Category: Domino’s Pizza

Introduction

Dominos Pizza Enterprises is a chain of the pizza delivery stores which works on the basis of the franchising business. Functioning in the consumer industry sector, it is possible to state that the company is successful for now.

Risk

Franchising is considered to be a form of business running where risks are limited to minimum. Still, considering this specific business model, it is possible to identify some particular risks which may be related to the business model and specifics of the business. Thus, it is really important to follow the rules established by the franchiser which may be difficult for those who want to do personal marketing. The absence of the uniqueness may be the main means of profit reduction.

Those who buy franchise should understand that it is a long term contract where a buyer takes some responsibilities (Barkoff, Selden & American Bar Association 2008). Dominos Pizza Enterprises business is successful, but there is chance that one specific store may fail. It is impossible to predict the outcome. Still, to reduce the risks, Dominos Pizza Enterprises follow the risk management policy (Quality is our heart & soul 2010)

Capital Structure

The capital structure is the combination of the share capital and loan capital which is considered to denote the long term financial information of the company. Considering the current report which has been composed in 2011, the recent information may be described. The company has a debt of $1.45 billion.

It is about 5.9% of the blended cash interest rate. According to the Investor Presentation 2011 the capital structure of the company (its debt) is the interest only, and in the last quarter of 2010 the earnings before interest, taxes, depreciation and amortization were 5.5x. The securitization of the business is secured with most cash flows of the company (Investor Presentation 2011, p. 17).

The initial term the company has is five years with the possibility to extend the tern on 1 year twice. The extension is planned to start in April 2011 and end the same month in 2014 (Investor Presentation 2011).

Dividend Structure

The dividend structure of the company may be considered in the following table.

(Dominos pizza enterprises limited 2011)

Considering the calendar of events of the company, it is possible to state that the company fairly provides its shareholders regularly receive their shares. Thus, the company had paid its dividends on the 14^th of March, 2011 (10.4c, 100% franked) (Dominos Pizza Enterprises Limited (DMP) 2011).

Conclusion

Thus, it may be concluded that the company business has a positive dynamics. Having a specific model for business running, the company limits its risks, but at the same time increases the debt during the first year of functioning of the newly bought franchise.

Reference List

Barkoff, RM, Selden, AC & American Bar Association 2008, Fundamentals of franchising, American Bar Association, New York.

Dominos Pizza Enterprises Limited (DMP) 2011, Invest Smart. Web.

Dominos pizza enterprises limited 2011, ASX. Web.

Investor Presentation 2011, Dominos Pizza Enterprises. Web.

Quality is our heart & soul 2010, Dominos Pizza Enterprises Limited Annual Report. Web.

The divisions were selected from the companys annual report. The most promising is the international franchise royalties and fees, which, together with the companys capabilities, demonstrate the unrealized potential for entering the international market in a more planned and comprehensive manner (Dominos Pizza, Inc., 2021). Given the already realized potential in the supply chain, where to remain competitive in the future, it is necessary to focus on technological developments, entering the international market not only through franchises can maintain the companys growth rate. As a result, the maximum achieved in the US market, which is already showing negative dynamics in financial performance, cannot be considered a good division. However, at the same time, non-franchise competition in the US provides the bulk of the companys revenue along with Canada.

Since the calculated IFE and EFE values are 2.84 and 3.02, respectively, franchising within the US is the determining strategy. It is because here Dominos has a well-functioning logistics system, regular customers, and the realized potential of the company, which is transformed into an invaluable experience. In this area, where the company has almost the best performance in the industry, they can give the franchisee a more robust foundation through experience and reputation. Therefore, the international expansion strategy looks promising for the future, when there will be a more solid foundation in the US, allowing, given the mass of risks, to enter new markets. In any case, opening a companys outlets can be complicated by several political, cultural, and economic factors, including solid competition and established consumer habits. The supply chain in this situation reflects the business maintenance strategy as the basis for other divisions. It makes little sense for a company to build its restaurants in the US, which demonstrates the location of this development vector on the IE matrix, which is presented in Figures 1 and 2.

Reference

Dominos Pizza, Inc. (2021). 2020 Annual Report. Web.

It is important to note that Dominos Pizza is a strong multinational company with a large customer base comprised of many demographics, accessed through its vast network of franchises. The current competitive advantage is the result of the efficiency of production and distribution networks, brand loyalty, network effect, and economies of scale. An in-depth analysis of Dominos Pizza revealed that the company could utilize its internal strengths to tap into the shifting health preferences of the public, accompanied by the willingness to pay premium prices. The company can develop its market by providing investors with a lower royalty percentage of 3.5%, which means there will be an incentive. Such an approach enables a widespread opening of stores on an international scale in the following years. Backward integration can also become a critical strategic element of the company, where expensive pieces of equipment are purchased to improve revenue and profitability in the long term.

Moreover, Dominos Pizza has the internal capabilities to properly respond to an increasingly health-conscious consumer base, which is a threat under the current conditions. The company should boost its product development to provide a diversified selection to its customers with trendy and healthy options included. It should also conduct a horizontal integration with other competitive and promising chains because it is a plausible way to boost its market share revenues and further capitalize on its economies of scale. Since Dominos Pizzas current weakness is its image as an unhealthy food provider, it needs to change the public perception by ensuring that some of its products contain healthy options. In addition, the company should improve its business analytics methods to properly allocate its massive resources among regions, which is hindered by its weak database system. In order to minimize the effects of Dominos Pizzas external threats and internal weaknesses, the company should improve its cleanliness training among its staff and not be scrutinized by the media and public. Due to its large size and limited responsiveness, the company should always be aware of expected and current consumer preferences to avoid responding too late.

Therefore, the incorporation of the identified strategies will require leadership skills and styles which need to promote innovation. A study suggests that numerous positive leader approaches correlated positively and negative leader approaches correlated negatively with creativity and innovation (Hughes et al., 2018, p. 565). Another source also states that in order to actively develop the exploratory and transformational learning processes, firms need to foster the presence of transformational leaders and leadership styles (Darwish et al., 2018, p. 96). Therefore, transformational leadership skills and styles can be of paramount relevance in order to promote creativity and innovativeness, which are necessary to implement the proposed changes.

In the case of specific decisions company leadership can make in order to capitalize on untapped business opportunities, two key recommendations emerge. Firstly, Dominos Pizza should open 1000 more international stores in both European and Latin markets within the following three years with an allocation of $20 million for each period. Secondly, the company should raise an additional $50 million to facilitate and invest in novel forms of advertising, research, and development. Alsea, a company operating restaurants of Dominos Pizza in Latin and European regions, received a B1 rating (Moodys, 2021). It means that the recommendations are even more plausible due to the higher likelihood of refinancing existing debts. The sources used are listed on the reference page.

References

Darwish, T. K., Zeng, J., Rezaei Zadeh, M., & Haak-Saheem, W. (2018). Organizational learning of absorptive capacity and innovation: Does leadership matter? European Management Review, 17(1), 83-100.

Hughes, D. J., Lee, A., Tian, A. W., Newman, A., & Legood, A. (2018). Leadership, creativity, and innovation: A critical review and practical recommendations. The Leadership Quarterly, 29(5), 549-569.

Moodys. (2021). Rating action: Moodys assigns B1 ratings to Alsea and its proposed notes; stable outlook [PDF document]. Web.

H.W. Heinrich’s domino safety theory effectively addresses accident causation in industries. It elaborates on the different elements that characterize occupational health and safety. Heinrich argues that many accidents experienced within the workplace are often caused by an unsafe working environment and negligence by employees. This is true, as studies have established that many employers do their best to provide employees with safeguards, but most of them do not use them as required.

According to the theory, 88% of accidents occur following a sequence of unsafe acts carried out by employees. This element is often determined by the traits that someone inherits from their parents, thus nothing much can be done with regard to preventing their pronouncement other than managing the social environment. In other cases, some employers tend to ignore the safety needs of their employees by providing unsafe working conditions, which eventually contribute to accidents within the workplace.

Heinrich correctly identifies the best solution to the challenge of accidents within the workplace. Providing a safe working environment and training employees on occupational health and safety can play a pivotal role in reducing and/or eliminating accidents. Effective monitoring and evaluation of the way employees execute various tasks can also be an effective way of minimizing accidents in the workplace.

The ability of the employer to achieve this feat depends highly on the efforts made in enforcing laws and policies governing the workplace. It is important to take disciplinary actions against employees who exhibit a high degree of non-conformance to the safety regulations provided. Proving a safe working environment yields many benefits for both the employer and the employees. The employer benefits from having a healthy and highly productive workforce, while the employees tend to benefit from reduced costs incurred in treating the injuries and absenteeism.

In the modern globalized world, companies are selling products in different countries and in different parts of the world. It is but natural that each region has certain peculiarities and companies have to take them into account. Advertising is the sphere where cultural peculiarities can be evident as within a short time only particular features of the product are revealed.

Clearly, it is possible to understand the difference between two cultures by tracing the differences in commercials. It is possible to compare two commercials of Domino Pizza produced in India and the USA. First, it is necessary to note that two similar commercials are chosen. Hence, in both ads, there is a home setting and pizza.

At the end of the commercial, pizza itself is shown to advertise different toppings. The product itself (as opposed to such supportive services as mobile delivery applications) is put to the fore. Although similar advertisements are chosen, they are very different as different messages are articulated.

One of reasons for that is peculiarities of the two cultures. Thus, the US culture is low-context while Indian culture is high-context (Lazović, 2012). In low-context cultures, the information is given rather explicit while in high-context cultures a lot of messages remains unuttered (Locker, 2010).

As far as the differences in the commercials are concerned, it is possible to single out major ones. In the US commercial, three men are sitting at the table, enjoying their Domino pizzas, and discussing benefits of the product (Domino’s Pizza commercial, 2007). It turns out they all have quite different preferences. At the same time, Indian commercial features a couple who are about to have some meal (Dominos Pizza commercial, India, 2012).

The woman spoils the meal (it is clear that the food has burnt down) and the man orders delicious pizza. They eat pizza together. These differences suggest that the attitudes towards the products are slightly different in the two countries. Clearly, it is shown that pizza has great flavor and everybody likes it. However, for Americans, pizza seems to be a usual treat that can be eaten during any meal.

It can be a treat for friends’ meetings as well as a meal for any other occasion. The major focus is made on particular qualities of the product. The commercial is very precise and explicit. However, Indian commercial is more implicit and fewer details about the product itself are given. In India, pizza seems to be a good replacement of a meal. Thus, the man whose wife cannot cook does not starts an argument but orders pizzas that help them keep good relationship.

Importantly, Americans explicitly talk about things they like about pizza (its smell, taste, looks or even the way it sounds). Whereas, Indians do not discuss these features and only enjoy their favorite treat. In conclusion, it is possible to note that the two commercials advertise the same product in different ways.

In the USA, pizza is a meal and the features of the product are explicitly discussed, while Indians tend to focus on possible uses of the product (which is a replacement of a traditional meal) and implicit information concerning the delicious taste of the pizza. Hence, it is clear that attitudes towards the product are quite different in the two regions and the advertisements employ these differences to promote Domino’s Pizza.

Reference List

Domino’s Pizza commercial. (2007). Web.

Dominos Pizza commercial, India. (2012). Web.

Lazović, V. (2012). Content analysis of advertisements in different cultures. English Language Overseas Perspectives and Enquiries, 10, 39-51.

Locker, K.O. (2010). Business and administrative communication. New York, NY: McGraw-Hill Publishing.

About Domino’s Pizza

Domino’s Pizza is a multinational public company trading in the New York Stock exchange, and existing in over 70 countries all over the world. Founded in the 1960s, Domino’s Pizza currently owns over 10, 000 outlets with over 140,000 employees. The company carries out restaurant services. It sells a variety of foodstuffs such as pizza, pasta, boneless chicken, wings, chicken & bacon carbonara, spinach and feta, Italian sausage & pepper trio, and Tuscan salami & roasted veggie among others. The company is located in over eight countries such as Brazil, South Korea, Netherlands, Belgium, New Zealand, and France, among others. Domino’s Pizza would like to make an entry into Estonia Market. This paper is carrying out a demographic survey of Estonia Market. It collects demand data for industry demand and makes forecasts for Domino’s Pizza. Finally, it gives recommendations to the management of the company on whether to venture into that market or not.

Demographics of Estonia

Estonia occupies a total area of 45,226 square kilometers. The country is located in Eastern Europe, bordering on Russia and Latvia. The country’s total population was 1,332, 893 in 2005. The population growth rate was -0.65% in the year 2005. The table below shows additional details on the demographic of the country.

Economy of Estonia

The country’s economy relies on the service sector, followed by production and agriculture. Machinery and equipment make a larger proportion of imports and exports. The GDP of the country for the past five years has been fairly stable. The table below shows GPD of the country for the past five years.

Source of data – The World Bank Group, 2012

From the table, it is clear that the GDP of Estonia over the five years is stable. GDP increased from $18 billion in 2010 to $22 billion in 2011. This shows that the country is a viable investment destination. Besides, as mentioned above, the service industry tends to thrive more in the country than in other sectors. Finally, the government legislations are favorable and make it possible to carry out business with ease in the country.

Independent and dependent variables

Before starting operations in a new market, it is necessary to carry out a comprehensive feasibility study in all aspects of a business. In this paper, the emphasis is put on demand forecasts for the company. The demand curve shows the relationship between the quantity demanded and the price of goods (or services). There are several determinants of demand. These determinants cause either a movement or a shift of the demand curve. Besides, these factors can either impact negatively or positively the demand. The price of the good is a key determinant of demand. Increase in price of their own good causes a decline in demand. The price of related goods also affects demand. Goods can either be substitutes and complements. Increase in price of substitutes leads to an increase in demand of the good while a decrease in price of complement leads to a decline of quantity demanded. The number of buyers also impacts the demand of the good. Increase in buyers leads to increase in demand. Customers’ future expectations affect current demand. Customers will reduce their current demand when they expect favorable future prices. Advertisement also affects demand positively. Regression analysis will be carried out to estimate the demand equation. The regression uses one dependent variable and six independent variables. The depended variable is the quantity demanded while the independent variables are price, advertisement expenditure, income, price of complementary goods, future price changes, and price of substitute. These variables lead to multivariate regression.

Demand equation

The regression line will take the form Y = a₀ + a₁X₁ + a₂X₂ + a₃X₃ + a₄X₄ + a₅X₅ + a₆X_6. The theoretical expectations are a₁ can take any value, a₂ >0, a₃ > 0, a₄ < 0, a₅ < 0, and a₆ > 0. The result of regression for each independent variable is shown in the table below.

Source of data for analysis of demand – US Census Bureau, 2012

From the above table, the regression equation can be written as Y = 133.91 – 13.98X₁ + 9.46X₂ + 0.12X₃ – 0.38X₄ – 0.90X₅ + 1.61X_6.

Coefficient of determination

Coefficient of determinations shows the proportion of variation of the dependent variable explained by the independent variables. A high coefficient of determination implies that the explanatory variables explain variations. A low value of coefficient of determination implies that the explanatory variables do not explain the variations in demand adequately. For this regression, the value of coefficient of determination is 98.33%. This implies that the independent variables explain 96.32% of the variation in demand meaning that the explanatory variables strongly determine the demand function.

To improve on the value of the coefficient of determination, variables which are not statically significant can be dropped. Alternatively, more variables can be included in the formulation. For instance, in this case consumers taste and preferences can be included in the equation since it is a strong determinant of demand. This may improve the value of coefficient of determination.

Testing statistical significance of the variables

Testing statistical significance shows whether each and every variable is a significant determinant of demand. Since the sample size is small that is less than thirty, t-test is used to test the significance of the variables. A two tailed test is carried out at 90% level of confidence.

Null hypothesis: Ho: a_i = 0

Alternative hypothesis: Ho: a_i ≠ 0

The table below summarizes the results of hypothesis testing.

The null hypothesis implies that the coefficients are not significant determinants of demand. The alternative hypothesis implies that significant is significant determinant of demand. Rejecting null hypothesis implies that the variables are statically significant. From the table above, price and advertisement are the only statistically significant variables which are 10% of level of significance. The other four variables are income, price of complementary goods, future price changes, and price of substitute are not statistically significant at 10% confidence interval.

The demand equation formulated is not strong enough to predict future values because out of the six variables only two are statistically significant determinants of demand. It is necessary to include more variables into the analysis such as age, taste and preferences. Alternatively, the sample size can be increased collected at different times. This helps in improving the value of estimates.

Forecasts for the next four months

The table below summarizes the results of forecast over during the four months.

From the above table, it is clear that demand will grow over the four months period. That is 99.95 units in the first month, 100.28 in the second month, 104.12 in the third month, and 104.89 in the fourth month. This is growth of about 0.333% per month. The forecast are made on the assumption that all the explanatory variables will grow. The growth rate is assumed to be the real rate of GDP growth rate in the country.

Recommendations

Management of Domino’s Pizza Company should go ahead and invest in the country. However, this analysis only looked at the economic aspect of the venture. It is important to carry out comprehensive feasibility study of all aspects of the business.

References

The World Bank Group, (2012). Data. Web.

US Census Bureau, (2012). Data access tools. Web.

Introduction

Domino’s Pizza Enterprises is a chain of the pizza delivery stores which works on the basis of the franchising business. Functioning in the consumer industry sector, it is possible to state that the company is successful for now.

Risk

Franchising is considered to be a form of business running where risks are limited to minimum. Still, considering this specific business model, it is possible to identify some particular risks which may be related to the business model and specifics of the business. Thus, it is really important to follow the rules established by the franchiser which may be difficult for those who want to do personal marketing. The absence of the uniqueness may be the main means of profit reduction.

Those who buy franchise should understand that it is a long term contract where a buyer takes some responsibilities (Barkoff, Selden & American Bar Association 2008). Domino’s Pizza Enterprises business is successful, but there is chance that one specific store may fail. It is impossible to predict the outcome. Still, to reduce the risks, Domino’s Pizza Enterprises follow the risk management policy (Quality is our heart & soul 2010)

Capital Structure

The capital structure is the combination of the share capital and loan capital which is considered to denote the long term financial information of the company. Considering the current report which has been composed in 2011, the recent information may be described. The company has a debt of $1.45 billion.

It is about 5.9% of the blended cash interest rate. According to the Investor Presentation 2011 the capital structure of the company (its debt) is the interest only, and in the last quarter of 2010 the earnings before interest, taxes, depreciation and amortization were 5.5x. The securitization of the business is “secured with most cash flows of the company” (Investor Presentation 2011, p. 17).

The initial term the company has is five years with the possibility to extend the tern on 1 year twice. The extension is planned to start in April 2011 and end the same month in 2014 (Investor Presentation 2011).

Dividend Structure

The dividend structure of the company may be considered in the following table.

(Domino’s pizza enterprises limited 2011)

Considering the calendar of events of the company, it is possible to state that the company fairly provides its shareholders regularly receive their shares. Thus, the company had paid its dividends on the 14^th of March, 2011 (10.4c, 100% franked) (Domino’s Pizza Enterprises Limited (DMP) 2011).

Conclusion

Thus, it may be concluded that the company business has a positive dynamics. Having a specific model for business running, the company limits its risks, but at the same time increases the debt during the first year of functioning of the newly bought franchise.

Reference List

Barkoff, RM, Selden, AC & American Bar Association 2008, Fundamentals of franchising, American Bar Association, New York.

‘Domino’s Pizza Enterprises Limited (DMP)’ 2011, Invest Smart. Web.

‘Domino’s pizza enterprises limited’ 2011, ASX. Web.

Investor Presentation 2011, Domino’s Pizza Enterprises. Web.

‘Quality is our heart & soul’ 2010, Domino’s Pizza Enterprises Limited Annual Report. Web.

The divisions were selected from the company’s annual report. The most promising is the international franchise royalties and fees, which, together with the company’s capabilities, demonstrate the unrealized potential for entering the international market in a more planned and comprehensive manner (Domino’s Pizza, Inc., 2021). Given the already realized potential in the supply chain, where to remain competitive in the future, it is necessary to focus on technological developments, entering the international market not only through franchises can maintain the company’s growth rate. As a result, the maximum achieved in the US market, which is already showing negative dynamics in financial performance, cannot be considered a good division. However, at the same time, non-franchise competition in the US provides the bulk of the company’s revenue along with Canada.

Since the calculated IFE and EFE values ​​are 2.84 and 3.02, respectively, franchising within the US is the determining strategy. It is because here Domino’s has a well-functioning logistics system, regular customers, and the realized potential of the company, which is transformed into an invaluable experience. In this area, where the company has almost the best performance in the industry, they can give the franchisee a more robust foundation through experience and reputation. Therefore, the international expansion strategy looks promising for the future, when there will be a more solid foundation in the US, allowing, given the mass of risks, to enter new markets. In any case, opening a company’s outlets can be complicated by several political, cultural, and economic factors, including solid competition and established consumer habits. The supply chain in this situation reflects the business maintenance strategy as the basis for other divisions. It makes little sense for a company to build its restaurants in the US, which demonstrates the location of this development vector on the IE matrix, which is presented in Figures 1 and 2.

Reference

Domino’s Pizza, Inc. (2021). 2020 Annual Report. Web.

The analysis for the entry strategy of Domino Pizza is done for the town of Scotsdale, Missouri. The data for the analysis if derived from two sources – American Fact Finder and Bureau of Labor Statistics . We begin with an analysis of the demographic character of Scotsdale.

According to the 2010 census data, the total population of the town of Scotsdale is 222. The age-group wise division of the population shows that most of the population is above 20 and below 50 years and then 27% of the population is above 50 but less than 69 years old.

The median age of the city, is 42.5 years indicating that most of the people tend to be closer to the age 42 years. The male population is higher compared to the female population, as the male to female ratio is 27:28.

Table 1: Age group

The racial composition of the town is almost homogeneous with 99.55 of the population being white and the other 0.5% is American Indians. The total number of households of the town is 81 and 73 out of these are family households. The average household size in the city is 2.74. The median household income is $73,125.

Table 2: Household Income

The household income grouped together in two three categories demonstrate that the maximum number of households in the city belong to the income group of $35000 to $99000. Only 3 percent of the households are found with an income below $34000.

Regression Analysis

A regression analysis is conducted on the producer price index (PPI) of the US for pizza and PPI for soft drinks . The data are considered as the dependent variable for the products, while other variables such as per capital income, population, wages and salaries, and leading index are taken to be the independent variable. A regression analysis is done using MS Excel and the findings are reported below.

Table 3: regression analysis of price of Pizza

This regression analysis actually shows how the price of pizza is dependent on other independent variables such as income, leading index, salaries and wages, population of the area, etc. The analysis shows that the prices of pizzas are positively related to the income and population of the community. However, it shows a negative relation to the leading index and the salaries and wages. The regression equation derived from the analysis is – PPI of pizza = -1083.5 + 0.04 per capital Income + 0.03 Population – 3.76 leading Index – 0.002 salaries and wages.

The analysis shows that the demand for pizzas are directly related to the population size of the community and the per capital income of the community. If these two factors were increasing over time, it would be profitable to open a pizza business.

However, another factor requires attention, that is the demand for soft drinks as the business of pizza, and soft drinks are closely related to each other. This confirms that the price for pizzas are directly related to an increase in income and increase in population of the community, that confirms the demand laws which states that with increase in income demand increases which in turn increases price.

Table 4: Regression analysis of Soft drinks

The regression analysis of the PPI of soft drinks demonstrates that the price of soft drinks is positively related to the income and population of the community. It, like the PPI of pizzas, also has a negative relation with the leading index and the salaries and wages of the community. The regression equation derived from the analysis is PPI of Soft Drinks = -614.64 + 0.02 per capita income + 0.04 population – 1.51 leading index – 0.001 salaries and wages.

The analysis confirms that prices of commodities are positively related to the income of the community. Therefore, greater the income, greater is the chances of the product having higher demand in the area. Further, higher the population in the area, greater will be chances of success of the product.

In case of Scotsdale, Missouri, the only problem that Domino will face is its low population level of just 222 people. Thought the median household income of the city is much higher than the national average, but still low population presence in the city may be an area of concern for the company.

Table 5: Future trend

Table 5 demonstrates the trend line that shows the nature of demand, based on the regression analysis that the product will have in the community for the next 4 periods. Shows that the demand for pizzas are expected to rise, and the community is expected to develop over the years. This shows that the price for pizza is expected to rise, leading to an increase in the demand as this price increases with increasing income.

Based on the above forecast it can be safely deduced that Dominos may establish its outlet in Scotsdale.

References

Bureau of Labor Statistics. (2013). CPI. Retrieved from Bureau of Labor Statistics. Web.

United States Census Bureau. (2013). Scotsdale, Missouri. Web.

Tom Monaghan was born in Michigan in 1937. An entrepreneur and philanthropist, Monaghan’s desire as a young boy was to become a catholic priest, a baseball player, or an architect. Even in his wildest dreams, Monaghan did not see himself becoming the architect of a multi-billion dollar company dealing in pizza. However, that was what fate would bring on Monaghan’s way. At the age of only four years, Monaghan and his brother were placed under the care of an orphanage when it became hard for his mother to raise them single-handedly. The two stayed in the orphanage from 1943 to 1949 when their mother collected them. It was at the orphanage that was run by catholic sisters where Monaghan got his devotion to the Catholic faith. After failing to secure good grades in school that would enable him to join college, Monaghan joined the U.S. Marine corps in 1956 where he served for three years (Monaghan & Anderson, p. 5).

After being discharged from the army in 1959, Monaghan joined the University of Michigan where he trained to be an architect. A few years later, he and his brother borrowed money that they used to purchase a small store that was dealing in pizza deliveries in the neighborhoods. The two brothers named the business Domino’s Pizza. After a few years of operation, his brother sold Tom his share of the business in exchange for a Volkswagen car. This trade transferred the ownership of the business to Monaghan. After this, Monaghan improved the packaging for the pizzas by introducing a box that could allow more pizzas to be transported per trip. This technique proved to be very effective as more people began placing orders for Domino’s pizzas. In the mid-1980s, Monaghan was opening close to three new branches all over the country on any given day (Ave Maria).

As Domino’s Pizza continued its unparalleled growth, Monaghan faced many challenges that he had to overcome. In 1967, his main store in Ypsilanti was gut down by a fire that also destroyed the building that housed the company’s offices. Insurance companies refused to compensate him for most of the damages done by the fire. Owing to losses brought by the fire and Domino’s unchecked expansion, the company ran into financial constraints in the early 1970s. He was forced to turn his company to financiers to avoid filing for bankruptcy. Monahan also had to contend with lawsuits that challenged his Domino’s Pizza brand. However, he was able to rise from these challenges to become one of the biggest entrepreneurs of our time (Monaghan & Anderson, p. 25).

Tom Monaghan was unique in the way he handled challenges. Having come from a poor family and being raised by a single parent were reasons enough for him to give up on life. However, he decided to hold on to life in the face of stiff competition. Even at a time when his business seemed to be going under, he worked harder and brought it back to its feet. Monaghan was also a person who knew how to stay with his dreams. As a young person, Monaghan had dreamt of owning the Detroit Tigers. Although this seemed impossible at the time, he was able to achieve the dream in 1983 after he bought it for $53 million. Owing to his great love for architecture, Monaghan created his own collection of artifacts that remain unrivaled up to date. Although he lives a luxurious life, he has remained committed to the Catholic Church and to various charity organizations that he helped to create. His success and experience are a great inspiration to many of us who might have a dream but do not know how to execute it. Monaghan’s experience teaches us to always stay with our dreams (Ave Maria).

References

1. Ave Maria. I am Focusing on God, Family and Domino’s Pizza. n.d. Web. 2010.
2. Monaghan, Tom & Anderson, Robert. Pizza Tiger. Random House. 1986.1-50. Print.