INTRODUCTION

In any businesses, understanding micro-economic and macro-economic environment that business is operating in is very important stage because the factors in these two environments have strong influence on the success of business. Micro-economic environment involves demand and supply for the business, market structure and cost structure. In other words, those are internal factor of the business that to some degree business can control. On the other hand, macro-economic environment comprises of external factors that cannot be controlled by the business but have strong influence on the business for example: economic situation, inflation, interest rates.

This report will describe and analysis the impacts of micro and macro-economic environment on Domino’s pizza business. The purpose of this report is to use knowledge and theory in economics for manager subject to apply into practical situation.

MICRO-ECONOMIC ENVIRONMENT

The business overview

Domino’s Pizza is an American restaurant chain and international franchise pizza delivery corporation. Founded in 1960, Domino’s is the second-largest pizza chain in the United States and has more than 10,000 corporate and franchised stores in 70 countries and all 50 states of United State. Domino’s Pizza was bought out by Bain Capital in 1998 and went public in 2004.

In Australia, Domino’s Pizza is the largest pizza chain in terms of both network store numbers and network sales. In addition, Australia’s franchisee is the largest for the Domino’s Pizza brand in the world. Domino’s Pizza holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco. The Domino’s brand is owned by Domino’s Pizza, Inc, a listed US company.

Domino’s Pizza Enterprises are operating in five countries, with approximately 845 stores hiring about 21,000 people and making more than 60 million pizzas a year.

Domino’s Staff

Products

The current Domino’s menu features a variety of Italian-American entrees and side dishes. Pizza is the main focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings. Besides, Domino’s also try to appeal to a larger base of customers by expanding its menus offering pastas, sides and desserts, chips.