As this firm celebrates its 50th Calendar, the management has come up with a well defined earning and economic model that employs economic and entrepreneurial decisions that are important for the growth of Domino’s. The viable economic decisions have been instrumental in meeting the market demands and the firm’s objective. The franchise systems earn this firm revenue from royalties and supply chain revenues while utilizing very little capital expenditure.
The stores are cost efficient that require little capital to design and is characterized by efficient delivery of products to customers. The fierce competition requires Domino’s to sell its products at affordable break even prices. The operations at the store level are very efficient and very simple in order to remain at a competitive advantage since there exists price wars among the players in the industry. Many stores in the US and those located in other countries do not demand a large restaurant area since they do not offer dine in area. Further the simplified menu offers the firm streamlined operations that utilize the economies in the production and delivery processes. The stores are thus small, easy to establish, furnish and maintain. These conditions maximize the financial returns.
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