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INTRODUCTION Domino’s Pizza is an American restaurant chain and international franchise pizza delivery corporation headquartered at the Domino Farms Office Park. Domino’s Pizza was founded in 1960 by a man called Tom Monaghan whose original goal was to open three pizza delivery stores. That’s why there are three dots on Domino’s Pizza logo. However, in 1978 the 200th Domino's store opened. Tom Monaghan launched Domino's Pizza Malaysia in September 1997. Today, Domino’s pizza is having more than 8,500 stores at all around the world and making a profit of USD35 billion per year. Domino's Pizza is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. Domino's Pizza's Vision illustrates a company of exceptional people on a mission to be the best pizza delivery company in the world. EXECUTIVE SUMMARY Starting in 1960, Domino’s Pizza, Inc. (Domino’s) was formed from two brothers from Michigan. The two started the business after purchasing a store named DomiNick’s. They converted the name to Domino’s five years later. In 1983, Domino’s went international. Today, Domino’s employees have about 10,500 people in their 8,700 stores worldwide. The company has been traded on the NYSE as DPZ since 2004. The pizza industry is a highly competitive and mature market. There are many pizza makers ranging from local pizzerias to international franchises such as Domino’s and Pizza Hut. With the current health kick in today’s society as well as economic 1
Transcript

INTRODUCTION

Domino’s Pizza is an American restaurant chain and international franchise

pizza delivery corporation headquartered at the Domino Farms Office Park.

Domino’s Pizza was founded in 1960 by a man called Tom Monaghan whose

original goal was to open three pizza delivery stores. That’s why there are

three dots on Domino’s Pizza logo. However, in 1978 the 200th Domino's

store opened. Tom Monaghan launched Domino's Pizza Malaysia in September

1997. Today, Domino’s pizza is having more than 8,500 stores at all around

the world and making a profit of USD35 billion per year. Domino's Pizza is

the recognized world leader in pizza delivery operating a network of

company-owned and franchise-owned stores in the United States and

international markets. Domino's Pizza's Vision illustrates a company of

exceptional people on a mission to be the best pizza delivery company in

the world.

EXECUTIVE SUMMARY

Starting in 1960, Domino’s Pizza, Inc. (Domino’s) was formed from two

brothers from Michigan. The two started the business after purchasing a

store named DomiNick’s. They converted the name to Domino’s five years

later. In 1983, Domino’s went international. Today, Domino’s employees have

about 10,500 people in their 8,700 stores worldwide. The company has been

traded on the NYSE as DPZ since 2004. The pizza industry is a highly

competitive and mature market. There are many pizza makers ranging from

local pizzerias to international franchises such as Domino’s and Pizza Hut.

With the current health kick in today’s society as well as economic

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downturn, many companies are being forced to make healthier, cheaper

products. Many other companies are introducing salads into their menu. The

popularity if the Internet as well as mobile commerce is transforming the

original ways of ordering a pizza.

Within the Domino’s company, there are many characteristics that make it

stand out from other companies. Domino’s carries an extremely strong brand

image. They are able to retain customers because of their image. However,

the decline in the economy has forced many customer to hold back in their

spending, resulting in lower revenues. Nevertheless, Domino’s could use the

expanding growth in the fast food industry in China and India to their

advantage. But with new markets comes new competition, which is a threat to

Domino’s. Domino’s compete with both fast food companies such as

McDonald’s, as well as other pizza markers like Pizza Hut or Papa John’s.

PURPOSE

The purpose of this report is to describe the system in online ordering of

Domino’s pizza. What kind of systems that they are using and how they use

it. Then, to identify and describe all of the business processes for the

online ordering system and know whether the system help the Domino’s pizza

improve their business performance or not. In other hand, the report will

also figure out how the systems can give huge amount of improvement to the

Domino’s and how competitive of that systems really are in order to make

the company a competitive edge.

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METHODOLOGY

Methodology is the process used to collect information and data for the

purpose of making the report. The methodology may include publication

research, interviews, surveys and other research techniques, and could

include both present and historical information.

For this report, we collect the information from literature survey as the

secondary data and data collecting and sampling as primary data. For the

literature survey, secondary data are being reviewed initially through the

sources such as commercial abstracts, bibliographic databases, and internet

search engines. Next, the primary data are gain through data collecting and

sampling from an online survey. This is conducted due to get more

information about the historical record of the company, the process of

ordering system and other information. The survey will collect quantitative

data on overall of the company from the establishment until development of

the company.

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PROCESS

DOMINO’S ORDERING SYSTEM

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INPUTCUSTOMER ORDER

(TYPE OF PIZZA, PIZZA INGREDIANTS & DELIVERY LOCATION)

PROCESSCOLLECTING

DATA (CUSTOMER

INFORMATION INCLUDE CUSTOMER NAME,

ADDRESS & PHONE

NUMBER)

OUTPUT(CUSTOMER BILLS,

TIME ORDER & CUSTOMER FEEDBACK )

QUESTION

1) Describe the system. Identify and describe the business processes.

Describe the inputs, process and outputs of these systems.

Transaction processing system which is the ordering system is the point of

sale system captures 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. The inputs, customer orders

that describe the type of pizza crust, pizza ingredients and toppings, side

orders, and delivery location data. Next, the processes, data update the

system's database by collecting data of customer such as the name of

customer, the address of the customer and also the phone number of

customer. Then, the outputs, as the customer received their order, they

will also receive the receipt that include the item of things that they buy

from domino’s, the time they make order, also the feedback from the

customer.

2) How do these systems help Domino's improve its business performance?

Domino’s proprietary point-of-sale system, Pulse, is an important asset in

maintaining consistent and efficient management functions in each of its

restaurants. Those stores using Pulse reported improved customer service,

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reduced mistakes, and shorter training times. Pulse performs some functions

like touch screen interface, maintaining sales figures, compiling customer

information and delivery driver routing system that makes the employee

easier to take an orders. Furthermore, Domino’s proprietary point-of-sale

systems can captures purchase and payment data at a physical location,

Goods and Services are bought and sold, computer, automated cash registers,

scanners or other digital devices It’s clear from industry analysts that

the technology is working to cut costs and increase customer satisfaction.

Then, this kind of follow-up can relieve any possible feelings of buyer's

remorse and reinforce the positive feelings about their business and

domino’s customers had when the customer originally bought from Domino’s.

Intranets and Extranets help Domino’s pizza integrate information, improve

its business performance and their business processes when intranets and

extranets share the same technology and software platforms as the Internet,

they are easy and inexpensive ways for companies to increase integration

and expedite the flow of information within the company (intranets alone)

and with customers and suppliers (extranets).  They provide ways to

distribute information and store corporate policies, programs, and data.

Both types of nets can be customized by users and provide a single point of

access to information from several different systems. Businesses can

connect the nets to transaction processing systems easily and

quickly.  Interfaces between the nets and TPS, MIS, DSS, and ESS systems

provide input and output for user online pizza ordering system. Although

the main competitors of Domino, which is Pizza Hut and Papa John’ have

online ordering capabilities, they still lack of Pizza Tracker technology

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and simulated pizza features that have been implemented successfully by

Domino’s.

3) How did the described system improve the process?

The online pizza ordering system improves the process of ordering by rolled

out its state-of-the art online ordering system, which includes Pizza

Tracker. The system allows customers to watch a simulated photographic

version of their pizza as they customize its size, sauces, and toppings.

The image changes with each change a customer makes. Then, once customers

place an order, they are able to view its progress online with Pizza

Tracker. Pizza Tracker displays a horizontal bar that tracks an order’s

progress graphically. As a Domino’s store completes each step of the order

fulfillment process, a section of the bar becomes red. Even customers that

place their orders via telephone can monitor their progress on the Web

using Pizza Tracker at stores using Pulse Evolution. In 2010, Domino’s

introduced an online polling system to continuously upload information from

local stores.

The system allows customers to watch a simulated photographic version of

their pizza as they customize its size, sauces, and toppings. The image

changes with each change a customer makes. Then, once customers place an

order, they are able to view its progress online with Pizza Tracker. Pizza

Tracker displays a horizontal bar that tracks an order’s progress

graphically. As a Domino’s store completes each step of the order

fulfillment process, a section of the bar becomes red. Even customers that

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place their orders via telephone can monitor their progress on the Web

using Pizza Tracker at stores using Pulse Evolution.

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Figure 1.1 : The Domino’s Pizza Tracker.

Question 4: How effective are these systems in giving the company a

competitive edge? Explain.

The system that the company used is ordering system, management information

system and decision support system. Competitive edge is the ability of an

organization to produce goods and services more effectively than

competitors do, thereby outperforming them. This means they must stay ahead

in four areas: being responsive to customers, innovation, quality, and

efficiency.

The better processes that the companies have make them becoming sources of

competition strength because the system enables the company to innovate and

implements the operation more rapidly than the other competitors. The steps

inside the business process of the company are automatic which change the

information’s flow and this enable more people to access and share

information among others. The technology is also supporting new business

models like the online pizza ordering system. Although the main competitors

of Domino, which is Pizza Hut and Papa John have online ordering

capabilities, they still lack of Pizza Tracker technology and simulated

pizza features that have been implemented successfully by Domino’s.

.

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CONCLUSION

Stepping into the world of modernization, majority of the services are

being computerized and programmed in a specific system to simplify and

reduce labour work. It is a wise decision for Domino’s to adopt online food

ordering system due to its convenience and user friendly.

Domino’s website which provides online ordering also have saved profile of

signed up customers, including full name, contact number and also complete

address for delivery. It prevents mistakes of jotting down the details if

customers order through phone call. Besides, Domino’s have also kept a

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record of previous orders so that customers can refer to previous selection

of their favourite pizzas.

This online ordering service will undoubtedly attract more customers

because Domino’s allow customers to place an order via internet today and

request for delivery on another day. The delivery time is also available at

any time according to customers’ needs from 11.30am till 11.30pm.

Another great service provided in online ordering service is Domino’s have

specifically engineered the “Great Pizza Service Tracker” that provides

customers an up-to-date status from the moment customers place orders to

the moment the pizza leaves the store. The status starts from order placed,

preparing, baking, boxing, packing, ready for delivery, and lastly the

pizza is ready for delivering.

In conclusion, Domino’s has successfully keeps their customer loyal is

partly due to the wide usage of online food ordering service. This service

has not only minimize mistakes while placing an order, it has also provides

maximum satisfaction for customers during the selection of food.

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RECOMMANDATION

According to our research about Domino`s Pizza, several recommendation are

advised to be considered by the company to improve their services and

operation performance:

Planning

Domino`s company needs an effective advertising structure or plan and also

need new innovative ways in ordering pizza. In this case it will improve

customer relations. The domino`s company needs to increase the speed and

efficiency of pizza making, therefore means that they can cope with larger

amount of customers and having long customer relations.

Performance management

Domino`s company should check how the employees are doing for example how

they analyse the performance of the company. Employees are required to

interface directly with the customers to improve better understanding;

another thing is that the employees need to make certain decision in the

company rather than waiting to be told what to do and how to do. For

Domino`s to be successful, the employees need to work hard so that they can

reach the objective the company. I will recommend the employees should be

made happy for example, good working condition and to be treated fairly.

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2. Corporate Miles Stones. (18 June, 2013). Retrieved 12 November, 2014,

from http://www.dominos.com.my/corporate/corporatemilestones_my.aspx

3. Journey of Dominos Pizza. (20 August 2011). Retrieved 12 November, 2014,

from https://prezi.com/hvs6lcpjp09n/the-journey-of-dominos-pizza/

4. Domino’s Pizza. (14 December 2013). Retrieved 14 November, 2014, from

http://www.dominos.com.my/

5. Domino’s MIS. (10 September 2013). Retrieved 15 November, 2014, from

http://www.slideshare.net/patilvrushali/dominosmis

6. Kenneth C. Laudon, J.P. (2012). Management Information Systems, Twelfth

Edition. PEARSON.

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