preview

Case Analysis: Domino's Pizza

Better Essays
Introduction
Domino’s Pizza history started over 50 years ago in 1960 and to date, has managed to open its 14,000th store worldwide (Domino's Pizza Singapore, 2017). Domino’s pizza proved to be one of the industry leader by keeping ahead of the market with its innovative technology integration, unique franchising methods. Domino’s Pizza has also strived to maintain business excellence through the affordability, delivery speed and accessibility of their pizza.
In this case, Domino’s Pizza chooses to empower franchise store managers to be the driver of change and allow them to make their own managerial decisions. While empowerment is desirable for managers, companies has also faced problems in its application (Germi & Hasanzadeh, 2015). Frontline
…show more content…
To overcome profitability problems, franchisees turn to skimping on ingredients and manipulation of payroll system to deal with the problem. While not paying employees their full entitlements and wages will allow stores to meet their profitability targets, it could significantly affect employee’s motivation as their basic needs are not satisfied (Maslow, 1943). Employees within the company feels alienated as Domino’s Pizza is not responsive towards their problems. They could feel less valued and less motivated thus more inclined to leave the company. It was stated in the newspaper article (White, 2005), with each store worker costing $2,500 and store manager $20,000 when they leave. Thus, the problem of unethical practices could contribute to a higher staff turnover rate resulting in economic damage to the…show more content…
This will also require different strategies unique to their store’s geographic region.
Improving communication between levels
There is lack of communication between upper and frontline staffs of Domino’s Pizza. It is stated that when employees reflect their problems, there was no response by the company. This problem may be a serious contribution to the loss of motivation for workers.
Advantage
The company should encourage feedback and opinions of employee’s problems. When employees reflect problems to upper management and actions need to be taken in response to ensure effective communication (Rai & Rai, 2009). This could help employees feel more valued as their opinions and problems have been received by the company.
Disadvantage
Employees may still feel fearful of speaking up as there might be repercussions when they reflect problems. Employees might feel that due to past experiences, Domino’s might not respond to their problems. Proposed solution
Changing of leadership and management
Get Access