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Domino’s Case Study

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Domino’s Case Study
DOMINO’S CASE STUDY

This is a Uni assignment that I thought I would turn into a blog post to generate some debate and see if my ethics align with yours. Please note that I have no idea what happened after this case so all of my arguments are based on the facts given in the case study.

The main conflict of the Domino’s case is the argument that Domino’s 30 minute pizza delivery guarantee causes and incentivises their drivers to drive recklessly and hence cause accidents that otherwise could have been avoided.

The Facts:

• Domino’s had a 30 minute guarantee that if a customer’s pizza order was not delivered within 30mins of them placing the order they got a full refund.

• It was later changed to a $3 refund for their order.

• Domino’s has grown to be one of the largest Pizza restaurants in the world. The business rapidly expanded from one restaurant in 1960 to 1000 in 1983. By 1993 there was over 5500 Domino’s restaurants around the world either owned by the company or franchised to other owners.

• In 1984 Domino’s introduced their 30 minute guarantee.

• Shortly after Domino’s introduced the guarantee they began receiving complaints that they were encouraging unsafe driving. This resulted in small lawsuits that the company settled out of court.

• The company implemented driver training procedures to educate their drivers about the importance of road safety. Measures included driver training manuals, firing managers who failed to pay attention to safety, training supervisors as certified defensive driving instructors, using safety training tapes, making drivers pass safe driving tests and take defensive driving classes.

• The company publicised all of these new safety programs.

• A 1989 study of pizza chains in South Carolina suggested that Domino’s had little competitive advantage other than their fast delivery.

• In 1989 the director of the National Safe Workplace Institute claimed that in 1988 Domino’s drivers were involved in

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