In this assignment, you will write a 3-4 paragraph critique about a fellow students case analysis (that has been chosen and

February 02, 2022

Teacher

Gerald Ingersoll

Authors

Jeremy Leblanc

Great Case Analysis Team 1

One thing I noticed is that your team incorporated into its case analysis the internal and external factor evaluation (IFE & EFE). While both factor evaluation methods are needed to truly understand a firm, your team could have added and created the firm IE matrix to identify the firm current position, performance, and managing capabilities when it comes to internal and external opportunities and threats. (David, 2019) The addition of the IE Matrix would give readers the ability to quickly identify if there is room for improvement without going into the details, and specific of the firm operation.

Moving on to your "Industry & Competition" section, I feel that not enough information is given on the firm to truly determine its industry position in relevance to its competitors. The only partially relevant information given in the section was the company revenue. However, even this is limited to the Canadian market which does not give the reader an accurate picture, due to in your Case Study you mentioned that Domino's was in third place in terms of sales in Canada. However, upon performing a quick research, we can determine that Dominos is not the third biggest pizza company in the world, they are without a doubt the biggest food delivery franchising restaurant globally in terms of size, revenue, and market shares. (Reiff, 2020)

Thirdly, when researching the firm mission, and vision, I did not find the same ones as you have identified. Is there a particular reason for this as I also have found mine directly on the firm website, in the Domino's Mission, Vision, and Values section? Nonetheless, if the wrong mission, and vision is employed, there is a good chance that the strategies chosen/formulated will not align with the firm's true vision, and mission. (David, 2019) Thus, rendering the strategy futile.

Our vision is to lead the internet of food in every neighbourhood.

(Domino’s, 2022)

Our mission is to redefine convenience by creating inspired food, picked up in three minutes or safely delivered in 10.

(Domino’s, 2022)

Fourthly, I found it particularly interesting that your team did not incorporate in your IFE matrix Domino's current financial position. More specifically its high total liabilities, and shareholder deficit. With a current total asset value of 1,567M and total liabilities and shareholder deficit of 4,867M and – 3,300M respectively. This is definitely a cause for concern, and close monitoring of the firm debt is required as an increase in interest (which is sure to come according to the bank of Canada) could affect the firm ability to meet its obligation. (Lord, 2022) An increase in interest rate on loan means more cash on hand is required to meet the obligation of the loan. Thus, reducing profitability in the process. (Kieso, 2019)

Lastly, it would be important to mention that the two major strengths of Domino’s is their ability to generate most of their revenue through the sale of their products, and ingredients to their franchise. And their ability to gain market share, and control of the market with their utilization and leverage of innovation. In 2015, Domino’s developed the DXP vehicle, which allowed them to gain a 30% control on the pizza delivery market almost seemingly overnight. (Meyersohn, 2018) Furthermore, since the introduction of their Nuro 2 self-driving delivery vehicle in 2020, Domino’s market share has increased by 13%. (Lucas, 2021) Hence, Domino’s clearly utilizes innovation as a core strength.

Reference

Annual Report 2020, (2021), Dominos, https://ir.dominos.com/static-files/4daec873-268e-4456-b541-3871f28288e2

Bank of Canada Interest Rate, (February 02, 2022), WOWA, https://wowa.ca/bank-of-canada-interest-rate

David, F., & David, M. (2019). Strategic Management: A competitive advantage approach, concepts and cases. Pearson Education.

Dominko Mura, (August 18, 2021), This American Pizza Chain Is Now Officially the Largest One In the World, Eat This, https://www.eatthis.com/news-dominos-now-officially-largest-pizza-chain-world/#:~:text=But%20beyond%20absolutely%20dominating%20on,its%20biggest%20rival%20Pizza%20Hut.

DOMINO'S VISION, MISSION AND VALUES, (February 02, 2022), Dominos, https://www.dominos.co.nz/about-us/who-we-are/vision-and-mission#:~:text=Our%20mission%20is%20to%20redefine,or%20safely%20delivered%20in%2010.