produce instant recognition and bring in brand loyal consumers. A franchise creates a business relationship with a franchisor to bring a brand name, trade dress, and trademark to a franchisee (Kubasek et al., 2015, p. 431). In turn for the franchise material and name, the franchisee pays a percentage of sales to the franchisor (Kubasek et al., 2015, p. 431). As reported in 2011, franchising was so popular that it was the genesis of one of every 12 retail businesses in the United States (Welsh, Desplaces, & Davis, 2011, p. 4). A weakness of owning a franchise was reported by Perrigot, Hussain, and Windsperger (2015) where “franchisees have to strictly follow operating manuals and almost all of the strategic decisions are made at the franchisor level” (p. 696). Although it does have a curtailed degree of freedom, a franchise brings greater stability with a proven business style and support system.

Through alienating employees, it denies him or her meaningful work, which in turns reduces opportunities for growth. The exploitation of employees occurs

The only certain way to do that is to implement websites and applications that stimulate the necessary initiative and effort for higher performance following success in empowerment. The bakery is seeking to increase the desired employee commitment and emotional attachment at different hierarchical levels (Ketchen Jr. et al., 2017).

In circumstances where employees’ feel as if they cannot express opinions, criticism and suggestions, it is commonly due to the expected outcome with the manager (Detert & Burris, 2007). Furthermore, if there were to be an issue within the organisation which effected the employee, the employee has one of two options; leave the workplace or express their opinions (Detert & Burris, 2007, p.872). As a result, if EV is not encouraged by a manager it can lead to employees’ feeling discouraged to express their opinions, overall reducing wellbeing and psychological security within that organisation (Detert & Burris, 2007). Detert and Burris (2007) suggests that employees, “lack the courage to… challenge mangers who have signalled unwillingness to accept input” (Detert & Burris, 2007, p.872). Furthermore, it can be concluded that due to unwelcoming use of EV, employee’s well-being (confidence within the workplace) is drastically reduced. Walumbwa and Schaubroeck (2009) explains that when mangers’ openly accept and encourage employees to speak their mind, psychological safety and wellbeing increase, allowing employees to express their ideas, concerns and conflicts. More so, while the

The restaurant has undergone several staff changes during the last year and appears to have a turnover of staff issue mainly with the chef and waitress positions. The manager and assistant manager both know that this is causing a negative impact on the whole team and the operational side of the organisation has shown signs of not reaching the necessary standards set for satisfactory customer service. In the current team only the manager and assistant manager has been employed there longer than twelve months.