Domino's Impact On Corporate Culture

1632 WordsMay 24, 20167 Pages
Domino’s Pizza was an established mega-brand, with more than 8,400 locations internationally. It employed more than 145,000 employees across 55 countries as of 2006, and by all traditional profit-driven evaluation strategies, the company seemed to be highly successful, generating a revenue stream of $1.4 billion USD annually (Lisovicz, 2010). However, by 1998, revenue, growth and market share had begun to stall and analysts wondered how the company would survive entering the twenty-first century. Since then, Domino’s has aggressively targeted the weaknesses in their corporate culture, firmly establishing their place as an industry leader (Lisovicz, 2010). Changing Domino’s culture Domino’s recognized it had become stuck in a culture that failed to fit in to a technological world, and struggled under the weight of an inflexible top-heavy bureaucracy. The company experienced an average turnover rate of 158% annually, meaning Domino’s invested resources into more than 200,000 people per year who added no long-term return on investment (Lief, 2008). More importantly, the organization blindly accepted this as the cost of business in the pizza industry. Change began with replacing key personnel from the top-down, who could not buy-in to the company’s new vision. Domino’s began by replacing several high-ranking executives to remove a pattern of thinking that was unwilling to accept or attempt change (Lisovicz, 2010). Immediately, the new management began leading organizational

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