External & Internal Environment
Downturn in national or world economies and rising of inflation which is being experienced current period, are the most common factors that can affect businesses. Conversely, what cause an adverse effect for many companies, has had a constructive effect for Domino's Pizza UK, Ireland, the most leading delievery franchise. Keeping in view the current economic situation Domino's Pizza sales had increased up to 11% in the first six week of 2008 than that of same period of last year, due to, mostly people preferred for delivery at home, instead of going for eat outs, Like-for-like sales rose 14.7% last year, despite a price rise across Domino's menu last autumn. (The Times, 20th February 2008)
Domino's said, sales had been enhanced, due to these new pizzas, like wise, Meateor and the rugby-themed Scrummy, and by offering new ways of ordering, like wise e-commerce sales--orders taken electronically either online or through text messages, due to which sales have been intensified to 60.5%. According to Domino's prediction, the drift for ordering-in food would continue this year. At present the external environment shifting rapidly. The external environment consists of everything outside the business.
ven in the present crtical economical situation, domino's continues to succeed which is due to domino's remorseless emphasis on the quality of domino's pizzas, penetrating commitment to service and by publicizing to domino's customers to whenever and wherever they are willing to order. It is their frevency that has brought profit growth of 27.8% to £29.9m (2008: £23.4m) and that will persists to get-up-and-go domino's business in years to come.
POLITICAL ISSUES:
Political issues include regulatory frame work operating in judicial system which may distress the business in diverse ways. In UK, there isn't as such factors that might embrace domino's business. While factors like, laws on business employment, pollution and taxation apply on the organization which it should follow according to rules.
ECONOMIC FACTORS:
If the county's economy is better so the GDP of the country will be good, it is the initiative for business as the per capita income increases people will spend more money. According to domino's survey, it came to know that mostly people spend more and visit more often, during or start in on of months. Moreover, rise in inflation rate, leads to increment of cost of raw material which also leads towards higher prices for goods and vice versa
SOCIAL FACTORS:
Domino's is a multinational and it is basically inaugurated from America, therefore, the organization is snowed under by domino's western culture. There are different social forms of society which consists of, upper class, middle class, middle upper class, and lower class. Moreover, every single nation, state has their own cultural norms, beliefs, religion, values which might affect the organization world wide.
TECHNOLOGICAL FACTORS:
At the present time, technology is improving, so as baking and heating ovens will be of new and efficient technology and will provide efficient service. Due to these innovative technology there are many latest ways of publicizing like wise, through internet; telemarketing through which organization can advertise their products in much more rapidly than ever before. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. New vehicles will make their service more efficient.