Value Chain

How does value chain approach helps an organisation to assess its competitive advantage

Most of the firms define value chain as mission of creating product or services. For these firms, the products or services generated are more important than any single step within their value chain. These firms use the value chain approach to better understand and identify which segment, distribution channel, price point, product differentiation, selling proposition and value chain configuration will yield them the greatest competitive advantage.

The way the value chain approach helps these firms to assess competitive advantage includes the use of following steps of analysis :

• Internal cost analysis — to determine the sources of profitability and the relative cost position if internal value creating processes.
• Internal differentiation analysis – to understand the sources of differentiation (including the cost) within internal value creating processes, and
• Vertical linkage analysis – to understand the relationships and associated costs among external suppliers and customer in order to maximize the value delivered to customers and to minimise cost.

These type of analysis are not mutually exclusive. In fact, firm begin by focussing on their internal operations and gradually widening their focus to consider their competitive position within their industry. The value chain approach used for assessing competitive advantage is an integral part of the strategic planning process.

Short notes on value analysis

Answer Value analysis (also known as value engineering) is a systematic interdisciplinary examination of factors affecting the cost of a product or service in order to devise means of achieving the specified purpose at the required standard of quality and reliability at the target cost. The aim of value engineering is to achieve the assigned target cost by

• identifying improved product designs that reduce the product’s cost without sacrificing functionality and/or
• eliminating unnecessary functions that increase the product’s costs and for which customers are not prepared to pay extra for.

Value analysis or value engineering is one of the most widely used cost reduction techniques. It can be defined as a technique that yields value improvement. It investigates into the economic attributes of value. It attempts to reduce cost through a. design change, b. modification of material specification, c. change in the source of supply and so on. It emphasises on finding new ways of getting equal or better performance from a product at a lesser cost without affecting its quality, function, utility and reliability.

For example, the function of a fastener is to join two or more parts. Value analysis examines the value of this function in terms of alternative methods such as welding, taping stapling, etc. in view of the stress and vibrations involved in a specific application. In value analysis each and every product or component of a product is subjected to a critical examination so as to ascertain its utility in the product, its cost, cost benefit ratio, and better substitute etc. When the benefits are lower than the cost, advantage may be gained by giving up the activity concerned or replacing if for betterment.

The best product is one that will perform satisfactorily at the lowest cost. The various steps involved in value analysis are :

1.  identification of the problem;
2. collecting information about function, design, material, labour overhead costs, etc. , of the product and finding out the availability of the competitive products in the market; and
3. exploring and evaluating alternatives and developing them.

In other words value analysis brings out clearly the areas where the cost of a product can be reduced by pointing out:

1. Unnecessary items, components in a product to be removed.
2.  Possibility of substitution with reduced cost without affecting its quality.
3.  Possibility of overall simplification in design manufacture etc. of a product.

Value Engineering is more effective than any other cost reduction technique like Work Study, Automation etc. — Discuss this statement in the Indian context. Answer. Value engineering or value analysis is one of the most widely used cost reduction technique in the purchasing and production areas. It aims at reducing cost through change, modification of material specification, change in the source of supply of material and so on.

It emphasis’s on finding new ways of getting equal or superior performance from a product at a minimum cost without affecting its quality, function and reliability. It is the process of subjecting each and every component of a product to a critical examination so as to ascertain :

• Its utility in the product;
•  Its cost;
•  Whether is cost commensurate with its utility ;
•  Whether it can be replaced by a cheaper components ;
•  Whether it can be does away with ;
• What the competitors are using in place of it ; and
• Whether anybody is buying it at cheaper price.

Utility means usefulness; this can be easily and definitely measured when the concerned component or the service can be obtained form outside — the price measures it usefulness. In some cases where an outside market does not exist, utility would be measured only subjectively. Still one would have a fair idea of whether the benefit obtained, say in terms of better appearance, is worth the costs incurred. Usually it would be profitable tom tap outside sources if the price is lower than the cost.

But this decision needs to be made with great care as the question of fixed and sunk costs is very important. Value engineering bring clearly the areas where the cost of product can be decreased by pointing out:

• Unnecessary items/components in a which might have had once some utility but now are redundant and, therefore, dispensable ;
•  the possibilities of component — substitution with reduced cost without affecting the quality of the product; and
•  the possibilities of overall simplification in design / manufacture etc. f a product.

The relationship between value engineering and cost reduction a. Value engineering is done with a view to reduce the cost and cost reduction looks upon value engineering as one of its prime tools. b. Cost-reduction has always followed a critical examination of the benefit incurred. Value engineering is a careful and as far possible, quantities appraisal of the benefit derived at each stage of work.

Where the benefits are lower than the cost, advantage may be gained by giving up the activity concerned or replacing it by something else. c. Work study automation etc, do reduce cost but in most cases, they save only labour cost by improving efficiency, etc. On the other hand, value engineering relates the worth of the product, its value to the function it is intended to perform and makes a sizeable in the cost of the materials by design changes, substitution etc.

1. OVERVIEW Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America.

It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold. Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. Domino’s Pizza’s Vision illustrates a company of exceptional people on a mission to be the best pizza delivery company in the world. 2. HISTORY The legend of Domino’s Pizza dates back to December, 1960 with the purchase of a small pizza shop in Ypsilanti, Michigan by brothers Tom and Jim Monaghan.

The brothers bought the restaurant from friend Dominick DeVarti for USD500 cash and assuming the stores USD8,000 debt (Dicke, 1992). Neither Tom nor Jim had the intention of making the restaurant business their career, but rather saw the opportunity as a part-time venture to help cover the cost of their studies at the nearby University of Michigan. By June the store was earning a profitable USD400 a week but briskly fell off when students at the University went home for summer. Faced with the prospect of a slow phase, Jim sold Tom his half of the business in..

Domino’s One Brand -Putting People First -Demanding Integrity -Striving for Customer Loyalty -Delivering with Smart Hustle ; Positive Energy -Winning by Improving Results Everyday Making pizza since 1960… Like most corporate success stories, Domino’s started out small – with just one store in 1960. However, in 1978 the 200th Domino’s store opened, and things really began to cook. By 1983 there were 1,000 Domino’s stores and 5,000 in 1989. Today, there are nearly 10,000 stores – including more than 5,000 outside the United States.

Sure, it took more than 50 years to get here, but the trip was well worth it. Feel free to take the journey yourself. Order a hot, Domino’s Pizza for delivery to your door and make your family’s dinner the best they have ever had. 1960s1960 * Tom Monaghan and his brother, James, purchase “DomiNick’s,” a pizza store in Ypsilanti, Mich. Monaghan borrowed $500 to buy the store. >>>>1961 * James Monaghan trades his half of the business to Tom for a Volkswagen Beetle. 1965 * Tom Monaghan, the sole owner of company, renames the business “Domino’s Pizza, Inc. 1967 * The first Domino’s Pizza franchise store opens in Ypsilanti, Mich. 1968 * Company headquarters and commissary are destroyed by fire. The first Domino’s store outside of Michigan opens in Burlington, Vt. |  | | 1970s1975 * Amstar Corp. , maker of Domino Sugar, institutes a trademark infringement lawsuit against Domino’s Pizza. 1978 * The 200th Domino’s store opens. |  | | 1980s1980 * Federal court rules Domino’s Pizza did not infringe on the Domino Sugar trademark. 1983 * Domino’s first international store opens in Winnipeg, Canada. * The 1,000th Domino’s store opens. gt;;;; * The first Domino’s store opens on the Australian continent, in Queensland, Australia. 1985 * Domino’s opens 954 units, for a total of 2,841, making Domino’s the fastest-growing pizza company in the country. * The first Domino’s store opens in the United Kingdom, in Luton, England. * The first Domino’s store opens on the continent of Asia, in Minato, Japan. 1988 * The first Domino’s store opens on the South American continent, in Bogota, Colombia. 1989 * Pan Pizza, the company’s first new product, is introduced. * Domino’s opens its 5,000th tore. |  |  | 1990s1990 * Domino’s Pizza signs its 1,000th franchise. 1992 * Domino’s rolls out bread sticks, the company’s first national nonpizza menu item. 1993 * Thin Crust pizza is rolled out nationwide. * The company discontinues the 30-minute guarantee and re-emphasizes the Total Satisfaction Guarantee: If for any reason you are dissatisfied with your Domino’s Pizza dining experience, we will remake your pizza or refund your money. 1994 * Buffalo Wings are rolled out in all U. S. stores. 1995 * Domino’s Pizza International opens its 1,000th store. First store opens on African continent, in Cairo, Egypt. >>>>1996 *

Domino’s launches its website (www. dominos. com). * Domino’s rolls out flavored crusts, for limited-time-only promotions, nationally for the first time in company history. * The company reaches record sales of $2. 8 billion system-wide in 1996. 1997 * Domino’s Pizza opens its 1,500th store outside the United States, opening seven stores in one day on five continents simultaneously. * Domino’s Pizza launches a campaign to update the company logo and store interiors with brighter colors and a newer look. 998 * Domino’s launches another industry innovation, Domino’s HeatWave®, a hot bag using patented technology that keeps pizza oven-hot to the customer’s door. ;;;; * Domino’s Pizza opens its 6,000th store in San Francisco, Calif. in April. * Domino’s Pizza founder, Tom Monaghan, announces his retirement to pursue other interests, and gives up ownership of the company to Bain Capital Inc. 1999 * David A. Brandon is named Chairman and Chief Executive Officer of Domino’s Pizza. * The company announces record results for 1999, with worldwide sales exceeding $3. 6 billion. Revenues increased 4. 4% over 1998. |  |              | 2000s2000 * Domino’s Pizza International opens its 2,000th store outside the United States. * Domino’s Pizza celebrates 40 years of innovation and delivering pizza to homes around the world. During the past four decades, Domino’s has paved the way for businesses involved in food delivery, employing practices that have set the standard in the industry. * Domino’s Pizza announces record results for 2000. Worldwide sales exceed $3. 54 billion. Revenues increased 5. 3% over 1999. 001 * Domino’s introduces Cinna Stix®, a new permanent dessert item, to its menu. * Domino’s launches “Get the Door. It’s Domino’s. ” advertising campaign. * Domino’s 7,000th store opens in Brooklyn, N. Y. ;;;; * Domino’s launches two-year national partnership with the Make-A-Wish Foundation® of America. * Domino’s stores in New York City and Washington, D. C. , provide more than 12,000 pizzas to relief workers following the September 11 tragedy. Domino’s establishes a team member matching funds program to financially assist the American Red Cross and donates $350,000 to the Disaster Relief Effort. Domino’s Pizza International division establishes Domino’s first regional resource center with the majority stake purchase of the franchise in the Netherlands, setting the stage for expansion on the European continent. * Domino’s pizza announces record results for 2001. Worldwide sales exceed $3. 78 billion. Revenues increased 6. 8 percent over 2000. 2002 * In February 2002, Domino’s Pizza acquired 82 franchised stores in the Phoenix, Ariz. , market, making it the largest store acquisition in the company’s history. In August 2002, Domino’s kicked delivery up a notch with the introduction of Domino’s Pizza Buffalo Chicken Kickers™ and marked the creation of a whole new surprising category – premium chicken delivered right to the door! 2003 * Domino’s announces an exciting multi-year partnership by becoming the “Official Pizza of NASCAR. ” * Domino’s is named Chain of the Year by Pizza Today magazine, a leading pizza trade publication. * Domino’s combines two culinary classics – pizza and Philadelphia Cheese Steak – to create  Domino’s Philly Cheese Steak Pizza. 004 * Domino’s launches Domino’s Cheesy Dots™, delicious round balls of dough covered in a blend of zesty melted cheeses. * Domino’s becomes an associate sponsor for the Drive for Diversity program, a minority driver development program designed to provide a steady pipeline of well-trained and supported minority drivers for the NASCAR circuit. * Domino’s Pizza Inc. , the recognized world leader in pizza delivery, becomes a publicly traded company on the New York Stock Exchange (NYSE) in July 2004, under the new ticker symbol DPZ. * Domino’s announces a three-year partnership with St.

Jude Children’s Research Hospital. St. Jude was selected as Domino’s “charity of choice” by franchisees and team members. >>>>2005 * Domino’s Pizza celebrates the completion of the three-year renovation of its World Resource Center in Ann Arbor, Mich. The renovation marks the first major improvement to the company’s world headquarters since Domino’s founder Tom Monaghan opened the sprawling Domino’s Farms office complex. * Domino’s Pizza Australia opens its 400th store in Aspley, Brisbane. * Domino’s Pizza in the United Kingdom celebrates the opening of its 400th store in Wadsley Bridge, Sheffield. Domino’s raises $1. 2 million for St. Jude Children’s Research Hospital during its second annual “Thanks and Giving” campaign. * Domino’s Pizza efforts worldwide raise $220,000 to support southeast Asia tsunami relief efforts. * Domino’s Pizza launches its American Classic Cheeseburger Pizza in conjunction with its appearance as a featured task on the NBC hit reality show, “The Apprentice. ”2006 * Domino’s celebrates the opening of its 8,000th store with simultaneous celebrations of the opening of its 5,000th U. S. store in Huntley, Ill. , and its 3,000th international store in Panama City, Panama. gt;>>> * Domino’s indefinitely extends its relationship with St. Jude as its national charitable partner. Domino’s raises $1. 34 million for St. Jude during its third annual “Thanks and Giving” campaign. * Domino’s Pizza introduces Brownie Squares — warm, delicious, bite-sized brownies delivered with a fudge dipping sauce. 2007 * Domino’s introduces OREO® Dessert Pizza—a thin dessert-style crust that’s layered with vanilla sauce and covered with OREO® cookie crumbles and then topped with sweet icing. * Domino’s introduces its Veterans and Delivering the Dream franchising programs. Domino’s rolls out online and mobile ordering. >>>> * Domino’s is ranked in the Top 10 for the ninth time in Entrepreneur magazine’s annual listing of great franchise opportunities. 2008 * Domino’s becomes the largest sandwich delivery company overnight when it launches a line of oven baked sandwiches. * Domino’s launches a food delivery industry first: Domino’s Tracker™. This revolutionary technology allows Domino’s Pizza customers to follow the progress of their order online, from the time they click the “Place Order” button (or hang up the telephone), until the order is delivered. 009 * Domino’s introduces American Legends, a line of premium pizzas featuring toppings such as roasted red peppers, spinach and feta cheese. * Domino’s introduced Breadbowl Pasta and Chocolate Lava Crunch Cakes. * At year’s end, Domino’s scraps its 49-year-old pizza recipe and launches its “new and inspired pizza” with an unusual advertising campaign. ;;;;|  |                                | 2010s2010 * Bain Capital sells its interests in Domino’s Pizza. * In March, Domino’s Pizza opens its 9,000th store worldwide, with dual celebrations in New Delhi, India and New Orleans, La. gt;>>> * Domino’s raises $2. 7 million during the 7th annual St. Jude Children’s Research Hospital® Thanks and Giving® campaign, marking the largest single charitable donation in the company’s 50-year history. * Domino’s Pizza celebrates its 50th anniversary in December. 2011 * Pizza Today Magazine names Domino’s its “Chain of the Year” for the second straight year – making the company a three-time overall winner, and the first pizza delivery company to receive the honor in back-to-back years. Domino’s continues to revamp its menu, launching a new recipe for Buffalo Wings and Boneless Chicken, a new line of Domino’s Artisan™ Pizzas using premium ingredients and two new bread sides – Stuffed Cheesy Bread and Parmesan Bread Bites. * Patrick Doyle is named No. 1 Best CEO of 2011 by CNBC. * Domino’s Pizza is recognized as the Official Pizza of the NCAA® and Official Pizza of NCAA® March Madness®. The partnership lasts from 2011-2013. 2012 * Domino’s debuts its ordering app for Android phones.

This, in addition to its existing iPhone app which debuted in 2011, offers a Domino’s mobile ordering app to more than 80 percent of smartphones. * Domino’s Pizza debuts its mobile ordering technology to Amazon’s Kindle Fire by launching the Domino’s Pizza app into the Amazon Appstore for Android. This marks the company’s first appearance in the Amazon Appstore for Android and the company’s first Android tablet app. * In August, Domino’s launched its “Ultimate Delivery Vehicle” design competition – a campaign as unique as anything in its 52-year history.

Pizza lovers and car enthusiasts were asked to help Domino’s revolutionize the pizza industry by contributing to the design of the Ultimate Delivery Vehicle – something Domino’s fans and customers could see as part of the delivery experience in the future. Stay tuned! * Domino’s unveiled its new logo and ‘Pizza Theater’ store design…marking a significant change in the customer experience at Domino’s! ;;;; * Domino’s debuted the biggest product launch since the redesign of its core hand-tossed pizza, launching its Handmade Pan Pizza in September.

Made from fresh, never-frozen dough, the terrific product marked Domino’s entry into the Pan Pizza scene in a big way! |  |          | Domino’s 101: Basic Facts PIZZA, PRODUCT & MENU: * 85% of the items on Domino’s menu are new since 2008. * There are more than 34 million ways to create a single Domino’s pizza. * 30 slices of pepperoni go on a medium pepperoni pizza (40 slices for a large peperoni pizza). * Pepperoni is the most popular U. S. pizza topping, followed by mushrooms, sausage, ham and green peppers. * Breadsticks were the first national nonpizza menu item offered at Domino’s, in 1992. Domino’s World’s Fastest Pizza Maker Pali Grewal can make three large pizzas in just 39. 17 seconds. STORE ; FRANCHISE OWNER FACTS: * Domino’s is 95% franchise-owned. * Domino’s has about 1,100 independent franchise owners in the U. S. * More than 90% started their careers as drivers or assistant managers. * Domino’s delivery experts cover 10 million miles each week in the U. S. alone. INTERNATIONAL & GLOBAL FACTS: * Domino’s delivers more than 1 million pizzas a day worldwide. * Domino’s operates 10,040 stores in over 70 countries around the world. * More than half of Domino’s sales now come from outside the U.

S. * 2011 global retail sales: $6. 9 billion ($3. 4 domestic, $3. 5 international). * Domino’s International has experienced 18 consecutive years of positive same store sales growth (Q4 2011). * Domino’s currently holds the #1 pizza delivery market position in 21 markets, including 7 of our 10 largest: Mexico, U. K. , Australia, India, France, South Korea and Turkey. * Domino’s largest markets are the following (by number of stores):  | • U. S. – 4,509• U. K. /Ireland – 719• Mexico – 585• Australia – 458| • India – 515• South Korea – 367• Canada – 366• Turkey – 259| • Japan – 232• France – 09• Taiwan – 140| BUSIEST DAYS FOR DELIVERY: * Domino’s sells more than 11 million pizza slices on Super Bowl Sunday, nearly 80% more than a typical Sunday. * Super Bowl is followed by Halloween, New Year’s Eve/Day and Thanksgiving Eve. TECHNOLOGY & ONLINE: * Domino’s is consistently one of the top five companies in terms of online transactions, behind companies such as Amazon and Apple. * 80% of smartphones are covered with the ordering app (iPhone and Android). * 30% of Domino’s orders are taken online in the U. S. * 30 Domino’s international markets feature online ordering. Corporate Profile

Founded as a single store in 1960, Domino’s Pizza today stands as the recognized world leader in pizza delivery. From the beginning, we have been dedicated to the best of service, quality products and delivery excellence. Domino’s Pizza Corporate FactsEach day, more than 1 million customers enjoy hot, delicious Domino’s Pizza products on every inhabited continent on Earth, because we operate over  10,000 stores in more than 70 countries; each and every store dedicated to our focus of providing great-tasting pizza – whether it be delivered directly to your door or available for carryout.

We pioneered the pizza delivery business back in 1960, and our total system sells more than 400 million pizzas worldwide every year. Great Name Brand Recognition Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three times – including back to back wins, the first ever company to do so, in 2010 and 2011. Strong Teamwork Domino’s Pizza Inc. s leadership, team members and franchisees aspire to achieve our collective vision of being Team Members and Franchisees on a mission to be the best pizza delivery company in the world. We operate through a set of Guiding Principles founded on integrity and putting people first (our shareholders, customers, suppliers and employees) – which serve as our compass as we manage our business. Our Products Domino’s Pizza offers Classic Hand Tossed, Crunchy Thin Crust, Artisan and Handmade Pan pizzas, with a wide variety of toppings.

Additional menu items include Stuffed Cheesy Bread, Buffalo Wings & Boneless Chicken, Chocolate Lava Crunch Cakes and Cinna Stix®. We also proudly serve icy cold Coca-Cola® products. Domino’s has recently expanded its menu significantly to also include Domino’s American Legends™ specialty pizzas, Oven Baked Sandwiches and BreadBowl Pastas™. In late 2009, Domino’s debuted its Inspired New Pizza – a permanent change to its core hand-tossed product, reinvented from the crust up with new sauce, cheese and garlic-seasoned crust.

Innovating the Pizza Delivery Business Throughout our history, in addition to pioneering the concept of efficient delivery of made-to-order pizzas, we have been part of innovations that have made significant impact on the pizza and delivery industries. Here’s a look at some of our innovative thinking: * Domino’s HeatWave® Hot Bag Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during normal delivery. Originally, each hot bag contained a patented heating mechanism charged by plugging into an electric outlet at the store.

The outer material of the bag is made with water-repellent nylon, which replaced the less sturdy vinyl material previously used. Domino’s has continued to innovate and evolve the technology, removing the electric cord and heating each bag via an induction heating system. The latest edition of Domino’s HeatWave bags relies solely on a patented insulation system that keeps pizzas both hot and crisp – completely eliminating the need for electricity. * A better box Domino’s was the innovator behind the sturdy, corrugated pizza box, which keeps moisture from weakening the box, while preventing cheese from sticking to the top during delivery. Car-top sign – in 3-D! Today, it’s hard to miss pizza delivery cars — thanks to Domino’s Pizza. Domino’s invented the 3-D car-top sign, which is currently used by a variety of industries, including taxis and driving schools. Taking innovation a step further – in 2012, Domino’s launched its “Ultimate Delivery Vehicle” campaign, asking consumers and car enthusiasts to help design a pizza delivery vehicle in hopes of revolutionizing the industry! * Spoodle This saucing tool combines the best features of a spoon and a ladle, cutting down the time spent saucing a pizza.

The Spoodle was introduced at the 1985 World’s Fastest Pizza Maker competition by the eventual winner, Jeff Goddard. * Domino’s Online Ordering – Pizza Tracker and Pizza Builder Domino’s launched online ordering in 2007, and in 2008 revolutionized the customer experience by launching its innovative Pizza Builder and Domino’s Tracker. Pizza Builder allows customers to see their pizza come to life on the computer screen, as toppings and crust styles are selected in real time. Domino’s Tracker allows customers to follow the progress of the order, from the time it’s placed until customers receive it.

The experience has seen various looks, themes and interactive opportunities since its debut. While the Pizza Builder has since been mimicked by other pizza companies, we remain the only company offering the unique, engaging ordering experience of Domino’s Tracker. These innovations and others have helped us get better at what we love to do most: deliver great pizza to your door, efficiently and enthusiastically! Strong Distribution System To allow Domino’s stores to concentrate on making and delivering pizzas, Domino’s developed a central distribution and dough manufacturing system.

This relieves stores from long hours making dough, grating cheese and preparing toppings. Today, Domino’s Supply Chain Services (SCS) provides high quality dough and ingredients nationwide, keeping the company’s pizza consistently delicious. In fact, through its network of 16 domestic distribution centers, SCS regularly supplies the nearly 5,000 U. S. pizza stores with more than 240 products. Other pizza and fast food companies in the U. S. have adopted this same system. | Success Factors * Domino’s is a powerful global brand. “Mega Brand” as defined by Advertising Age * Significant, ongoing investments in advertising result in broad consumer awareness * We are the #1 pizza delivery company in the U. S. * Largest share of pizza delivery channel and continued innovation…reinforced by our well-known tagline, “Oh Yes We Did! ” * We have a large and growing international presence. * Operate in over 70 countries and with more than 10,000 stores worldwide * #1 or #2 market share position in most of our top 10 markets * We have a strong and proven business model with superior returns. Strong unit economics: focused on efficient operating model; moderate cost to open; solid cash-on-cash returns * Franchisees have succeeded and have high renewal rates because the business model works forming solid partnerships * Voluntarily purchase from company supply chain system * Geographically diverse franchise base with no significant concentrations * Return on assets higher than the quick-serve restaurant peer average * We operate a profitable, value-added supply chain system. * Ensures quality and consistency Leverages purchasing power * Enhances franchisee partnerships through 50% profit sharing * Allows stores to focus on sales and service * Our leadership team has a track record of success. * Delivered strong results since 1999 change of control Our Commitment to Diversity Domino’s commitment to diversity is based on creating a unified and inclusive environment that respects and celebrates the uniqueness of our exceptional people who invest their time, talents and energies while striving to make our company the best pizza delivery company in the world.

With more than 10,000 stores around the globe, our stores are as diverse as the communities they serve. Diversity Mission Statement Domino’s Pizza is committed to an inclusive culture which values the contributions of our customers, team members, suppliers, and neighbors. Our Team Domino’s Pizza is proud of its heritage of helping pizza makers and pizza takers become independent business owners. Some of the most successful Domino’s franchisees began their career as delivery experts, customer service representatives, or pizza makers in their own communities. Corporate Careers

Our corporate offices are full of exceptional people supporting those team members and allowing them to stay focused on the task at hand. Domino’s office personnel support our nearly 600 corporate-owned stores, a system of 5,000+ domestic franchise-owned stores and an international franchise base that operates more than 5,000 stores in approximately 70 markets. We also manage our own distribution business, a rarity in the quick service restaurant industry. We have marketers and lawyers. Accountants and communicators. Trainers and lease negotiators. International business consultants and human resource representatives.

Safety specialists and product developers. There’s many more dramatically different roles to fill, but they all have one thing in common: Domino’s Pizza people are fiercely proud of who we are and what we do. If you have those same traits, we’d love to have you on our team. As a company, we have plenty of growing left to do and many successes to celebrate. Come grow and celebrate with us. Corporate Benefits and Perks World Resource Center – Ann Arbor, Michigan A 200,000 square foot modern World Resource Center includes 27 conference and meeting rooms, updated research and development labs and gift store.

The centerpiece is the spacious Welcome Center, which surrounds a four-story glass staircase and a Domino’s Pizza store at the base. The office is minutes from downtown Ann Arbor, and less than 30 minutes from Detroit’s Metropolitan Airport. Domino’s Pizza is located in a scenic rural setting in a building known as the Prairie House at Domino’s Farms Office Park, and whose external architecture was inspired by the works of architect Frank Lloyd Wright. Located in suburban Ann Arbor, this landmark facility offers a unique and architecturally significant building, surrounded by pastures, cultivated farmland, and wildlife habitat.

The following on-site amenities are available to Domino’s team members at the World Resource Center: 1. Dining Facility 2. Free Fitness Center membership 3. Post Office 4. Deli/Sundry Shop 5. Dry Cleaner 6. Bookstore 7. Credit Union 8. Art Gallery 9. Hair, nail and massage salons 10. Petting Farm 11. Free Parking Benefits Domino’s pizza recognizes the best way to achieve success is to first ensure the satisfaction of its team members. Treating team members exceptionally well is just one way we are committed to putting our people first. Domino’s is proud to provide a fair and comprehensive rewards package.

Below are just a few of the generous benefits available to Domino’s team members. * Competitive salaries * Medical, dental and vision coverage * Prescription drug benefit * Wellness benefits * Health Savings Account (HSA) * Flexible Spending Accounts * Long and short-term disability * Team Achievement Dividend (performance bonus) * Partners Foundation (team member assistance) * Above-average paid holiday program * 401(k) matching program * Employee stock purchase discount plan * Company-paid life insurance * Supplemental and dependent life insurance * Tuition Reimbursement National corporate discounts * Legal services * Adoption assistance Corporate Training Programs Domino’s Pizza Prep School For those team members not in stores every day and night, it is critical that they know how their role supports those who are and have a solid understanding of what happens in the store. This is so important to our business that we developed “Domino’s Pizza Prep School” for our World Resource Center team members to give them store operations knowledge. This program earned Domino’s a “Stevie” from the American Business Awards. HR Development Program

The development program in the Domino’s People First department is a unique opportunity for early career human resource professionals to complete a defined career development plan, gaining knowledge and experience in all capacities of the field. Domino’s Pizza is committed to the development of the participants and has purposely selected positions that support their progression with the expectation that we are investing in the future leaders of the department. The program is only successful if the participant is equally committed to their development and responsibilities.

We expect candidates to get as much as they can from each rotation and willingly support the company’s objectives, no matter where the position is located. Each participant is required to complete three rotations. Two of the rotations will be in a core assignment that all participants must complete, and the third will be one of the additional assignments. Core Assignments: * Shared Services (Ann Arbor, Mich. ) * Primary point of contact for 12,000 corporate team members for PeopleFirst-related issues. * Support team member requests by executing PeopleFirst policies and procedures and initiating recommended improvements. Maintain team members’ electronic records. * Communicate and support PeopleFirst programs Marketplace (corporate market): * Support team members in resolving employee relations issues * Coordinate staffing and retention initiatives Additional Assignments: * Franchise/Employee Relations * Compensation * Benefits * Training & Implementation Program * Learning & Development * Human Resource Information Systems DPZ University From first line supervision to leadership development, DPZ University provides the classes and career paths necessary to become successful.

Domino’s has a strong promotion from within culture and provides the necessary development to prepare individuals for future opportunities. Partnering with world-class organizations like Harvard Business School, Ninth House: The Leadership Development Company, Franklin-Covey, and others offer learning and development to achieve our vision of “Exceptional franchisees and team members on a mission to be the best pizza delivery company in the world. ” Accounting/Finance Program Our cash and general ledger accountant positions are the gateway to opportunity at Domino’s Pizza.

In this position, you will be responsible for: * Performing financial reviews at mid-period and final stages of the period closing cycle. * Communication with internal customers on outstanding accounting issues, problems, or concerns. * Acting as a resource to internal customers on financial statements. * Reviewing and analyzing accounts receivable, accounts payable, inventory and payroll activity. * Preparing weekly estimates for distribution centers. * Analyzing and posting weekly corporate sales data. * Auditing weekly corporate store paperwork. Researching Corporate sales, food, and labor variance by comparing actual data to Domino’s Pulse, our point of sales system. * Assisting the accounting center management or other internal customers with analysis of financial impact on certain projects. Supply Chain Careers From our nationwide network of 17 supply chain centers, Domino’s Pizza Supply Chain strives to fulfill its mission of supporting more than 5,000 U. S. Domino’s Pizza stores by providing them with more than 200 different products. 365 Million Pounds Of Dough Last Year

Supply Chain is also responsible for producing the dough used to make our pizzas. Each dough production team member is trained and certified in the art and science of dough production to ensure a top quality product. Teamwork is the Key Ingredient From our warehouse and customer service team members to our commercial delivery and service drivers to our management team, Domino’s Pizza Supply Chain provides the foundation of support for our franchisees. This cooperation and teamwork is a proven system that has made Domino’s Pizza the world leader in pizza delivery. Supply Chain Training Programs

The Supply Chain Centers responsible for dough production, warehouse and store delivery provides numerous training programs to acquire the skills necessary to be proficient including dough certification classes to ensure product quality, forklift certification, and numerous safety and defensive driving classes. Training provided in the following areas: * Facility Safety Organization (IPP) * Physical Hazards associated with job * Chemical Hazards * Safety guards built into machines equipment * Administrative controls in effect * Personal Protective Equipment (PPE) * Emergency Action Plans * Accident Investigation process Blood borne pathogen safety training * Electrical safety training * Personal protective equipment training * Back injury prevention training * Safety course Supply Chain Benefits and Perks Domino’s pizza recognizes the best way to achieve success is to first ensure the satisfaction of its team members. Treating team members exceptionally well is just one way we are committed to putting our people first. Domino’s is proud to provide a fair and comprehensive rewards package. Below are just a few of the generous benefits available to Domino’s Supply Chain team members. * Annual performance-based bonus * Quality equipment * Paperless logging Regular schedules * Single and team runs * Competitive medical and dental package * 401(k) savings plan with company match * Life insurance * Educational assistance * Employee stock purchase plan What We Do In Supply Chain From our nationwide network of 16 Supply Chain Centers, Domino’s Pizza Supply Chain strives to fulfill its mission of supporting more than 5,000 U. S. Domino’s Pizza stores by providing them with more than 200 different products. Supply Chain Management Management positions at Domino’s Pizza Supply Chain Centers offer you the opportunity to join a world-class company with: * A competitive salary. An excellent benefits package. * Opportunity for career growth. Our team leaders are involved in all facets of our business. The work is a combination of administrative and operational responsibilities performed throughout the Supply Chain Center. The best candidates are strong yet thoughtful leaders who have the ability to respect their team members and mentor them onto greater career development. If you care about the people who work for you and have the desire to encourage and assist in their career growth, you’re the type of leader we look for. What Types of Management Positions Are Available?

Our General Manager Development Program is an excellent start to acquiring skills and learning the fundamentals of business operations. In addition to several requirements, it is necessary to work successfully in a team leader position (minimum of six months) to apply for the program. The program is customized for each individual and focuses on the following areas. Food Production Preparing and mixing fresh pizza dough is the responsibility of a production team member. The production team is the secret behind the great-tasting Domino’s Pizza consumers turn to when they’re hungry.

If you have the desire to create a top-quality food product every day, then our production department is for you. Commercial Delivery and Service Drivers We look for team members with a commitment to safety and excellent customer service to be part of our Delivery ; Service team. Delivery ; Service drivers will drive a truck over an established route to deliver products to Domino’s Pizza stores. When you take the wheel for Domino’s Pizza Supply Chain, you are the face of our company to our customers. You’re interaction with the stores is crucial to our success.

Many drivers build lasting relationships with customers in the fun and supportive family environment of Domino’s Pizza. Warehouse Our warehouse team members ensure that our customers receive each and every product they order, every time they order it. As a warehouse team member, your main responsibility will be to load, unload and move materials within or near the Supply Chain Center. You’re the one who makes it happen for us every day and you are an important piece of who we are. Customer Service As a Customer Service Representative (CSR), you are responsible for taking incoming orders from stores using a telephone and computer.

A CSR talks with our customers regularly, taking their orders and solving concerns and problems. Our customers look to you for answers and direction. Your professional customer service expertise is essential to keeping our stores happy. What Qualifications Do I Need? These professional level positions at Supply Chain Centers require: * Strong team leadership skills. * Three years of experience in managing multi-function operations (preferably in transportation or supply chain). * A bachelor’s degree in a related field. * A willingness to relocate.

Value Chain of Goat Milk

Chain of goat milk product. In order to be end product, there are several processes involved which are process of getting raw material then manufacturing process where the production process will take place. After that, the product will be distributed to the various channels. Under material, there are several parties will involve such as raw material supplier, transportation/logistic and technology supplier.

Then, at the manufacture phase there will be some processes involve such as processing, quality control, packaging and labeling. Packaging will be focus because of most of the producer will outsource this process to other company rather than done by themselves. The reason of this outsourcing will be because of lack of skill and technology for the packaging process. When, the packaging and labeling are done by other company, the product will be not associated to the first owner anymore.

In the case of goat milk, the owner of the livestock is not been recognized anymore and lastly the finish product will be distributed to the user and consumer as a product of the packaging company. Malay proverb call this as “Lembu punya susu, Sapi dapat nama” means the original owner of the product has not been recognized and the product only been associated to the packaging and labeling company.

Industry Involve in the Process of Producing Finish Product of Goat Milk

The industries involved in producing the goat milk. As can be seen, Agriculture industry is the first industry involved where the livestock is coming from this industry. Most of the parties involved in this industry are Malay and Indian. Then, in order to package the product, it can be choose whether to use, bottle, box container, can and so on. For box and bottle for example, it will use woods and sand as the raw material to produce box and bottle then, other industry will involve too.

Then, the distribution process will involve with logistic company. Therefore, in producing a bottle or a box of milk, there are many parties and industries involved and take placed. The value chain of the packaging process and the example of many type of packaging container. The figure shows the package is designed using the CAD and has been tested and evaluate before start the production process for the packaging. However, some companies do not use such as technology equipment in doing the packaging.

This kind of packaging process should be done by the producer company and not supposed outsource the process because the outsource decision make the producer lost the originality and owner power towards the product.

Source

1. www. nec. co. jp

Introduction:

Market research is often conducted by various companies in order to determine its niche market position as well as to determine the direction that it must take on order to remain competitive and succeed. Variety of methods is utilized while collecting date. Quantitative market research has historically been the territory of professional researchers with backgrounds in statistics, economics or mathematics. For any company producing various products, there may exist an almost infinite number of combinations of price, packaging, convenience and perceived value additions by its customers. Marketing research offers a set of well defined and generally accepted methods for identifying which combination may have the greatest likelihood of success. This report describes such market research endeavor undertaken to gauge the performance of the coffee giant Starbucks. The research obtains data by collecting primary data from the consumers using an interview questionnaire method and obtains secondary data using various published research and reports.

Research methodology:

Primary Research:

Large, established companies, typically expend considerable resources conducting marketing research, either through their own internal research departments or by contracting with outside research firms. There is always a need to develop ways to monitor customers and identify their needs and demands and this could be done by asking questions such as why a consumer chooses a particular purchase, or not purchase, a particular product. While qualitative data may be useful in assessing customers’ feelings about a product, offers little insight as to how many customers in a given marketing area might actually purchase it, unless of course, every potential customer is questioned about his or her intentions.

Questionnaire:

A questionnaire could be developed by the company to identify these issues. Various questions that could be asked are as under:

• Consumer’s preference: The question can be designed to assess why consumers use this particular brand and what are their preferences. For example in case of coffee why people would prefer Starbuck coffee over other brands and if they chose to come to Starbuck then what could be their most preferred choice.
• The consumer may be asked about the variety of coffee at the outlets.
• The consumers may be asked about the price.
• The consumers may be asked about the availability of various sizes.
• If the consumers prefer some other addition to the variety

It is important to know not only which attributes customers desire, or are repulsed by as in the milk example, but also to be able to estimate the cost of adding these attributes to the product. It is ultimately the difference in the cost of adding attributes, otherwise known as value, compared with what the customer is willing to pay these attributes, that determines whether to bring a product to market.

Secondary Research:

The most obvious benefit of secondary data is that it already exists and does not require additional time and expense to collect. The disadvantage, of course, is that it is not likely to be tailored specifically to the questions that the producer wishes to answer. Nonetheless, it may be used to glean much useful information at very little cost. External secondary data may be available from a number of sources including government publications and industry trade groups. A third source, syndicated data, is available for purchase from private data collection agencies such as Morningstar, Hoover or Yahoo finance.

Starbucks an Overview:

Starbucks was founded by Jerry Baldwin, Zev Siegel, and Gordon Bowker as a small store called Starbucks Coffee, Tea, and Spice in Pikes Place Market in Seattle in the year 1971. The mission of the corporation is perhaps one of the reasons for its success. Starbucks seeks to maintain a balance between fiscal responsibility and social responsibility by growing its business in not only coffee, but also in “third-place environments” (places people can gather that aren’t work or home). Their mission statement itself is relatively simple: “to establish Starbucks as the most recognized and respected brand in the world” (Starbucks.com).

The Performance:

Starbucks is a public limited company operates from Seattle Washington and is traded at NASDAQ as SUBX. Ever since its inception the company has shown strong sales and growth record. According to Hoover (2010), there are more than 16600 Starbucks coffee shops in 40 countries across the globe. As of September 2009 Starbucks had notched up an impressive annual revenues of $ 9774.6 million with a net income of $ 3908 million (Yahoo Finance 2010). Starbucks had some 142,000 employees globally in year 2009 (Hoover, 2010).

The Company has a wide variety of products to offer. It provides tips on how to make good coffee at home. It offers biscotti, some salads, pastries, as well as sandwiches to go with the coffee. Majority of stores are modeled on Italian themes providing the customers an unmatched experience of Italian experience a little luxury. It also offers a variety of Italian products that may include lattes, cappuccinos and mochas. (Fletcher & Brown 2005)

Customer care is most important for Starbucks towards and therefore employees are specially trained towards customer orientation and customer satisfaction. It is not unusual to see employees asking customers about their coffee preferences and taking feedback on customer’s experience at Starbucks. Starbucks has been successful owing to changing lifestyle and a high availability of Disposable Personal Income (DPI). The baby boomers have moved towards a healthy lifestyle. This phenomenon is further coupled with the fact that is more and more people world over are shifting towards non alcoholic drinks implying further demand of Starbucks’ products. (Borden 1978)

Competition and Market strategy:

The success does not come easy: along with success come many competitors and that’s what has happened to Starbucks. There are many companies imitating Starbucks in terms of the store layouts and light furniture. (Hoovers 2010) In addition to this, some competitors have copied Starbucks’ rapid expansion plan. The example being Seattle’s Best Coffee Company that has been waiting for Starbucks to engage in aggressive consumer education about the importance of coffee, and then it goes to those same locations and opens up stores there. This has caused a lot of competition for Starbucks as they have to keep watching their backs. Another major competitor is Second Cup with the distinction of expanding rapidly in the US retail market growing in numbers and eroding the market share of Starbucks.

The company realizes that it has reached a saturation in the US coffee market with competition breathing down its neck and is thus gearing itself for new markets in hitherto unexplored and uninitiated international markets. Starbucks enjoys a well established brand name having a niche market; however off late they have been challenged by dwindling profit margins dues to increased coffee prices. All these factors prompt Starbucks to expand internationally. (Benter and Booms, 1981)

Value Chain at Starbucks:

Inbound Logistics

In order to deliver on its promise to customers of offering products at everyday low prices at its stores, Starbucks utilizes economies of scale in its inbound logistics activities by having excellent supply chain methodology that involves negotiating globally with managers negotiating with and developing strategic alliances with vendor partners for products.

Operations

Starbucks has global operations spread over 40 countries. These stores are set up in similar fashion and most offer a large variety of products. Operational efficiency is critical to the overall success of Starbucks as well as augurs well for a superior customer service. By setting up outlets in a similar fashion, Starbucks gains greater control that can be sustained at the corporate level however individual stores are allowed and encouraged to make modifications with justification.

Marketing and Sales

Starbucks employs economies of scale in its overall national-level strategic marketing and advertising campaigns, at the same time providing some degree of autonomy and financial independence to execute seasonal or tactical sales promotional campaigns. Starbucks is able to generate cost savings in advertising because of economies of scale and at the same time, create customer value through local adaptation of promotional campaigns.

Outbound Logistics

The nature of the business ensures that Starbucks has minimal shipping and distribution traffic, mainly. However, as an option for customers who prefer to have their goods delivered, Starbucks has carefully built up a distribution network, which has the capability to deliver products to customers’ homes

Service

Starbucks places extra emphasis on its primary business goal i.e. to serve its customers’ needs by efficiently and with a personal touch. Its managers are expected to spend more time on the shop floors, listening to their customers and employees, thereby enabling them to make decisions that respond quickly to the unique needs of target customers. By taking a decentralized approach to its operations, Starbucks is able to deliver on what it sees is its core value proposition to its customers: superior service.

Human Resources

Starbucks has a strong commitment to investing in their employees, which they feel is their greatest competitive advantage. The Company values its employees and considers them as important stakeholders in the business. Starbucks’ management believes that when all the needs of employees have been dealt with adequately then they will do their part in provision of quality services. On top of that, the Company’s leaders like its CEO Schultz believe that all employees should feel appreciated. Compensation plans such as performance bonuses and employee stock ownership plans help in retention of employees as well as recognition programs and emphasizing an open-door policy with management.

Technological

From a technological standpoint Starbucks have both internal and external issues to deal with. External issues pertaining to product development and improvement, patenting and R&D can be looked as mainly a supplier based concern. Even though the majority of that burden is on the suppliers, there are many internal technological issues that especially in Information technology. Expansion in this area is definitely an area of growth opportunity and positioning within the overall industry.

Conclusions

Marketing research almost invariably centers on collecting and analyzing the information necessary to make decisions about how to most effectively market a product. Quantitative data, unlike attitudes, perceptions or ideas, refers to information that can be measured, such as the quantity of a product that is sold during a specified time period, the sales price or the population of potential customers residing in a particular marketing area. Various aspects of Starbuck’s operations in the wake of its market position, current capabilities and various critical success factors make Starbucks Corporation an excellent model for success.

References:

1. Benter, J. and Booms, B. (1981): business development strategies and organizational structures for service firms, in Donnelly, J. and George, W. Marketing, American Marketing Association, Chicago.
2. Borden, N. (1978): The Concept of the business development. Journal of Advertising Research, June, Vol. 2, (Available in Schwartz G. Science in Management, John Wiley & Sons,)Crynes,
   Bryan. “.” www.seasim.org/archive/sim102002b.pdf
3. Fletcher, R & Brown, L. (2005): International business development skills, 3rd edition, Pearson prentice hall, French’s Forest
4. Starbucks Corporation, Company Description Hoovers (2010); http://www.hoovers.com/company/Starbucks_Corporation/rhkchi-1-1njdap.html
   Starbucks (SBUX) Income statement; Yahoo Finance Retrieved on 23rd April 2010, from http://finance.yahoo.com/q/is?s=SBUX&annual

Growth rate has fallen. In 2006, the US division of Wal-Mart has made a gain of just 1. 9% over the previous year in sales, whereas its competitors such as Kroger, Target, Costco, Safeway and so on are all growing two to five times faster than Wal-Mart. Wal-Mart’s leviathan size is a drawback in itself, defying improvements in store and inventory management, creativity in product selection and provision of ambience. It operates about 2000 super-stores.

It controls 20% of dry grocery, 29% of nonfood grocery, 30% of health and beauty aids, and 45% of general merchandise sales, according to ACNielsen ( Qtd. in Biaco, 2007, p. 46). According to Dr. Connelly, inertia, prior strategic commitments and Icarus paradox are the reasons why companies fail. Inertia refers to the inability to move and Icarus paradox refers to the problems that come with growth and success. Commitment beyond the flexibility to rise to new opportunities and challenges is the other weakness. Wal-Mart is affected by all these three failure factors.

Threats Competition is intensifying and cutting into the business of Wal-Mart. Competitors are successfully coming closer to the prices of Wal-Mart. For example, according to a survey of Bank of America( Bianco, 2007, p. 46), Kroger has brought down the prices so low that they are just 7. 5% more than the Walt-Mart’s as compared with 20% to 25 five years ago. The point here is that low- price offerings are imitable and hence no more a core competency of Wal-Mart. Consumers are unhappy about the way Wal-Mart is run.

According the recent consumer survey of Wal-Mart- Watch held in October, 2007, 23% of regular Wal-Mart shopper have developed a negative opinion about it while in the case of Target, another retailer, it is just 10%. Treatment of employees (as reflected in the whopping number of lawsuits against it) and impact of Wal-Mart’s policies on community are given as major reasons for avoiding shopping at Wal-Mart as revealed in the opinion poll. Opportunities The newly growing economies such as China and India offer enormous opportunities to expand and increase shareholder value.

It can target at income segments too to grow organically in US. It can also diversify into other businesses- hotels, banking and so on. The value chain analysis is a way of examining internal activities with reference to the total sum of the ultimate, overall consumer benefits, i. e. low price, ease in ordering and procuring, longer durability and so on. (Qtd. Botten & McManns, 1999, p. 132).