Unveiling case studies of corporate decisions

KHAN ARBAAZ ARMAN
ICAI Reg. no.: WRO0687963
CA Course : CA Finalist
City : MUMBAI

Unveiling case studies of corporate decisions.

Corporate decisions depict company’s future prospects and performances. The decision made by the management is a result of gathering various information, evaluating processes and selecting the best alternative for a particular situation. There have been instances where a decision made by the management have turned tables for an entity and vice versa. For example: Malavika Hegde took over as the CEO of Coffee Day Enterprises Limited (CDEL) and took bold and decisive actions to overcome its Debt-Trap by 75%. On the other hand, Kodak’s denial to digital photography destroyed its film-based business model. Hence making decisions is critical to the success of a business.

Following is case study of a Decision made by DOMINO’s of Jubilant FoodWorks Limited (JFL).

Decision: Domino’s came with a delivery within 30minutes guarantee; if the delivery time exceeds 30minutes, Order is FREE!

Case study: Delivery at doorstep within 30minutes from order time! Sounds Great! Is it a big deal? Not actually. Because the system was designed to deliver the Pizza in 23minutes and gave a 7minutes buffer time to the staff. But how is this possible, what made it work?

The planning by the management and its robust system enabled Domino’s to complete the delivery within 30minutes of order time. Here’s how domino’s comes with a 30minute guarantee delivery from the time an order is placed.

  • Dominos is ahead in the technological game and its Web-based system and wide network helps its users to order at fingertips which makes it easy for the personnel to pass the order in the kitchen without wasting much time.

  • Dominos got a good team; the staff has clearly defined roles and there is no multitasking as a different person is assigned for a particular task, for example the person making the pizza and the person preparing the parcel are different. This process makes it faster.

  • Dominos follows the “mise in place” process and when the order is flashed on the kitchen screen the pizza maker assembles the pizza as per the requirement before it goes to the oven for around 6-8 minutes. This standard strategy is followed across all the dominos franchises which enables the pizza to be prepared in the store within 10-12minutes.

  • Now for the delivery the routes for the drivers are mapped well in advance and the Dominos delivery boys strictly toe the line and not serve houses that take more than 8-9 minutes to reach from the store.

Apart from the above, following helps dominos to achieve their guarantee:

  • Dominos do advertisements and promotional campaigns more aggressively compared to its competitors, with a majority of its promotions and advertisements taking place on company’s mobile application and websites as well as personalized text messages.

  • Dominos does not give 30minutes guarantee for bulk orders and orders of location far from the store and restricts its drivers to deliver such orders under this scheme.

Outcome: Dominos has delivered orders with the success rate of 99.6% as claimed by Ajay Kaul Ex-CEO of Jubilant FoodWorks limited which led to increase in revenue and profits of the entity.

So, this is how corporate decision play an important role in an entity’s success.