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Running head: DISCUSSION 3.

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Discussion 3.2

Sarita Chaulagain

University of the Potomac

BUS 510 Strategic Management

January 22nd, 2018

Petya Nikolova

First, it’s best to define each of them individually:

1. Accounting perspective- Analyzing the profitability analysis of a firm using accounting


data to assess and evaluate competitive advantage.
2. Shareholder perspective- the Competitive advantage is measured in return on their risk
capital (money invested by shareholders in return for an equity share).
3. Economic value created- the willingness of the buyer to pay for a product or services and
the cost of production of the firm (the difference between value and cost).
DISCUSSION 3.2 2

So, in the case of Domino’s pizza on the investor's section; it includes both of them.
Shareholders perspective and accounting profitability. It’s because it has all the financial data
dating to previous years for profit analysis hence accounting data. It also has stock information
data for existing and potential new investors.

Reference

Rothermel, F.T. (2013). Strategic Management: Concepts and Cases, (1st ed), New York:
McGraw-Hill
DISCUSSION 3.2 3

Domino's Pizza was 50 years old in 2010. Visit the company's business-related website

(www.dominosbiz.com) and read the company profile under the "Investors" tab. Does the firm

focus on the economic, accounting, or shareholder perspective in the describing its competitive

advantage in the profile? Defend your answer.

Ans: I think the firm focuses on the economic perspective in describing its competitive

advantage. In the economic perspective, a firm focuses on how much economic value it creates

through its competitive advantage.

In the company profile, Domino's focuses on how much economic value it creates for its sub-

franchisees, franchisees and the parent company. It focuses more on the chain which creates

economic value for the entire Domino's ecosystem consisting of the parent company,

franchisees, and the sub-franchisees. So, I think the firm focuses on economic perspective in

describing its competitive advantage.

Domino's has been a global company since its entry into the markets in 1983. As of today, the
international division counts over 8k stores across 85 markets. Economically there was a
significant growth back last quarter, with an increase from 2.6% rate to 4.3% in the prior quarter.

One of the ways to become a shareholder of the company Dominos is by investing in shares i.e.
by purchasing shares of the company directly through debit of bank accounts or via check or any
other online sites, stock brokers etc. We can also Sell or transfer shares, track account balances
through an online portal.

Domino’s Pizza Business Opportunities:

According to Domino’s it offers franchises for a fee of $25,000, though the total initial
investment ranges from $119,950 to $461,700 which far too low when compared to the
competitors which is an proven advantage to the company. Also, the franchise agreement lasts
for 10 years and is renewable, and the royalty fee is 5.5%. It also has an agreement to sell Coca-
Cola products exclusively at its stores.

Domino’s Pizza has made several changes to from the initial start till now, It made several
improvements such as it now offers a tracking software on its website so that customers can
DISCUSSION 3.2 4

watch which stage of the pizza making process their order is in in real time, allowing customers a
better idea of when to pick the pizza up or when they can expect the delivery driver to arrive.