ORGANIZATIONAL CHANGE AND DEVEOPMENT

PROJECT
TOPIC: CHANGES OCCURRED IN DOMINO’Z PIZZA

SUBMITTED TO:
SIR SAQIB-UR-REHMAN
SUBMITTED BY:
AQSA SALEEM 07
SANA SHAHID 32
AMINA IDREES 04
BISMA ZUBAIR 11
CLASS:
BBA
SEMESTER:
7
SESSION:
2018-2022
DEPARTMENT:
MANAGEMENT SCIENCES
 DOMINO’S PIZZA

Domino's Pizza, Inc. is an American multinational pizza restaurant chain founded in 1960
and led by CEO Richard Allison. The corporation is Delaware domiciled and headquartered
at the Domino's Farms Office Park in Ann Arbor, Michigan. As of 2018, Domino's had
approximately 15,000 stores, with 5,649 in the U.S., 1,232 in India, and 1,094 in the U.K.
Domino's has stores in over 83 countries and 5,701 cities worldwide.
Domino's Pizza is a pizza delivery company founded in the United States. It is the biggest
pizza company in the United States. They are now a world-wide company with 17,100 stores
in more than 90 countries. Domino's menu has pizza, pasta, oven-baked sandwiches, chicken
wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of desserts.
Dominos also operates in the United Kingdom and is one of the most popular pizza restaurant
chains in Britain.

CHANGES OCCURRED IN DOMINO’S PIZZA

The changes implemented by Domino’s Pizza finally saw the brand lift its sales over Pizza
Hut for the very time. Using savvy marketing, creative ordering methods and innovative
technology, things were finally looking positive in 2010. Back in 2008, Domino’s Pizza was
struggling as stock had hit an all-time low. Despite the importance the business had put on
maintaining a positive brand image, its struggles were making this a real challenge.
In 2012, however, Domino’s Pizza was back on its feet due to a successful change
management implementation. The organization’s pizza turnaround, thanks to digital
transformation, rested on the fact that key transformation players managed to convince top
management to get on board. Eventually, their enthusiasm trickled down throughout the
entire business.
The brand implemented new technology to support the chance. A new custom delivery
vehicle with a heating oven was introduced, dubbed the DXP, which acted as a form of
advertisement despite only 150 being on the road at the time. The brand ramped up its digital
efforts as well to meet consumer demand. Text messages, Alexa, Google Home, Twitter,
Facebook, Smart TVs - they’re all methods used by consumers to order a pizza. 
Domino’s leveraged the wealth of consumer data through its custom operating system. This
helped keep the transaction costs low and provided Domino’s with insights about its
customers. Then there’s also the case of developing loyalty programs and introducing special
offers to continue to drive up sales. Despite the successful change, it hasn’t stopped there.
The brand has also tested drone and robot delivery - even partnering with Ford on self-
driving options.The scale of the changes at Domino’s are remarkable. 
Doyle became CEO in 2010, after some troubled years, when the company’s growth was
slow and its stock price was stuck, a lame $8.76 per share. Today, Domino’s is the second-
largest pizza chain in the world, with more than 12,500 locations in more than 80 countries,
and a share price approaching $160. It has moved from being the butt of late-night jokes
to becoming a favorite of the stock pickers on CNBC.
Domino’s is not just in the pizza-making business, the CEO emphasizes, but in the pizza-
delivery business, which means it has to be in the technology business. “We are as much a
tech company as we are a pizza company,” he told the audience, pointing out that of the 800
people working at headquarters, fully 400 work in software and analytics.  All that
technology has changed how customers order (using the Domino’s app, or directly via
twitter, or even by texting an emoji); how they monitor the status of their order; and how
Domino’s manages its operations.

Domino's made 3 changes to become the world's top pizza chain

Domino's has executed an epic turnaround. The company is opening hundreds of new
locations and profits are soaring. Morgan Stanley recently named it the "leader in US
delivery pizza." But just a few years ago, Domino's was struggling to compete with Pizza Hut
and Papa John's. Executives made some crucial changes that turned around business,
according to Jesse Solomon at CNN Money.
"The pizza is actually better now, and the marketing campaigns are cheesy good instead of
just cheesy," Solomon writes. In an earnings call with investors, Domino's CEO, Patrick
Doyle, laid out a reasons for the company's recent smash success.

Reinvented products
Sales at Domino's have soared since the company came out with a new pizza recipe in 2009.
Having a better core product was necessary for business to turn around. Domino's has also
innovated its sandwiches, pastas, and side dishes.
The "specialty chicken" strips topped with cheese and sauces, which are increasingly ordered
alongside pizzas, are driving up the average ticket sale at Domino's, Doyle said. Improving
the menu has helped Domino's succeed over rivals like Pizza Hut and Papa John's.

Sources of change in the Domino’s Pizza:

There are many internal and external sources which has brought change in the dominos’
pizza and its strategy. They accepted these changes and there are some external reasons
which are as follows:
  Changing in market nature is the source of change in the Domino’s Pizza. As the
consumers know that their choice is matter in the market whatever they demand it
will be considerable.

 Australia is one of the largest countries and consumers of that country markets want
healthy food so Domino’s Pizza made healthy menu. With the objective of
maintaining the competition, business always run according to the rules and
regulation. So Domino’s Pizza also influenced by political and legal issues. Employer
should have to remember about the nutrition laws and information.

 There is another source which has affected the operation of the Domino’s Pizza which
is economic growth and location. There are some internal sources which have impact
on the Domino’s Pizza. New technology system to keep pizza warm and hot for the
longer time it has created change and also online delivery order. New internet based is
beneficial for the customers. Dominos made easier for the consumer card payments,
driver take wireless card machines for the payment of order.

RESISTANCE TO CHANGE IN ORGANIZATIONAL CULTURE IF

DOMINO’SPIZZA
Brandon who had purchased Domino’s Pizza for$ 1.1 billion. He tried to create very friendly
relationship with employees. First day on the work he explained that change is good. With
the passage of time, Domino’s Pizza brings changes in cultural sector. Proper wearing
uniform and given training to the employees and how to work, given them trainings.
Employees of Domino’s Pizza were eligible.
Organizational culture changing is not an easy thing, manager make out the strategy that how
to change in the organization individually and in the group. Innovation of online ordering is
new change in the Domino’s Pizza. Competition in the industry has increased in the selection
of store manager and gives them training. New computerized system has brought changes in
organizational culture as well.

RESISTANCE TO CHANGE IN ORGANIZATIONAL BEHAVIOR OF

DOMINO’SPIZZA
Due to resistance to change in Domino’s Pizza, there are some changes incurred in
organization behavior of the organization. Staff issues have increased because new
technology is using and employment opportunities are decreasing. With the passage of time
new modern technology has taken over the jobs. These are the basic issues and change in the
organizational behavior. There are some problems incurred individually to face the change
like managers of store.

Domino’s pizza Aim and objective:

To minimize the resistance to change Domino’s has focus on its aim and objective. Main
objective of domino’s pizza is to great care of customers. Make customers happy and deliver
their orders on the time. Through examine the domino’s main objective mangers can control
the resistance to change.
Achievable goals:
Managers can understand about the achievable goal of the Domino’s Pizza. Managers should
have to do setting of goal. These goal should be reachable and success able. There is one
example of domino’s pizza is that in 2006 their goal was to achieve 418 Outlet but they had
438. Through this approach Domino’s Pizza can reduce the resistance to change.

Culture of change:
Domino’s pizza has to describe their culture to change. Domino’s is increasing its growth
rate. It has gone international level. Whatever changes will come in the cultural. They should
have to explain to their customers. It can be helpful in reduction of strategy.

PEST ANALYSIS OF DOMINO’S PIZZA

PESTLE Analysis of Dominos analyses the brand on its business tactics. Dominos PESTLE
Analysis examines the various external factors like political, economic, social, technological
(PEST) which impacts its business along with legal & environmental factors. The PESTLE
Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Dominos, as it
helps to understand market dynamics & improve its business continuously. PESTLE analysis
is also referred to as PESTEL analysis.

1. Political Factors:
Dominos is a multinational pizza restaurant chain which was founded in America in 1960.
Dominos operates in around 85 countries worldwide. Its’s important for it to adjust itself as
per the political environment and political risks in the system of the respective countries.
Regulations related to wages, hygiene and food quality varies from country to country and it
is of utmost importance to comply with these regulations which thereby affects their cost.
These varying regulations also affect the packaging and labelling of Dominos. Political
stability and level of consideration of restaurants sector in the country’s economy are
important for Dominos being a fast food restaurant. Other political factors include
Intellectual property protection, taxation, wage legislation, industry safety regulations in the
service sector, anti-trust laws related to restaurants, etc.

2. Economic Factors:
Some of the significant economic factors that affect Dominos’ s business performance and
conditions are economic growth, consumer services industry growth rate, inflation, deflation,
unemployment rate, interest rate, wage policies. The type of economic system whether it is
monopoly, oligopoly or a perfect competition is also an important economic factor to
consider. Every country has its own GDP growth rate and this affects how Dominos grows in
the near future. Also, the exchange rate of the country Dominos operates in impacts the
profitability of Domino’s pizza. 
 3. Social Factors:
The culture of an organization in an environment is impacted by society’s culture and method
of doing things. This culture includes certain social factors like demography trends, power
structure in society, participation of women in workforce, etc. These factors impact both the
operational and marketing aspect of Dominos. Thus a thorough understanding of customers,
their beliefs, attitudes, values, their lifestyle and level of education, all of it would help
Dominos to design its product and marketing messages. 

4. Technological Factors:
Technology is rapidly disrupting a lot of industries. It has the potential to transform the price
structure and the competitive landscape of an industry in a very limited amount of time.
Thus, it become extremely important for Dominos to continuously innovate in order to
survive in the market and also to maximize profits. It helps the firm not only to move towards
their goal of becoming a market leader but also to avoid obsolescence in near future.

5. Legal Factors:
The legal framework and government institutions differ from country to country and many of
them do not have it robust enough to protect the intellectual property rights of any
organization. If the data is stoled then Dominos will lose its competitive edge and have a high
chance of failure. Thus, it needs to assess the data laws in the countries it operates in and
comply with the same. In terms of enforcement, there are business laws placed by the
government that are different from the home market, there are discrimination laws to ensure
protection of employees in Dominos to ensure fairness, same opportunities regardless of age,
gender, religion, etc.

6. Environmental Factors:
This aspect highlights the different environmental trends and standards in different markets
that affects the profitability of the organization. Dominos needs to know the level of
consumer activism regarding environmental concerns that will help them to develop
environmentally friendly products. It is important to know the per capita and national carbon
emissions of the operating country to better predict its environment policy.

DOMION’S PIZZA PORTERS FIVE FORCES

1. Threats of New Entrants

New entrants in Restaurants brings innovation, new ways of doing things and put pressure
on Domino's Pizza, Inc. through lower pricing strategy, reducing  costs, and providing new
value propositions to the customers. Domino's Pizza, Inc. has to manage all these
challenges and build effective barriers to safeguard its competitive edge.

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy Domino's Pizza, Inc.
‘s products.
 By building economies of scale so that it can lower the fixed cost per unit. 
  Building capacities and spending money on research and development. New
entrants are less likely to enter a dynamic industry where the established players
such as Domino's Pizza, Inc. keep defining the standards regularly. It significantly
reduces th window of extraordinary profits for the new firms thus discourage new
players in the industry.

2. Bargaining Power of Suppliers

All most all the companies in the Restaurants industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins
Domino's Pizza, Inc. can earn in the market. Powerful suppliers in Services sector use
their negotiating power to extract higher prices from the firms in Restaurants field.
The overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Restaurants
 By building efficient supply chain with multiple suppliers.
 By experimenting with product designs using different materials so that if the
prices go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of
the lessons Domino's Pizza, Inc. can learn from Wal-Mart and Nike is how
these companies developed third party manufacturers whose business solely
depends on them thus creating a scenario where these third party
manufacturers have significantly less bargaining power compare to Wal-Mart
and Nike.

3. Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying
the minimum price as possible. This put pressure on Domino's Pizza, Inc. profitability in the
long run. The smaller and more powerful the customer base is of Domino's Pizza, Inc. the
higher the bargaining power of the customers and higher their ability to seek increasing
discounts,

 By building a large base of customers. This will be helpful in two ways. It will
reduce the bargaining power of the buyers plus it will provide an opportunity to
the firm to streamline its sales and production process
 By rapidly innovating new products. Customers often seek discounts and
offerings on established products so if Domino's Pizza, Inc. keep on coming up
with new products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Domino's
Pizza, Inc. to its competitors.

4. Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a
value proposition that is uniquely different from present offerings of the industry
 By being service oriented rather than just product oriented.
 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers
.
5. Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Domino's Pizza, Inc. operates
in a very competitive Restaurants industry. This competition does take toll on the overall
long term profitability of the organization.

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing
for small market.

Three Change models: Unfreezing Freezing Refreezing

Sources of conflict within change:

Some source which has created change in domino’s pizza strategy. These sources were
internal and external. Dominos did many changes in it whole journey to the success. This
organization met to resistance to change. These resistance was by organizational culture,
behavior, polices and many other things. There are many approach used to overcome the
resistance. After using these approaches and strategies Domino’s Pizza faced many conflicts
which were changing in the working style of the Domino’s Pizza. There is innovation of new
technology which has taken over the job of employees. They cannot get working hour more.
Online order service, misleading with calculation of sales, misleading the data, misuse of
branding. These are the main sources of conflict in the change. When changes come then it
creates conflicts between the employees. Due to misleading the calculation there were impact
on the sales revue and the ratio analysis of the domino’s pizza.
Approaches to deal with conflicts:
When conflict incurred then there should be some approaches to deal with conflicts. To deal
with conflict should have to careful about the main objective and aim. If we forget about the
main purpose then there is no befit of running the business. To solve these conflicts
Domino’s Pizza should have to take some steps which are as follows:
 Domino’s Pizza had to do some promotional activities to keep its image maintain.
These activities make customer happy and create more attraction.
 To reduce the conflicts, Domino’s Pizza had to increase the working hours of
employees and have to offers some compensation, holiday packages, bonuses.
 Domino’s pizza had to arrange some motivational workshop for the employees like
customer service workshop, team work, training of staff.
 Domino’s pizza had offers some new meal deal to the customers to increase the sale
and revenue level.
 Positive or negative outcomes of change initiative in Domino's
There are many internal and external sources which has brought change in the dominos’
pizza and its strategy. They accepted these changes and there are some external reasons
which are as follows:
Changing in market nature is the source of change in the Domino’s Pizza. As the consumers
know that their choice is matter in the market whatever they demand it will be considerable.
Australia is one of the largest countries and consumers of that country markets want healthy
food so Domino’s Pizza made healthy menu.
With the objective of maintaining the competition, business always run according to the rules
and regulation. So Domino’s Pizza also influenced by political and legal issues. Employer
should have to remember about the nutrition laws and information. There is another source
which has affected the operation of the Domino’s Pizza which is economic growth and
location. There are some internal sources which have impact on the Domino’s Pizza. New
technology system to keep pizza warm.
Resistance to change:
When changes are made then resistance born. There are many reason of increasing of
resistance like due to some confusion in the data, misleading and misusing the data,
organization do not know where have to do change, sometime criticism incurred, employees
does not agreed with the new polices. Resistance can be intense because of different reasons
like a cognitive of different options, due to deeper emotions and deeply embedded.
Approaches to deal with conflicts:
When conflict incurred then there should be some approaches to deal with conflicts. To deal
with conflict should have to careful about the main objective and aim. If we forget about the
main purpose then there is no befit of running the business. To solve these conflicts
Domino’s Pizza should have to take some steps which are as follows:
Domino’s Pizza had to do some promotional activities to keep its image maintain. These
activities make customer happy and create more attraction. To reduce the conflicts, Domino’s
Pizza had to increase the working hours of employees and have to offers some compensation,
holiday packages, bonuses. Domino’s pizza had to arrange some motivational workshop for
the employees like customer service workshop, team work, training of staff. Domino’s pizza
had offers some new meal deal to the customers to increase the sale and revenue level.

Conclusion and Recommendations:

At the end, changes come in ever field of organization. Whenever change needed it comes.
For the acceptance to change there are some elements which have to keep in eye. In
Domino’s Pizza many changes come and due to these changes it has create resistance to
change in it. These resistances were in organizational behaviour organization cultural,
traditional changes, changes in rules and regulation and power. These changes come not
individually but it also comes in group of shape. After analysis of Domino’s pizza, we came
to about the approaches and strategies which had used in the reduction of resistance. After
resistance there are some problems and conflict born. Domino’s pizza used different
techniques like offering the different meal deals, free vouchers to the customers, workshop
for the employees and many other things. Domino’s pizza is well known and best
competitors organization in the market. It gained high profit and revenue
According to the latest news, Domino’s seems to be doing well under these extraordinary
challenging coronavirus conditions. Reports indicate that Domino’s’ U.S. same-store sales
rose 16% in the second quarter of 2020.
According to the latest news, Domino’s seems to be doing well under these extraordinary
challenging coronavirus conditions. Reports indicate that Domino’s’ U.S. same-store sales
rose 16% in the second quarter of 2020.

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