UNIVERSITI UTARA MALAYSIA
KUALA LUMPUR CITY CAMPUS
BJMP5023 OPERATIONS & TECHNOLOGY MANAGEMENT
|GROUP ASSIGNMENT | | |
25TH NOVEMBER 2012
HISTORY IN MALAYSIA
Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America. It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold.
The legend of Domino’s Pizza dates back to December, 1960 with the purchase of a small pizza shop in Ypsilanti, Michigan by brothers Tom and Jim Monaghan. The brothers bought the restaurant from friend Dominick DeVarti for USD500 cash and assuming the stores USD8,000 debt (Dicke, 1992). Neither Tom nor Jim had the intention of making the restaurant business their career, but rather saw the opportunity as a part-time venture to help cover the cost of their studies at the nearby University of Michigan. By June the store was earning a profitable USD400 a week but briskly fell off when students at the University went home for summer. Faced with the prospect of a slow phase, Jim sold Tom his half of the business in 1961 and changed the name from Dominick’s to Domino’s. The same year, Tom decided to quit school to devote more time to the business.
Aware of his lack of experience in pizza making and operations and management, Tom spent much of his time visiting many similar pizzerias around the state acquiring advice on operations and recipes. By the mid 60’s, Tom had restructured the interior of the store, rearranged all areas and systems, ultimately improving the flow of work in all facets of the operation from order-taking to delivery. “Monaghan’s system was reminiscent of those developed by the managers of White Castle Hamburger in the 20’s and the McDonald brothers in the 40’s” (Dicke, 1992). The implementation of this system formulized the production process as a unified whole, and included the standardization of materials, clever and thoughtful placement of equipment, and detailed division of labor; all geared to achieve the continuous production of its limited product line. By 1967, Domino’s emphasis on uniform quality and rapid delivery proved a successful system for operating a pizza shop and therefore provided opportunity for expansion through franchising.
3. HISTORY IN MALAYSIA
The company landed in Malaysia in September 1997. Launched by its founder, Tom Monaghan himself, Domino’s Pizza became an overnight sensation. It was so well-received that Domino’s Malaysia’s commissary was recognised in the Annual Domino’s International Audit as the Best Commissary in Asia Pacific.
Exhibit 4.1 Domino’s Pizza Customer Benefit Package
Domino’s Pizza offers a wide range of meals to its customers. They offer variety of pizza, pasta, side orders and beverages. They have 5 unique pizza crusts i.e. Classic Hand Tossed, Crunchy Thin Crust, Cheese Burst Double Decker, New York Crust and Extreme Edge to satisfy Malaysian customers’ appetite.
Exhibit 4.2 Domino’s Pizza 5 unique Pizza Crust
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