Global Strategic Leadership in the Domino’s Pizza

Under the quick changing political economy, the global strategic leadership is a perception that sets up the personnel to accept a greater leadership responsibility within their place of work and in their groups. By means of a corrective approach, this paper would present a value-added approach to the global point of view to study leadership with organisational strategy, operational management, as well as successful management practices. This paper has taken Domino’s Pizza to investigate thoroughly a set of critical reflection on the organisation, and conducted an experiential learning scheme to explore the organisational philosophy on effectual global strategic leadership as well as its development plans to contribute the prime leadership competencies for Domino’s Pizza. To develop strategic leadership for Domino’s Pizza, first, it is necessary to understand the strategies and potentials of any business in international market.

As a result, the managers of the MNCs¹ have enhanced the practice of leading organisations in a healthy, expanded, and productive way out. Consequently, the organisation demonstrates a positive and distinctive performance than any of others. The study then presents the way of improving the Domino’s Pizza in perspective of global strategic leadership with proper findings and recommendations.

Introduction

Some organisations always anticipate introducing in the international market. To attain global market various marketing and organisational strategies have to carry out by these organisations. The idea of Multinational Corporation extends as a mean to access customers from outside the country of origin. People of one country are now exposed indigence products to other country and businesses are now having no geographic boundary. Here, every organisation wants to capture the market, get superior competitive advantage, and finally ensure the highest possible profit margin.

For this reason, organisations manage its operations and undertake various strategies to defeat the competitors and get favourable customer response. These strategies may vary time-to-time, country-to-country, and situation-to-situation. These strategies act as a stimulator to attain market leadership. That is an organisation, which wants global leadership, has to select some effective strategies. The strategies are usually are very reliable but some of these strategies may fail to achieve the goals for which they are designed. It may have problems with designation, implementation, control, and evaluation. These issues would consider the practical example of a global organisation later in this paper.

The significance of this discussion is to identify the major issues relating to the global strategic leadership, the effect of these issues in organisational development and proper solutions to the problem. This discussion would divide into two parts. The first part will analyse a selected global organisation as per global strategic leadership issues and the second part will design an improvement plan for the organisation. In the analysis part, the key leadership issues will be associated with the operation of the organisation and in the improvement plan, other issues, and techniques would discuss for the organisation.

Methodology

The paper focuses on globalisation and issues related to the strategies for achieving global leadership. The methodology has used here to collect information and connect this information with the strategic movement of the organisation. This information will help to assess the organisational approach to reach global leadership. Later the assessment has applied in developing the organisational strategies targeting the achievement of leadership. Here the data used and collected from secondary sources that are published on the related issues and those available in the internet.

Analysis

Literature Review

Wanasika defined in the report of “In search of global leadership” about global strategic leadership (3-5). The main concentration of this paper is to continue challenges of strategic leadership according to globalisation in global enterprises. In comprehensive environment, organisations have several principle drivers to control unintended situation. Technology is one of the key changing factors, and it can stand as a major economic and business insufficiency in a renowned industry. Many countries tried to improve the economic conditions by means of $12.5 trillion aid because of the business breakdowns and an increase in the ageing population.

On the other hand, capital goods need to be innovative to administer other external risks involved in the global economy, such as political, environmental, economic, and legal issues. Strategic alliances, virtual employees, and contingent workers are helping organisations, however, to compete effectively. With unique characteristics, strategic leadership can help the businesses to deal with the global economic challenges involved in operating in the local environment. By using strategy researches in most cases, this study continued for two decades starting from the micro level concept to the macro level paradigm. In some organisations, strategic leadership is used as the main tool in the management of its functions.

In some other studies, strategic leadership has shown as dependent variables in structuring and processing the empirical research. Recently, strategic leadership has considered as neither a dependent variable nor the main construction of managing organisation. It has a significant impact on the evaluation and performance of the organisation, considering the environmental challenges.

Competency of the strategic leadership could be competitive advantages of any organisation. However, strategic leader psychological make up could not measure the characteristics of the CEOs according to organisational functions. Therefore, strategic leaders have to have all attributes and qualities to perform organisational activities successfully. In studies of the leader‘s characteristics and behaviour, the organisation’s outcomes are measured by maintaining a framework of focus and predicting strategic outcomes in globalisation and internal organisation. In international environment, strategic actions of the organisations depend on the roles of the CEOs according to future strategic actions.

The paper of “achieving excellence in board and strategic leadership” by Reyatt focuses on critical shortages of efficient strategic leaders in global environment required to compete the Business Corporation, public services and other sectors with organisational performance (6). After the excellence of the research of strategic leadership, even the good strategic leaders had to adopt the proper practices and develop leadership in context of long-term investment with high sponsorship according to culture. There are four key factors of Reyatt’s research, including excellence in leadership, strategic visioning of the UK’s excellent CEOs, development of strategic leadership, and development of future strategic leadership in international perspective.

The main challenges faced by a business consists establishing exact leadership with appropriate positioning of responsibilities. These responsibilities provide a meaning and purpose of effective strategic visioning with strategic leadership. The culture also affects strategic leadership practices and its development according to organisation’s challenges. Yip explored strategic leadership for the achievement of challenges to capture the strategies of the UK’s major global corporation (136). Other influences on leadership might be strategic leadership practice and improvement individual executives, leadership group, and overall performances. Moreover, strategic leadership practice and its development can bring success in organisation’s future.

Company Overview

Domino’s Pizza UK & IRL plc is a leading pizza delivery company, providing services to UK and Ireland. It’s expertise as delivering hot and fresh pizzas worldwide by having loyalties of millions of pizza lovers. It is also capturing the main market of London Stock Exchange with master franchising of own business and operating Domino’s Pizza stores in global market. It first opened its store at the UK in 1985 and in 1991, at Ireland. The organisation is maintaining its support functions of marketing, IT and training by 18,000 team members to produce fresh dough to attract high standards of customers in 570 Domino’s Pizza stores in England and Wales and Ireland. In 1960, Tom Monaghan first founded Domino’s Pizza as the pizza delivery store in United States with $500 only, with the name of Dominick’s (Domino’s Pizza 23).

Tom was holding the values and commitment to the products, services, images, and safety of the organisation. It started to deliver tasty pizzas as a franchisee not only to local people, but also outside of the community. Now, Domino’s Pizza has more than 8,000 stores in 50 countries with the help of 145,000 employees and 2,000 franchisees in global food market delivering at least one million pizzas daily. The goal of Domino’s Pizza is to open 1,000 stores by 2017. The business aims to design stores in sympathetic manner for the local people and its employees are concerned of both the environment and local citizens comparing with any other organisations.

The organisation is also auctioning free pizzas every year with the request of hundreds of customers. It also ensures the customers to have food choice, clear information about food and its ingredients, and tries to stay reliable by including quality ingredients in food, and maintaining standards in respect to food presentation and preparation. These standards have ensured further by to European Food Safety Inspector Service (EFSIS), which controls quality of food from the suppliers.

As a global organisation, Domino’s Pizza can be analysed according to these steps.

Understanding Global Strategy

The term “Globalisation” has first used in international marketing, which has expressed by the word of “global” means worldwide. In this term, the business is trying to capture consumers in all countries with preferences of its products or services as globally standardised goods. Mainly, globalisation is focusing on development of global marketing strategies to reach customers throughout the world.

Therefore, by the globalisation, Dominos Pizza is trying to reach at global standards among consumers and buyers in large number of countries in international market. In today’s realistic world, it is hard to define globalisation in true manner, because there are few companies, who are adapting globalisation for difficulties to capture markets of various countries and the different viewpoint of cultures, trends, and behaviour. Although, there are various companies, who are able to establish global branding with the help of globalisation among national borders to international markets, Domino’s Pizza is one of them. This company is successfully adapting globalisation, but not five years ago. According to the mission of the organisation, it wants to capture international food market in forecasted future.

Therefore, the globalisation is expanding its area with structure, culture, corporate strategies, and visionary leadership with the help of marketing strategies and managerial process in effective manner.

The understandings of global strategies are the main step to globalisation to predict global economy. In the hard time of recession, performance of strategic leaders are being critical in downturn, on the other hand, successful organisation has driven by innovation and growth strategies of strategic leaders of Dominos Pizza. Therefore, the organisation is developing this leadership challenges as vital decisions of CEOs and Board of Directors.

Now, the organisation has to control leadership development strategies and budgets for maintaining efficiency and effectiveness of its brand image in global market. The global challenges to drive the globalisation in proper way are another challenge of strategic leaders and other top-level management of this organisation. In UK, the leadership and organisational development are main factors to have considered by the organisation to understand and maintain global strategies. The organisation also has to understand the challenges in cross section, perception of multi level and innovation adoption of different environment.

Diagnosing Industry Globalisation Potential

To maintain short-term pressure of industrial effects, many organisations are wasting time and capital for capturing globalisation strategies. Nevertheless, considering organisation as a going concern, every organisation must fulfill the strategic demands for future in long-term manner. The strengths of organisation are depending on internet uses and other potentials in current market situation.

Therefore, Dominos Pizza also can achieve success today to have changing ability and fundamentals shifts of proactive change of world in everyday. This organisation is moving faster day by day to capture the changing environment with short-term period. Nevertheless, strategic leaders are focusing on building strengths for longer period of time. As an approach of strategic leadership, Dominos can develop strategic leadership comparing with recent world. First-of-all, it has to analyse the competition in local and global markets. Now days, competitors are increased so rapidly with developing economics and critical focus. Next, it has to develop UK market, which is slow in growth as borders expansion.

The strategic leaders have to have high level of perception about global changes and future. As a result, for making decisions on global changes, Dominos has to take time for long-term period. In the next way, this organisation has to change its resources and realities to move forward. The organisation becomes comfortable with interdependent changes for future and new experiences to achieve, as effective internet uses for sell and purchase, and moving drivers of industry globalisation in market. There are some strategic decisions would taken, like, forget to plan according to linear exercise, send employees to gather field experiences, and look internal and external environment of the organisation. Dominos can take these strategies with potential changes by time and regional scales. Strategic leaders have strategic and operational roles in an organisation to focus on strengths of future and fulfilment of objectives over time. (Thomas)

Global Human Resource Management

In 21st century, human resource management has forced considered as an imperative aspect in every organisation by the global economy. The selection of approaches regarding to HR practices to maintain the government sometimes bound staffs and employees of any organisation. To do business in a market, there should be constant new approaches with changing HR planning, selection, compensation, and job design for employees. According to Fisher, et al, this approach has predominantly used in multinational companies, with the name of “Global human resource management” (20). There are some important issues have to maintain by Dominos to maintain global human resource management, which are:

• Cultural issues of business area.
• Global business evolution by time.
• Major functions of global human resource management.
• Staffing on global basis.
• Expertise according to different countries.
• Compensation system of employees.
• Making team on internet.
• Giving equal opportunities to all employees.

The development of employees according to cultural, social, political, behavioural, and environmental changes can be possible with the help of this new approach in UK and other countries. Strategic leaders are viewed employees not only as a member of the Dominos Pizza, but also expressed them as high performance teams with remarkable accomplishments in the organisation to become successful in global human resource management project. The development of team members are easy as much as complicated because, the team members have to have common culture, but if it is not, then it is difficult to establish team culture in global branches of Dominos Pizza. These differences can decrease the potential qualities of team members, so successful interaction should manage in communication and decision making process of strategic leaders.

The team members should be determined about the goals and objectives of Dominos by strategic leaders. In forming, the strategic leaders are more concentrated on the team members of group to be interacted rather than understanding the goals of it. In “storming”, team members are thinking that how to accomplish their goals overcoming global conflicts. In “norm”, the members have trained to be comfortable with the methods of leaders to complete tasks. Lastly, in “performing”, team members are ready to achieve results in international perspectives.

Building Global Organisation

To build global organisation is a strategic decisions of organisation for achieving objectives and understanding the proper way to gain the strategies. The strategic objectives could achieve through adaptation of people, time, and budget and by making global business decision’s initiatives. Moran & Youngdahl stated that the strategic leaders must find a proper initiative to balance the risks of the business by analysing budget and resources available in global location (162), which has selected to build business.

Another important aspect should consider by strategic leaders of Dominos Pizza, which are cultural aspects of global location of business. The successful communication with cultural different people is very hard to communicate without skilled leaders, who can understand to manage global business. As it is clear that, in global business, Dominos has to learn about creative approaches of global business issues. The selection of top, mid, and lower level employees should be substantial according to comprehensive perspectives.

In international markets, products, services, human resources and technologies have to be highly competent for a business (Moran & Youngdahl 7). From preceding studies, it has adopted that, many global businesses are conducting failure because of impounding inadequate technologies in different locations. Inadequate technologies can stand as a major obstacle within communications.

The strategic leaders are connecting strategy and results of global business projects effectively by reaching the strategic goals of Dominos Pizza. If the strategic ways are not clear, then global business projects can be major failure of this organisation. For an example, if global transportation and supply chain management is not implemented in a single contract with third party suppliers of raw materials of Pizza items, then the real purpose of global business is being unclear of Dominos Pizza. This organisation also has to analyse external and internal environment according to suppliers and transportation capabilities of new environment. The strategic objectives of global business must fulfill with the help of strategic leaders to adapt global locations to do business in upcoming future.

Regional Strateg

For an international business, it is very important to conduct research within a large number of countries. However, it is very intricate to conduct the research because of the differences among regional groups. Regional strategy is a main step of achieving success in international atmosphere for managerial decisions. The global economic activities in manufacturing services, regional strategies are influencing the strategic management decisions of the leaders (Moran, & Youngdahl 7). The mode and choice of locations are also significant factors to consider in regional strategies. The largest multinational companies are operating business regionally in the markets. There is empirical evidence of a business according to regional strategies with international activities.

In national and regional level, production, marketing, distribution and human resource management are making substantial portion of decision making of strategic leaders. The global business strategies are important decisions with two parameters, which are, number of home bases in many functions and using non- location and location bound of Dominos as competitive advantages. There are various approaches to offer global business products in borderless markets to earn benefits and national responsiveness by Dominos.

In this figure, the global strategies have reflected in cell 1, 2, 3, 4, and 7, by focusing on decisions and actions of strategic leaders. Cell 2 and 3 is reflecting the substantial regional strategies according to product offerings in global markets. Sometimes, regional strategies are describing outcomes of global strategy according to core business of Dominos Pizza. The overall role of regional approach to global strategies has decision making of strategic leadership. The importance of global business has operated in homogenous world market in international business. There are more than 100 largest successful global businesses worldwide with strong operation and capturing regional strategies with management strategies. (RUGMAN) There are also some values, which should be achieved the strategic connection of Dominos Pizza, which are:

• Financial Value.
• Customers’ Value.
• Tactical Value.
• Organisational Value.
• Compliance Value.
• Strategic Value.

The simplistic global strategies and globalisation perspectives are occurring regional market activities in multinational companies.

Conducting a Global Strategy Analysis

There are various stages in conducting global strategy analysis, which could adopt by Dominos Pizza, like:

• Thinking strategically about the relationship of principles of Dominos Pizza and corporate issues related citizenship in global market,
• Establishing core business strategies by identifying stakeholders, critical priorities, opportunities, and risks by this organisation,
• Evaluating strategic decisions according to Domino’s principles and corporate citizenships,
• Assessing benchmark performances in context of principles into heart of Dominos and achieving global market.

For successful global strategies establishments, there are number of factors has considered and analysed, like, re- establishing strategic leadership for protecting earth and using research and technologies. Some other factors can be achieved market potentials by dominos Pizza, which are:

• Market factors of Dominos Pizza.
• Production and supply factors in global market.
• Labour Markets.
• Capital factors.
• Tax related factors.

The expansions of human activities within countries are also important to understand customers and employees. The technological, economic, and societal benefits are contributing the solutions of pressing problems according to global business of Dominos Pizza. The global business must create with the inspiration of current and future generations of global locations. Lastly, the strategic leadership is maintaining the business activities for enhancing global business. (United Nations Global Compact Leaders Summit Geneva)

Improvement

Domino Pizza, as the largest pizza delivery stores in world market, improves its strategic leadership to being strong set of market position worldwide. The total system of this organisation has succeeded to raise sales by 15.4% in 2008 and profit before taxes are increased up to 25.2% in same year (Domino’s Pizza 2). To achieve continuous economic stability, it should develop strategic leadership with strong comparison between different countries. The geographic levels of strategy should applied by the company here. This is drawn bellow:

The expansion plans of new stores in various countries are creating 650 new jobs all over the world, and this is one of most appreciable steps from the leadership decisions. Domino’s also considers the impact of weather on different locations in prospect of doing business for longer period. The customers’ behaviour analysis is another mean to boost the profit margin, and these could do by field and desk research. The franchisees and the organisation both are offering permanent discounts to hold the brand strengths in the markets.

Without enhancements of leadership, the performance of Domino’s may not have been comparable with other brands, like McDonalds, Pizza Hut etc. The expectations must fulfill with operational and strategic leadership decisions. In 2008, earning per share increased up to 20.9% and diluted earning per share increased up to 21.3%. Total dividend increased by 29.6% in 576 stores (Domino’s Pizza 5-10). In 2009, E- commerce continued entire online business with the increment of 38.9% obtained from delivery sales to strong UK market only (Domino’s Pizza 10). Therefore, financial highlights would be more impressive with the help of developed strategic leadership.

Improvement can also earned by increasing the degrees of integration within the firm, which is a function of four unions. These have Political, monetary, border, and customs union.

Domino’s has also been “Master Franchisee” in market with largest pizza stores around the world, with initial investments of £250,000 in the business by partners and suppliers. The franchisees are supporting the standards of brand by running the business in a profitable manner.

Domino’s Pizza has plenty of growth opportunities in global market with large market share and high recognition. By developing leadership frequently, Domino’s can catch the total market in global context within 2015. In the platform of e- commerce, strategic leaders should trust on online marketing to reduce consumers’ time constraint. This approach will boost up future sales of home delivery services due to increasing number of orders by internet, interactive television, and SMS from traditional telephone. By 2011, the value of food market of Domino’s is expected to reach at £1,474 million in UK with 30% growth rate.

Domino’s Pizza has an innovative approach to strengthen market with strategic leadership. The innovations can promote convenience in everyday lives of people and augment loyalties. To maintain the loyalties, Domino’s have to deliver fresh and delicious pizza, keep proper equipments to process the dough and grip its perfect preservation by pizza box, and lock the moisture of food ingredients. Another part of food is to develop pizza screen with perfect crust to cook pizzas. The innovation of Domino’s is depending on e-commerce from 1999, by ordering pizzas by internet and televisions. By the decisions of strategic leaders, Domino’s can also develop online ordering to increase the sales in double rate in UK market only. It has the opportunities to develop ordering pizzas through text messaging. One major theme of delivering pizzas by Domino’s is to keep hotter the food, by developing heated hot bags, which has manufactured in electronic ways. The organisations can also developing technologies of portable oven as the innovative decisions of delivering pizzas. It can also develop innovation of real time monitoring systems in delivering service performances to order pizzas in nationwide. Domino’s is also allowing commissaries to make and deliver pizzas according to customers’ expectations.

It can also develop as strategic leadership, the production, and distribution process with high quality food ingredients and standard stores comparing with other pizza and food service stores across global market. They can open 1,000 stores to expand business as competitive advantages within 2017. Domino’s is first introduced delighted pizzas with less fat comparing with others’ pizzas in market to meet up customers’ demand, which is a successful strategic decisions of leaders of the organisation. It is also developing the decisions of strategic leaders by introducing double Decker pizza in UK and nationwide. It is also having individual customers’ store numbers to delivery food in easiest way. The strategic leadership involvement has focused on producing pizzas for potential customers with 88 million varieties of pizzas in market.

The importance of customers are main strategy of them to focus on leadership way. The food experts are ensuring quality of foods with appropriate flavours and delighters within time. The main objectives of delivering pizzas by Domino’s are to achieve the sensibility of customers and helping them to have balanced diet concerning food allergies and sensitivities. Therefore, the strategic leaders can clarify their nutritional information to customers accurately. The way of preparation of pizzas can also be focused to customers with maintain values and standard of pizzas. The strategic leaders can ensure highest possible standards of quality and food safety of their products. As customers’ taste is changing through time, so, Domino’s can update food ingredients with availability of foods in all around by offering delighted pizzas.

Findings

With the successful development of strategic leadership, Domino’s Pizza has 576 stores in UK and Ireland, 450 stores in England, 45 in Scotland, 22 in Wales, 14 in Northern Ireland, 44 in Republic of Ireland and one successful store is mobile unit. The strategic leadership is mainly focusing on globalisation aspects of delivering and producing pizzas. In many countries, Domino’s has developed different strategic decisions of leaders.

For an example, in Hong- Kong, the delivery times are maintained with the influence of traffic conditions, as the organisation is expressing itself as delivering pizzas with shortest possible times comparing with other food delivery services. The traffic conditions of elevators has considered in peak hours, when the volumes of people are living in building. In Japan, the adoption of languages in food ingredients and food items has designed. The addresses of location of the people are also difficult to search because of huge use of Japanese languages. As a result, the strategic leaders should train up the team members and employees in proper way in producing and delivering pizzas (Malnight & Tracey 12).

In Aruba, the purchases of motorcycles are taking longer time those essential to deliver pizza. Therefore, strategic leaders have to import transport facilities to recover the certain problems. Ecuador has situated in Andes Mountains with one million people, to whom Domino’s Pizza is being popular in market by capturing the consumers’ according to their tastes and preferences (Investorrelations 4).

In the development of strategic leadership, Guatemala is arranging occasions of traditional event to make annual pizza chain with a record of 1,250 meters long, where the money is using as literacy of Guatemala people as corporate social responsibilities of Domino’s. Jamaica has habituated by Domino’s Pizza, where sells of pizzas are up to 6,000 in 16 days, which has captured by strategic leadership by adding flavour of pineapple. As India is Hindu respective country, so, Domino’s is avoiding beef to respect their culture, which is one of the major strategies for these regions. Lastly, in Philippines, the strategic leaders are selected location to prosper of the business with attribute designs and placement of equipments.

Recommendations

Strategic management process of Domino’s Pizza is developing through effective strategic leadership, which is increasing the leadership abilities, maintaining flexibilities and empowering strategic changes of organisation. The decisions of strategic leaders could use as competitive advantages to obtain valuable, rare, and perfect decisions of Domino’s.

• The organisation’s strategies and performances are interrelated for effective use in context of globalisation. There are five major components of effective strategic leadership, those should be followed by Domino’s Pizza and these are determining strategic directions of leaders, maintaining resources capabilities to produce pizzas according to demand of customers.
• It should also establish organisational controls in accordance with global culture and ethical policies of regions to maintain successful globalisation. Strategic leadership can developed to maximise human resource management in meeting current and future performances of Domino’s Pizza. The successful use of the decisions of strategic leaders can establish by developing proper skills of employees and staff members.
• Market can adversely affect for few reasons; therefore, it should be monitored the increased competition, customers perception about the price of new items, down slopping trend in housing, upward interest rates, limited disposable earnings, lack of confidence of customers, reduced demand for the coffee beverages, ineffectively hedged costs of goods, like- high labour expenses, construction costs, IT and logistics costs.

• Domino’s should also promote social capital for competing in global market in effective way. As a global organisation, Domino’s should widen regions cultural views between employees and team members of it.
• Finally, it must control final components of strategic leadership to keep balance between strategic analysis and financial controls of the organisation.

Conclusion

The strategic leadership of Domino’s Pizza has determined in this term paper to face the complicated challenges. The employees’ behaviours are critical to measure the effectiveness of strategic leaders. Therefore, to become successful in global market, Domino’s Pizza is processing strategic leadership with being successful in context of capturing dominant nature of globalisation. Consequently, Domino’s Pizza should understand organisational effectiveness according to strategic perception of strategic leaders. The development Strategic leadership has established to control mechanisms and infrastructure of facilitating organisational progress in international market. Thus, the benefits of strategic leadership are influencing Domino’s Pizza to do business in comprehensive market.

References

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Investorrelations. “Domino’s Pizza News”. 2009. Web.

Malnight, Thomas & Tracey keys. “The New Realities of Strategic Leadership”. Imd. December 2007. Web.

Moran, Robert & William Youngdahl. “Leading Global Projects”. 1^st ed. Elesevier: Amsterdam, 2008. Web.

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Yip, George. “Total Global Strategy II”. 2^nd ed. 2003. Prentice Hall.

Footnotes

1. Multi National Companies.