Business Discussion Questions
Domino’s Organizational Structure
Domino’s is currently employing franchising as an organizational structure. Franchising is the best strategy mainly because it will enable the company to diversify its myriad of costs. Franchising is an excellent way of obtaining expansion capital, as the company will not have to tap its own capital to expand. The franchisees will mitigate the costs associated with purchasing of land to set up new outlets and launching the new businesses. The business structure will also help Domino’s in reducing wage and equipment costs. The franchisees will cater to the cost of employing laborers and purchasing equipment. The training of staff members is also catered to by the franchisees rather than the parent organization.
Franchising will also help the parent company to minimize growth risk. The process of franchising can generate high revenues for Domino’s because the company is investing very little money in each new location. The percentage returns from these franchised outlets will be higher than if the parent company opted to open and ran new stores on its own (Shane, 2013).
Similarities and Differences between Strategic and Financial Controls
Strategic control is the use of strategic and long-term criteria by the management to determine the effectiveness and performance level of division managers and their units across the company. Strategic controls are meant to ensure the fulfillment of the strategic plans designed by the management. On the other hand, financial control is the use of objective criteria namely return on investment, to determine the returns made by individual divisions. Financial controls are also used to score the performance of the managers of the different units. The financial controls determine if the divisions and the organization as a whole are working toward the financial goals of the company.
Shane, S. (2013, May 7). The Pros and Cons of Franchising Your Business. Entrepreneur. Retrieved on 1/3/2016 from http://www.entrepreneur.com/article/226489