1. Explain in detail the technology-enabled processes and platforms that Domino’s Pizza used for organizational learning and talent development.

2. Over the years Domino’s Pizza has managed to transform its culture. What challenges did the company face, and how did the company counter these challenges with social changes required for efficient operations?

3. In detail, what are four key takeaways from the case study?
 
 
 

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Domino's was started by brothers Jim and Tom Monaghan in 1960. They took out a $900 loan from the Post Office Credit Union to purchase a local pizza shop in Ypsilanti, Michigan, called DomiNick's. Within a year of opening, Jim traded his share of the partnership for an old Volkswagen Beetle from his brother, Tom. From that point forward, Tom Monaghan was the driving force behind the pizza chain. During the early years, he struggled to find the right business model as he experimented with sit-down restaurants and free delivery-based outlets. In 1965, the company was incorporated under the Domino's Pizza name and began to open franchises. By the end of the 1960s, Monaghan had the franchise model refined and was opening a new store every week. Growth soared in the 1980s, when Domino's opened an average of approximately 500 stores per year. By the end of the decade, the company boasted almost 5,300 locations spanning North America, Central America, South America, Europe, East Asia, and Australia. Despite the momentum, this period also brought challenges that would hinder growth in the following years. In terms of competition, Pizza Hut introduced a delivery channel in 1986, posing a direct threat to Domino's dominance in the market. In addition to this challenge, in 1989 Monaghan announced plans to sell the company. In 1990, the company cut its public relations and international marketing departments and implemented other cost-cutting measures to increase profitability. Unsuccessful in selling the company, Monaghan refocused on competing head-to-head with Pizza Hut and deterring challengers such as Little Caesars. The early 1990s were marked with internal restructuring and the closing of 155 stores. Domino's focused its attention on modernizing operations and implementing systems such as a single phone number for orders and a centralized computer system to track metrics. The changes resulted in increased earnings in 1993, and by 1997 the company was back on track to achieving steady growth. A year later, Monaghan successfully sold the company to the Boston-based private equity group Bain Capital. Domino's was started by brothers Jim and Tom Monaghan in 1960. They took out a $900 loan from the Post Office Credit Union to purchase a local pizza shop in Ypsilanti, Michigan, called DomiNick's. Within a year of opening, Jim traded his share of the partnership for an old Volkswagen Beetle from his brother, Tom. From that point forward, Tom Monaghan was the driving force behind the pizza chain. During the early years, he struggled to find the right business model as he experimented with sit-down restaurants and free delivery-based outlets. In 1965, the company was incorporated under the Domino's Pizza name and began to open franchises. By the end of the 1960s, Monaghan had the franchise model refined and was opening a new store every week. Growth soared in the 1980s, when Domino's opened an average of approximately 500 stores per year. By the end of the decade, the company boasted almost 5,300 locations spanning North America, Central America, South America, Europe, East Asia, and Australia. Despite the momentum, this period also brought challenges that would hinder growth in the following years. In terms of competition, Pizza Hut introduced a delivery channel in 1986, posing a direct threat to Domino's dominance in the market. In addition to this challenge, in 1989 Monaghan announced plans to sell the company. In 1990, the company cut its public relations and international marketing departments and implemented other cost-cutting measures to increase profitability. Unsuccessful in selling the company, Monaghan refocused on competing head-to-head with Pizza Hut and deterring challengers such as Little Caesars. The early 1990s were marked with internal restructuring and the closing of 155 stores. Domino's focused its attention on modernizing operations and implementing systems such as a single phone number for orders and a centralized computer system to track metrics. The changes resulted in increased earnings in 1993, and by 1997 the company was back on track to achieving steady growth. A year later, Monaghan successfully sold the company to the Boston-based private equity group Bain Capital.

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