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.

Dundon et al. (2004) claimed that employee voice is a form of contribution to decision-making, an articulation of individual satisfaction or dissatisfaction and a demonstration of collective organisation. Another way of saying, employee voice is the process of employees communicating their thoughts, ideas to employers to provide feedbacks and make improvements. Bryson (2004) described employee voice as a two-way communication between management and employees. This two-way communication between senior managers and employees enables them to exchange ideas. To be more specific, it brings different and new perspectives from employees, give them a sense of ownership towards the decision-making process with relatively higher level of effort and reduced labour cost. Moreover, it has lower cost and reduce risk of disruption due to employee resistance. It is crucial for senior management to understand the importance of ‘employee voice’ since it plays a significant role in constructing a high-involvement working environment and has a crucial impact on organisational performance. There are various advantages of employee voice, however, too strong employee voice will inevitably cause negative impact in the organisation.

Moreover, it is imperative that you understand the values of leader-follower communication for laying the foundation of any type of successful business. Additionally, without communication, it would simply be impossible to communicate with the various levels and ranks that are involved in any type of business. Consequently, this happens whenever “employees feel that speaking up about issues and problems is futile, or worse yet, dangerous” (Morrison & Milliken, 2000, pg.721). Therefore, it is important for team members to understand about the organization, its culture, its products and services, and its response to any negative issues, thus. they improve their job and continue to serve as representatives to their community, their friends, their

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

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.

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.

Correct decision making will be enhanced if managers allow opinions of others and constructive feedback and criticism. employee involvement is

Dominoes being one of the largest providers of the pizza, reaches out to deliver more than 10 lakhs pizzas to its customers on a worldwide basis. The servers used by the organization are capable of receiving orders from its customers, accepting the payments, staff scheduling, maintaining the store operations and so on. Pizza industry has now become a highly competitive and mature market. With the current market conditions (such as economic downturn etc.) along with the customer demand most of the companies are trying to produce a healthier and a cheaper product. Let’s see what are the advantages Dominoes enjoyed in terms of cost cutting, effective pizza delivery, time management, increasing the opportunity etc.

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.