FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

DEPARTMENT OF BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT PAPER FOR

KRAFT FOODS INC. – 2009
Case Notes Prepared by: Dr. Mernoush Banton
Case Author: Kristopher J. Blanchard

Submitted by:

MIRANDA, Syron -

BANGCOT, Stephanie Rose -

LOPEZ, Angel S. -

BAUTISTA, Elden Keil -

ASTRERO, Allan Jericho C. -

BITANGA, Michael Jeremy -

RAGSAC, John Aaron -

Submitted to:
GERALD L. VILLAR

Date:
May 20, 2021

1
 Plagiarism Undertaking

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#:_____________________________ “ is solely our group work with no significant
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Name of Student/Author: MIRANDA, Syron Signature:

Name of Student/Author: BANGCOT, Stephanie Rose Signature:

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Name of Student/Author: RAGSAC, John Aaron Signature:

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Name of Student/Author: ASTRERO, Allan Jericho C. Signature:

Name of Student/Author: BITANGA, Michael Jeremy Signature:

Date Signed: ______________

1
A.

Case Abstract

- Domino's Pizza Inc., also known now as Domino's, is an American pizza chain.
Domino's was founded in 1960 and is located in Michigan. This case will provide information
regarding Domino's evolving menu that can help students become aware of how Domino's
improved every year. Given that Domino's has provided consumers various options and unique
food choices, they became the world's largest pizza seller worldwide.

B.

Vision Statement

- Become No. 1 best chosen pizza chain by the people around the world.

C.

Mission Statement

- To provide convenience in every consumer in the world.

Mission Statement

As a renowned world's largest pizza seller, Domino's aims to continuously exceed each
consumer's expectation when it comes to the quality of our products without spending too
much. We ensure to treat others nicely as to how we would like to be treated. We acknowledge
every suggestion for improvements given by us consume.

1
D

External Audit

CPM – Competitive Profile Matrix

Domino’s Pizza Hut Papa John’s

Weighted Weighted Weighted

Critical Weight Rating Rating Rating
Success Score Score Score
Factors
Advertising 0.9 3 0.27 3 0.27 3 0.27
Healthy Food 0.04 2 0.08 3 0.12 2 0.08
Options
Global 0.010 3 0.30 4 0.40 1 0.10
Existence
Store 0.08 3 0.24 4 0.32 2 0.16
Location
Eating Area in 0.05 1 0.05 4 0.20 1 0.05
Store
Brand 0.13 3 0.39 4 0.52 2 0.26
Awareness
Financial 0.11 2 0.22 4 0.44 1 0.11
Profit
Customer 0.09 2 0.18 3 0.27 2 0.18
Loyalty
Market Share 0.09 3 0.27 4 0.36 1 0.09
Product 0.07 3 0.21 3 0.21 2 0.14
Quality
Top 0.06 2 0.12 2 0.12 2 0.12
Management
Price 0.09 4 0.36 2 0.18 3 0.27
Competitive
Total 1.00 2.69 3.41 1.83
Analysis:

For the analysis of the table Pizza hut and Papa john's is the top competitor of domino's
Pizza. Based on the CPM the Pizza hut shows on the table that outstanding ability to manage
the market compared with the two industries Domino's and Papa John's are behind with the
total of Critical Success Factors.
The total score of Domino's Pizza has 2.26 they are holding the position between the
two competitors Pizza hut and Papa John's. It indicates Domino's Pizza's weakness with
internal factors and external factors. Domino's Pizza should analyze the internal and external
factors to compete at the level of Pizza hut.

Opportunities

1
 1) Restaurants: Familiarizing entire Dominos restaurants in papulation places will allow
the business with better brand awareness including the support in reaching the
consumers who like to eat outside in restaurants.
2) Penetration: Maintaining the network by additional penetrating marketplace will allow
Dominos to grow its income.
3) Market Expansion: Extending and developing markets will be a huge impact on the
Pizza industry as expanded needs are evolving. Achieving the goal of developing the
business should be the most suitable strategy for the business.
4) Health-conscious eatables: Familiarizing a health-conscious menu is a great way to
add unique taste additives that will result in growing its income shortly.

Threats

1) Changing Consumer Eating habits: When society focuses better on health

awareness, consumers are changing their habits eating. because of being more
conscious of what customers’ needs including what to avoid eating. It implies is
concerning the company of Dominos.
2) Cost:  The expense of ingredients concerning the bunnies including the basic material
increases, and the expense of possessing the pizza chain are increasing also. Including
the rival impacts the lowest line of the business. 
3) Direct and Indirect Competition: In terms of competition the local and national pizza
industries like Pizza hut and Papa John. when comes the indirect rival is more Fast food
like McDonald's and KFC where the consumer prefers the burger and fries over the
pizza.

Key External Factors Weight Rating Weighted

Score
Opportunities

1.) Restaurants familiarizing entire Dominos 0.18 4 0.72

restaurants
2.) Penetration penetrating marketplace will allow 0.13 3 0.39
Dominos to grow its income.

3.) Market Expansion 0.16 2 0.32

4.) Health-conscious eatables 0.12 2 0.24

Threats

1.) Changing Consumer Eating habits 0.15 2 0.3

2.) Cost the expense of ingredients concerning the 0.13 2 0.26

bunnies
3.) Direct and Indirect Competition 0.13 3 0.29

Total 1.00 2.62

1
Analysis:

Based on the Domino’s Pizza External Factor Evaluation the Business is

qualified of managing its opportunities for the business including the threats the
business with the result of the EFE total score is 2,62 it means that the business
pushing to avoid the external threat.

E
Internal Audit

Strengths

1) Brand Recall: The brand recall is anticipated to

the advertising with impactful taglines in result to marketing has
constructed awareness including an assurance for the brand in the
pizza industry.
2) Fantastic channel network:With a total of 9000 franchises and
business platforms, Domino’s pizza has an expansive network
distributed over more additional than 60 different nations.
3) Low-cost alternative: With the lost cost, they do not require a high
expense Atmosphere or entertainment in the business as a result
the installation of the business is the cost is low for the dealers and
the price of pizza is extremely useful for the consumers.
4) Healthier alternatives: When it comes to health awareness most
customers prefer that way, Domino’s Pizza is endeavoring to
transform their dough by containing healthier and more beneficial.
The pizza Ingredients are becoming more nutritious, and some
dominos pizzas are familiarizing the salads into options.

Weaknesses

1) Operations: Domino’s pizza has a gigantic amount of franchised

internationally which may outcomes in difficulty to handle
operations. When it comes to quality control due to many
franchises and becomes challenging. Due to this, some of the
Dominos outlets g affecting the Business. 
2) Decreasing sales in mature markets: Due to the increasing
number of health-conscious consumers, there is a reduction in
revenue affecting the business.
3) Low staff retention: Due to the absence including lack of
conditioning and training is a huge challenge for the business. The
workforce employed is even incapable so they fast change
assignments when they cannot change to the environment. 
4) Lesser number of eateries: Domino’s Pizza has more additional
delivery than eating at a place which is a concern to the business
particularly in locations like malls and different locations where
consumers enjoy stunning establishment.
 Key Internal Factors Weight Rating Weighted
Score
Strengths

1. Brand Recall 0.13 3 0.39

2. Fantastic channel network 0.14 3 0.42

3. Low-cost alternative 0.13 2 0.26

4. Lesser number of eateries 0.12 4 0.48

Weaknesses

1. Operations: Domino’s pizza has a 0.12 3 0.36

gigantic amount of franchised

2 Decreasing sales in mature markets 0.14 2 0.28

3. Low staff retention 0.10 3 0.3

4. Lesser number of eateries 0.12 3 0.36

Total 1.00 2.85

Internal Factor Evaluation (IFE) Matrix

Analysis:
According to the table Internal Factor Evaluation (IFE) Matrix the weighted score
of the Domino’s Pizza it shows that the business can manage to utilize the
strength to overcome the weakness of the business given the total of 2.85 it
shows the company has a power to it internal strategies of developing the
strength the company into the long-term business
F.
SWOT ANALYSIS
Strengths Weaknesses
1. Brand Recall: The brand 1. Operations: Domin
recall is anticipated to o’s pizza has a
the advertising with gigantic amount of
impactful taglines in result franchised
to marketing has internationally
constructed awareness which may
including an assurance for outcomes in
the brand in the pizza difficulty to handle
industry.  operations. When it
2. Fantastic channel network: comes to quality
With a total of 9000 control due to
franchises and business many franchises
platforms, Domino’s pizza and becomes
has an expansive network challenging. Due to
distributed over more this, some of the
additional than 60 different Dominos outlets g
nations. affecting the
3. Low-cost alternative: With Business. 
the lost cost, they do not 2. Decreasing sales
require a high expense in mature markets:
Atmosphere or Due to the
entertainment in the increasing number
business as a result the of health-conscious
installation of the business consumers, there
is the cost is low for the is a reduction in
dealers and the price of revenue affecting
pizza is extremely useful for the business.
the consumers. 3. Low staff
4. Healthier alternatives: retention: Due to
When it comes to health the absence
awareness most customers including lack of
prefer that way, Domino’s conditioning and
Pizza is endeavoring to training is a huge
transform their dough by challenge for the
containing healthier and business. The
more beneficial. The pizza workforce
Ingredients are becoming employed is even
more nutritious, and some incapable so they
dominos pizzas are fast change
familiarizing the salads into assignments when
options. they cannot
change to the
environment. 
4. Lesser number of
eateries: Domino’s
Pizza has more
additional delivery
than eating at a
place which is a
concern to the
business
particularly in
locations like malls
and different
 locations where
consumers enjoy
stunning
establishment.

Opportunities W-O Strategies

S-O Strategies
1. Restaurants: 1. Innovation of the 1. Improve the
Familiarizing entire products its is great way service of the
Dominos to strategies the company
restaurants in company development including the
papulation places 2. Expanding the target penetration of
will allow the market to compete to maintaining
business with competitors to gain the position of the
better brand popularity of the company
awareness business
including the
support in reaching
the consumers who
like to eat outside
in restaurants.
2. Penetration:
Maintaining the
network by
additional
penetrating
marketplace will
allow Dominos to
grow its income.
3. Market
Expansion: Extendi
ng and developing
markets will be a
huge impact on the
Pizza industry as
expanded needs
are evolving.
Achieving the goal
of developing the
business should be
the most suitable
strategy for the
business.

containing only organic

ingredients
4. Health-conscious
eatables: Familiarizing a
 health-conscious menu
is a great way to add
unique taste additives
that will result in growing
its income shortly.

Threats W-T Strategies

S-T Strategies
1. Changing Consumer 1) Increasing the budget 1. Implement better
Eating habits: When company to gain strategies for the
society focuses better on customers to compete to company to increasing
health awareness, pizza industry the operation of
consumers are changing Domains Piazza in
their habits eating. near future mange the
because of being more quality control of
conscious of what company
customers’ needs
including what to avoid
eating. It implies is
concerning the company
of Dominos.
2. Cost:  The expense of
ingredients concerning
the bunnies including the
basic material increases,
and the expense of
possessing the pizza
chain are increasing
also. Including the rival
impacts the lowest line of
the business. 
3. Direct and Indirect
Competition: In terms of
competition the local and
national pizza industries
like Pizza hut and Papa
John. when comes the
indirect rival is more Fast
food like McDonald's and
KFC where the
consumer prefers the
burger and fries over the
pizza.

Analysis:
Swot analysis is an essential part of the company the tool to analyze the
situation of the business. it's an effective way to evaluate the Strengths
Weakness Opportunities and Threats. Facing the environment of pizza industry,
we all know the domino’s pizza is one of the leading brands in terms of pizza
thus domino’s pizza maintaining the prominent positions in the marketplace by
analyzing and reviewing the swot analysis.
G.
SPACE MATRIX
The Space Matrix assesses many variables and offers them a score based on
their importance to a company's circumstance. The study enables the
development of an acceptable business plan for the company. The evaluation of
the internal and external environments allows for the development of a suitable
strategy. The SPACE Matrix is a valuable tool for analyzing an organization's
competitive position utilizing internal and external factors.

THE AXES AVERAGE

Sub-Factors Score Average Axes Value
Industry Stability
Growth Potential 5
Financial Stability 3
Ease of Market Entry 4 4
Resource of 4
Utilization
Profit Potential 4
Competitive stability
0.8
Market Share -2
Product Quality -3
Customer Loyalty -3
-3.2
Competition’s -4
Capacity Utilization
Technological Know- -4
How

Financial Stability
Return of Investment 3
Leverage 1
Liquidity 4 3.2
Working Capital 4
Cash Flow 4
Environmental
-0.4
stability
Unemployment -5
Technological -3
Changes
Price Elasticity of -2
-3.6
Demand
Competitive -4
Pressure
Barriers to Entry -4

RESULT:
Analysis:

According to the table Industry Stability has an average of 4, and the Competitive
Stability has an average of -3.2. To be able to get the Axes Value of IS and CS
we just simply add the two to get 0.8. Also, Financial Stability has an average of
3.2, and the Environmental Stability has an average of -3.6. To be able to get the
Axes Value of FS and ES we just simply add to get -0.4. In this case we will
determine which quadrant will be the company is.

According to the plot the Domino’s Pizza plot in the Competitive Position.

Competitive Position

The industry of Domino’s Pizza is attractive and relatively unstable. They have
some advantage, but their primary goal is to focus on Financial Stability.
However, Domino’s Pizza preserving the quality of their product and services.
And they are aware on the political and economic changes that may affect in the
negative way of their lifestyle or life cycle.

H.
BCG Matrix

The graph's x-axis represents relative market share, while the y-axis represents
industry growth rate. The matrix is divided into four quadrants: Question Marks
(Quadrant I), Stars (Quadrant II), Cash Cows (Quadrant III), and Dogs (Quadrant
IV) are units that have a low relative market share yet compete in a high-growth
industry. The units in the Stars Quadrant have a large relative market share and
a fast growth rate in their industry. This means they offer the companies' best
development and earnings potential. The Cash Cows Quadrant divisions have a
large relative market share but compete in a slow-growing industry. Finally, the
Dogs Quadrants have weak divisions due to low relative market share and
competition in a slow or no market growth business.

I. Grand Strategy Matrix

The Grand Strategy Matrix Analysis is a well-known tool for developing

strategies. Alternative tactics for small and large businesses It would help identify
the company's position, whether its market is growing quickly or slowly, and its
competitive position.
The company would discover acceptable alternative techniques as a result of
this, and it would be able to better and boost the company's overall operations.

I. Internal – External Matrix

The Internal – External Matrix is a technique that any organization or firm can
use to evaluate their current standing or position. The outcome will be
determined by Dominos Pizza. This matrix was created using both internal and
external factors from the company. Furthermore, this is critical because it
suggests solutions that could be extremely beneficial to the company's future
planning.

J. Summary of Results
 TOWS Matrix SPACE BCG GSM IE TOTALS

The table Units in the Domino’s Pizza The IE total Based on the
The industry of Industry Stars Quadrant is placed in weighted score assessment of
Domino’s Pizza is Stability has an have a large Quadrant II fall on the Domino's
attractive and average of 4, relative market which states that medium part Pizza's external
relatively and Competitive share and fast there is rapid which scored factors, the
unstable. They Stability has - growth rate, market growth 2.85-2.65 company is
have some 3.2. To be able while the Dogs and a weak entitled to
advantage, but to get the Axes Quadrants competitive manage
their primary goal Value of IS and have weak position opportunities to
is to focus on CS we just divisions due
the company,
Financial simply add the to low relative
including
Stability. two to get 0.8. market share.
In this case we threats. The
However,
Domino’s Pizza will determine overall EFE
preserving the which quadrant score is 2.62,
quality of their the company is. which means
product and the company is
services. And they pushing to
are aware on the avoid external
political and threats.
economic changes
that may affect in
the negative way
of their lifestyle or
life cycle.

K. QSPM

Innovation of Expanding the

the products is target market to
its great way to compete to
strategize the competitors to
company gain the
development popularity of
the business

Key Factors Weight AS TAS AS TAS

Opportunities

1. Restaurants familiarizing entire Dominos 0.18 - - - -

restaurants

2. Penetration penetrating marketplace will 0.13 - - - -

allow Dominos to grow its income
3. Market Expansion 0.16 1 0.16 4 0.64

4. Health-conscious eatables 0.12 3 0.36 4 0.48

Threats

1. Changing consumer eating habits 0.15 4 0.60 1 0.15

2. Cost the expense of ingredients concerning the 0.13 - - - -

bunnies
 3. Direct and Indirect Competition 0.13 2 0.26 3 0.39

TOTAL 1 1.35 1.66

Strengths

1. Brand recall 0.13 - - - -

2. Fantastic channel network 0.14 1 0.14 4 0.56

3. Low-cost alternative 0.13 4 0.52 1 0.13

4. Lesser number of eateries 0.12 1 0.12 1 0.12

Weakness

1. Operations: Domino’s pizza has a gigantic amount of 0.12 1 0.12 4 0.48

franchised

2. Decreasing sales in mature markets 0.14 4 0.56 1 0.14

3. Low staff retention 0.10 - - - -

4. Lesser number of eateries 0.12 1 0.12 4 0.48

SUBTOTAL 1 1.58 1.91

SUMTOTAL ATTRACTIVENESS SCORE 2.93 3.57

L.
Implementation of Plan

Management

● The Management, it is deemed of high As it focuses on all areas of the

company even evaluating new product of the company , it will be able to assess
whether or not the company is capable of gaining a advantage in the industry
among its existing competitors, or if they should evaluate their and new products
for improvement and shifting it to progression.

Human Resource

● Human Resource Department, the team is the most important aspect of the
company, as one will not be able to do anything without the formation of the
workers, unification of skilled and determined individuals and development for
new product . That being said, the department must first knowing skills and
capabilities of the employee , so that they may be able to see how and which
area they would fit in.

Sales and Marketing

● As to the Sales and Marketing Department, the team must learn to look at
the marketing current trends of society and social media like new product drinks
for summer thatfits to their theme of summers and their strategies, increasing
the chances of exposing the company to a higher target market.

Production and Operations

● For the Production and Operations Department, safety of the customers

must be the priority. This means that the checking of all of the ingredients even
with new ingredients that will add in the menu that must be done in order to
prevent contamination it will give customer satisfactory.

Finance and Accounting

● The Finance and Accounting, transparency must be the main priority. That
being said, the team must ensure that all transactions for the new product are
being audited properly,This also promotes organisation knowing that it can be
quite confusing to most since it is to track the exact projected number of
customers will be higher every day because of the new product.

Research and Development

● As to the Research and Development, research should be done about the

new product that will be trend in the food market, one which is similar to the
marketing department, as it is through this that the company may be able to
know the current trends in the food market that will be making a new product,
that the employee will serve in the customers

Management Information System

● For the product to succeed, it is critical to know what kind of management

information for new product that the systems needs. A point-of-sale system, is
used at all Domino’s Pizza stores worldwide. With the Pulse system, day-to-day
operations function more effectively even with new products. The touch screen
makes it easier for the employee to take the order accurately and inserting New
products.

M.
MONITORING AND CONTROL

Management

● The Management, it is deemed of good value that they continuously oversee

and monitor the overall operational in the dominos of the company on a daily
basis and it focuses on all areas of the business, it will be able to assess
whether or not the company is capable of competitive advantage to other
competitors of dominos pizza, or if they should renew and evaluate their current
plans for the purpose of improvement and shifting it to progression.

Human Resource

● The same time huma resource , the management will be able to target and
focus on the good quality skills which need of training, development and
knowledge so that the employees may be able to achieve the awareness of
being an employee and self growth for their wellbeing and the company.

Sales and Marketing

● Sales and Marketing Department, the team must know the knowledge to
look at the trends of society and social media so that they may be able to fit
their their strategies and increasing the chances of exposing the company to a
higher target market.

● The result of this process, sales will be easily boosted considering that the
current trend of the right platforms cover a way to being able to appeal to the
market, knowing that the food business never dies out, but it continues to
develop and improve every year.
Production and Operations

● Production and Operations Department, it make sure safety and the

satisfaction of the customers must be the priority. This means that the checking
of all of the utinsil and ingredients must be done in order to prevent
contamination or food poison. Before diving into cooking, the team must first
have proper hygiene and proper uniforms protocols to ensure that everyone
steps into the kitchen is are perfectly in good condition before cooking.

Finance and Accounting

● As to the Finance and Accounting, transparency and flexibility must be the

main priority in the establishment. That being said, the team must ensure that all
transactions are being done properly, This also promotes discipline in the
organization knowing that it can be quite confusing to most since it is not easy
to track the exact projected customers in a day.

Research and Development

● The Research and Development, further knowing this studies and research
should be done ahead of time, one which is similar to the marketing of the
dominos, as it is through this that the company may be able to known the current
trends in the food market and in the social media, together with the idea of
understanding the people majority, and how dominos will be be able to provide
food that customers as a whole, hence, promoting diversity in the food that the
company is offering.

Management Information System

● The Management Information System, Domino's Pizza must have access
to current market trends and business data that are needed in the business in
order to make timely and updated all the time about business decisions. Helping
a company become and remain efficient and productive is the fundamental goal
of the management information system.

● Continue to use this method for planning, analysis, and implementation of

the organisation's objectives. costs, profits, technology, processes, and
documents may be analysed using the system.