Question: Based on your opinion, explain how Domino’s strategy differed from its competitors. Store managers cause employees to stick around-or not, said Rob Cecere, a regionalmanager for Domino's. Employees can go to McDonald's or Pizza Hut and make as much asthey make at Domino's. "You've got to make sure they are happy to come to work for you,"Cecere explained. Domino's also worked harder to promote a culture of "fun" via its World'sFastest Pizza competition and other initiatives. Brandon thought employees were so crucialthat he renamed the company's HR department the "People First" department. HR wasn't theonly part of the recipe Domino's had to change, however. It also had to create a new valueproposition for its food. In 2009, it embarked on an effort and associated marketing campaignit dubbed the "pizza turnaround" to do precisely that. As part of the effort, the companydeveloped a new recipe for its pizza crusts; began using fresher, gourmet types of ingredients;and began offering new products, such as artisan pizzas, pasta, and desserts. It alsoremodelled stores and added in-store dining. Domino's chief strength still lies in its systemsand technology. The biggest department at the firm's headquarters in Ann Arbor, Michigan,is its technology department. The department has built novel applications over the years,such as an online ordering application that allows customers to "build" their pizzas online andtrack their preparation, cooking, and delivery times. The department has also developedmobile apps for 95 percent of the smartphones on the market. Computer and mobile orderingnow make up 40 percent of all Domino's sales. In 2011, technology employees built a populargame called Domino's Pizza Hero, which challenges players to learn the demanding job ofpizza making and do it fast. Players who are good at the game are then prompted to apply forjobs with Domino's. Is Domino's new recipe working? By most accounts, yes. Turnoverdropped by more than 100 percent following Brandon's initiatives. Customer satisfactionscores have jumped up too. On this score, Domino's is now tied for the lead among itscompetitors in the pizza business. Wall Street has noticed and rewarded the firm with an all-time stock price high. Still, strategy changes and their implementation are continually evolvingchallenges for firms, and Domino's is no exception. - Managing Human Resources 80 puzzleand ensuring that its strategy is aligned all the way down the food chain. In 2011, the companyreceived a raft of negative publicity after two Domino's workers posted a YouTube video ofthemselves deliberately contaminating a pizza in a very disgusting way. In 2013, 20 Domino'sworkers in Manhattan were fired for taking part in a nationwide food strike. The workersclaimed they were being paid less than the legal minimum wage. Recently, the company madenews after it asked the European Union to relax immigration laws so the firm could bring inunskilled workers from abroad to meet its needs. An immigration official suggested thatDomino's could solve its problem by paying workers more. Would paying hourly-wageemployees a little more buy Domino's a little more loyalty and prevent negative publicity forthe company-loyalty its CEO at one time didn't think was needed? And if so, would the costshave been worth the benefits? And who should incur these costs since most of the stores areprivately owned? These questions are food for thought, ones that Domino's will have toresolve. After all, even with the best technologies and systems, pizzas don't cook and deliverthemselves. People do. DOMINO'S TRIES TO GET ITS STRATEGIC RECIPE RIGHTBelieve it or not, years ago it was normal for people to have to wait an hour or more to gettheir pizzas delivered. But those were the years B.D.-before Domino's. Started by TomMonahan and his brother in Ypsilanti, Michigan, in the 1960s, Domino's created a valueproposition people were hungering for: pizza delivered in 30 minutes or less. Better yet, if aDomino's pizza wasn't delivered in 30 minutes, it was free. That was unheard of in the pizzabusiness. Monahan changed the pizza industry not because Domino's created a betterproduct but because it was able to offer a different value proposition than anyone else wasoffering, as well as align its people, processes, and systems to deliver against that promise.Domino's used assembly line-based systems and standardized processes to improveefficiency and reduce pizza preparation times. For example, it was the first to use conveyor-belt oven technology to ensure uniform temperatures and reduce baking times. - ManagingHuman Resources 79 deliverables by emphasizing and encouraging fast pizza making anddelivery. Annually, the company holds a "World's Fastest Pizza Maker" competition in whichits pizza makers compete for cash and other prizes. As important as what Domino's did is whatit did not do. Strategy is about making choices. Domino's did not focus on great pizza-itfocused on fast pizza. It did not customize every order but prepared them all in advance. Itdidn't hire premiere pizza chefs who tossed pizza dough into the air to make lighter crusts. Itdidn't use the wood-fired stoves to give the pizza an old-world taste. And it didn't offer in-store dining. Each of the ingredients in Monahan's formula was aligned around its valueproposition of fast delivery-a strategy that worked well for Domino's for decades. Thisstrategy and a franchise model helped the company grow by leaps and bounds. Today, thereare over 10,000 Domino's pizza stores, which are in 70-plus countries around the world. Overtime, however, Domino's competitive environment changed. Other companies begandelivering pizzas in about 30 minutes, and consumers began wanting more than fast pizza:they wanted good pizza. The problem was that Domino's wasn't delivering on that score. Intaste tests, customers complained that Domino's pizzas tasted like cardboard. At one point,the firm's customer satisfaction scores in terms of its food and service were lower than thoseof any other pizza chain. Perhaps not surprisingly, the firm's stock price reflected as much. Toturn things around, the company had to rethink its value proposition. That includedrevamping not only its food but also its HR strategies and policies. One problem Domino'ssuffered from is rampant in the fast-food industry: employee turnover. Domino's turnoverrate was 158 percent annually. In other words, for every employee hired during a year,another 1.5 employees quit. Domino's CEO at the time, David Brandon, wasn't convinced thathigher pay for hourly wage employees was the solution, however. "If we could have increasedeverybody's pay 20 percent, could we have moved the needle a little bit to buy some loyalty?Maybe, but that's not a long-term solution." Moreover, because most Domino's stores areindividually owned rather than corporate owned, the individual owners must decide forthemselves whether to increase hourly wages. Instead, Brandon focused on the quality ofstore managers-choosing better ones, finding ways to retain good ones, and coaching themto train and motivate employees by being respectful and polite. The company also beganoffering managers stock options for growing their store revenues.

Question

Question: Based on your opinion, explain how Domino’s strategy differed from its competitors. Store managers cause employees to stick around-or not, said Rob Cecere, a regionalmanager for Domino's. Employees can go to McDonald's or Pizza Hut and make as much asthey make at Domino's. &#34;You've got to make sure they are happy to come to work for you,&#34;Cecere explained. Domino's also worked harder to promote a culture of &#34;fun&#34; via its World'sFastest Pizza competition and other initiatives. Brandon thought employees were so crucialthat he renamed the company's HR department the &#34;People First&#34; department. HR wasn't theonly part of the recipe Domino's had to change, however. It also had to create a new valueproposition for its food. In 2009, it embarked on an effort and associated marketing campaignit dubbed the &#34;pizza turnaround&#34; to do precisely that. As part of the effort, the companydeveloped a new recipe for its pizza crusts; began using fresher, gourmet types of ingredients;and began offering new products, such as artisan pizzas, pasta, and desserts. It alsoremodelled stores and added in-store dining. Domino's chief strength still lies in its systemsand technology. The biggest department at the firm's headquarters in Ann Arbor, Michigan,is its technology department. The department has built novel applications over the years,such as an online ordering application that allows customers to &#34;build&#34; their pizzas online andtrack their preparation, cooking, and delivery times. The department has also developedmobile apps for 95 percent of the smartphones on the market. Computer and mobile orderingnow make up 40 percent of all Domino's sales. In 2011, technology employees built a populargame called Domino's Pizza Hero, which challenges players to learn the demanding job ofpizza making and do it fast. Players who are good at the game are then prompted to apply forjobs with Domino's. Is Domino's new recipe working? By most accounts, yes. Turnoverdropped by more than 100 percent following Brandon's initiatives. Customer satisfactionscores have jumped up too. On this score, Domino's is now tied for the lead among itscompetitors in the pizza business. Wall Street has noticed and rewarded the firm with an all-time stock price high. Still, strategy changes and their implementation are continually evolvingchallenges for firms, and Domino's is no exception. - Managing Human Resources 80 puzzleand ensuring that its strategy is aligned all the way down the food chain. In 2011, the companyreceived a raft of negative publicity after two Domino's workers posted a YouTube video ofthemselves deliberately contaminating a pizza in a very disgusting way. In 2013, 20 Domino'sworkers in Manhattan were fired for taking part in a nationwide food strike. The workersclaimed they were being paid less than the legal minimum wage. Recently, the company madenews after it asked the European Union to relax immigration laws so the firm could bring inunskilled workers from abroad to meet its needs. An immigration official suggested thatDomino's could solve its problem by paying workers more. Would paying hourly-wageemployees a little more buy Domino's a little more loyalty and prevent negative publicity forthe company-loyalty its CEO at one time didn't think was needed? And if so, would the costshave been worth the benefits? And who should incur these costs since most of the stores areprivately owned? These questions are food for thought, ones that Domino's will have toresolve. After all, even with the best technologies and systems, pizzas don't cook and deliverthemselves. People do. DOMINO'S TRIES TO GET ITS STRATEGIC RECIPE RIGHTBelieve it or not, years ago it was normal for people to have to wait an hour or more to gettheir pizzas delivered. But those were the years B.D.-before Domino's. Started by TomMonahan and his brother in Ypsilanti, Michigan, in the 1960s, Domino's created a valueproposition people were hungering for: pizza delivered in 30 minutes or less. Better yet, if aDomino's pizza wasn't delivered in 30 minutes, it was free. That was unheard of in the pizzabusiness. Monahan changed the pizza industry not because Domino's created a betterproduct but because it was able to offer a different value proposition than anyone else wasoffering, as well as align its people, processes, and systems to deliver against that promise.Domino's used assembly line-based systems and standardized processes to improveefficiency and reduce pizza preparation times. For example, it was the first to use conveyor-belt oven technology to ensure uniform temperatures and reduce baking times. - ManagingHuman Resources 79 deliverables by emphasizing and encouraging fast pizza making anddelivery. Annually, the company holds a &#34;World's Fastest Pizza Maker&#34; competition in whichits pizza makers compete for cash and other prizes. As important as what Domino's did is whatit did not do. Strategy is about making choices. Domino's did not focus on great pizza-itfocused on fast pizza. It did not customize every order but prepared them all in advance. Itdidn't hire premiere pizza chefs who tossed pizza dough into the air to make lighter crusts. Itdidn't use the wood-fired stoves to give the pizza an old-world taste. And it didn't offer in-store dining. Each of the ingredients in Monahan's formula was aligned around its valueproposition of fast delivery-a strategy that worked well for Domino's for decades. Thisstrategy and a franchise model helped the company grow by leaps and bounds. Today, thereare over 10,000 Domino's pizza stores, which are in 70-plus countries around the world. Overtime, however, Domino's competitive environment changed. Other companies begandelivering pizzas in about 30 minutes, and consumers began wanting more than fast pizza:they wanted good pizza. The problem was that Domino's wasn't delivering on that score. Intaste tests, customers complained that Domino's pizzas tasted like cardboard. At one point,the firm's customer satisfaction scores in terms of its food and service were lower than thoseof any other pizza chain. Perhaps not surprisingly, the firm's stock price reflected as much. Toturn things around, the company had to rethink its value proposition. That includedrevamping not only its food but also its HR strategies and policies. One problem Domino'ssuffered from is rampant in the fast-food industry: employee turnover. Domino's turnoverrate was 158 percent annually. In other words, for every employee hired during a year,another 1.5 employees quit. Domino's CEO at the time, David Brandon, wasn't convinced thathigher pay for hourly wage employees was the solution, however. &#34;If we could have increasedeverybody's pay 20 percent, could we have moved the needle a little bit to buy some loyalty?Maybe, but that's not a long-term solution.&#34; Moreover, because most Domino's stores areindividually owned rather than corporate owned, the individual owners must decide forthemselves whether to increase hourly wages. Instead, Brandon focused on the quality ofstore managers-choosing better ones, finding ways to retain good ones, and coaching themto train and motivate employees by being respectful and polite. The company also beganoffering managers stock options for growing their store revenues.

Accepted Answer

Domino's Pizza is one of the world's most successful pizza chains, with over 10,000 locations in 70…