Hr Practices at Dominos

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  • Topic: Pizza delivery, Domino's Pizza, Tom Monaghan
  • Pages : 10 (3254 words )
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  • Published : March 17, 2010
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Case Study on:
Submitted to: Dr. G. Prageetha Raju
Date: 4th January 2010
Ananya Bhaduri (09BSHYD0092)
Neetu Pillai (09BSHYD0493)
Ruchi Agrawal (09BSHYD1009)
Sanya Jain (09BSHYD0738)
Sweta Singhania (09BSHYD0911)
_ “According to the recently held Hewitt Best Employer Survey, Domino’s Pizza India Ltd. has been ranked as the Best Employer in the Quick Service Restaurant (QSR) industry in India. Domino’s has been ranked 9th among all companies in India and is the only QSR company to be featured in this elite list, biennial feature that ranks companies according to their HR quotient in India and Asia. Specifically, the survey uses four parameters to distinguish best employees from other companies. These include effective and committed leadership, CEOs , Ownership of talent and leadership development, high performance work force, effective HR policies and strong customer focus.”_ Patti Wilmort, Executive Vice President, PeopleFirst, Domino’s Pizza. INTRODUCTION In April 2009, Domino’s Pizza India Ltd has been ranked 9th on “25 Hewitt Best Employers in India 2009” as published in Outlook Business (dated 2nd April,2009). In the same year, a distinctly gross incident was reported from Conover, North Carolina where two Domino’s Pizza employees indulged in unethical and unhygienic behavior. With widespread dissatisfaction among customers, the two accused were promptly charged and arrested. The company’s stance was that it was the franchisee stores responsibility to hire competent employees whereas these stores didn’t provide any comments. This appears to be in stark contrast to the uniform HR Policies to be followed by Domino’s Pizza franchisees across the stores. BACKGROUND NOTE

The first origination of Dominoes Pizza was actually a small store run by a person names Dominick Di Varti at the Michigan University campus. It was run under the name “Dominick’s Pizza”. Subsequently, it was bought by brothers Thomas S. Monaghan and James S. Monaghan in 1960. However, within 8 months, James quit and traded in his shares for a second hand car. Tom, now the sole owner, renamed the store “dominoes pizza” to not only revitalize the brand but also to avoid any confusion with “Dominick Pizza” which still continued to exist. Tom also based his business on the then little known “franchise” model which encouraged people to open Dominos Pizza stores in the neighborhood. These franchisees in return paid royalties from sales. The first franchisee store was opened in Ypsilanti, Michigan in 1967. The current logo of dominos was introduced in 1975 with the 3 dots representing the first three stores of dominos to have started operations. By 1982, the company had started to enter the international market and established Domino’s Pizza International. It s first international store was in Winnipeg, Canada which opened on May 12, 1983. That very same year Dominos also opened its 1000th overall store. By 1988, it s presence had expanded across 6 continents. Dominos founder Tom, has been given credit for the initial success of the pizza chain largely due to it s franchisee structure and also due to its innovations. The company went to great lengths to ensure that a piping hot pizza was delivered to the customer on time by promising a pizza delivered within 30 mintues, introducing corrugated pizza boxes to prevent moisture from seeping into the pizza, use of portable electrical heat bags called “Heat wave” and also various other appliances like dough mixers, conveyor ovens and pizza screens which later on went on to establish industry standards. However, in 1998, after nearly 38 years of ownership, Tom Monaghan sold his 93% stake to Bain Capital Inc. for a whopping $1 bn. He still continued on the Board as Chairman Emeritus and David A. Brandon was appointed Chairman and Chief Executive Officer....
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