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MASTERS IN BUSINESS STRATEGY
                    COURSE 2010-2011




          Professor: Mº Teresa Giner
                   Module: 41043


  HERRAMIENTAS DE
   IMPLEMENTACIÓN
              Project Management:
“Creation and Development of a Mobile application for
              Domino’s Pizza España”




                  Florent Guedon

                   Selim Öztürk

           David Soriano Mc Guinness
Project Management: Creation and Development of a Mobile application   Domino’s Pizza



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




                                            2
Project Management: Creation and Development of a Mobile application   Domino’s Pizza



List of Figures


Figure 1              Organizational Structure                                 Pag.6

Figure 2              Balance Scorecard                                        Pag.7

Figure 3              Objectives satisfied by the project                      Pag.9

Figure 4              SWOT Analysis                                            Pag.12

Figure 5              Porter Five Forces                                       Pag.13

Figure 6              Project Organizational chart                             Pag.18

Figure 7              Roles and Responsibilities                               Pag.19

Figure 8              The Schedule                                             Pag.20

Figure 9              The project Budget                                       Pag.21

Figure 10             Mobile application final result                          Pag.24




                                            3
Project Management: Creation and Development of a Mobile application     Domino’s Pizza


1. Introduction

   a) Company Overview [13.a,b]

       Domino's Pizza, is an international pizza delivery corporation
headquartered in Michigan, United States Founded in 1960, Domino's is the
second-largest pizza chain in the United States and has nearly 9,000 corporate and
franchised stores in 60 international markets and all 50 U.S. states. The menu
features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads,
breadsticks, cheesesticks, and a variety of dessert item.

Domino´s pizza entered in the Spanish market in 2009, entering directly through
buying all the Pizza Hut franchises, so in one quick movement, Domino´s Pizza
gained a significant market share in Spain.

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

Domino’s Pizza España will upgrade the ordering system through implementing a new
mobile application, starting at one franchise located in Valencia (Spain).
The project will be complete by the end of May, 2011, starting in February, 2011.

    o The project rational

This project will facilitate the take of orders through mobile devices (iPhone, iPod touch
and iPad), which will help Domino’s Pizza customers to make orders through its mobile
phones providing them various benefits such as,

   •   Ease of access
   •   Convenience
   •   Make ordering faster by creating an account and saving the orders
   •   Reduce the use of sales assistant (regular orders being made over the phone)

Moreover, this project continues the strategy that it is been implementing in the US
market, where they have carried a similar project in order to satisfy the customer needs
as well as exploiting the opportunities of new technologies.




                                            4
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


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

   a) Strategy

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

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

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

   o Values
Some of the Domino’s pizza values are,
       •   Treat people as you’d like to be treated.
       •   Produce the best for less.
       •   Measure, manage and share what’s important.
       •   Think big and grow.
       •   Incentive what you want to change.
       •   Set the bar high, train, and never stop learning.
       •   Promote from within.
       •   We are not ordinary, we are exceptional.




                                            5
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


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



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

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


Figure 1: Organizational structure




Source: Self-made

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




                                                    6
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


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

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

Figure 2: Domino’s Pizza Balance Scorecard




Source: Self-made


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

a) The Financial Perspective: This perspective addresses the financial impact of
     priorities chosen, plans executed, decisions made and actions taken by the
     management team. For Domino’s pizza this perspective in totally based on try
     to produce the best for less in terms of costs, Increase Market Share and
     profits, achieve revenue growth each year and try to match the gap between
     cost estimate and project budget.




                                                 7
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


b) The Customer Perspective: Here we address issues around the themes of
    customer satisfaction and customer retention. Corporate level measures might
    include performance data from formal customer surveys, loyalty indices,
    market segment growth and performance measures against key drivers of
    customer satisfaction. For Domino’s pizza the customer is in the middle of
    every thought, the goal is improve customer experience and satisfaction to
    100% maintaining the maximum respect for them.

c) Internal Business Perspective: In the Internal Business Perspective, measures
    are developed around the key processes in the organization. It is here that
    those processes that the organization must excel at because they correlate
    with customer satisfaction are identified and monitored to ensure that
    standards and targets are being met. Internally, the main challenges for
    Domino’s pizza are continuously changing and innovating, and embracing
    diversity by recruiting and retaining the best people. The company also aims at
    trying to be environmental friendly and rising awareness about social
    responsibility at the same time.

d) Growth and Learning: In this last perspective, the challenge of identifying
    measures that link to long term growth and success are identified. For the
    organization as a whole, as well as for project management managers, issues
    such as new skill and competency acquisition, employee morale, process
    improvement and enhanced value to the customer are all addressed in this
    future focused perspective. For Domino’s pizza this is a vital perspective for its
    business model, Values as never stop learning or innovate in ways that matter
    to the team members and customers are the basis of Domino’s pizza.

Project’s objectives applied to Vision & Strategy

       As we see in the Exhibit 2, the Domino’s pizza Balance Scorecard is formed
by four perspectives, we can see for each perspective which are the main strategic
objectives for Domino’s Pizza.

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




                                            8
Project Management: Creation and Development of a Mobile application           Domino’s Pizza




Figure 3: Objectives satisfied by the project

                           Balance Scorecard perspectives
                                                o Reduce fixed costs
        Financial Perspective
                                                o Increase revenues
                                                o Improve Customer Experience
        Customer Perspective                    o Offer larger range of Services
                                                o Increase accessibility
                                                o Fulfil competitive gap (cf: TelePizza)
    Internal Business Perspective               o Better productivity
                                                o Increase the brand reputation
                                                o Never stop learning
        Growth and Learning
                                                o Continuous improvement
Source: Self-made


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

    a) Competitor analysis

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

In the Spanish pizza market there are many companies exist but among them Telepizza
ranks as a strongest pizza delivery company. Telepizza is a Spanish home delivery and
take away pizza business that was founded in 1987 in a small Madrid pizza restaurant.
Today, Telepizza operates around 650 outlets in Spain (both owned and franchised) that
reach 12 million households. According to DBK, Telepizza is the market leader in the
pizza delivery market in Spain, with a 70% share.

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




                                                    9
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


Domino’s pizza and its competitors belongs to Horeca sector (Hosteleria, restauración y
catering). TelePizza has secured a market value share of 26.1% making it the most
dominant player in the fast food market in Spain since 1997. The strong growth is
attributed to its sale to Pizza World. The fast food market being very crowded with
TelePizza and McDonald's chains controlling more than 50% of the total market value
is further being compressed with the entrance of Burger King and Pizza Hut. The pizzas
and burgers sectors represent majority of the market reaching to a combined 70.2%.



Grupo Zena [10]

Grupo Zena S.A. operates restaurants and cafes in Spain. It also operates fast food
outlets. The company is based in Aravaca, Spain. Grupo Zena S.A. is a former
subsidiary of Carrefour SA. Grupo Zena is owner of Foster’s Hollywood, La Vaca
Argentina, Cañas y Tapas, Burger King, Nostrus, IL Tempietto and Domino’s Pizza.

Grupo Zena was ex-franchise owner of North American pizza giant Pizza Hut in Spain.
However, the end of the agreement between Zena Group and North American company
caused the disappearance of Pizza Hut from the Spanish market. With this agreement
broken, a new agreement between Zena Group and Domino’s Pizza Inc. brought
Domino’s Pizza to the Spanish consumer food service market in 2009.

After having completed a quick analysis of the different factors in the Pizza delivery
market in Spain, we have come out with several points:

   ○   There are a few majors competitors at national scale
   ○   The restaurants are divided between company’s owned and franchises
   ○   The main differentiation remains in the offer and services provided
   ○   A Constant Communication is required to motivate Customer’s Loyalty

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




                                           10
Project Management: Creation and Development of a Mobile application      Domino’s Pizza


   b) SWOT Analysis [3] [14] [18]

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

The SWOT can provide multiple benefits to our project.

These benefits can include:
   ● Insight into where Domino’s Pizza can focus to grow.
   ● Understand the Pizza industry structure by using a SWOT in our business
     plan.
   ● Focus your advertising and marketing on areas that give you a competitive
     advantage in the marketplace.
   ● The foresight to see looming threats and react proactively.




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


Figure 4: Domino’s Pizza SWOT Analysis




Source: Self-made


        As we can see in the Exhibit 4, we have divided the different factors as internal
or external for the organization. It is doubtless Domino’s Pizza has important strengths
that helps to cope with uncertain and ever changing environments but they should try to
take the most of the opportunities in the near future as well as to attempt to reduce the
impact of its threats over its performance, they must take into account relevant aspects
as the intense competition within the industry or the more healthier food trends.
Domino’s pizza do not have specific weaknesses but the lack of organic pizza limits the
target market which become more of an issue lately. Thus Domino’s should focus on
low carbohydrate and low calorie products in order to increase their sells. As we are
mentioning in our project, the iphone application for the beginning and in the latter
stages applications for all smartphones would be a great aspect for their future business.




                                           12
Project Management: Creation and Development of a Mobile application                      Domino’s Pizza


             c) Porter five forces: Domino’s Pizza [8] [9]

                Considering the Swot analysis one important part every analysis, we can explain
        briefly which are the fives forces Domino’s Pizza have to cope with.

        According to Porter (1980) this model includes three forces from 'horizontal'
        competition: threat of substitute products, the threat of established rivals, and the threat
        of new entrants; and two forces from 'vertical' competition: the bargaining power of
        suppliers and the bargaining power of customers.

        Figure 5: Domino’s Pizza Five forces




                            ● Switching costs are low.               ● The saturation in the industry is
                            ● The products that they need            huge.
                            are high volume and not                  ● Speedy and reliable channels are
                            differentiated.                          essential among all firms.
                                                                     ● Cost disadvantages are significant.
                            ● Lot of substitutes.




● Switching costs are nearly                                                                         ●To many subsƟtutes exist in
zero. Thus finding a second                                                                          the industry
option is easy.
● Customers bargaining power                                                                         ●The threat of substitutes is
is likely to be low.                                                                                 very high.




                                             ● High rivalry among firms.
                                             ● Huge number of companies offering the
                                             same product.




        Source: Self-made


             o Bargaining power of suppliers

        Domino’s pizza suppliers have low bargaining power because the number of suppliers
        who can sell to Domino’s pizza the products that they need is high volume and not
        differentiated. In addition to it, the switching costs from one supplier to another are so
        easy and tend to make up a large portion of the supplier’s revenue. This severely limits
        the bargaining power of the suppliers. There are also a lot of substitutes for the
        particular input. Suppliers are not a problem for domino’s pizza, at least until now they
        have no problem.



                                                            13
Project Management: Creation and Development of a Mobile application       Domino’s Pizza


   o Bargaining power of customers

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


   o Threat of new entrants
Threat of new entrants depends on different factors,

   ●   Economies of Scale: The saturation of the pizza industry is a huge limiter of
       how much an advantage can be attained by economies of scale.
   ●   Product Differentiation: Differentiation is a necessary expense in the pizza
       industry but it is not difficult to overcome so we can say it is not a significant
       barrier to market entry.
   ●    Capital requirements will dominate the formation of new, national competitors,
       but is not a significant barrier to private startups.
   ●   Cost Disadvantages: The extreme saturation and similarity in product offering
       make convenient locations essential for quick service restaurants large and
       small. This is a significant barrier to entry.
   ●   Distribution Channels: Speedy and reliable channels are essential among all
       firms in the industry, they are not necessarily difficult for new comers to attain.

Due to the lack of any of the barriers to entry being so significant, we feel the threat of
new entrants is high.

   o Threat of substitutes

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

In this sector, there are lots of substitutes. For example, frozen pizza is an important
substitute for pizza delivery. In fact, the entrance of premium frozen and refrigerated
pizzas such as Dr. Oetker, Buitoni or white label products of Mercadona, Consum etc.
had a significant impact on Domino’s Pizza working to shrink the market and drive
down prices.
With so many firms in the pizza delivery industry, low switching costs, similar
products, and maybe healthier options, the threat of substitutes is very high.



                                             14
Project Management: Creation and Development of a Mobile application    Domino’s Pizza




    o Competitive rivalry within an industry

At present, there are a huge number of companies offering the same product. The
limited-service industry defines a red ocean industry. Firms compete for market share
in a saturated market. Growth, particularly in pizza chains, is very slow so the customer
base is not growing as fast as the industry. This leads to high rivalry among firms.

5. Project phases [2] [4]

The project is divided into two different phases:

    a) Phase 1: Mobile App Creation & Implementation

    The mobile application market is currently booming, it is a commercial argument
and Dominos Pizza’s main competitor TelePizza has already integrated it to its services
provided.
A mobile app can be highly convenient for customers; it offers them the possibility to
review “on-the-go” the entire offer of the company, select the products he would like to
be delivered and also be charged directly on its mobile phone. It saves time for the
company, and optimizes productivity. There is no longer need for an employee to spend
time on the phone with a customer, it avoids the mistakes that can be made, and it is
more user friendly than an Internet webpage.

Moreover, this service aims at targeting a customer segment that directly fits Domino’s
Pizza products, the “Young urban buyers”.

But, why domino’s Pizza should have a mobile application?

       It is doubtless the high growth in the smartphones ambit and specially the
applications for these devices that we have been experiencing in the last years, as a
example we can see that Iphone and Ipad have currently more than 225,000 applications
available. It is highly recommendable that a company has its own mobile application
because,
    •   Higher traffic data linked to the website
    •   Direct communication with your target audience
    •   Mobile applications increase user involvement with company’s brand




                                            15
Project Management: Creation and Development of a Mobile application   Domino’s Pizza




Key features

   •   Flick through our extensive product
   •   View premium quality ingredients to design your own pizza
   •   Cash and Credit Card payment options available
   •   Possibility to customise your pizza and order in your time
   •   All the pizza combinations in the palm of your hand
   •   Make ordering faster by creating an account and saving your favourite order for
       next time
   •   Easy ordering process
   •   'My Order' at the bottom of every screen shows your accumulated order and
       dollar value, so you know exactly how many items you have ordered and what
       your order costs
   •   Track your order with the Domino’s Live Pizza Tracker, guiding you through
       each step of the pizza making process!

   a) Apple Developer’s Conditions [10]

       iPhone’s Application Development Conditions

        The company has decided to focus on one main segment: iPhones’ owners; as “a
test segment” for the introduction of a new way of ordering the company’s range of
products. In case of success of the operation, the company might want to expand the
availability of this mobile application to the rest of the range of popular smartphones
(Android, BlackBerry, WebOS, etc.).
There are several conditions which rule every existing smartphone platform, mainly
because each one of them remains private and so, still belong to their original
developers’ company (Apple, Google, BlackBerry, HP, etc.).
In the case of Apple, here are the main rules that Domino’s Pizza ‘s Application
Developers will have to comply with in order to be accepted in the company’s platform
and so, be available for download by iPhone ‘s owners:

o The application must be developed according to Apple Standards of Application as
  described in the terms of the “Program License Agreement” (PLA)
o The application must respect the “Human Interface Guidelines « (HIG) provided
  by the company, and the interface has to fit Apple ‘s graphical iOS Standards.
o An application that crashes or which exhibits bugs will be rejected.
o Applications that use non-public APIs provided by Apple will be rejected.
o Any application with forbidden content such as violence, offending religious or
  ethnic comments, and pornography will be rejected.

                                    *For a complete description please see Appendix #1




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


Distribution Process:

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

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

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

    b) Phase 2: Promotion

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

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

Event Description [27]

Each of the three events will be organised following these 3 stages:

    1. The hostesses hired will be providing a demonstration of the Domino’s Pizza
       Application running on both an iPad and iPhone. This demonstration aims at
       showing off the different functions of the App as well as promoting the brand
       Domino’s Pizza itself.

    2. After having checked if the interviewee possessed a compatible device, the
       demonstrator will follow by helping the person to download the App right on his
       iPhone/iPad.

    3. The three members of the staff will be providing people with an advertising
       flyers resuming the key features of the application. A promotional code will also
       be available for people who passes order from these devices. This will have for
       objectives to motivate trials.


Note: Two of the three events will take place in Universities (Politecnica and Tarongers), whereas the
final will be located in Mestalla Stadium before an important football match.




                                                 17
Project Management: Creation and Development of a Mobile application     Domino’s Pizza


    6. Planning and design

    a) Select the planning team [4] [12] [20] [21]

        In order to have a well-designed project, it is necessary select the right people,
the criteria for choosing them it is trying to balance the team between technical people
and communicative people,

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

The work team selected for this project is composed of six experts in many different
fields, being one of them the project manager in charge of the coordination team...

We can describe the objectives, roles and responsibilities of each member as,


Figure 6: Project Team work organizational chart




Source: Self-made


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




                                                   18
Project Management: Creation and Development of a Mobile application             Domino’s Pizza


          Figure 7: Project Team work: roles and responsibilities



                                                Project Team Work


  Members                           Objectives                               Roles and Responsibilities

                                                                    o   Conducting team training on new business
                    Coordinating the process from start to end,         guidelines or design developments
                    Manage and monitor day-to-day activity          o   Guiding and motivating fellow employees
    1. Project
                    and provide direction to team members,          o   Effective supervisory and organizational
    manager
                    effective planning, Cost estimating and         o   Lead the project team
                    schedule control, guide the project and         o   Motivate self and team members
                    create roles and responsibilities               o   Resolve issues in a timely manner


                                                          o             Assessing the current status of the project.
                    Ensuring the viability of the project o             Controlling each stages of the project according
   2. Strategic                                                         to the original plan.
                    according to the company’s target and
   consultant                                             o             Organizing meeting with the direction
                    objectives.
                                                          o             Reporting financial and market analysis


                                                                o       Researching and reporting on external
                    In Charge of investigating the company’s            opportunities.
    3. Public
                    market and establishing an appropriate o            Understanding current and potential customers.
  relations and
                    marketing plan for the project according to o       Developing the marketing strategy and plan
   marketing
                    Domino’s pizza Mk strategy.                 o       Managing agencies


                                                              o         Asses the risk of the project
                                                              o         Managing the project’s budget
  4. Financial      Forecasting and planning: Estimate the o            Investment decision
    Manager         requirement of funds Setting up financial o         Evaluating financial performance
                    goals evaluating financial performance.   o         To ensure profitability, so that income exceed
                                                                        expenses
                                                                    o   Developing, preparing, analyzing and reviewing
                                                                        budgets and other financial reports.
                                                                    o   Creating innovative designs, drafts, or
                                                                        presentations for the project.
                    Supervising the development of the mobile       o   Meeting customer expectations
                    app, creating communication supports, and       o   Ensuring design quality and that design
    5. Design
                    designing technical tools according to              directives are followed
    Manager
                    Domino’s Pizza corporate image &                o   Technical knowledge of the design process
                    standards.                                      o   Be creative and innovative
                                                                    o   Be flexible and dependable


                    Coordinating the process of the project as o        Develops and maintains a detailed project
                    well as the members of the project,                 schedule
                    ensuring the effective preparation and o            Assist the Project Manager
6. Coordinator                                                          ongoing evaluation of project activity and
                    delivery of all project events and meetings o
                    and    production      of   all   necessary         reporting on project progress to the project
                    documentation                                       manager



                                                            19
Project Management: Creation and Development of a Mobile application     Domino’s Pizza


    b) Schedule [4]

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

Figure 8: Project schedule


                                  Project Schedule




Source: Self-made

        As we can see in the table above, the start date of the project is 1st February,
2011.This project will takes about twelve weeks until its expected finish date on 28th
April, 2011.

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

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




                                            20
Project Management: Creation and Development of a Mobile application            Domino’s Pizza


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

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

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

c) The budget [4] [25]

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

Figure 9: The project budget


                                               Project Budget

                     Domino's pizza                         February   March   April
                       EXPENSES
                 Implementation expenses
           Travels
                           x2 fligts vlc-mad                  €250     €250
           Telephone Cellular
                           €30 flat rate x6                   €180     €180    €180
           Tickets restaurant
                 Each ticket (€10/Day x 22 days) x 6         €1320     €1320   €1320
           Betas review
           Work team salaries                                €7000     €7000   €7000
           Rent a car
                        x2 days by Pepecar.com               €77,85            €77,85
           Accomodation costs                                €82,5             €82,5
                Mobile App. Development
           Web agency
                          by rentacoder.com

           First payment                                               €3000
           Second payment                                                      €3000
           Apple Affiliate Program                            €99



                                                       21
Project Management: Creation and Development of a Mobile application                Domino’s Pizza



                      Marketing Materials
           ipad 2 16gb                                                             €599
           iphone 4
                              x2/ 500€ each                                        €1000
           Banners
                      €6 x3 each franchise in vlc =12                               €72
           Flyers
                               €1.5 x2000                                          €1000
           Recruiting                                                              €300
                             Advertising
           Stand                                                                   €250
           Uniforms                                                                €210
           Event Stewards                                                          €450
                      Total Other Expenses
           Salaries
                          Project manager                      €2500      €2500    €2500
                        Strategic consultant                   €1500      €1500    €1500
                         Financial Manager                     €2000      €2000    €2000
                      Design/image manager                     €1800      €1800    €1800
                             Coordinator                       €1500      €1500    €1500
               Public relations and marketing                  €1800      €1800    €1800

                           Consultant fees                     €1200      €1200    €1200
                Sectorial study in Valencia (Deloitte)



          TOTAL EXPENSES (Monthly)                            €21309,4   €24050,0 €27841,4

          TOTAL BUDGET EXPENSES                               €73200,7

Source: Self-made



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

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




                                                         22
Project Management: Creation and Development of a Mobile application       Domino’s Pizza


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

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

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

The different actions to monitoring and controlling the project are the following ones,
    •   Measuring the ongoing project activities
    •   Identify corrective actions to address issues and risks properly

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




                                            23
Project Management: Creation and Development of a Mobile application       Domino’s Pizza


8. Conclusions

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

Figure 10: Domino’s Pizza Mobile Application expected result


                                  Final Project Result




Source: Self-made


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

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

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




                                                 24
Project Management: Creation and Development of a Mobile application    Domino’s Pizza


This project will not only provide a bigger range of services to the company, but it will
also permit a reduction of costs and increase the productivity of each restaurant;
employees not having to spend time over the phone to take customers’ orders. It will
also limit the need for various transactions and avoids the risk for mistakes considering
that the order has been charged before being sent to the restaurant.

Domino’s Pizza has also to take into account that the implementation of this technology
for all selling points in Spain will require a national promotion campaign proportionally
as what has been described in this report. Although, it can be the start of a new
positioning strategy using popular technology in order to reach a wider target
population and being able to gain in market share over TelePizza.




                                           25
Project Management: Creation and Development of a Mobile application          Domino’s Pizza



9. REFERENCES AND BIBLIOGRAPHY

1. Crossan, Mary M., Rouse Michael J., Fry, Joseph N. and Killing, J. Peter (2009).
     Strategic Analysis and Action , 7th Edition, Pearson, Prentice Hall, cap. 8
2. Gido, J. & Clemens, J.P. (2003). Administración exitosa de proyectos, Thomson, 2ª
     edición.
3. Exploring corporate Strategy. Johnson. G and Scholes. K,m Thomson, 6th edition
4. Kerzner, Harold (2003). Project Management: A Systems Approach to Planning,
     Scheduling, and Controlling (8th ed.).
5.   Kaplan, R.S and P Norton. 1996. The balanced scorecard : translating strategy into
     action
6. Kaplan, R. S. and D. P. Norton. 1996. Using the balanced scorecard as a strategic
     management system. Harvard Business Review (January‐February): 75‐85.

7. Pellegrinelli, S. & Bowman, C. (1994). Implementing Strategy through projects,
   Long Range Planning, vol.27, nº 4, pp. 125‐132.
8. Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980.
9. Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard
    business Review, January 2008.
10. Apple (2011) Development Terms and conditions Available at:
     www.apple.com/developmentprogramconditions.html
11. Hodge, B.J., Anthony, W.P. & Gales, L.M. (2003). Teoría de la organización. Un
     enfoque estratégico. 6º edición. Pearson‐Prentice‐Halls
12. Sebastian. Nokes The Definitive Guide to Project Management.. 2nd Ed.n. London
     (Financial Times / Prentice Hall): 2007.
13. Domino’s Pizza (2011)
     a) Domino’s         pizza      vision         and    mission            Available     at:
        http://www.dominospizza.co.nz/corporate/inside/visionmission.aspx [Accessed:
        10 March, 2011]
     b) Domino’s Pizza Annual report (2010)
     c) Logos and Images. Available at www.dominospizza.com
14. Grupo Zena (2011) Available at: http://www.zena.com/ [Accessed: 12 March,
     2011]
15. Bloomberg       BusinessWeek      (2010).      Food   services     S.l     Available   at:
     http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8
     33502 [Accessed: 27 March, 2011]




                                              26
Project Management: Creation and Development of a Mobile application            Domino’s Pizza


16. Domino’s Pizza, John Henry, International Business, 2010. Case Study
17. Balance Scorecard
   a) Martínez Pedros, D. (2011) “Herramientas para la implementación de
       estrategias”
   b) Balance Scorecard organization (2011) “The four perspectives” Available at
       http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/t
       abid/55/Default.aspx [Accessed: 25 March, 2011]
18. Businessballs        (2011)         “SWOT              Method”            Available      at:
   http://www.businessballs.com/swotanalysisfreetemplate.htm
19. Organizational     Structure     Business         Dictionary    (2011)       Available   at:
   http://www.businessdictionary.com/definition/organizational-structure.html
   [Accessed: 25 March, 2011]
20. Basic college accounting (2009) Financial manager functions, Available at:
   http://basiccollegeaccounting.com/explain-the-objectives-functions-roles-of-a-
   finance-manager/ [Accessed: 21 March, 2011]
21. Marketing made simple (2010), Marketing Manager Functions, Available at:
   http://www.marketing-made-simple.com/articles/marketing-manager-role.htm
   [Accessed: 24 March, 2011]
22. Pmcrunch        (2009).      Selecting      the      team      work.        Available    at:
   http://pmcrunch.com/project_management_process/criteria-for-selecting-projects-
   team-members/ [Accessed: 03 May, 2011]
23. Eventoplus (2011) Available at http://www.eventoplus.com/categorias/azafatas-
   valencia.php [Accessed: 19 April, 2011]
24. Project manager certification (2011) “Project scope statement” Available at:
   http://www.projectmanagementcertification.org/managernotes/roles_and_responsibi
   lities.html [Accessed: 15 April, 2011]
25. PMtips.com        (2009).     “Project      Budget      Management”         Available    at:
   http://pmtips.net/project-budget-management/ [Accessed: 05 May, 2011]
26. Businessweek       (2011).      Telepizza         company      profile.     Available    at:
   http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8834
   42[Accessed: 05 March, 2011]
27. AEC (2011) Asociación española de empresas de consultoria. Estudios sectoriales.
   Available at: http://www.consultoras.org/frontend/aec/Informes-Sectoriales-AEC-vs218
   [Accessed: 28April, 2011]




                                             27
Project Management: Creation and Development of a Mobile application   Domino’s Pizza


10. APPENDIX:

   •   Appendix #1: App Store Guidelines / 7 pages




                                           28

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Domino's Pizza Project

  • 1. MASTERS IN BUSINESS STRATEGY COURSE 2010-2011 Professor: Mº Teresa Giner Module: 41043 HERRAMIENTAS DE IMPLEMENTACIÓN Project Management: “Creation and Development of a Mobile application for Domino’s Pizza España” Florent Guedon Selim Öztürk David Soriano Mc Guinness
  • 2. Project Management: Creation and Development of a Mobile application Domino’s Pizza Table of contents 1. Introduction………………………………………………………………………………………….Pag.4 o Company profile o Scope statement 2. Company Analysis…………………………………………………………………………………Pag.5 o Strategy………………………………………………………………………………………...…Pag.5 o Mission o Vision o Values o Organizational Structure 3. Balance Scorecard………………………………………………………………………………….Pag.7 o The four perspectives a) Financial b) Customer c) Internal business processes d) Learning and growth 4. Industry Analysis…………………………………………………………………………………..Pag.9 o Competitor Analysis o SWOT Analysis o Porter five forces 5. Project Phases……………………………………………………………………………………..Pag.15 o Phase 1: Mobile App Conception a) Apple developer’s conditions b) Development and implementation o Phase 2: Promotion 6. Planning and design…………………………………………………………………………….Pag.18 o Selecting the planning team o The Schedule o The Budget 7. Control and monitoring…………………………………………………………………..……Pag.22 8. Conclusions……………………………………………………………………………………...….Pag.23 9. References and Bibliography……………………………………………………………..…Pag.24 10. Appendix…………………………………………………………………………………………….Pag.26 2
  • 3. Project Management: Creation and Development of a Mobile application Domino’s Pizza List of Figures Figure 1 Organizational Structure Pag.6 Figure 2 Balance Scorecard Pag.7 Figure 3 Objectives satisfied by the project Pag.9 Figure 4 SWOT Analysis Pag.12 Figure 5 Porter Five Forces Pag.13 Figure 6 Project Organizational chart Pag.18 Figure 7 Roles and Responsibilities Pag.19 Figure 8 The Schedule Pag.20 Figure 9 The project Budget Pag.21 Figure 10 Mobile application final result Pag.24 3
  • 4. Project Management: Creation and Development of a Mobile application Domino’s Pizza 1. Introduction a) Company Overview [13.a,b] Domino's Pizza, is an international pizza delivery corporation headquartered in Michigan, United States Founded in 1960, Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets and all 50 U.S. states. The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheesesticks, and a variety of dessert item. Domino´s pizza entered in the Spanish market in 2009, entering directly through buying all the Pizza Hut franchises, so in one quick movement, Domino´s Pizza gained a significant market share in Spain. b) Scope statement [12][22][24] Domino’s Pizza España will upgrade the ordering system through implementing a new mobile application, starting at one franchise located in Valencia (Spain). The project will be complete by the end of May, 2011, starting in February, 2011. o The project rational This project will facilitate the take of orders through mobile devices (iPhone, iPod touch and iPad), which will help Domino’s Pizza customers to make orders through its mobile phones providing them various benefits such as, • Ease of access • Convenience • Make ordering faster by creating an account and saving the orders • Reduce the use of sales assistant (regular orders being made over the phone) Moreover, this project continues the strategy that it is been implementing in the US market, where they have carried a similar project in order to satisfy the customer needs as well as exploiting the opportunities of new technologies. 4
  • 5. Project Management: Creation and Development of a Mobile application Domino’s Pizza 2. Company Analysis [13.a, b] [14] a) Strategy Firstly, it is important to know which is the strategy of Domino’s Pizza, we should self-asses the company within it in order to achieve the starting point for the project. o Vision The Vision of Domino’s pizza is being the number one in pizza and the number one in people o Mission The Mission of Domino’s pizza is mainly based on sell more pizza and have fun o Values Some of the Domino’s pizza values are, • Treat people as you’d like to be treated. • Produce the best for less. • Measure, manage and share what’s important. • Think big and grow. • Incentive what you want to change. • Set the bar high, train, and never stop learning. • Promote from within. • We are not ordinary, we are exceptional. 5
  • 6. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) Organizational Structure [13.b] [14] To analyse the organizational structure of Domino’s Pizza we must analyse firstly the group who owns Domino’s Pizza in Spain. Grupo Zena is a leading Spanish casual dining and fast-food restaurant group, composed of a mix of owned brands. In the following parts we will analyse with more details this group. In exhibit 1, we can describe the current organizational structure of a franchise located in Valencia, where it will take place this project. Figure 1: Organizational structure Source: Self-made Note: The majority of Domino’s Pizza stores are franchises. 6
  • 7. Project Management: Creation and Development of a Mobile application Domino’s Pizza 3. Balance Scorecard [3] [4] [5] [6] [11.b] [17a.,b] Through the balance scorecard, we will try to translate the company’s vision and mission into real objectives, in a briefly way we will ungroup and classify the main objectives of the company into four different perspectives as well as find out which objectives are satisfied by the project. According to Kaplan (1996) the four perspectives of the scorecard permit a balance between short and long-term objectives, between outcomes desired and the performance drivers of those outcomes. Figure 2: Domino’s Pizza Balance Scorecard Source: Self-made According to Kaplan (1996) the Four Perspectives of a Balanced Scorecard includes, a) The Financial Perspective: This perspective addresses the financial impact of priorities chosen, plans executed, decisions made and actions taken by the management team. For Domino’s pizza this perspective in totally based on try to produce the best for less in terms of costs, Increase Market Share and profits, achieve revenue growth each year and try to match the gap between cost estimate and project budget. 7
  • 8. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) The Customer Perspective: Here we address issues around the themes of customer satisfaction and customer retention. Corporate level measures might include performance data from formal customer surveys, loyalty indices, market segment growth and performance measures against key drivers of customer satisfaction. For Domino’s pizza the customer is in the middle of every thought, the goal is improve customer experience and satisfaction to 100% maintaining the maximum respect for them. c) Internal Business Perspective: In the Internal Business Perspective, measures are developed around the key processes in the organization. It is here that those processes that the organization must excel at because they correlate with customer satisfaction are identified and monitored to ensure that standards and targets are being met. Internally, the main challenges for Domino’s pizza are continuously changing and innovating, and embracing diversity by recruiting and retaining the best people. The company also aims at trying to be environmental friendly and rising awareness about social responsibility at the same time. d) Growth and Learning: In this last perspective, the challenge of identifying measures that link to long term growth and success are identified. For the organization as a whole, as well as for project management managers, issues such as new skill and competency acquisition, employee morale, process improvement and enhanced value to the customer are all addressed in this future focused perspective. For Domino’s pizza this is a vital perspective for its business model, Values as never stop learning or innovate in ways that matter to the team members and customers are the basis of Domino’s pizza. Project’s objectives applied to Vision & Strategy As we see in the Exhibit 2, the Domino’s pizza Balance Scorecard is formed by four perspectives, we can see for each perspective which are the main strategic objectives for Domino’s Pizza. This project responds the need to satisfy different objectives, but there are some that they are more important than others. The table below shows which are the objectives satisfied by the performance of this project. 8
  • 9. Project Management: Creation and Development of a Mobile application Domino’s Pizza Figure 3: Objectives satisfied by the project Balance Scorecard perspectives o Reduce fixed costs Financial Perspective o Increase revenues o Improve Customer Experience Customer Perspective o Offer larger range of Services o Increase accessibility o Fulfil competitive gap (cf: TelePizza) Internal Business Perspective o Better productivity o Increase the brand reputation o Never stop learning Growth and Learning o Continuous improvement Source: Self-made 4. Industry Analysis [2] [3] [13.b] [14] a) Competitor analysis The pizza industry is a highly competitive and mature market. There are many pizza makers ranging from local pizzerias to international franchises. With the current health kick in today’s society as well as economic downturn, many companies are being forced to make healthier, cheaper products. Many other companies are introducing salads into their menu. The popularity of the Internet as well as mobile commerce is transforming the traditional ways of ordering a pizza. In the Spanish pizza market there are many companies exist but among them Telepizza ranks as a strongest pizza delivery company. Telepizza is a Spanish home delivery and take away pizza business that was founded in 1987 in a small Madrid pizza restaurant. Today, Telepizza operates around 650 outlets in Spain (both owned and franchised) that reach 12 million households. According to DBK, Telepizza is the market leader in the pizza delivery market in Spain, with a 70% share. Competition was becoming tougher in terms of restaurants and at home, even more so in the latter case due to progress made in preparing precooked foods. All types of restaurants competed with Domino’s Pizza, but the groups are organised. Within the pizza segment included; Telepizza which is the market’s biggest share holder, and another company from Zena group called Pizza Móvil, from the Ibersol group in Spain, which were focused largely on consumption on the premises. Domino’s Pizza’s competitors in the delivery and take away sector were Chinese restaurants, small operators and Fast Food chains such as McDonalds or Burger King. 9
  • 10. Project Management: Creation and Development of a Mobile application Domino’s Pizza Domino’s pizza and its competitors belongs to Horeca sector (Hosteleria, restauración y catering). TelePizza has secured a market value share of 26.1% making it the most dominant player in the fast food market in Spain since 1997. The strong growth is attributed to its sale to Pizza World. The fast food market being very crowded with TelePizza and McDonald's chains controlling more than 50% of the total market value is further being compressed with the entrance of Burger King and Pizza Hut. The pizzas and burgers sectors represent majority of the market reaching to a combined 70.2%. Grupo Zena [10] Grupo Zena S.A. operates restaurants and cafes in Spain. It also operates fast food outlets. The company is based in Aravaca, Spain. Grupo Zena S.A. is a former subsidiary of Carrefour SA. Grupo Zena is owner of Foster’s Hollywood, La Vaca Argentina, Cañas y Tapas, Burger King, Nostrus, IL Tempietto and Domino’s Pizza. Grupo Zena was ex-franchise owner of North American pizza giant Pizza Hut in Spain. However, the end of the agreement between Zena Group and North American company caused the disappearance of Pizza Hut from the Spanish market. With this agreement broken, a new agreement between Zena Group and Domino’s Pizza Inc. brought Domino’s Pizza to the Spanish consumer food service market in 2009. After having completed a quick analysis of the different factors in the Pizza delivery market in Spain, we have come out with several points: ○ There are a few majors competitors at national scale ○ The restaurants are divided between company’s owned and franchises ○ The main differentiation remains in the offer and services provided ○ A Constant Communication is required to motivate Customer’s Loyalty We have been mainly focusing on Domino’s Pizza and TelePizza, which seem to be the major actor of the market. These two companies are fighting in a highly competitive environment using constant promotional offers and communication in order to motivate customers‘ trials and repeat purchasing. In this industry we found services to be very important and definitely dependent on the businesses activities. 10
  • 11. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) SWOT Analysis [3] [14] [18] In this part, we are going to use the SWOT analysis to identify the strengths, weaknesses, opportunities and threats in order to get a quick overview of Domino’s pizza strategic situation. According to Johnson (2005) strengths and weaknesses focuses on an internal perspective of a company, it is the result of an analysis carried out to point out the real competences of a business and the different areas of improvement. Threats and opportunities are external; focusing on the environmental conditions where the company is operating in. The company is looking at how could it be affected by it and which opportunities can it take advantage from. This is where a SWOT analysis is helpful. It challenges you to see beyond your company walls to determine what opportunities are open for your company and how to capitalize on your strengths. The SWOT can provide multiple benefits to our project. These benefits can include: ● Insight into where Domino’s Pizza can focus to grow. ● Understand the Pizza industry structure by using a SWOT in our business plan. ● Focus your advertising and marketing on areas that give you a competitive advantage in the marketplace. ● The foresight to see looming threats and react proactively. 11
  • 12. Project Management: Creation and Development of a Mobile application Domino’s Pizza Figure 4: Domino’s Pizza SWOT Analysis Source: Self-made As we can see in the Exhibit 4, we have divided the different factors as internal or external for the organization. It is doubtless Domino’s Pizza has important strengths that helps to cope with uncertain and ever changing environments but they should try to take the most of the opportunities in the near future as well as to attempt to reduce the impact of its threats over its performance, they must take into account relevant aspects as the intense competition within the industry or the more healthier food trends. Domino’s pizza do not have specific weaknesses but the lack of organic pizza limits the target market which become more of an issue lately. Thus Domino’s should focus on low carbohydrate and low calorie products in order to increase their sells. As we are mentioning in our project, the iphone application for the beginning and in the latter stages applications for all smartphones would be a great aspect for their future business. 12
  • 13. Project Management: Creation and Development of a Mobile application Domino’s Pizza c) Porter five forces: Domino’s Pizza [8] [9] Considering the Swot analysis one important part every analysis, we can explain briefly which are the fives forces Domino’s Pizza have to cope with. According to Porter (1980) this model includes three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Figure 5: Domino’s Pizza Five forces ● Switching costs are low. ● The saturation in the industry is ● The products that they need huge. are high volume and not ● Speedy and reliable channels are differentiated. essential among all firms. ● Cost disadvantages are significant. ● Lot of substitutes. ● Switching costs are nearly ●To many subsƟtutes exist in zero. Thus finding a second the industry option is easy. ● Customers bargaining power ●The threat of substitutes is is likely to be low. very high. ● High rivalry among firms. ● Huge number of companies offering the same product. Source: Self-made o Bargaining power of suppliers Domino’s pizza suppliers have low bargaining power because the number of suppliers who can sell to Domino’s pizza the products that they need is high volume and not differentiated. In addition to it, the switching costs from one supplier to another are so easy and tend to make up a large portion of the supplier’s revenue. This severely limits the bargaining power of the suppliers. There are also a lot of substitutes for the particular input. Suppliers are not a problem for domino’s pizza, at least until now they have no problem. 13
  • 14. Project Management: Creation and Development of a Mobile application Domino’s Pizza o Bargaining power of customers Similarly, the bargaining power of customers determines how much customers can impose pressure on margins and volumes. But for Domino’s pizza customers bargaining power is likely to be low. The buyer switching costs are nearly zero, any customer could find a second option for Domino’s pizza, for example, they can prefer other substitutes such as frozen pizza, microwave pizza etc. or other pizza restaurants and chains. The costumers generally don’t buy large volumes, so there is not a concentration of buyers. o Threat of new entrants Threat of new entrants depends on different factors, ● Economies of Scale: The saturation of the pizza industry is a huge limiter of how much an advantage can be attained by economies of scale. ● Product Differentiation: Differentiation is a necessary expense in the pizza industry but it is not difficult to overcome so we can say it is not a significant barrier to market entry. ● Capital requirements will dominate the formation of new, national competitors, but is not a significant barrier to private startups. ● Cost Disadvantages: The extreme saturation and similarity in product offering make convenient locations essential for quick service restaurants large and small. This is a significant barrier to entry. ● Distribution Channels: Speedy and reliable channels are essential among all firms in the industry, they are not necessarily difficult for new comers to attain. Due to the lack of any of the barriers to entry being so significant, we feel the threat of new entrants is high. o Threat of substitutes The threat that substitute products pose to an industry's profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of substitution is also affected by switching costs In this sector, there are lots of substitutes. For example, frozen pizza is an important substitute for pizza delivery. In fact, the entrance of premium frozen and refrigerated pizzas such as Dr. Oetker, Buitoni or white label products of Mercadona, Consum etc. had a significant impact on Domino’s Pizza working to shrink the market and drive down prices. With so many firms in the pizza delivery industry, low switching costs, similar products, and maybe healthier options, the threat of substitutes is very high. 14
  • 15. Project Management: Creation and Development of a Mobile application Domino’s Pizza o Competitive rivalry within an industry At present, there are a huge number of companies offering the same product. The limited-service industry defines a red ocean industry. Firms compete for market share in a saturated market. Growth, particularly in pizza chains, is very slow so the customer base is not growing as fast as the industry. This leads to high rivalry among firms. 5. Project phases [2] [4] The project is divided into two different phases: a) Phase 1: Mobile App Creation & Implementation The mobile application market is currently booming, it is a commercial argument and Dominos Pizza’s main competitor TelePizza has already integrated it to its services provided. A mobile app can be highly convenient for customers; it offers them the possibility to review “on-the-go” the entire offer of the company, select the products he would like to be delivered and also be charged directly on its mobile phone. It saves time for the company, and optimizes productivity. There is no longer need for an employee to spend time on the phone with a customer, it avoids the mistakes that can be made, and it is more user friendly than an Internet webpage. Moreover, this service aims at targeting a customer segment that directly fits Domino’s Pizza products, the “Young urban buyers”. But, why domino’s Pizza should have a mobile application? It is doubtless the high growth in the smartphones ambit and specially the applications for these devices that we have been experiencing in the last years, as a example we can see that Iphone and Ipad have currently more than 225,000 applications available. It is highly recommendable that a company has its own mobile application because, • Higher traffic data linked to the website • Direct communication with your target audience • Mobile applications increase user involvement with company’s brand 15
  • 16. Project Management: Creation and Development of a Mobile application Domino’s Pizza Key features • Flick through our extensive product • View premium quality ingredients to design your own pizza • Cash and Credit Card payment options available • Possibility to customise your pizza and order in your time • All the pizza combinations in the palm of your hand • Make ordering faster by creating an account and saving your favourite order for next time • Easy ordering process • 'My Order' at the bottom of every screen shows your accumulated order and dollar value, so you know exactly how many items you have ordered and what your order costs • Track your order with the Domino’s Live Pizza Tracker, guiding you through each step of the pizza making process! a) Apple Developer’s Conditions [10] iPhone’s Application Development Conditions The company has decided to focus on one main segment: iPhones’ owners; as “a test segment” for the introduction of a new way of ordering the company’s range of products. In case of success of the operation, the company might want to expand the availability of this mobile application to the rest of the range of popular smartphones (Android, BlackBerry, WebOS, etc.). There are several conditions which rule every existing smartphone platform, mainly because each one of them remains private and so, still belong to their original developers’ company (Apple, Google, BlackBerry, HP, etc.). In the case of Apple, here are the main rules that Domino’s Pizza ‘s Application Developers will have to comply with in order to be accepted in the company’s platform and so, be available for download by iPhone ‘s owners: o The application must be developed according to Apple Standards of Application as described in the terms of the “Program License Agreement” (PLA) o The application must respect the “Human Interface Guidelines « (HIG) provided by the company, and the interface has to fit Apple ‘s graphical iOS Standards. o An application that crashes or which exhibits bugs will be rejected. o Applications that use non-public APIs provided by Apple will be rejected. o Any application with forbidden content such as violence, offending religious or ethnic comments, and pornography will be rejected. *For a complete description please see Appendix #1 16
  • 17. Project Management: Creation and Development of a Mobile application Domino’s Pizza Distribution Process: The Domino’s Pizza Application, once tested and finished will be submitted to Apple for approbation and within a week, will be available for download to the Apple App Store platform. During the distribution process, Apple advertises a specific policy for the Apps developed, o The Developer can set the price for its App o Apple charges 30% for distribution o Apple is sending the payments on monthly basis o No charge for Free Apps o No credit card, hosting and marketing fees As the Domino’s Pizza Application will be Free, Apple will not charge the company for any fees. b) Phase 2: Promotion The second phase is more locally focused; it consists in developing a promotional campaign for Dominos Pizza’s new service in Valencia. This campaign will directly take place among the target population, using street marketing into the different universities of the city. These interventions will intend to popularize the use of the application as well as rising up awareness about the different restaurant available in Valencia and the promotional offers going on. To carry out this phase, we will create a specific work team, which will be responsible of the promotion and advertising of the brand as well as implementing. Event Description [27] Each of the three events will be organised following these 3 stages: 1. The hostesses hired will be providing a demonstration of the Domino’s Pizza Application running on both an iPad and iPhone. This demonstration aims at showing off the different functions of the App as well as promoting the brand Domino’s Pizza itself. 2. After having checked if the interviewee possessed a compatible device, the demonstrator will follow by helping the person to download the App right on his iPhone/iPad. 3. The three members of the staff will be providing people with an advertising flyers resuming the key features of the application. A promotional code will also be available for people who passes order from these devices. This will have for objectives to motivate trials. Note: Two of the three events will take place in Universities (Politecnica and Tarongers), whereas the final will be located in Mestalla Stadium before an important football match. 17
  • 18. Project Management: Creation and Development of a Mobile application Domino’s Pizza 6. Planning and design a) Select the planning team [4] [12] [20] [21] In order to have a well-designed project, it is necessary select the right people, the criteria for choosing them it is trying to balance the team between technical people and communicative people, Building a good team is the most important thing a project manager can do to achieve a successful project, The work team selected for this project is composed of six experts in many different fields, being one of them the project manager in charge of the coordination team... We can describe the objectives, roles and responsibilities of each member as, Figure 6: Project Team work organizational chart Source: Self-made As we can see in Exhibit x, the team selected for this project combine different fields of work required to carry on the project effectively. We have selected professionals who carry the perspective and inter disciplinary of the company perfectly. From our strategic consultant will be hired through the consulting firm Deloitte in order to analyse the market , the rest of the team will be selected from the main office of Domino’s Pizza which is located in Madrid. The responsible of selecting the team will be the project manager according to the needs of our project and Domino’s Pizza requirements. 18
  • 19. Project Management: Creation and Development of a Mobile application Domino’s Pizza Figure 7: Project Team work: roles and responsibilities Project Team Work Members Objectives Roles and Responsibilities o Conducting team training on new business Coordinating the process from start to end, guidelines or design developments Manage and monitor day-to-day activity o Guiding and motivating fellow employees 1. Project and provide direction to team members, o Effective supervisory and organizational manager effective planning, Cost estimating and o Lead the project team schedule control, guide the project and o Motivate self and team members create roles and responsibilities o Resolve issues in a timely manner o Assessing the current status of the project. Ensuring the viability of the project o Controlling each stages of the project according 2. Strategic to the original plan. according to the company’s target and consultant o Organizing meeting with the direction objectives. o Reporting financial and market analysis o Researching and reporting on external In Charge of investigating the company’s opportunities. 3. Public market and establishing an appropriate o Understanding current and potential customers. relations and marketing plan for the project according to o Developing the marketing strategy and plan marketing Domino’s pizza Mk strategy. o Managing agencies o Asses the risk of the project o Managing the project’s budget 4. Financial Forecasting and planning: Estimate the o Investment decision Manager requirement of funds Setting up financial o Evaluating financial performance goals evaluating financial performance. o To ensure profitability, so that income exceed expenses o Developing, preparing, analyzing and reviewing budgets and other financial reports. o Creating innovative designs, drafts, or presentations for the project. Supervising the development of the mobile o Meeting customer expectations app, creating communication supports, and o Ensuring design quality and that design 5. Design designing technical tools according to directives are followed Manager Domino’s Pizza corporate image & o Technical knowledge of the design process standards. o Be creative and innovative o Be flexible and dependable Coordinating the process of the project as o Develops and maintains a detailed project well as the members of the project, schedule ensuring the effective preparation and o Assist the Project Manager 6. Coordinator ongoing evaluation of project activity and delivery of all project events and meetings o and production of all necessary reporting on project progress to the project documentation manager 19
  • 20. Project Management: Creation and Development of a Mobile application Domino’s Pizza b) Schedule [4] The table bellows represent the project’s schedule, separating it in two different phases as we mention before. Figure 8: Project schedule Project Schedule Source: Self-made As we can see in the table above, the start date of the project is 1st February, 2011.This project will takes about twelve weeks until its expected finish date on 28th April, 2011. In phase 1, based on the preparation and implementation of the mobile application, we start communicating the project to the main stakeholders and once it is approved, we have selected the work project team. During the first three weeks we are going to make a brief analysis about the market, financial issues and costumer demanding. After the internal analysis we will focus on selection of web agency in charge of programming the mobile application. Later on, we will complete the first term payment, as well as controlling and monitoring during the whole process. 20
  • 21. Project Management: Creation and Development of a Mobile application Domino’s Pizza Phase 2 starts with the revision of the first milestone, where we have analyzed all the objectives and its compliance. Once the web agency company delivers the first beta, we will have a second meeting with Domino’s Pizza Madrid. Obtaining the apple submission and reviewing the second beta. After that we will complete the second payment. Once the mobile application is released as we mentioned above we will organize some events. The rationale of these events is promoting the usage of the application and get out product know by our public target. The stewards will be hired and trained by Domino’s Pizza. After that we can totally focus on the promotion of the mobile application that will take place for the last three weeks of our project as well as reviewing the second milestone and closing the project. c) The budget [4] [25] In this part, we are going to focus on the budget of the project, it is important take into account all the potential expenses of this project, the financial manager, as the responsible of the project budget should be capable of controlling and reporting the different expenses to the head office in Madrid, Figure 9: The project budget Project Budget Domino's pizza February March April EXPENSES Implementation expenses Travels x2 fligts vlc-mad €250 €250 Telephone Cellular €30 flat rate x6 €180 €180 €180 Tickets restaurant Each ticket (€10/Day x 22 days) x 6 €1320 €1320 €1320 Betas review Work team salaries €7000 €7000 €7000 Rent a car x2 days by Pepecar.com €77,85 €77,85 Accomodation costs €82,5 €82,5 Mobile App. Development Web agency by rentacoder.com First payment €3000 Second payment €3000 Apple Affiliate Program €99 21
  • 22. Project Management: Creation and Development of a Mobile application Domino’s Pizza Marketing Materials ipad 2 16gb €599 iphone 4 x2/ 500€ each €1000 Banners €6 x3 each franchise in vlc =12 €72 Flyers €1.5 x2000 €1000 Recruiting €300 Advertising Stand €250 Uniforms €210 Event Stewards €450 Total Other Expenses Salaries Project manager €2500 €2500 €2500 Strategic consultant €1500 €1500 €1500 Financial Manager €2000 €2000 €2000 Design/image manager €1800 €1800 €1800 Coordinator €1500 €1500 €1500 Public relations and marketing €1800 €1800 €1800 Consultant fees €1200 €1200 €1200 Sectorial study in Valencia (Deloitte) TOTAL EXPENSES (Monthly) €21309,4 €24050,0 €27841,4 TOTAL BUDGET EXPENSES €73200,7 Source: Self-made As we can see in Exhibit 9, we have divided the expenses depending where it comes from, implementation expenses and mobile application development belongs to phase 1, whereas Marketing materials, advertising and other expenses belongs to Phase 2. The amount of the total budget increases to €73200.7, being the last month of the project the most expensive due to promotion costs. While the first is composed in almost its entirety of the implementation of the project. 22
  • 23. Project Management: Creation and Development of a Mobile application Domino’s Pizza 7. Control and Monitoring [4] [17] [25] The project manager will be responsible of monitoring the overall project with the support of the coordinator project. The monitoring of the project will provide the project status for the phases and total project, identifying the risks and potential problems as early as possible in order to be. Furthermore. the monitoring of this project will be conducted as well across the next months once the mobile application is released. The procedure for the monitoring will take place every two weeks through a meeting between the project manager and the coordinator. One of the main objectives of Domino’s pizza is place the use of the mobile application at the level of the website order. Every month the statistics of this application should be measured and assessed the stability and growth of its use during the coming years. The different actions to monitoring and controlling the project are the following ones, • Measuring the ongoing project activities • Identify corrective actions to address issues and risks properly According to Kerzner (2003) a project can be monitored by different ways such as reports, which will help in future planning and inform the project manager of what has taken place. Another way is through diaries, which is a helpful way of recording information and will help to evaluate the project work. 23
  • 24. Project Management: Creation and Development of a Mobile application Domino’s Pizza 8. Conclusions In the Exhibit 10 we can see the expected result of this project, an exceptional mobile application running on an Apple iphone. Figure 10: Domino’s Pizza Mobile Application expected result Final Project Result Source: Self-made Once the project is finished, it is important to close the project, this closing includes the contract closure, closing all the phases and any contract applicable to the project. The viability of the project is not questionable considering its affordability once developed at national scale. The usual margin in the ready-meal delivery sector being quite high (between 70 and 80%), Domino’s Pizza can expect to have fully paid off the costs of implementation within its distribution network in less than a year. The goal of this project is actually to test and promote this new service locally in Valencia in order to gather feedbacks in perspectives of further national launch. Looking at the actual trend for mobile devices (especially iPhone and iPad), this is a great opportunity for Domino’s Pizza to position its brand on a younger and more dynamic segment and therefore gain in reputation and brand recognition. Moreover, it is essential for the company to be able to follow the actual leader of the sector TelePizza that has already adopted a multiplatform App Service. The implementation of this project will allow Domino’s Pizza to reduce the competitive advantage gained by its main competitor on these services and fulfill the existing competitive gap between the two companies. 24
  • 25. Project Management: Creation and Development of a Mobile application Domino’s Pizza This project will not only provide a bigger range of services to the company, but it will also permit a reduction of costs and increase the productivity of each restaurant; employees not having to spend time over the phone to take customers’ orders. It will also limit the need for various transactions and avoids the risk for mistakes considering that the order has been charged before being sent to the restaurant. Domino’s Pizza has also to take into account that the implementation of this technology for all selling points in Spain will require a national promotion campaign proportionally as what has been described in this report. Although, it can be the start of a new positioning strategy using popular technology in order to reach a wider target population and being able to gain in market share over TelePizza. 25
  • 26. Project Management: Creation and Development of a Mobile application Domino’s Pizza 9. REFERENCES AND BIBLIOGRAPHY 1. Crossan, Mary M., Rouse Michael J., Fry, Joseph N. and Killing, J. Peter (2009). Strategic Analysis and Action , 7th Edition, Pearson, Prentice Hall, cap. 8 2. Gido, J. & Clemens, J.P. (2003). Administración exitosa de proyectos, Thomson, 2ª edición. 3. Exploring corporate Strategy. Johnson. G and Scholes. K,m Thomson, 6th edition 4. Kerzner, Harold (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (8th ed.). 5. Kaplan, R.S and P Norton. 1996. The balanced scorecard : translating strategy into action 6. Kaplan, R. S. and D. P. Norton. 1996. Using the balanced scorecard as a strategic management system. Harvard Business Review (January‐February): 75‐85. 7. Pellegrinelli, S. & Bowman, C. (1994). Implementing Strategy through projects, Long Range Planning, vol.27, nº 4, pp. 125‐132. 8. Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980. 9. Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business Review, January 2008. 10. Apple (2011) Development Terms and conditions Available at: www.apple.com/developmentprogramconditions.html 11. Hodge, B.J., Anthony, W.P. & Gales, L.M. (2003). Teoría de la organización. Un enfoque estratégico. 6º edición. Pearson‐Prentice‐Halls 12. Sebastian. Nokes The Definitive Guide to Project Management.. 2nd Ed.n. London (Financial Times / Prentice Hall): 2007. 13. Domino’s Pizza (2011) a) Domino’s pizza vision and mission Available at: http://www.dominospizza.co.nz/corporate/inside/visionmission.aspx [Accessed: 10 March, 2011] b) Domino’s Pizza Annual report (2010) c) Logos and Images. Available at www.dominospizza.com 14. Grupo Zena (2011) Available at: http://www.zena.com/ [Accessed: 12 March, 2011] 15. Bloomberg BusinessWeek (2010). Food services S.l Available at: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8 33502 [Accessed: 27 March, 2011] 26
  • 27. Project Management: Creation and Development of a Mobile application Domino’s Pizza 16. Domino’s Pizza, John Henry, International Business, 2010. Case Study 17. Balance Scorecard a) Martínez Pedros, D. (2011) “Herramientas para la implementación de estrategias” b) Balance Scorecard organization (2011) “The four perspectives” Available at http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/t abid/55/Default.aspx [Accessed: 25 March, 2011] 18. Businessballs (2011) “SWOT Method” Available at: http://www.businessballs.com/swotanalysisfreetemplate.htm 19. Organizational Structure Business Dictionary (2011) Available at: http://www.businessdictionary.com/definition/organizational-structure.html [Accessed: 25 March, 2011] 20. Basic college accounting (2009) Financial manager functions, Available at: http://basiccollegeaccounting.com/explain-the-objectives-functions-roles-of-a- finance-manager/ [Accessed: 21 March, 2011] 21. Marketing made simple (2010), Marketing Manager Functions, Available at: http://www.marketing-made-simple.com/articles/marketing-manager-role.htm [Accessed: 24 March, 2011] 22. Pmcrunch (2009). Selecting the team work. Available at: http://pmcrunch.com/project_management_process/criteria-for-selecting-projects- team-members/ [Accessed: 03 May, 2011] 23. Eventoplus (2011) Available at http://www.eventoplus.com/categorias/azafatas- valencia.php [Accessed: 19 April, 2011] 24. Project manager certification (2011) “Project scope statement” Available at: http://www.projectmanagementcertification.org/managernotes/roles_and_responsibi lities.html [Accessed: 15 April, 2011] 25. PMtips.com (2009). “Project Budget Management” Available at: http://pmtips.net/project-budget-management/ [Accessed: 05 May, 2011] 26. Businessweek (2011). Telepizza company profile. Available at: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=8834 42[Accessed: 05 March, 2011] 27. AEC (2011) Asociación española de empresas de consultoria. Estudios sectoriales. Available at: http://www.consultoras.org/frontend/aec/Informes-Sectoriales-AEC-vs218 [Accessed: 28April, 2011] 27
  • 28. Project Management: Creation and Development of a Mobile application Domino’s Pizza 10. APPENDIX: • Appendix #1: App Store Guidelines / 7 pages 28