Domino's Pizza Project

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

Project Management: Creation and Development of a Mobile application Domino’s Pizza

Table of contents
1. Introduction………………………………………………………………………………………….Pag.4
o Company profile
o Scope statement
2. Company Analysis…………………………………………………………………………………Pag.5
o Strategy………………………………………………………………………………………...…Pag.5
o Mission
o Vision
o Values
o Organizational Structure
3. Balance Scorecard………………………………………………………………………………….Pag.7
o The four perspectives
a) Financial
b) Customer
c) Internal business processes
d) Learning and growth
4. Industry Analysis…………………………………………………………………………………..Pag.9
o Competitor Analysis
o SWOT Analysis
o Porter five forces
5. Project Phases……………………………………………………………………………………..Pag.15
o Phase 1: Mobile App Conception
a) Apple developer’s conditions
b) Development and implementation
o Phase 2: Promotion
6. Planning and design…………………………………………………………………………….Pag.18
o Selecting the planning team
o The Schedule
o The Budget
7. Control and monitoring…………………………………………………………………..……Pag.22
8. Conclusions……………………………………………………………………………………...….Pag.23
9. References and Bibliography……………………………………………………………..…Pag.24
10. Appendix…………………………………………………………………………………………….Pag.26

2


List of Figures

Figure 1 Organizational Structure Pag.6

Figure 2 Balance Scorecard Pag.7

Figure 3 Objectives satisfied by the project Pag.9

Figure 4 SWOT Analysis Pag.12

Figure 5 Porter Five Forces Pag.13

Figure 6 Project Organizational chart Pag.18

Figure 7 Roles and Responsibilities Pag.19

Figure 8 The Schedule Pag.20

Figure 9 The project Budget Pag.21

Figure 10 Mobile application final result Pag.24

3


1. Introduction

a) Company Overview [13.a,b]

Domino's Pizza, is an international pizza delivery corporation
headquartered in Michigan, United States Founded in 1960, Domino's is the
second-largest pizza chain in the United States and has nearly 9,000 corporate and
franchised stores in 60 international markets and all 50 U.S. states. The menu
features 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 through
buying all the Pizza Hut franchises, so in one quick movement, Domino´s Pizza
gained a significant market share in Spain.

b) Scope statement [12][22][24]

Domino’s Pizza España will upgrade the ordering system through implementing a new
mobile 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 rational

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 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 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.

4


2. Company Analysis [13.a, b] [14]

a) Strategy

Firstly, it is important to know which is the strategy of Domino’s Pizza, we should
self-asses the company within it in order to achieve the starting point for the
project.

o Vision
The Vision of Domino’s pizza is being the number one in pizza and the number one
in people

o Mission
The Mission of Domino’s pizza is mainly based on sell more pizza and have fun

o Values
Some 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


b) Organizational Structure [13.b] [14]

To analyse the organizational structure of Domino’s Pizza we must analyse
firstly the group who owns Domino’s Pizza in Spain. Grupo Zena is a leading
Spanish casual dining and fast-food restaurant group, composed of a mix of owned
brands. In the following parts we will analyse with more details this group.

In exhibit 1, we can describe the current organizational structure of a franchise
located in Valencia, where it will take place this project.

Figure 1: Organizational structure

Source: Self-made

Note: The majority of Domino’s Pizza stores are franchises.

6


3. Balance Scorecard [3] [4] [5] [6] [11.b] [17a.,b]

Through the balance scorecard, we will try to translate the company’s
vision and mission into real objectives, in a briefly way we will ungroup and
classify the main objectives of the company into four different perspectives as well
as find out which objectives are satisfied by the project. According to Kaplan
(1996) the four perspectives of the scorecard permit a balance between short and
long-term objectives, between outcomes desired and the performance drivers of
those outcomes.

Figure 2: Domino’s Pizza Balance Scorecard

Source: Self-made

According to Kaplan (1996) the Four Perspectives of a Balanced Scorecard
includes,

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


b) 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 formed
by four perspectives, we can see for each perspective which are the main strategic
objectives for Domino’s Pizza.

This project responds the need to satisfy different objectives, but there are some
that they are more important than others. The table below shows which are the
objectives satisfied by the performance of this project.

8


Figure 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 improvement
Source: Self-made

4. Industry Analysis [2] [3] [13.b] [14]

a) Competitor analysis

The pizza industry is a highly competitive and mature market. There are many
pizza makers ranging from local pizzerias to international franchises. With the current
health kick in today’s society as well as economic downturn, many companies are being
forced to make healthier, cheaper products. Many other companies are introducing
salads into their menu. The popularity of the Internet as well as mobile commerce is
transforming the traditional ways of ordering a pizza.

In the Spanish pizza market there are many companies exist but among them Telepizza
ranks as a strongest pizza delivery company. Telepizza is a Spanish home delivery and
take 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) that
reach 12 million households. According to DBK, Telepizza is the market leader in the
pizza delivery market in Spain, with a 70% share.

Competition was becoming tougher in terms of restaurants and at home, even more so
in the latter case due to progress made in preparing precooked foods. All types of
restaurants competed with Domino’s Pizza, but the groups are organised. Within the
pizza segment included; Telepizza which is the market’s biggest share holder, and
another 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’s
competitors in the delivery and take away sector were Chinese restaurants, small
operators and Fast Food chains such as McDonalds or Burger King.

9


Domino’s pizza and its competitors belongs to Horeca sector (Hosteleria, restauración y
catering). TelePizza has secured a market value share of 26.1% making it the most
dominant player in the fast food market in Spain since 1997. The strong growth is
attributed to its sale to Pizza World. The fast food market being very crowded with
TelePizza and McDonald's chains controlling more than 50% of the total market value
is further being compressed with the entrance of Burger King and Pizza Hut. The pizzas
and 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 food
outlets. The company is based in Aravaca, Spain. Grupo Zena S.A. is a former
subsidiary of Carrefour SA. Grupo Zena is owner of Foster’s Hollywood, La Vaca
Argentina, 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 company
caused the disappearance of Pizza Hut from the Spanish market. With this agreement
broken, a new agreement between Zena Group and Domino’s Pizza Inc. brought
Domino’s Pizza to the Spanish consumer food service market in 2009.

After having completed a quick analysis of the different factors in the Pizza delivery
market 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 Loyalty

We have been mainly focusing on Domino’s Pizza and TelePizza, which seem to be the
major actor of the market. These two companies are fighting in a highly competitive
environment using constant promotional offers and communication in order to motivate
customers‘ trials and repeat purchasing. In this industry we found services to be very
important and definitely dependent on the businesses activities.

10


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’s
pizza strategic situation.
According to Johnson (2005) strengths and weaknesses focuses on an internal
perspective of a company, it is the result of an analysis carried out to point out the real
competences of a business and the different areas of improvement. Threats and
opportunities are external; focusing on the environmental conditions where the
company is operating in. The company is looking at how could it be affected by it and
which opportunities can it take advantage from. This is where a SWOT analysis is
helpful. It challenges you to see beyond your company walls to determine what
opportunities 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


Figure 4: Domino’s Pizza SWOT Analysis

Source: Self-made

As we can see in the Exhibit 4, we have divided the different factors as internal
or external for the organization. It is doubtless Domino’s Pizza has important strengths
that helps to cope with uncertain and ever changing environments but they should try to
take the most of the opportunities in the near future as well as to attempt to reduce the
impact of its threats over its performance, they must take into account relevant aspects
as 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 the
target market which become more of an issue lately. Thus Domino’s should focus on
low carbohydrate and low calorie products in order to increase their sells. As we are
mentioning in our project, the iphone application for the beginning and in the latter
stages applications for all smartphones would be a great aspect for their future business.

12


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 in
zero. Thus finding a second the industry
option is easy.
● Customers bargaining power ●The threat of substitutes is
is 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


o Bargaining power of customers

Similarly, the bargaining power of customers determines how much customers can
impose pressure on margins and volumes. But for Domino’s pizza customers bargaining
power is likely to be low.
The buyer switching costs are nearly zero, any customer could find a second option for
Domino’s pizza, for example, they can prefer other substitutes such as frozen pizza,
microwave pizza etc. or other pizza restaurants and chains. The costumers generally
don’t buy large volumes, so there is not a concentration of buyers.

o Threat of new entrants
Threat 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 of
new entrants is high.

o Threat of substitutes

The threat that substitute products pose to an industry's profitability depends on
the relative price-to-performance ratios of the different types of products or services to
which customers can turn to satisfy the same basic need. The threat of substitution is
also affected by switching costs

In this sector, there are lots of substitutes. For example, frozen pizza is an important
substitute for pizza delivery. In fact, the entrance of premium frozen and refrigerated
pizzas 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 drive
down prices.
With so many firms in the pizza delivery industry, low switching costs, similar
products, and maybe healthier options, the threat of substitutes is very high.

14


o Competitive rivalry within an industry

At present, there are a huge number of companies offering the same product. The
limited-service industry defines a red ocean industry. Firms compete for market share
in a saturated market. Growth, particularly in pizza chains, is very slow so the customer
base 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 argument
and Dominos Pizza’s main competitor TelePizza has already integrated it to its services
provided.
A mobile app can be highly convenient for customers; it offers them the possibility to
review “on-the-go” the entire offer of the company, select the products he would like to
be delivered and also be charged directly on its mobile phone. It saves time for the
company, and optimizes productivity. There is no longer need for an employee to spend
time on the phone with a customer, it avoids the mistakes that can be made, and it is
more user friendly than an Internet webpage.

Moreover, this service aims at targeting a customer segment that directly fits Domino’s
Pizza 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 the
applications for these devices that we have been experiencing in the last years, as a
example we can see that Iphone and Ipad have currently more than 225,000 applications
available. It is highly recommendable that a company has its own mobile application
because,
• Higher traffic data linked to the website
• Direct communication with your target audience
• Mobile applications increase user involvement with company’s brand

15


Key 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 “a
test segment” for the introduction of a new way of ordering the company’s range of
products. In case of success of the operation, the company might want to expand the
availability 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, mainly
because each one of them remains private and so, still belong to their original
developers’ company (Apple, Google, BlackBerry, HP, etc.).
In the case of Apple, here are the main rules that Domino’s Pizza ‘s Application
Developers will have to comply with in order to be accepted in the company’s platform
and 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


Distribution Process:

The Domino’s Pizza Application, once tested and finished will be submitted to
Apple for approbation and within a week, will be available for download to the Apple
App Store platform. During the distribution process, Apple advertises a specific policy
for the Apps developed,

o The Developer can set the price for its App
o Apple charges 30% for distribution
o Apple is sending the payments on monthly basis
o No charge for Free Apps
o No credit card, hosting and marketing fees

As the Domino’s Pizza Application will be Free, Apple will not charge the company for
any fees.

b) Phase 2: Promotion

The second phase is more locally focused; it consists in developing a
promotional campaign for Dominos Pizza’s new service in Valencia.

This campaign will directly take place among the target population, using street
marketing into the different universities of the city. These interventions will intend to
popularize the use of the application as well as rising up awareness about the different
restaurant available in Valencia and the promotional offers going on. To carry out this
phase, we will create a specific work team, which will be responsible of the promotion
and 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 the
final will be located in Mestalla Stadium before an important football match.

17


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 people
and communicative people,

Building a good team is the most important thing a project manager can do to achieve a
successful project,

The work team selected for this project is composed of six experts in many different
fields, 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 chart

Source: Self-made

As we can see in Exhibit x, the team selected for this project combine different
fields of work required to carry on the project effectively. We have selected
professionals who carry the perspective and inter disciplinary of the company perfectly.
From our strategic consultant will be hired through the consulting firm Deloitte in order
to analyse the market , the rest of the team will be selected from the main office of
Domino’s Pizza which is located in Madrid. The responsible of selecting the team will
be the project manager according to the needs of our project and Domino’s Pizza
requirements.

18


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 Manager
6. 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


b) Schedule [4]

The table bellows represent the project’s schedule, separating it in two different phases
as we mention before.

Figure 8: Project schedule

Project Schedule

Source: 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 28th
April, 2011.

In phase 1, based on the preparation and implementation of the mobile application, we
start communicating the project to the main stakeholders and once it is approved, we
have selected the work project team. During the first three weeks we are going to make
a brief analysis about the market, financial issues and costumer demanding.

After the internal analysis we will focus on selection of web agency in charge of
programming the mobile application. Later on, we will complete the first term payment,
as well as controlling and monitoring during the whole process.

20


Phase 2 starts with the revision of the first milestone, where we have analyzed all the
objectives and its compliance. Once the web agency company delivers the first beta, we
will have a second meeting with Domino’s Pizza Madrid. Obtaining the apple
submission and reviewing the second beta. After that we will complete the second
payment.

Once the mobile application is released as we mentioned above we will organize some
events. The rationale of these events is promoting the usage of the application and get
out product know by our public target. The stewards will be hired and trained by
Domino’s Pizza.

After that we can totally focus on the promotion of the mobile application that will take
place for the last three weeks of our project as well as reviewing the second milestone
and closing the project.

c) The budget [4] [25]

In this part, we are going to focus on the budget of the project, it is important
take into account all the potential expenses of this project, the financial manager, as the
responsible of the project budget should be capable of controlling and reporting the
different expenses to the head office in Madrid,

Figure 9: The project budget

Project Budget

Domino's 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


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 €73200,7

Source: Self-made

As we can see in Exhibit 9, we have divided the expenses depending where it
comes from, implementation expenses and mobile application development belongs to
phase 1, whereas Marketing materials, advertising and other expenses belongs to Phase
2.

The amount of the total budget increases to €73200.7, being the last month of the
project the most expensive due to promotion costs. While the first is composed in
almost its entirety of the implementation of the project.

22


7. Control and Monitoring [4] [17] [25]

The project manager will be responsible of monitoring the overall project with
the support of the coordinator project. The monitoring of the project will provide the
project status for the phases and total project, identifying the risks and potential
problems as early as possible in order to be.

Furthermore. the monitoring of this project will be conducted as well across the next
months once the mobile application is released. The procedure for the monitoring will
take place every two weeks through a meeting between the project manager and the
coordinator. One of the main objectives of Domino’s pizza is place the use of the
mobile application at the level of the website order. Every month the statistics of this
application should be measured and assessed the stability and growth of its use during
the 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 properly

According to Kerzner (2003) a project can be monitored by different ways such as
reports, which will help in future planning and inform the project manager of what has
taken place. Another way is through diaries, which is a helpful way of recording
information and will help to evaluate the project work.

23


8. Conclusions

In the Exhibit 10 we can see the expected result of this project, an exceptional
mobile application running on an Apple iphone.

Figure 10: Domino’s Pizza Mobile Application expected result

Final Project Result

Source: Self-made

Once the project is finished, it is important to close the project, this closing includes the
contract closure, closing all the phases and any contract applicable to the project.

The viability of the project is not questionable considering its affordability once
developed at national scale. The usual margin in the ready-meal delivery sector being
quite high (between 70 and 80%), Domino’s Pizza can expect to have fully paid off the
costs of implementation within its distribution network in less than a year. The goal of
this project is actually to test and promote this new service locally in Valencia in order
to gather feedbacks in perspectives of further national launch.

Looking at the actual trend for mobile devices (especially iPhone and iPad), this is a
great opportunity for Domino’s Pizza to position its brand on a younger and more
dynamic segment and therefore gain in reputation and brand recognition. Moreover, it is
essential for the company to be able to follow the actual leader of the sector TelePizza
that has already adopted a multiplatform App Service. The implementation of this
project will allow Domino’s Pizza to reduce the competitive advantage gained by its
main competitor on these services and fulfill the existing competitive gap between the
two companies.

24


This project will not only provide a bigger range of services to the company, but it will
also 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 will
also limit the need for various transactions and avoids the risk for mistakes considering
that 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 technology
for all selling points in Spain will require a national promotion campaign proportionally
as what has been described in this report. Although, it can be the start of a new
positioning strategy using popular technology in order to reach a wider target
population and being able to gain in market share over TelePizza.

25


9. REFERENCES AND BIBLIOGRAPHY

1. Crossan, Mary M., Rouse Michael J., Fry, Joseph N. and Killing, J. Peter (2009).
Strategic Analysis and Action , 7th Edition, Pearson, Prentice Hall, cap. 8
2. 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 edition
4. 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
action
6. 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.html
11. Hodge, B.J., Anthony, W.P. & Gales, L.M. (2003). Teoría de la organización. Un
enfoque estratégico. 6º edición. Pearson‐Prentice‐Halls
12. 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.com
14. 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


16. Domino’s Pizza, John Henry, International Business, 2010. Case Study
17. 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.htm
19. 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


10. APPENDIX:

• Appendix #1: App Store Guidelines / 7 pages

28

Domino's Pizza Project

More Related Content

What's hot

Viewers also liked

Similar to Domino's Pizza Project

Recently uploaded

In this document

Domino's Pizza Project