Domino’s Pizza Use Case Study

Question : 

What could Domino's have done to improve the acceptability of its Pulse system?

Answer :

Introduction

Domino’s Pizza built and implemented Pulse point of sales system. The goal was to improve the efficiency and effectiveness with which the stores are handling customers. Moreover, the system was expected to handle customer data securely as well. However, after the implementation was rolled out, some stores resisted the adoption. When the company forced to accept Pulse, resistant franchisee owners went to court to resolve the situation. Here, instead of forcing them to accept Pulse, the company should have implemented open two way communication channel to clear doubts and concerns of franchisee owners. Moreover, the company should have asked owners to take tour of stores that are working efficiently due to new Pulse system. It could have been more motivational and acceptance could have increased. The company can handle coronavirus issue by implementing PayWave card and QR code based payment, which do not require customers to touch the system. It will remove the need of physical interaction between customer and the cashier. And for security threats management for enhanced Pulse System, the company has to plan for internal threats – employees, and external threats – malicious hackers and competitors. 

The company built a point of sale system called Pulse and wanted all its franchisees to adopt it. Despite the various benefits that can be achieved from the system, some franchisees denied to adopt the new system within their stores. Pulse helps in reducing mistakes, improving customer service, and securing customer data.

Resistance to change within organizations are quite common. Whenever something new comes up that require employees to adapt new way of working or they see that their power position within the organization will change, then they resist (Grama and Todericiu, 2016). Most employees do not want to learn new ways to work and some employees feel that the change may reduce their need or make them obsolete. Fear and unwillingness are the two key reasons that can be found in all forms of resistance. Same has happened in the case of Domino’s. 

This resistance can be reduced to improve acceptability by ensuring effective communication with all the franchisee members. Communicating the benefits that the system will bring to their stores may persuade them to accept the new system. The communication should be both ways. The company should answer all queries and concerns asked by the franchisee owners and their employees. Moreover, the company could also organize tour of resisting owners to the stores where Pulse system were in action and improving the efficiency with which the customers were handled. This could have also motivated them to accept Pulse.

Conclusion and Recommendation

Overall it can be said that if the company had implemented effective communication channels with the resisting franchisee owners, then the situation could have been resolved without the need of forcing them to accept Pulse. Domino’s should have shown the efficiency and effectiveness of the stores that are using Pulse to the franchisee owners. It could have motivated them. In order to handle coronavirus challenge, company can use PayWave and QR code payment system in Pulse. And there are two security threats that could be handled while building enhanced Pulse System. These are internal threat – employees, and external threats – malicious hackers and competitors.

References

Berry, C.T. and Berry, R.L., 2018. An initial assessment of small business risk management approaches for cyber security threats. International Journal of Business Continuity and Risk Management, 8(1), pp.1-10.

Chen, W., Wang, Q., Li, Y.Q., Yu, H.L., Xia, Y.Y., Zhang, M.L., Qin, Y., Zhang, T., Peng, Z.B., Zhang, R.C. and Yang, X.K., 2020. Early containment strategies and core measures for prevention and control of novel coronavirus pneumonia in China. Zhonghua yu fang yi xue za zhi [Chinese journal of preventive medicine], 54(3), pp.1-6.

Grama, B. and Todericiu, R., 2016. Change, resistance to change and organizational cynicism. Studies in Business and Economics, 11(3), pp.47-54.