With the case study of McDonalds , Case Analysis

1. PROJECT

4. CASE ANALYSIS

5. POINTS CAPTURED
WHAT ACTUALLY CASE SAYS?
SUMMARY
ANALYSIS OF CASE STUDY :
 INTRODUCTION
 STRATEGY USED
 PROBLEMS FACED

6. SWOT ANALYSIS
WAYS TO COME OUT OF THE PROBLEMS
FACED.
INTERESTING THINGS / THOUGHTS TO
PONDER
TODAY’S SENARIO(FLOURISHED WITH
TOUGHCOMPETITION)

7. CASE
Rethinking Domino's Expansion Plan
• Pavan Bhatia, CEO, Domino's Pizza India Ltd
• Sky is the Limit
• Domino's entered into an agreement with a real estate
consultant CB Richard Ellis
Locations
Conduct feasibility studies
Manage the construction

8. “We are in the business
of selling pizzas, not
hunting for real estate”.

9. “PLANNING AND SALES RATIO
DIDN’T SHOW THE CORRECT
WAY”
NO CORRELATION BETWEEN
EXPANSION AND SALES

10. PIZZA HUT
Whereas a small comparison with PIZZA HUT can be
brought here that is
“PIZZA HUT strategy worked well due to moving from
company owned to franchisee owned that really helped
them to cut down their cost” .

11. A SMALL INSTANCE OF COMPARISON BETWEEN
DOMINO’S AND PIZZA HUT, WHICH MADE A HUGE
DIFFERENCE!
Initiated With Company
Owned But Latter On
Moved To Franchisee
Owned
Company Owned

12. INTRODUCTION
• Pavan Bhatia , CEO of domino’s (1999)
• Being very ambitious, he wanted to make
Domino’s the largest fast-food chain in
INDIA.

13. His thought lead to…
Showed fastest growth Domino’s had in
any 63 countries it operated in.

15. STRATGIES USED
REAL ESTATE = LOCATIONS
 To divide his work for more efficiency – he
consulted CB RICHARD ELLIS
 Estate consultant CB RICHARD played his role
well by following ways
 Managed real estate work, cared for all type of
hassle and also furnished the outlets.
 Opened outlets at corporate offices, cinema halls
, college campuses, small towns

16. IOC TIE UP
JET airways

17. THINGS DIDN’T WORK THE
SAME AS PLANNED
FACED PROBLEMSWHENIT CAMETO IMPLEMENTATION

18. • EXPANSION STRATEGIES
Didn’t effectively utilized the increasing number
of outlets .
• OPERARTED ON COMPANY– OWNED OUTLETS
Domino’s operated on company owned outlets
basis, rather than franchisee route or mix of
both.

19. WHICHLEADTO FURTHERPROBLEMS SUCH AS:

20. INVESTING MORE ON OUTLETS INAUGRATE BY
FILM STARS
 Domino’s spent in the range 0.3-0.5 million
on each film star to inaugurate one outlet.
NATIONAL ADVERTISING DIDN’T WORK
WELL
 single toll free number lead to discontent
amongst customers

21. Sales were poor
The burden of huge
expenses impacted a lot
Lead to cash flow problems

22. DOWNFALL OF DOMINO’S WAS
NEAR !
ANALYSTS FELT

24. STRENGHT
• MORE OULETS – EVEN IN SMALL TOWNS
• GOOD PROMOTION
WEEKNESS
• OUTLETS LACK SPACE
• WANTED QUANTUM GROWTH

25. OPPORTUNITY
 GROWING FAST FOOD MARKET –
SCOPE FOR EXPANSION
 BIGGER OULETS
 TO OPT THE NEW AND INNOVATIVE
STRATEGIES

26. THREAT
 BETTER VARIETY AND VARIETY OF
COMPETITORS
 FOR EXAMPLES

27. WE WOULDLIKE TO SUGGEST SOME WAYS TO COME
OUT OF THESE PROBLEMS
AS GOING THROUGHTHIS CASE WE ANALYISED:

28. There should be shift from the company
owned to franchisee owned.
Expansion plan should be given some time to
let it spread and know the exact.
New launch should have an extensive research
Quantum increase should be changed to
gradual one

29.  EFFICIENT ADVERTISING CAN BOOST UP THE
BUSINESS: Gautam Advani, former Chief of Marketing,
Domino's explained, "...it was the advertising blitzkrieg that
helped the company move to the first place from sixth both in
Mumbai and Bangalore..."
 FOCUS ON ONE CORE BUSINESS : PAVAN BHATIA
said, "We realized we'd be wasting too much time, money and
resources trying to do it all ourselves. We are in the business of
selling pizzas not hunting real estate”.

30. BRIDGING UP THE GAP BETWEEN
EXPANSIONS AND SALES.
ALWAYS “QUANTUM” DOESN’T
WORK, START WITH NORMAL AND
THEN LEAD IT TO…….
PROPER MANAGEMENT OF CASH
FLOW