Management Problems and Solutions of Australian Domino’s Company

Question: Discuss about the Management Problems of Australian Dominos Company. Answer: The essay draft deals with the analysis of the Australian Dominos company and itsmanagement issues. The aim is to analyse the issues and propose the solutions for themanagement problems. Dominos Pizza Inc is the American based chain of restaurants. The headquarters, of the company is at Michigan, United States. In March 2010, J. Patrick Doyle undertook themanagement of Dominos. Currently the company has its branches in more than 70 countries. The Australian Dominos Pizza enterprises currently own and franchise the branches of chain in Belgium, New Zealand, Australia and Monaco (Reid and Borchers 2016). There are severalmanagement issues in the company currently identified from the literature. The Dominos Pizza chain in Australia has squeezed its franchisees. It is franchisees have exploited labour who are migrant from other countries. There are many underpaid workers in its franchisees while the investors have earned millions (Sivaraman and Turner 2016). It was observed in the Australias biggest Pizza chain, that there was a dictatorial system in the Dominos. It was complained by number of current and former franchisees that the Dominos demanded them for more finance. Dominos unfairly push some franchisees out of the system while specially treating other multi-franchisees by offering them stores at below market rate. Sometimes the franchisees were given to people who do not have enough experience and run at a loss (Ferguson 2017). A rampant underpayment of the workers has been highlighted in the recent new article based on Sydney. Dominos was under monitoring since 2015 and it was found that many franchisees were stressed. In recent pay roll audit in 2016, it was found that staffs were underpaid by $80000. There was severe underpayment at the convenience store giant 7-eleven in 2015. Further, breaches in the employment obligations were also observed in terms of overtime payment. In tens and hundreds of thousands of dollars, some franchises were bleeding money. It was found that the franchisees were making money by cutting cost. These franchisees were benefitted from head office. This incident suggests that there is need of more laws to make franchisers more accountable. It appeared that it was difficult for the franchisee to survive without underpayment (Kariyawasam and Samarkovski 2012). According to Ferguson (2017), exploitation of the workers have been common in the biggest franchisee. The strategy was to decrease the labour costs below 27 per centof sales. In order to implement this strategy, the store maggers have to trim the work hours of the staff to reduce the pay accordingly. It means for every cheaper pizza offered to the customer, the workers and the franchises have to scratch a living out of the nations appetite. It can be concluded that there are several management issues in Dominos in the Australian franchises. These problems can be overcome by the change in the leadership skills. Strengthening the wage audit policy will help overcome the discrepancies. There is a need of monitoring the discrepancies in the pay roll more stringently. References DOMINOS, A.M., 2000. Dominos Pizza.NATION'S RESTAURANT NEWS,34(19), p.120. Ferguson, A. 2017.The Domino's Effect.Sydney Morning Herald. Retrieved 24 September 2017, from https://www.smh.com.au/interactive/2017/the-dominos-effect/ Kariyawasam, K. and Samarkovski, L., 2012. Legal Issues in Franchising in Australia: Is the Current Regulatory Environment for the Franchise Sectoradequate.Macquarie J. Bus. L.,9, p.179. Reid, B. and Borchers, A., 2016. Food Fight: Law and Public Relations in Pizza Wars.Journal of Critical Incidents,9, p.73. Sivaraman, G. and Turner, P., 2016. The 7-Eleven wages scandal: The need for law reform.Precedent (Sydney, NSW), (135), p.53.