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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Executive Summary

The purpose of this report is to critically analyze specific aspects of the chosen organization. It is divided into five sections, covering the background of the organization, the general environment, specific environment, corporate social responsibility and ethics, and the organizational culture. For the final part of this report, regarding organizational culture, I will assume that I have graduated from Deakin University and have been short-listed for a graduate position within Domino's Pizza Enterprises Ltd. I will then discuss the results obtained from completing the personal insight quiz “What's the Right Organization Culture for Me?” and reflect on how well I think I might fit into Domino's Pizza and its organizational culture. The body of the report was obtained by drawing on information from journal articles, and theories from the textbook “Management: The Essentials” by Robbins et al. (2016).

Introduction

Domino's Pizza (Domino's Pizza Enterprises Ltd) is the largest pizza chain in Australia and the largest franchisee for the Domino's Pizza brand in the world. Domino's now extends across seven countries, with one mission: to ‘sell more pizza [and] have more fun'. This report aims to critically analyze specific aspects of this organization. It is divided into five sections, covering the general environment, specific environment, corporate social responsibility and ethics, and organizational culture.

About Domino's Pizza

At Domino's Pizza all employees from store member to head office staff are ambassadors for their vision and mission and follow the values of the company. Domino's vision is to be ‘no. 1 in people, no. 1 in pizza'. While pizza is their passion, to be accepted by the people is at the core of their vision. Defining the mission of an organization, forces managers to identify what it is in business to do. The mission of Domino's Pizza is to ‘sell more pizza, have more fun'. This statement provides a clue to what Domino's sees as its purpose. Domino's values are based on respect, being cost effective, and the incentive for change. These values include:

• Treat people as you'd like to be treated

• Produce the best for less

• Measure, manage and share what's important

• Think big for less

• Incentivize what you want to change

• Set the bar high, train, never stop learning

• Promote from within

• We are not ordinary, we are exceptional

Domino's Pizza is a for-profit organization. Domino's is driven by the pursuit of money unlike not-for-profit organizations, who exist to contribute something to society or the community. However, the distinction between the two is somewhat blurred in the modern age of corporate social responsibility.

Domino's Pizza Enterprises Limited (DMP) is engaged in the operation of retail food outlets and franchise service. The Company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, France, Belgium, the Netherlands, Japan and the Principality of Monaco. As at July 2016, Domino's Pizza has a total network store count of 714 in Australia and New Zealand, 816 in Europe and 453 in Japan. Totaling an impressive 1, 983 stores (Morning Star DatAnalysis Premium, 2016).

General Environment

The general environment of an organization involves the sociocultural, technological, economic, political and global conditions in the society in which the organization operates (Robbins et al. 2016, p. 34). This section of the report will focus on analyzing the impact of the technological factor on Domino's Pizza in 2016. The technological dimension of the general environment comprises the knowledge, tools and methods used to convert resources into products and services. This dimension includes technological advancements generally relating to changes in product or process technologies.

Analyze the impact of this factor on the organization.

A few years ago, as flip phones were on their way out and being replaced with smart phones, Domino's Pizza CEO Patrick Doyle saw an opportunity to increase approachability of customers for placing their pizza orders. He proposed to his company's IT team to produce an app that will enable customers to wade through 34 million potential pizza combinations in the span of 17 seconds. The solution to this proposal goes a long way toward explaining how Domino's became the most technologically adept chain in the restaurant business – one that has revolutionized the way concepts of technology and its potential to bring in business (Maze, 2016, pp. 14-18). These product technological changes lead to the development of entirely new services, where customers can now order on an app, by sending a pizza emoji over social media, or through their television (Maze, 2016, pp. 14-18). With the help of Domino's exceptional marketing campaign aimed at the ease of ordering, customers are now more likely to order from one of these digital platforms than they are to order by phone. Company sales and franchisee profits grew with the success of this technological advancement. “The technological portion is a significant part of their sales driver” (Maze, 2016, pp. 14-18), said Peter Saleh, analyst with financial services firm BTIG. Although it may seem like technology has been the driver, Domino's chief information officer believed that “a lot of groundwork was laid before we doubled down on technology. We have a great product and a really good value, and if we didn't have those things, the technology story wouldn't be nearly as big” (Maze, 2016, pp. 14-18).

How can the organization deal with this factor?

Technology is always evolving. It seems like every time you turn around, the latest and greatest thing has been replaced by something newer and better. And so it goes (May, 2013, para 1). Technological changes are inevitable and in order for Domino's Pizza to deal with this factor, they must keep up with and also understand the technological trends. Don't lose money by investing in outdated technology, but don't waste money by jumping too early on the next bandwagon (May, 2013, para 2). It is important for Domino's to adapt to the changes in technology to avoid falling behind in a technological world.

Specific Environment

The specific environment of an organization involves the organizations, groups and individuals with whom an organization interacts as it conducts its business (Campling et al. 2006, p. 36). Factors in the specific environment have a direct and immediate effect on the organization's operations and performance (Robbins et al. 2016, p. 37). This section of the report will focus on analyzing the impact of stakeholders on Domino's Pizza in 2016. The specific environment is often described in terms of stakeholders – anyone who affects or is affected by the achievement of the organizations objectives (Freeman, 1984).

Analyze the impact of this factor on the organization.

Domino's pizza is a very successful company because it understands the requirement of its stakeholders. Domino's primary stakeholders include stockholders, investors, owners, creditors, suppliers, and anyone and everyone that has something to lose in the company. Where as, secondary stakeholders include the intermediaries in the aid delivery process. This definition of stakeholders includes both winners and losers, and those involved or excluded from decision-making processes.

How can the organization deal with this factor?

In order for Domino's Pizza to deal with this factor, managers must consider the interest of all major stakeholder groups as they make decisions. This can provide improved predictability of environmental changes, more successful innovations, greater degree of trust among stakeholders and greater organizational flexibility to reduce the impact of change. So understanding who an organization's stakeholders are, and how they contribute to its specific environment, is important (Berman et al. 2005).

Corporate Social Responsibility and Ethics

Society expects managers and organizations to perform in an ethical and socially responsible manner, therefore ethics and social responsibility are essential to a manager's job. Many people make decisions about which organizations they will work for (Sroufe & Ramos, 2011), and even invest in, based on how socially responsible those organizations are. When deciding whether an organization should be socially responsible, it is a good idea to consider whether social involvement affects an organization's economic performance. Numerous studies have done just that (Lacy & Kennet-Hensel, 2010), and most have found a small positive relationship, however no generalizable conclusions can be made because studies have shown that the relationship is affected by various contextual factors (Seifert, Morris, & Bartkus, 2004). Organizations that have little social responsibility may find it difficult to obtain and keep the support of customers and employees. This can result in poor performance when measured against more socially involved rivals. Therefore, the final answer may be that organizations should be socially responsible because they can't afford not to be (Robbins et al. 2016, p. 52).

Corporate Social Responsibility (CSR) is an organization's intentions to go beyond its legal and economic obligations to act in ways that are good for society (Robbins et al. 2016, p. 52). Today, organizations are subject to greater demands to be more community friendly. And so, locally owned and operated, Domino's strongly believes in giving back to the community and lending a helping hand where they can. Over the years, Domino's had donated copious amounts of pizzas and hundreds of thousands of dollars back into the Australian and New Zealand communities through doughraisers, pizza donations in times of natural disasters and monetary donations. Domino's community incentives include:

• Domino's Chocolate for Charity

• Domino's Give for Good

• Doughraiser Fundraisers

• Partner's Foundation

• Domino's Pizza supports Clean up Australia Day

Despite being a for-profit organization, Domino's Pizza had an internal not-for-profit organization, which was established to assist team members in time of special need or tragedy that may have resulted from on-the-job accidents, unexpected afflictions, natural disasters and other emergencies. Since founding the Partners Foundation, it has helped many Domino's team members and their families with emotional, financial, intermediary and advisory assistance throughout Australia.

Personal Insight Quiz

Upon completing the personal insight quiz, “What's the Right Organizational Culture for Me?” I scored a total of twenty-four. According to Robbins et al. (2016, p. 46),

 “Scores above 22 indicate a preference for informal, humanistic, flexible and innovative cultures, which are more likely to be found in high-tech companies, small businesses, research units or advertising agencies. The higher you score above 22, the stronger your preference for these humanistic cultures.”

Domino's organizational culture is very people oriented. The degree to which management decisions take into account the effects on people in the organization is a key aspect in the success of the business. Their vision is to be “no. 1 in pizza, no. 1 in people”. The level to which work is organized around teams rather than individuals, also plays a huge role in successfully running the business. Domino's CEO Patrick Doyle, believes that each individual at Domino's is just as important, from the Board of Directors and Team Executives to employees and franchisees. He states:

“The key people in each group are the most important to find, excite and motivate. That is the starting point for taking care of the other three constituents, which is fundamentally the customers, franchisees and the company — and that is ultimately company shareholders. You have to create value for all three of those groups. It has to work for customers, for franchisees and ultimately for the company. If value for any one of those groups is not working, then ultimately the other two will fail” (Sniegowski, 2012).

I believe I would fit into the Domino's organization and its organizational culture because Domino's has a strong humanistic culture, and so do I. Humanism to me, represents a philosophical and ethical view that emphasizes the value and work of human beings, individually and collectively. I value humanism greatly and believe that it is the core factor of a successful organization. Referring to Maslow's Hierarchy of Needs, it states that meeting an individuals needs is the key to motivation in the work place (Lester, 2013, p. 1). Lower level needs (physiological, safety, and social needs) must be satisfied in order to achieve higher level needs (esteem and self actualization), therefore it is important to make sure all individuals in the organization feel accepted socially and that their views and work ethic is valued, which will lead to self actualization.

Conclusion

Taking into consideration the technological dimension of the general environment of Domino's Pizza, it seems that technology is always evolving and in order to deal with this factor, Domino's must follow the technological trends and adapt to these changes to avoid falling behind in a technological world. Considering the interests of all stakeholder groups as Domino's makes corporate decisions is essential and understanding whom Domino's stakeholders are and how they contribute to its specific environment is important. Many people make decisions about which organizations they will work for, and even invest in, based on how socially responsible those organizations are, so it goes without saying that society expects organizations to perform in an ethical and socially responsible manner. Therefore it is important for Domino's to continue their community incentives because they can't afford not to. Upon completing the personal insight quiz, it was concluded that Domino's Pizza and its organizational culture was a suitable position to complete my graduate role, as Domino's has a strong humanistic culture and provides a working environment that will enable me to achieve self-actualization by satisfying Maslow's hierarchy of needs.

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