...DOMINO’S SIZZLES WITH PIZZA TRACKER 1 Domino’s Sizzle with Pizza Tracker January 17, 2015 Abstract The purpose of this case study is to exam how Domino’s pizza uses Information Systems to regain their share of the Home Delivery pizza market. I’ll discuss how Domino’s overcome a bad reputation and improved their product and services. I will also discuss the changes and process systems implemented along with where they currently stand in the market and with their customers. I will finish with the technology Domino’s plans to use in the future. DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 2 Domino’s Pizza Sizzles with Pizza Tracker This case study discusses the impact that information systems and global e-business has had on Domino’s Pizzas’ reemergence as an industry leader in the home-delivery pizza market. It looks into what kind of systems are used, how the systems improve business performance, how their online pizza ordering system has improved the ordering process and how the systems are giving Domino’s a competitive edge. Domino’s opened in 1960 and grew to 200 stores in 1978 and currently operates almost 9000 stores worldwide and has the largest share of the approximate $15 Billion/year pizza market. They compete with Pizza Hut, Papa John’s and Little Caesar’s...
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...DOMINO’S SIZZLES WITH PIZZA TRACKER 1 Domino’s Sizzle with Pizza Tracker Abstract The purpose of this case study is to exam how Domino’s pizza uses Information Systems to regain their share of the Home Delivery pizza market. I’ll discuss how Domino’s overcome a bad reputation and improved their product and services. I will also discuss the changes and process systems implemented along with where they currently stand in the market and with their customers. I will finish with the technology Domino’s plans to use in the future. DOMINO’S PIZZA SIZZLES WITH PIZZA TRACKER 2 Domino’s Pizza Sizzles with Pizza Tracker This case study discusses the impact that information systems and global e-business has had on Domino’s Pizzas’ reemergence as an industry leader in the home-delivery pizza market. It looks into what kind of systems are used, how the systems improve business performance, how their online pizza ordering system has improved the ordering process and how the systems are giving Domino’s a competitive edge. Domino’s opened in 1960 and grew to 200 stores in 1978 and currently operates almost 9000 stores worldwide and has the largest share of the approximate $15 Billion/year pizza market. They compete with Pizza Hut, Papa John’s and Little Caesar’s along with local pizza shops. Despite being...
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...operating system, marketing and franchise system. Providing High Quality Products Firstly, Papa Johns’ focus on providing pizzas of superior quality to its customers has laid down the foundation for its success in the long run. Unlike its competitors who focused on cost reduction, Papa Johns focused on differentiating its pizzas. In fact, they were also able to prove in court that they used fresh and better ingredients in comparison to its competitors. This allowed Papa Johns to be rated number one in terms of customer satisfaction among all pizza chains in USA. Applying the VRIO framework, it can be said that this focus provided value to the company owing to its many benefits. Although a restaurant chain selling pizzas was not rare, selling pizzas of such high quality was not common. At the same time, this is not easily imitable by companies because focusing on higher quality will need a major shift from their current procedures and marketing strategies. Furthermore, Papa Johns has been extremely organized in exploiting this competence to its benefit. Hence, as this competence fulfills all the criteria of the VRIO framework, it is both a core and a distinctive competence. Operating System Papa Johns’ efficient operating system is also considered to be one of the competences as it provides value to the company by reducing restaurant operating costs, improving the food quality and promoting superior customer service. The most significant aspect of its operating system is its...
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...Nicholas Duerson Whitney Snyder Business 112 February 24, 2014 30 Years of Papa’s Pizza It all started 30 years ago, when John “Papa” Schnatter crafted the idea to knock out a broom closet inside of his father’s tavern located in Jeffersonville, Indiana (Papa Johns International 1). After receiving a business degree from Ball State University and turning his father’s failing tavern around with an idea of pizza, Mr. Schnatter would wind up selling his beloved ’71 Camero for a $1600.00 investment towards pizza equipment. (Papa Johns International 1) It was that entrepreneurial move which would eventually solidify an excellent business model to launch what is now known as “Papa John’s” and currently the third largest pizza franchise. Taking a look at how Mr. Schnatter rose his company to that achievement; you will see that popular partnerships, international expansion, and a first-class outlook on “quality over quantity” pays out in the long run! Papa John’s was conceived on October 2, 1984, when Mr. Schnatter knocked out a broom closet inside of his father’s tavern. (Papa Johns International 1) The business was nearly bankrupt, but Mr. Schnatter took initiative and planned to sell $5 dollar pizzas and 50 beers up front in his father’s business. It was that entrepreneurial move to start his own business that would keep that drive going. Only after a short and successful year, Mr. Schnatter would open his first Papa John’s store. Papa John’s started franchising their...
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...processes used by Pizza Inc. at their individual site locations: * On the job training is the primary method for employees to learn policies and procedures. * An order will come into Pizza Inc. it will be written down on pre-numbered pads. The date, time of call, name, address, phone number, type of crust, and toppings requested are all taken down. If mistakes are made the pre-numbered order form will be thrown out and a new sheet will be used. * After the order is taken the employee will then calculate the pricing using hand calculators and give the customer a price and then record it on the order form. * Shift manager then check every order to make sure that the information is complete prior to processing the order. * The orders are then made using instructions that have the proper quantity of ingredients for each pizza. * Oven temperatures are monitored closely to make sure pizza is cooked correctly. Cook time is monitored using a centrally located wall clock. Cooking guidelines are posted for each pizza to tell what to do if the pizza is overcooked. * After the pizza is done an employee will cut, box and hand labeled for delivery. * Deliveries are assigned to the next driver based on first in first out method. The benchmark delivery time is 25 minutes from the time the order was placed. * The manager checks the inventory on hand at the end of each shift. B. Ten business risks for Pizza Inc. * Order...
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...Dominos 4 3. Dominos India 5 3.1 Competitors 6 3.2 SWOT Analysis 8 3.3 Porter five Forces Analysis 9 4. Methodology 10 5. A Typical Domino’s Store 10 5.1 Work Force 10 5.2 Organization Structure 11 6. Domino’s Supply chain: Providing a Strategic Competitive Advantage 13 6.1 Evolution of Dominos back-end supply chain 13 6.1.1 Old Supply chain 13 6.1.2 Revamped Supply Chain Model-2000 13 6.1.3 Current Commissary Operations 15 6.1.4 Vendor Management: 16 6.1.5 Insights on Demand Estimation from retail visit: 17 6.1.6 Inventory Management @ Dominos 18 7. Domino’s as a food service organization 20 8. Service Process Flow 22 8.1 Domino’s 30-minute delivery promise 23 8.2 Service Process flow 24 8.3 Pizza Order tracking 25 8.4 Standard Layout of the make-line 26 8.4 Service Blueprint 27 8. Issues & Recommendations 29 9. References 30 1. Food Service Industry in India The Indian food industry has been witnessing strong growth over past few years. Right now India is the world's second largest producer of food next to China, and certainly has the potential of becoming the biggest producer in the years to come. The total food production in India is expected to grow by leaps and bounds in the next decade primarily because of the growing segment of young professionals and higher disposable incomes. Indian food service industry is currently worth Rupees 2,47,680 crores (US$ 41.39 billion) and is expected to grow at the rate...
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...Management of Information Systems Domino Sizzles with Pizza Tracker. 1) What kinds of systems are described in this case? Identify and describe the business processes each supports. Describe the inputs, and outputs of these systems. Domino’s proprietary described the point-of-sale system, Pulse, which is an important asset in maintaining consistent and efficient management functions in each of its restaurants. A point-of-sale system gain the control of purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices. Domino’s implemented pulse in a large portion of its store, and those stores reported improved customer service, reduced mistakes, and shorter training times. Since that time, Pulse has become a staple of all Domino’s franchises. Domino’s introduced a new hardware and software and platform called Pulse Evolution which is now in use in a majority of Domino’s, which is easier to update and more secure only because one machine in the store needs to be updated. Inputs: Customer orders that describe the type of pizza crust, pizza ingredients and toppings, side orders, and delivery location data. They described their inputs as TPS, Pizza tracker and Pulse etc. Processes: Data updates the system's database. The older software used a thick-client model, which required all machines using the software to be fully equipped personal computers running windows...
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...consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products. This case analysis will examine the company’s initial meteoric growth, leveling performance in recent years while attempting to foreground the challenges faced by Papa John’s and evaluate the strategic options and possible responses to pressures through an evolved product differentiation and growth strategy. Internal/External Environment & Pressures Internally, the company had enjoyed astronomic growth since its inception in the mid 1980s, but began to see the impact of a slowing U.S. and world economy in 2008 that began to put pressures on the company’s year-over-year growth and profitability. The time period referenced in the case indicated that Papa John’s in 2007 had 14.8% market share of the $13.5 billion pizza food service market. Despite showing profits each year on its income statement, the year-over-year growth numbers were nowhere near what they were during two decades of operation. A highly competitive, mature, and saturated pizza market sums up the nature of the external landscape. Given this highly competitive market for pizza service, Papa John’s faced several threats including the following: ...
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...to come-up a new product which is distinctive in a form that the proponents examined the concept of inventing and adding a new ingredient in making pizza which is instead of using beef, pepperoni, sausage and ham the proponents choose fish sardines (in tomato sauce) as the main ingredient of the product and this is called “pizza ala sardines”. Chapter one is designed to study the project background of the proponents about their chosen product including the history, brief description of the project which pertains to the proposed name of the business, kind of business being pursued, the members of the group which refers as the proponents with their individual share of capital and the planned location where the business will put-up and operate. Historical Background Pizza is one of the most favorite foods of many Filipino. They love to eat pizza with their family, friends and peers. It is considered the most popular meal in the world, and definitely one of the favorites in the Philippines. A “pizza” is a round, open pie made with yeast dough and topped with tomato sauce, cheese, and a variety of other ingredients. Flatbreads or rounds of dough with various toppings can be found throughout the history of civilization. What is known as pizza today can be traced to Naples, Italy in the middle Ages. The Italians are also credited with coining the term pizza, although its origin is not clear. It could have derived from the Italian word for point, pizziare, meaning to pinch or pluck,...
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...CASE STUDY: DOMINO’S PIZZA DOMINO’S PIZZA DELIVERS - TO DOMINO’S CHALLENGE: SAVING DOUGH IN A UNIQUE SUPPLY CHAIN Because Domino’s Pizza Distribution delivers only to Domino’s stores, supply-chain inefficiencies can’t be shifted to a trading partner or a retailer. After all, Domino’s is both! On the other hand, efficiencies gained anywhere in the supply chain – from better labor and pallet utilization in the warehouse to optimized deliveries – go directly to the bottom line. Domino’s Pizza is a world leader in pizza delivery, operating a network of more than 7,800 stores in the United States and around the world. To support these stores, Domino’s Pizza Distribution operates 17 domestic distribution centers. CLIENT: “Time saved is the biggest benefit. Using Park City Group, we streamlined the tactical and expanded the strategic. With Park City Group’s order enhancement, we use the time saved to make more strategic decisions that will lower inventory levels. Because distribution centers must never run out of supplies and ingredients, planners pad the safety stock. We’d rather be heavy than wrong. As planners become more confident in their new model they can back off, reducing distribution centers safety stocks – and cutting corporate costs – with no risk of running out.” -Jimmy Simonte, National Director of Inventory Management Domino’s Pizza Distribution To find out more about Park City Group solutions, call us at 435645-2000 or visit us on the web at www.parkcitygroup.com...
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...9 - 5 12 - 00 4 REV: MARCH 19, 2012 "One time permission to reproduce granted by Harvard Business Publishing, 10/9/2012" DAVID E. BELL PHILLIP ANDR EWS MARY SHE LMAN Domino’s Pizza Before 2007, wheat prices didn’t have a pulse. We’d buy for the next six months and the price would be plus or minus 10 cents a bushel over the last six months. Then one day in 2008 wheat shot up $24 a bushel! Now, as a norm, we strategically consider corn, dairy, and wheat to better leverage our supply chain expertise and improve store economics. — John Macksood, executive vice president, Domino’s Pizza On the morning of August 22, 2011, John Macksood, executive vice president for supply chain services at Domino’s Pizza, Inc. (Domino’s), was reading the daily headlines while sitting in his office at the Domino’s World Resource Center, the company’s global headquarters in Ann Arbor, Michigan. Domino’s was the world’s second-largest pizza company and the largest pizza delivery quick-serve restaurant (QSR) chain. One item in particular jumped out at Macksood. An article, titled “Quiznos chain faces tough finance issues,” indicated that Denver-based Quiznos, a privately owned QSR sandwich company with 4,000 U.S. stores, was nearing bankruptcy due to “sharpening competition, waning sales, and debt woes.”1 One of the problems cited was Quiznos’ “protracted battle” with its franchisees over operating costs and profitability, with some franchisees blaming low or nonexistent store...
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...9 - 5 12 - 00 4 REV: MARCH 19, 2012 "One time permission to reproduce granted by Harvard Business Publishing, 10/9/2012" DAVID E. BELL PHILLIP ANDR EWS MARY SHE LMAN Domino’s Pizza Before 2007, wheat prices didn’t have a pulse. We’d buy for the next six months and the price would be plus or minus 10 cents a bushel over the last six months. Then one day in 2008 wheat shot up $24 a bushel! Now, as a norm, we strategically consider corn, dairy, and wheat to better leverage our supply chain expertise and improve store economics. — John Macksood, executive vice president, Domino’s Pizza On the morning of August 22, 2011, John Macksood, executive vice president for supply chain services at Domino’s Pizza, Inc. (Domino’s), was reading the daily headlines while sitting in his office at the Domino’s World Resource Center, the company’s global headquarters in Ann Arbor, Michigan. Domino’s was the world’s second-largest pizza company and the largest pizza delivery quick-serve restaurant (QSR) chain. One item in particular jumped out at Macksood. An article, titled “Quiznos chain faces tough finance issues,” indicated that Denver-based Quiznos, a privately owned QSR sandwich company with 4,000 U.S. stores, was nearing bankruptcy due to “sharpening competition, waning sales, and debt woes.”1 One of the problems cited was Quiznos’ “protracted battle” with its franchisees over operating costs and profitability, with some franchisees blaming low or nonexistent store...
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... Our progress Date 1960 Tom Monaghan launches the first Domino’s Pizza store in 1960 in Michigan, USA, although is it called DomiNick’s until 1965. His brother James sells his share in the venture after a year in return for a Volkswagen Beetle. 1967 The first franchise opens and by 1983 there are 1,000 stores, including the first outside the USA. 1985 The first UK store opens in Luton. 1991 The first Irish store opens in Dublin. 1993 Brothers, Gerry and Colin Halpern, buy the master franchise for Domino’s in the UK and Ireland, which by this time has 77 outlets. Prior to this, Domino’s was controlled from the USA. 1995 Store number 100 opens in Purley, London. 1996 First Scottish store opens in Glasgow. 1997 First Welsh store opens in Cardiff. 1998 New headquarters for the UK and Ireland built in the UK in Kingston, Milton Keynes. Domino’s starts its sponsorship of The Simpsons. 1999 Domino’s becomes the first home delivery company to float on the Alternative Investment Market. Online ordering and interactive TV ordering go national. 2000 Domino’s introduces the revolutionary patented HeatwaveTM hot bags to keep the pizzas hot and crisp during delivery. 2003 Store number 300 opens in Aldershot. 2004 Domino’s wins the British Franchise Association, Franchisor of the Year award. Domino’s opens its first store in the City of London on Queen Street. Domino’s launches the Double DecadanceTM. 2005 Domino’s Pizza UK & Ireland celebrates 20 years. Store number 400 opens in Sheffield...
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...The company background and its business nature The Vision of Pizza box is “To be the best Pizza Delivery Company in Hong Kong by providing 100% SATISFACTION to all stakeholders”. Pizza Box is a company concentrating on pizza retailing, especially focus on pizza delivery. The Company was established in 1985 and wa a franchisee of the renowned pizza company Domino’s Pizza in Hong Kong and Macau. By February 2003, the franchisee was expired and the Company was by then no longer operated with Domino’s Pizza. On the first of March in the same year the Company then developed its own pasta and pizza and relaunched as Pizza Box. Pizza Box follows the principle of food quality control of Domino’s Pizza and offers a wider variety of food at a lower price. By now Pizza Box has opened 14 stores located in Hog Kong Island, Kowloon and the New Territories, for example, Pokfulam, Honghom, Tai Po, Shatin and Yuen Long etc. External environment Porter’s Five Forces Model Porter‘s Five Forces Model is a framework to analyze the competitive pressures of industry and business strategy. If consist of 5 aspects 1. Buyer power 2. Supplier power 3. Threat of substitute 4. Threat of new entrants 5. Rivalry among existing competitors Bargaining power of buyer The bargaining power of the buyer is low, because buyer do not has a large , concentrated buying power . Although there are a lot of customers in the market , but most of them are unlikely to buy a large amount products...
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...Industry Analysis Porter’s Five Forces • Competitive intensity within the industry o Compared to nationally owned pizza restaurants rivalry is high. o Compared to locally owned restaurants rivalry is high. • Threat of new entrants o Threat of new entrants from nationally owned pizza restaurants is high because they have the capital to open multiple units. o Threat of new entrants locally is low because of the high cost involved to open a new pizza restaurant. • Threat of substitutes o There are many choices for consumers to purchase pizza from locally owned to national chains therefore the threat of substitutes is high. • Bargaining power of buyers o With the multiple outlets available for consumers the bargaining power of buyers is high because if prices are too high they will shop elsewhere. o Additionally, many consumers switch between pizza restaurants because they choose the outlet with the best coupon. • Bargaining power of suppliers o The bargaining power of suppliers is low for the nationally owned pizza restaurants so they can demand lower prices. o The bargaining power of suppliers for locally owned pizza restaurants is high because they do not buy in large quantities. • All things considered, Porter‟s Five Forces are high so the industry may not be as profitable or attractive. However, in any case, the techniques implemented by successful, market players after provide them with an opportunity to leverage their business processes...
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