Business Management

MGMT499

Case: Domino’s Pizza

Domino’s is the largest pizza delivery company in the USA having a 22.5 percent share of the pizza delivery market. Originally a mom-and-pop store in Ypsilanti, Michigan named Domi-Nick’s, was purchased by Tom Monaghan and his brother James for $900 in 1960. In 1965, Tom having bought his brothers half of the business back in 1961, changed the store name form Domi-Nick’s to Domino’s Pizza Inc. Through the 1960’s and 1970’s the company experienced steady growth with 200 Domino’s stores in the USA. During the 1980’s, the company expanded rapidly with more than 5,000 stores by the end of the decade. In 1998 with more than 6,000 Domino’s, Tom Monaghan retired and sold 93 percent of the company to Bain Capital Inc. Since then Domino’s has become a publically traded company on the New York Stock Exchange in 2004 and now has more than 10,300 Domino’s stores in over 70 countries with sales of over $7.4 billion in 2012.

Though Domino’s doesn’t have a stated vision statement, there company mission statement is “Exceptional franchisees and team members on a mission to be the best pizza delivery company in the world.” There “guiding principles” are based on the concept of one united brand, system and team: putting people first; striving to make every customer a loyal customer; delivering with smart hustle and positive energy; and winning by improving results every day.

It appears that Domino’s operates from a functional organizational structure with 11 top executives, mostly executive vice-presidents, with CEO Patrick Doyle being the final say on corporate matters. As this case mentions, a firm of this size might work better with a divisional or strategic business unit type by region may be more effective promoting delegation of authority, responsibility, and accountability.

To offer pizza at lower prices and allow store managers to focus on store operations, Domino’s has an effective supply chain. Rather than mixing dough on site,...