Economic Condition of the Nation

Question: Discuss about the Economic Condition of the Nation. Answer: One factor that affects the Dominos Pizzas general environment is the economic condition of the nation. If the economic condition of the nation is not good it could affect the organizations revenues as well.Globally nations are suffering high rise in inflation and downturn economies which causes high rates of unemployment and lower flexibility. Dominos conducted a survey for the same and reported that majority of people visits Dominos during starting dates of the month. Also, due to high inflation rate, raw material is purchased at expensive costs which in turn results in higher prices of goods. In the year 2016 when reclamation from recession is still very slow, Dominos could face less often visits by its consumers to its outlets and less number of orders. Also, rise in prices due to high inflation rate could result in decreased number of customers for Dominos. To deal with this factor Dominos has to take initial steps to prevent adverse effects to the organization (Hossain 2007). As per the first issue concerned with this that Dominos may face fewer visits, A survey was conducted in order to judge the same and results were completely opposite as downturn was actually benefitting the company because instead of eating out four to five times per week, people have cut down the number from one to two, and they are preferring pizzas over it as they find that cost of pizzas are much affordable over proper cuisine. As per the cost of raw material is concerned Dominos must find some ways to cut down other costs such as transportation costs so that it could provide same quality pizza without increased cost. To reduce the costs of transportation of goods, improvements have to be done in the transportation technologies along with enhanced communication. Also, Dominos could substitute costly products with cheaper ones such as chillies instead of jalapenos which will not lower down the quality of product. In fact, Even in present time of economic downturn where situation related to finances are critical, organization is not facing difficulties and continually succeeding because of its foremost emphasize on pizzas quality and rest everything later. Another factor that might help Dominos to continue with the pace in economic downturn is, to penetrate their commitment to service and broadcasting to domino's consumers to wherever and whenever they are willing to order. With this fervency followed Dominos might boost up their profit growth with a remarkable percentage which will further encourage dominos to get up and go in years to come (Monaghan Robert 2015). Concerning economy and finances organization might not be able to spend much on advertising and marketing. Social media networks are wide and large and every human breed can easily be found on this network, hence it is the best platform in todays era which must be utilized in a more enhanced way (Hossain 2007). One of the processes is to make the use of powerful hash tags which is both popular amongst users and also they dont need any extra advertising cost. It is absolutely free and grows as a chain. 3: A factor that is affecting Dominos specific environment is the competition it is facing in terms of expanding internationally. Its competitive pizza chains such as US pizza and Pizza hut are expanding their outlets in every corner of the world which is rising as a tough competition to Dominos.Dominos has achieved remarkable performances in international markets but owing to greater needs of rising demands of customers for pizza and related products overseas Dominos could think of it as a necessity to grow further (Li Wearing 2014). In the coming time as say by the end of 2016, Dominos may start feeling under-confidence because of rising and expanding competitive industry such as pizza hut and US pizza. Hence it must take steps to manage international markets with full proficiency. One reason people prefers pizza hut over Dominos, despite being high on prices is that its menu is constantly expanded and reformed with the changing needs and preferences of customers globally. The reasons expansion of international market has received a slow pace is because of many reasons, such as, high royalty payable to organization which detonate franchisee owners interest in the company, absence of proper training available to employees at Dominos which results in decrease of sale and at the end of employee, loss of job (Adamy 2007). To achieve the growth and expansion of Dominos franchisee stores internationally, growth of its benefit and compensation overseas, Dominos must come up with different kinds of franchisee supporting programs. The organization could introduce a training program for its employees to make them understand Dominos rules and regulations, its policies and companys functionality procedures along with other important essentials which are related to Dominos internal environment (Kiel Nicholson 2003). Another important and critical step to expand global market for Dominos could be attracting proponents for the franchisees by lowering down the tax on royalty bases because this is the primary mode for company to enter in the international markets (Kiel Nicholson 2003). Along with cut down in royalty costs FDS must provide a proper strategy for recruitment process: Franchisee Development Services publications like The Franchisee Magazine are the right vehicle to carry editorial that reports on facts as provided by the Dominos Pizza Franchisees. This notifies explorers who are seeking for the brand and system that will form the idea vehicle with which to achieve business success. Along with global expansion Dominos must not forget about its local market and must try to manage it with full proficiency as in recent years a survey has showed that dominos local market is shrinking when global is expanding. To get stable in the local markets one of the idea is to locate company owned stores in the densely populated cities (Adamy 2007). This will help company on two grounds one the revenue generated will solely belong to company and no royalty based sale, another as the company resides in the same country it will be much easier to maintain quality and standards of the stores (Adamy 2007). References Adamy, J 2007, Will a Twist on an Old Vow Deliver for Domino's Pizza? Wall Street Journal, Cambridge, MA. Amy, Z 2012, Pizza players vie for shares of segment pie with new offerings, Nation's Restaurant News, Melbourne. Kiel, GC Nicholson, GJ 2003, Boards That Work: A New Guide for Directors. McGraw Hill, Sydney. Li, CA Wearing, B 2014, Between glass ceilings: Female non-executive directors in UK quoted companies. International Journal of Disclosure and Governance. 1 (4), 355-372. Hossain, E 2007, An Evaluation of Brands Image, Product Attributes and Perceived Quality of a Selected Consumer Non-durable Product, Administration and Management Review, Sydney. Nathan, B 2010, J. Patrick Doyle named CEO of Domino's Pizza as David Brandon becomes University of Michigan athletic director", Cambridge, MA. Monaghan, T Robert, A 2015, Pizza Tiger, New York: Random House. Monaghan, T 2013, Domino's Pizza, Fortune Small Business, p. 58. 3.