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Domino's Pizza Project

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Creation and Development of a Mobile application for Domino’s Pizza España

Domino’s Pizza España will upgrade the ordering system through implementing a new
mobile application, starting at one franchise located in Valencia (Spain).
This project will facilitate the take of orders through mobile devices (iPhone, iPod touch
and iPad), which will help Domino’s Pizza customers to make orders through its mobile phones providing them various benefits.
Moreover, this project continues the strategy that it is been implementing in the US market, where they have carried a similar project in order to satisfy the customer needs as well as exploiting the opportunities of new technologies.

Domino's Pizza Project

  1. 1. MASTERS IN BUSINESS STRATEGY COURSE 2010-2011 Professor: Mº Teresa Giner Module: 41043 HERRAMIENTAS DE IMPLEMENTACIÓN Project Management:“Creation and Development of a Mobile application for Domino’s Pizza España” Florent Guedon Selim Öztürk David Soriano Mc Guinness
  2. 2. Project Management: Creation and Development of a Mobile application Domino’s PizzaTable of contents1. Introduction………………………………………………………………………………………….Pag.4 o Company profile o Scope statement2. Company Analysis…………………………………………………………………………………Pag.5 o Strategy………………………………………………………………………………………...…Pag.5 o Mission o Vision o Values o Organizational Structure3. Balance Scorecard………………………………………………………………………………….Pag.7 o The four perspectives a) Financial b) Customer c) Internal business processes d) Learning and growth4. Industry Analysis…………………………………………………………………………………..Pag.9 o Competitor Analysis o SWOT Analysis o Porter five forces5. Project Phases……………………………………………………………………………………..Pag.15 o Phase 1: Mobile App Conception a) Apple developer’s conditions b) Development and implementation o Phase 2: Promotion6. Planning and design…………………………………………………………………………….Pag.18 o Selecting the planning team o The Schedule o The Budget7. Control and monitoring…………………………………………………………………..……Pag.228. Conclusions……………………………………………………………………………………...….Pag.239. References and Bibliography……………………………………………………………..…Pag.2410. Appendix…………………………………………………………………………………………….Pag.26 2
  3. 3. Project Management: Creation and Development of a Mobile application Domino’s PizzaList of FiguresFigure 1 Organizational Structure Pag.6Figure 2 Balance Scorecard Pag.7Figure 3 Objectives satisfied by the project Pag.9Figure 4 SWOT Analysis Pag.12Figure 5 Porter Five Forces Pag.13Figure 6 Project Organizational chart Pag.18Figure 7 Roles and Responsibilities Pag.19Figure 8 The Schedule Pag.20Figure 9 The project Budget Pag.21Figure 10 Mobile application final result Pag.24 3
  4. 4. Project Management: Creation and Development of a Mobile application Domino’s Pizza1. Introduction a) Company Overview [13.a,b] Dominos Pizza, is an international pizza delivery corporationheadquartered in Michigan, United States Founded in 1960, Dominos is thesecond-largest pizza chain in the United States and has nearly 9,000 corporate andfranchised stores in 60 international markets and all 50 U.S. states. The menufeatures pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads,breadsticks, cheesesticks, and a variety of dessert item.Domino´s pizza entered in the Spanish market in 2009, entering directly throughbuying all the Pizza Hut franchises, so in one quick movement, Domino´s Pizzagained a significant market share in Spain. b) Scope statement [12][22][24]Domino’s Pizza España will upgrade the ordering system through implementing a newmobile application, starting at one franchise located in Valencia (Spain).The project will be complete by the end of May, 2011, starting in February, 2011. o The project rationalThis project will facilitate the take of orders through mobile devices (iPhone, iPod touchand iPad), which will help Domino’s Pizza customers to make orders through its mobilephones providing them various benefits such as, • Ease of access • Convenience • Make ordering faster by creating an account and saving the orders • Reduce the use of sales assistant (regular orders being made over the phone)Moreover, this project continues the strategy that it is been implementing in the USmarket, where they have carried a similar project in order to satisfy the customer needsas well as exploiting the opportunities of new technologies. 4
  5. 5. Project Management: Creation and Development of a Mobile application Domino’s Pizza2. Company Analysis [13.a, b] [14] a) StrategyFirstly, it is important to know which is the strategy of Domino’s Pizza, we shouldself-asses the company within it in order to achieve the starting point for theproject. o VisionThe Vision of Domino’s pizza is being the number one in pizza and the number onein people o MissionThe Mission of Domino’s pizza is mainly based on sell more pizza and have fun o ValuesSome of the Domino’s pizza values are, • Treat people as you’d like to be treated. • Produce the best for less. • Measure, manage and share what’s important. • Think big and grow. • Incentive what you want to change. • Set the bar high, train, and never stop learning. • Promote from within. • We are not ordinary, we are exceptional. 5
  6. 6. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) Organizational Structure [13.b] [14] To analyse the organizational structure of Domino’s Pizza we must analysefirstly the group who owns Domino’s Pizza in Spain. Grupo Zena is a leadingSpanish casual dining and fast-food restaurant group, composed of a mix of ownedbrands. In the following parts we will analyse with more details this group.In exhibit 1, we can describe the current organizational structure of a franchiselocated in Valencia, where it will take place this project.Figure 1: Organizational structureSource: Self-madeNote: The majority of Domino’s Pizza stores are franchises. 6
  7. 7. Project Management: Creation and Development of a Mobile application Domino’s Pizza3. Balance Scorecard [3] [4] [5] [6] [11.b] [17a.,b] Through the balance scorecard, we will try to translate the company’svision and mission into real objectives, in a briefly way we will ungroup andclassify the main objectives of the company into four different perspectives as wellas find out which objectives are satisfied by the project. According to Kaplan(1996) the four perspectives of the scorecard permit a balance between short andlong-term objectives, between outcomes desired and the performance drivers ofthose outcomes.Figure 2: Domino’s Pizza Balance ScorecardSource: Self-madeAccording to Kaplan (1996) the Four Perspectives of a Balanced Scorecardincludes,a) The Financial Perspective: This perspective addresses the financial impact of priorities chosen, plans executed, decisions made and actions taken by the management team. For Domino’s pizza this perspective in totally based on try to produce the best for less in terms of costs, Increase Market Share and profits, achieve revenue growth each year and try to match the gap between cost estimate and project budget. 7
  8. 8. Project Management: Creation and Development of a Mobile application Domino’s Pizzab) The Customer Perspective: Here we address issues around the themes of customer satisfaction and customer retention. Corporate level measures might include performance data from formal customer surveys, loyalty indices, market segment growth and performance measures against key drivers of customer satisfaction. For Domino’s pizza the customer is in the middle of every thought, the goal is improve customer experience and satisfaction to 100% maintaining the maximum respect for them.c) Internal Business Perspective: In the Internal Business Perspective, measures are developed around the key processes in the organization. It is here that those processes that the organization must excel at because they correlate with customer satisfaction are identified and monitored to ensure that standards and targets are being met. Internally, the main challenges for Domino’s pizza are continuously changing and innovating, and embracing diversity by recruiting and retaining the best people. The company also aims at trying to be environmental friendly and rising awareness about social responsibility at the same time.d) Growth and Learning: In this last perspective, the challenge of identifying measures that link to long term growth and success are identified. For the organization as a whole, as well as for project management managers, issues such as new skill and competency acquisition, employee morale, process improvement and enhanced value to the customer are all addressed in this future focused perspective. For Domino’s pizza this is a vital perspective for its business model, Values as never stop learning or innovate in ways that matter to the team members and customers are the basis of Domino’s pizza.Project’s objectives applied to Vision & Strategy As we see in the Exhibit 2, the Domino’s pizza Balance Scorecard is formedby four perspectives, we can see for each perspective which are the main strategicobjectives for Domino’s Pizza.This project responds the need to satisfy different objectives, but there are somethat they are more important than others. The table below shows which are theobjectives satisfied by the performance of this project. 8
  9. 9. Project Management: Creation and Development of a Mobile application Domino’s PizzaFigure 3: Objectives satisfied by the project Balance Scorecard perspectives o Reduce fixed costs Financial Perspective o Increase revenues o Improve Customer Experience Customer Perspective o Offer larger range of Services o Increase accessibility o Fulfil competitive gap (cf: TelePizza) Internal Business Perspective o Better productivity o Increase the brand reputation o Never stop learning Growth and Learning o Continuous improvementSource: Self-made4. Industry Analysis [2] [3] [13.b] [14] a) Competitor analysis The pizza industry is a highly competitive and mature market. There are manypizza makers ranging from local pizzerias to international franchises. With the currenthealth kick in today’s society as well as economic downturn, many companies are beingforced to make healthier, cheaper products. Many other companies are introducingsalads into their menu. The popularity of the Internet as well as mobile commerce istransforming the traditional ways of ordering a pizza.In the Spanish pizza market there are many companies exist but among them Telepizzaranks as a strongest pizza delivery company. Telepizza is a Spanish home delivery andtake away pizza business that was founded in 1987 in a small Madrid pizza restaurant.Today, Telepizza operates around 650 outlets in Spain (both owned and franchised) thatreach 12 million households. According to DBK, Telepizza is the market leader in thepizza delivery market in Spain, with a 70% share.Competition was becoming tougher in terms of restaurants and at home, even more soin the latter case due to progress made in preparing precooked foods. All types ofrestaurants competed with Domino’s Pizza, but the groups are organised. Within thepizza segment included; Telepizza which is the market’s biggest share holder, andanother company from Zena group called Pizza Móvil, from the Ibersol group in Spain,which were focused largely on consumption on the premises. Domino’s Pizza’scompetitors in the delivery and take away sector were Chinese restaurants, smalloperators and Fast Food chains such as McDonalds or Burger King. 9
  10. 10. Project Management: Creation and Development of a Mobile application Domino’s PizzaDomino’s pizza and its competitors belongs to Horeca sector (Hosteleria, restauración ycatering). TelePizza has secured a market value share of 26.1% making it the mostdominant player in the fast food market in Spain since 1997. The strong growth isattributed to its sale to Pizza World. The fast food market being very crowded withTelePizza and McDonalds chains controlling more than 50% of the total market valueis further being compressed with the entrance of Burger King and Pizza Hut. The pizzasand burgers sectors represent majority of the market reaching to a combined 70.2%.Grupo Zena [10]Grupo Zena S.A. operates restaurants and cafes in Spain. It also operates fast foodoutlets. The company is based in Aravaca, Spain. Grupo Zena S.A. is a formersubsidiary of Carrefour SA. Grupo Zena is owner of Foster’s Hollywood, La VacaArgentina, Cañas y Tapas, Burger King, Nostrus, IL Tempietto and Domino’s Pizza.Grupo Zena was ex-franchise owner of North American pizza giant Pizza Hut in Spain.However, the end of the agreement between Zena Group and North American companycaused the disappearance of Pizza Hut from the Spanish market. With this agreementbroken, a new agreement between Zena Group and Domino’s Pizza Inc. broughtDomino’s Pizza to the Spanish consumer food service market in 2009.After having completed a quick analysis of the different factors in the Pizza deliverymarket in Spain, we have come out with several points: ○ There are a few majors competitors at national scale ○ The restaurants are divided between company’s owned and franchises ○ The main differentiation remains in the offer and services provided ○ A Constant Communication is required to motivate Customer’s LoyaltyWe have been mainly focusing on Domino’s Pizza and TelePizza, which seem to be themajor actor of the market. These two companies are fighting in a highly competitiveenvironment using constant promotional offers and communication in order to motivatecustomers‘ trials and repeat purchasing. In this industry we found services to be veryimportant and definitely dependent on the businesses activities. 10
  11. 11. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) SWOT Analysis [3] [14] [18] In this part, we are going to use the SWOT analysis to identify the strengths,weaknesses, opportunities and threats in order to get a quick overview of Domino’spizza strategic situation.According to Johnson (2005) strengths and weaknesses focuses on an internalperspective of a company, it is the result of an analysis carried out to point out the realcompetences of a business and the different areas of improvement. Threats andopportunities are external; focusing on the environmental conditions where thecompany is operating in. The company is looking at how could it be affected by it andwhich opportunities can it take advantage from. This is where a SWOT analysis ishelpful. It challenges you to see beyond your company walls to determine whatopportunities are open for your company and how to capitalize on your strengths.The SWOT can provide multiple benefits to our project.These benefits can include: ● Insight into where Domino’s Pizza can focus to grow. ● Understand the Pizza industry structure by using a SWOT in our business plan. ● Focus your advertising and marketing on areas that give you a competitive advantage in the marketplace. ● The foresight to see looming threats and react proactively. 11
  12. 12. Project Management: Creation and Development of a Mobile application Domino’s PizzaFigure 4: Domino’s Pizza SWOT AnalysisSource: Self-made As we can see in the Exhibit 4, we have divided the different factors as internalor external for the organization. It is doubtless Domino’s Pizza has important strengthsthat helps to cope with uncertain and ever changing environments but they should try totake the most of the opportunities in the near future as well as to attempt to reduce theimpact of its threats over its performance, they must take into account relevant aspectsas the intense competition within the industry or the more healthier food trends.Domino’s pizza do not have specific weaknesses but the lack of organic pizza limits thetarget market which become more of an issue lately. Thus Domino’s should focus onlow carbohydrate and low calorie products in order to increase their sells. As we arementioning in our project, the iphone application for the beginning and in the latterstages applications for all smartphones would be a great aspect for their future business. 12
  13. 13. Project Management: Creation and Development of a Mobile application Domino’s Pizza c) Porter five forces: Domino’s Pizza [8] [9] Considering the Swot analysis one important part every analysis, we can explain briefly which are the fives forces Domino’s Pizza have to cope with. According to Porter (1980) this model includes three forces from horizontal competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from vertical competition: the bargaining power of suppliers and the bargaining power of customers. Figure 5: Domino’s Pizza Five forces ● Switching costs are low. ● The saturation in the industry is ● The products that they need huge. are high volume and not ● Speedy and reliable channels are differentiated. essential among all firms. ● Cost disadvantages are significant. ● Lot of substitutes.● Switching costs are nearly ●To many subsƟtutes exist inzero. Thus finding a second the industryoption is easy.● Customers bargaining power ●The threat of substitutes isis likely to be low. very high. ● High rivalry among firms. ● Huge number of companies offering the same product. Source: Self-made o Bargaining power of suppliers Domino’s pizza suppliers have low bargaining power because the number of suppliers who can sell to Domino’s pizza the products that they need is high volume and not differentiated. In addition to it, the switching costs from one supplier to another are so easy and tend to make up a large portion of the supplier’s revenue. This severely limits the bargaining power of the suppliers. There are also a lot of substitutes for the particular input. Suppliers are not a problem for domino’s pizza, at least until now they have no problem. 13
  14. 14. Project Management: Creation and Development of a Mobile application Domino’s Pizza o Bargaining power of customersSimilarly, the bargaining power of customers determines how much customers canimpose pressure on margins and volumes. But for Domino’s pizza customers bargainingpower is likely to be low.The buyer switching costs are nearly zero, any customer could find a second option forDomino’s pizza, for example, they can prefer other substitutes such as frozen pizza,microwave pizza etc. or other pizza restaurants and chains. The costumers generallydon’t buy large volumes, so there is not a concentration of buyers. o Threat of new entrantsThreat of new entrants depends on different factors, ● Economies of Scale: The saturation of the pizza industry is a huge limiter of how much an advantage can be attained by economies of scale. ● Product Differentiation: Differentiation is a necessary expense in the pizza industry but it is not difficult to overcome so we can say it is not a significant barrier to market entry. ● Capital requirements will dominate the formation of new, national competitors, but is not a significant barrier to private startups. ● Cost Disadvantages: The extreme saturation and similarity in product offering make convenient locations essential for quick service restaurants large and small. This is a significant barrier to entry. ● Distribution Channels: Speedy and reliable channels are essential among all firms in the industry, they are not necessarily difficult for new comers to attain.Due to the lack of any of the barriers to entry being so significant, we feel the threat ofnew entrants is high. o Threat of substitutes The threat that substitute products pose to an industrys profitability depends onthe relative price-to-performance ratios of the different types of products or services towhich customers can turn to satisfy the same basic need. The threat of substitution isalso affected by switching costsIn this sector, there are lots of substitutes. For example, frozen pizza is an importantsubstitute for pizza delivery. In fact, the entrance of premium frozen and refrigeratedpizzas such as Dr. Oetker, Buitoni or white label products of Mercadona, Consum etc.had a significant impact on Domino’s Pizza working to shrink the market and drivedown prices.With so many firms in the pizza delivery industry, low switching costs, similarproducts, and maybe healthier options, the threat of substitutes is very high. 14
  15. 15. Project Management: Creation and Development of a Mobile application Domino’s Pizza o Competitive rivalry within an industryAt present, there are a huge number of companies offering the same product. Thelimited-service industry defines a red ocean industry. Firms compete for market sharein a saturated market. Growth, particularly in pizza chains, is very slow so the customerbase is not growing as fast as the industry. This leads to high rivalry among firms.5. Project phases [2] [4]The project is divided into two different phases: a) Phase 1: Mobile App Creation & Implementation The mobile application market is currently booming, it is a commercial argumentand Dominos Pizza’s main competitor TelePizza has already integrated it to its servicesprovided.A mobile app can be highly convenient for customers; it offers them the possibility toreview “on-the-go” the entire offer of the company, select the products he would like tobe delivered and also be charged directly on its mobile phone. It saves time for thecompany, and optimizes productivity. There is no longer need for an employee to spendtime on the phone with a customer, it avoids the mistakes that can be made, and it ismore user friendly than an Internet webpage.Moreover, this service aims at targeting a customer segment that directly fits Domino’sPizza products, the “Young urban buyers”.But, why domino’s Pizza should have a mobile application? It is doubtless the high growth in the smartphones ambit and specially theapplications for these devices that we have been experiencing in the last years, as aexample we can see that Iphone and Ipad have currently more than 225,000 applicationsavailable. It is highly recommendable that a company has its own mobile applicationbecause, • Higher traffic data linked to the website • Direct communication with your target audience • Mobile applications increase user involvement with company’s brand 15
  16. 16. Project Management: Creation and Development of a Mobile application Domino’s PizzaKey features • Flick through our extensive product • View premium quality ingredients to design your own pizza • Cash and Credit Card payment options available • Possibility to customise your pizza and order in your time • All the pizza combinations in the palm of your hand • Make ordering faster by creating an account and saving your favourite order for next time • Easy ordering process • My Order at the bottom of every screen shows your accumulated order and dollar value, so you know exactly how many items you have ordered and what your order costs • Track your order with the Domino’s Live Pizza Tracker, guiding you through each step of the pizza making process! a) Apple Developer’s Conditions [10] iPhone’s Application Development Conditions The company has decided to focus on one main segment: iPhones’ owners; as “atest segment” for the introduction of a new way of ordering the company’s range ofproducts. In case of success of the operation, the company might want to expand theavailability of this mobile application to the rest of the range of popular smartphones(Android, BlackBerry, WebOS, etc.).There are several conditions which rule every existing smartphone platform, mainlybecause each one of them remains private and so, still belong to their originaldevelopers’ company (Apple, Google, BlackBerry, HP, etc.).In the case of Apple, here are the main rules that Domino’s Pizza ‘s ApplicationDevelopers will have to comply with in order to be accepted in the company’s platformand so, be available for download by iPhone ‘s owners:o The application must be developed according to Apple Standards of Application as described in the terms of the “Program License Agreement” (PLA)o The application must respect the “Human Interface Guidelines « (HIG) provided by the company, and the interface has to fit Apple ‘s graphical iOS Standards.o An application that crashes or which exhibits bugs will be rejected.o Applications that use non-public APIs provided by Apple will be rejected.o Any application with forbidden content such as violence, offending religious or ethnic comments, and pornography will be rejected. *For a complete description please see Appendix #1 16
  17. 17. Project Management: Creation and Development of a Mobile application Domino’s PizzaDistribution Process: The Domino’s Pizza Application, once tested and finished will be submitted toApple for approbation and within a week, will be available for download to the AppleApp Store platform. During the distribution process, Apple advertises a specific policyfor the Apps developed,o The Developer can set the price for its Appo Apple charges 30% for distributiono Apple is sending the payments on monthly basiso No charge for Free Appso No credit card, hosting and marketing feesAs the Domino’s Pizza Application will be Free, Apple will not charge the company forany fees. b) Phase 2: Promotion The second phase is more locally focused; it consists in developing apromotional campaign for Dominos Pizza’s new service in Valencia.This campaign will directly take place among the target population, using streetmarketing into the different universities of the city. These interventions will intend topopularize the use of the application as well as rising up awareness about the differentrestaurant available in Valencia and the promotional offers going on. To carry out thisphase, we will create a specific work team, which will be responsible of the promotionand advertising of the brand as well as implementing.Event Description [27]Each of the three events will be organised following these 3 stages: 1. The hostesses hired will be providing a demonstration of the Domino’s Pizza Application running on both an iPad and iPhone. This demonstration aims at showing off the different functions of the App as well as promoting the brand Domino’s Pizza itself. 2. After having checked if the interviewee possessed a compatible device, the demonstrator will follow by helping the person to download the App right on his iPhone/iPad. 3. The three members of the staff will be providing people with an advertising flyers resuming the key features of the application. A promotional code will also be available for people who passes order from these devices. This will have for objectives to motivate trials.Note: Two of the three events will take place in Universities (Politecnica and Tarongers), whereas thefinal will be located in Mestalla Stadium before an important football match. 17
  18. 18. Project Management: Creation and Development of a Mobile application Domino’s Pizza 6. Planning and design a) Select the planning team [4] [12] [20] [21] In order to have a well-designed project, it is necessary select the right people,the criteria for choosing them it is trying to balance the team between technical peopleand communicative people,Building a good team is the most important thing a project manager can do to achieve asuccessful project,The work team selected for this project is composed of six experts in many differentfields, being one of them the project manager in charge of the coordination team...We can describe the objectives, roles and responsibilities of each member as,Figure 6: Project Team work organizational chartSource: Self-made As we can see in Exhibit x, the team selected for this project combine differentfields of work required to carry on the project effectively. We have selectedprofessionals who carry the perspective and inter disciplinary of the company perfectly.From our strategic consultant will be hired through the consulting firm Deloitte in orderto analyse the market , the rest of the team will be selected from the main office ofDomino’s Pizza which is located in Madrid. The responsible of selecting the team willbe the project manager according to the needs of our project and Domino’s Pizzarequirements. 18
  19. 19. Project Management: Creation and Development of a Mobile application Domino’s Pizza Figure 7: Project Team work: roles and responsibilities Project Team Work Members Objectives Roles and Responsibilities o Conducting team training on new business Coordinating the process from start to end, guidelines or design developments Manage and monitor day-to-day activity o Guiding and motivating fellow employees 1. Project and provide direction to team members, o Effective supervisory and organizational manager effective planning, Cost estimating and o Lead the project team schedule control, guide the project and o Motivate self and team members create roles and responsibilities o Resolve issues in a timely manner o Assessing the current status of the project. Ensuring the viability of the project o Controlling each stages of the project according 2. Strategic to the original plan. according to the company’s target and consultant o Organizing meeting with the direction objectives. o Reporting financial and market analysis o Researching and reporting on external In Charge of investigating the company’s opportunities. 3. Public market and establishing an appropriate o Understanding current and potential customers. relations and marketing plan for the project according to o Developing the marketing strategy and plan marketing Domino’s pizza Mk strategy. o Managing agencies o Asses the risk of the project o Managing the project’s budget 4. Financial Forecasting and planning: Estimate the o Investment decision Manager requirement of funds Setting up financial o Evaluating financial performance goals evaluating financial performance. o To ensure profitability, so that income exceed expenses o Developing, preparing, analyzing and reviewing budgets and other financial reports. o Creating innovative designs, drafts, or presentations for the project. Supervising the development of the mobile o Meeting customer expectations app, creating communication supports, and o Ensuring design quality and that design 5. Design designing technical tools according to directives are followed Manager Domino’s Pizza corporate image & o Technical knowledge of the design process standards. o Be creative and innovative o Be flexible and dependable Coordinating the process of the project as o Develops and maintains a detailed project well as the members of the project, schedule ensuring the effective preparation and o Assist the Project Manager6. Coordinator ongoing evaluation of project activity and delivery of all project events and meetings o and production of all necessary reporting on project progress to the project documentation manager 19
  20. 20. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) Schedule [4]The table bellows represent the project’s schedule, separating it in two different phasesas we mention before.Figure 8: Project schedule Project ScheduleSource: Self-made As we can see in the table above, the start date of the project is 1st February,2011.This project will takes about twelve weeks until its expected finish date on 28thApril, 2011.In phase 1, based on the preparation and implementation of the mobile application, westart communicating the project to the main stakeholders and once it is approved, wehave selected the work project team. During the first three weeks we are going to makea brief analysis about the market, financial issues and costumer demanding.After the internal analysis we will focus on selection of web agency in charge ofprogramming the mobile application. Later on, we will complete the first term payment,as well as controlling and monitoring during the whole process. 20
  21. 21. Project Management: Creation and Development of a Mobile application Domino’s PizzaPhase 2 starts with the revision of the first milestone, where we have analyzed all theobjectives and its compliance. Once the web agency company delivers the first beta, wewill have a second meeting with Domino’s Pizza Madrid. Obtaining the applesubmission and reviewing the second beta. After that we will complete the secondpayment.Once the mobile application is released as we mentioned above we will organize someevents. The rationale of these events is promoting the usage of the application and getout product know by our public target. The stewards will be hired and trained byDomino’s Pizza.After that we can totally focus on the promotion of the mobile application that will takeplace for the last three weeks of our project as well as reviewing the second milestoneand closing the project.c) The budget [4] [25] In this part, we are going to focus on the budget of the project, it is importanttake into account all the potential expenses of this project, the financial manager, as theresponsible of the project budget should be capable of controlling and reporting thedifferent expenses to the head office in Madrid,Figure 9: The project budget Project Budget Dominos pizza February March April EXPENSES Implementation expenses Travels x2 fligts vlc-mad €250 €250 Telephone Cellular €30 flat rate x6 €180 €180 €180 Tickets restaurant Each ticket (€10/Day x 22 days) x 6 €1320 €1320 €1320 Betas review Work team salaries €7000 €7000 €7000 Rent a car x2 days by Pepecar.com €77,85 €77,85 Accomodation costs €82,5 €82,5 Mobile App. Development Web agency by rentacoder.com First payment €3000 Second payment €3000 Apple Affiliate Program €99 21
  22. 22. Project Management: Creation and Development of a Mobile application Domino’s Pizza Marketing Materials ipad 2 16gb €599 iphone 4 x2/ 500€ each €1000 Banners €6 x3 each franchise in vlc =12 €72 Flyers €1.5 x2000 €1000 Recruiting €300 Advertising Stand €250 Uniforms €210 Event Stewards €450 Total Other Expenses Salaries Project manager €2500 €2500 €2500 Strategic consultant €1500 €1500 €1500 Financial Manager €2000 €2000 €2000 Design/image manager €1800 €1800 €1800 Coordinator €1500 €1500 €1500 Public relations and marketing €1800 €1800 €1800 Consultant fees €1200 €1200 €1200 Sectorial study in Valencia (Deloitte) TOTAL EXPENSES (Monthly) €21309,4 €24050,0 €27841,4 TOTAL BUDGET EXPENSES €73200,7Source: Self-made As we can see in Exhibit 9, we have divided the expenses depending where itcomes from, implementation expenses and mobile application development belongs tophase 1, whereas Marketing materials, advertising and other expenses belongs to Phase2.The amount of the total budget increases to €73200.7, being the last month of theproject the most expensive due to promotion costs. While the first is composed inalmost its entirety of the implementation of the project. 22
  23. 23. Project Management: Creation and Development of a Mobile application Domino’s Pizza7. Control and Monitoring [4] [17] [25] The project manager will be responsible of monitoring the overall project withthe support of the coordinator project. The monitoring of the project will provide theproject status for the phases and total project, identifying the risks and potentialproblems as early as possible in order to be.Furthermore. the monitoring of this project will be conducted as well across the nextmonths once the mobile application is released. The procedure for the monitoring willtake place every two weeks through a meeting between the project manager and thecoordinator. One of the main objectives of Domino’s pizza is place the use of themobile application at the level of the website order. Every month the statistics of thisapplication should be measured and assessed the stability and growth of its use duringthe coming years.The different actions to monitoring and controlling the project are the following ones, • Measuring the ongoing project activities • Identify corrective actions to address issues and risks properlyAccording to Kerzner (2003) a project can be monitored by different ways such asreports, which will help in future planning and inform the project manager of what hastaken place. Another way is through diaries, which is a helpful way of recordinginformation and will help to evaluate the project work. 23
  24. 24. Project Management: Creation and Development of a Mobile application Domino’s Pizza8. Conclusions In the Exhibit 10 we can see the expected result of this project, an exceptionalmobile application running on an Apple iphone.Figure 10: Domino’s Pizza Mobile Application expected result Final Project ResultSource: Self-madeOnce the project is finished, it is important to close the project, this closing includes thecontract closure, closing all the phases and any contract applicable to the project.The viability of the project is not questionable considering its affordability oncedeveloped at national scale. The usual margin in the ready-meal delivery sector beingquite high (between 70 and 80%), Domino’s Pizza can expect to have fully paid off thecosts of implementation within its distribution network in less than a year. The goal ofthis project is actually to test and promote this new service locally in Valencia in orderto gather feedbacks in perspectives of further national launch.Looking at the actual trend for mobile devices (especially iPhone and iPad), this is agreat opportunity for Domino’s Pizza to position its brand on a younger and moredynamic segment and therefore gain in reputation and brand recognition. Moreover, it isessential for the company to be able to follow the actual leader of the sector TelePizzathat has already adopted a multiplatform App Service. The implementation of thisproject will allow Domino’s Pizza to reduce the competitive advantage gained by itsmain competitor on these services and fulfill the existing competitive gap between thetwo companies. 24
  25. 25. Project Management: Creation and Development of a Mobile application Domino’s PizzaThis project will not only provide a bigger range of services to the company, but it willalso permit a reduction of costs and increase the productivity of each restaurant;employees not having to spend time over the phone to take customers’ orders. It willalso limit the need for various transactions and avoids the risk for mistakes consideringthat the order has been charged before being sent to the restaurant.Domino’s Pizza has also to take into account that the implementation of this technologyfor all selling points in Spain will require a national promotion campaign proportionallyas what has been described in this report. Although, it can be the start of a newpositioning strategy using popular technology in order to reach a wider targetpopulation and being able to gain in market share over TelePizza. 25
  26. 26. Project Management: Creation and Development of a Mobile application Domino’s Pizza9. REFERENCES AND BIBLIOGRAPHY1. Crossan, Mary M., Rouse Michael J., Fry, Joseph N. and Killing, J. Peter (2009). Strategic Analysis and Action , 7th Edition, Pearson, Prentice Hall, cap. 82. Gido, J. & Clemens, J.P. (2003). Administración exitosa de proyectos, Thomson, 2ª edición.3. Exploring corporate Strategy. Johnson. G and Scholes. K,m Thomson, 6th edition4. Kerzner, Harold (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (8th ed.).5. Kaplan, R.S and P Norton. 1996. The balanced scorecard : translating strategy into action6. Kaplan, R. S. and D. P. Norton. 1996. Using the balanced scorecard as a strategic management system. Harvard Business Review (January‐February): 75‐85.7. Pellegrinelli, S. & Bowman, C. (1994). Implementing Strategy through projects, Long Range Planning, vol.27, nº 4, pp. 125‐132.8. Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980.9. Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business Review, January 2008.10. Apple (2011) Development Terms and conditions Available at: www.apple.com/developmentprogramconditions.html11. Hodge, B.J., Anthony, W.P. & Gales, L.M. (2003). Teoría de la organización. Un enfoque estratégico. 6º edición. Pearson‐Prentice‐Halls12. Sebastian. Nokes The Definitive Guide to Project Management.. 2nd Ed.n. London (Financial Times / Prentice Hall): 2007.13. Domino’s Pizza (2011) a) Domino’s pizza vision and mission Available at: http://www.dominospizza.co.nz/corporate/inside/visionmission.aspx [Accessed: 10 March, 2011] b) Domino’s Pizza Annual report (2010) c) Logos and Images. Available at www.dominospizza.com14. Grupo Zena (2011) Available at: http://www.zena.com/ [Accessed: 12 March, 2011]15. Bloomberg BusinessWeek (2010). Food services S.l Available at: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8 33502 [Accessed: 27 March, 2011] 26
  27. 27. Project Management: Creation and Development of a Mobile application Domino’s Pizza16. Domino’s Pizza, John Henry, International Business, 2010. Case Study17. Balance Scorecard a) Martínez Pedros, D. (2011) “Herramientas para la implementación de estrategias” b) Balance Scorecard organization (2011) “The four perspectives” Available at http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/t abid/55/Default.aspx [Accessed: 25 March, 2011]18. Businessballs (2011) “SWOT Method” Available at: http://www.businessballs.com/swotanalysisfreetemplate.htm19. Organizational Structure Business Dictionary (2011) Available at: http://www.businessdictionary.com/definition/organizational-structure.html [Accessed: 25 March, 2011]20. Basic college accounting (2009) Financial manager functions, Available at: http://basiccollegeaccounting.com/explain-the-objectives-functions-roles-of-a- finance-manager/ [Accessed: 21 March, 2011]21. Marketing made simple (2010), Marketing Manager Functions, Available at: http://www.marketing-made-simple.com/articles/marketing-manager-role.htm [Accessed: 24 March, 2011]22. Pmcrunch (2009). Selecting the team work. Available at: http://pmcrunch.com/project_management_process/criteria-for-selecting-projects- team-members/ [Accessed: 03 May, 2011]23. Eventoplus (2011) Available at http://www.eventoplus.com/categorias/azafatas- valencia.php [Accessed: 19 April, 2011]24. Project manager certification (2011) “Project scope statement” Available at: http://www.projectmanagementcertification.org/managernotes/roles_and_responsibi lities.html [Accessed: 15 April, 2011]25. PMtips.com (2009). “Project Budget Management” Available at: http://pmtips.net/project-budget-management/ [Accessed: 05 May, 2011]26. Businessweek (2011). Telepizza company profile. Available at: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8834 42[Accessed: 05 March, 2011]27. AEC (2011) Asociación española de empresas de consultoria. Estudios sectoriales. Available at: http://www.consultoras.org/frontend/aec/Informes-Sectoriales-AEC-vs218 [Accessed: 28April, 2011] 27
  28. 28. Project Management: Creation and Development of a Mobile application Domino’s Pizza10. APPENDIX: • Appendix #1: App Store Guidelines / 7 pages 28

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