Students will be presented with a case study involving analysis of a company’s annual report. Students will: 1. prepare written answers to a set of questions related to the case study, and 2. submit...

Analysis of Domino’s Pizza, Australia Annual Report
     Google’s Australia
    Analysis of Domino’s Pizza, Australia Annual Report
    Google CEO’s report for acquisition of Domino’s Pizza, Australia
    
     Parmeet
5/31/2020
Table of Content
Introduction…………………………………………………………………………Pg 1
Domino’s Pizza Australia Company Brief………………………………………….Pg 2
Domino’s Mission, Vision & Goals…………………………………………………Pg 3
Google Australia’s expansion plan in food chain segment………………………….Pg 4
Strategic Plan of Dominos Pizza…………………………………………………...Pg 4 & 5
Auditor’s and Opinion of Domino’s Pizza………………………………………….Pg 6
Financial Statement of Domino’s Pizza…………………………………………….Pg 6 to 12
Income Statement and Analysis…………………………………………………….Pg 6 to 8
Balance Sheet and Analysis………………………………………………………...Pg 9 to 10
Cash Flow Statement……………………………………………………………….Pg 11 to 12
Recommendation & Summary………………………………………………………Pg 13
References…………………………………………………………………………...Pg 14
Introduction
Google as we know is one of the big four technology multinational company in USA alongside Apple, Amazon and Microsoft. It was started by Sergey Brin and Larry Page in September 1998 in California, USA. In 2002, Google has established its operations in Australia to crater its business in Australia and New Zealand. It now operates with 1500 employees in Sydney and Melbourne. Our business in Australia deals with Google products like Google Maps, Google Chrome, YouTube, photos and more. In Australia, Google is committed to integrate, collaborate and acquire the maximum customers through delivery of its quality products and services. Now Google wants to diversify in unrelated segments where we can work in partnerships to contribute for development of businesses and the upliftment of society. For this we have chosen to collaborate with Domino Pizza where we will work together for enhancing their pizza delivery services and for augmentation of Domino Pizza’s ordering technology. At present we have decided to purchase fifty percent share of Dominos Pizza which will be an asset for Google Australia. The initial terms of agreement will be for 3 years. We will emphasize on technological advancement for Domino Pizza through improvement of Smartphone Apps, communication process, customer delivery services, order management technology and database management system. (Google Australia; Google in Australia; People around Australia – whether they are students, businesses, non-profits, researchers or creators – are using Google tools to improve their lives every day)
Domino Pizza Australia Company Brief
Domino Pizza Australia is an Australian owned master franchise holder for Domino’s. One of such biggest franchisee holder David Burness is operating in Australia while Liam & Kaedyn Stops serving New Zealand. David Burness has five stores in Gympie, Maroochydore, Maryborough, Nambour and Noosa. They serve not only Australia but also crater its business and operations in New Zealand, Germany, Denmark, Luxembourg, Japan, Belgium France and the Netherlands. (Domino’s Australia; About Us)
They serve the people of Australia and other nations through its fast and efficient food delivery service and fresh quality Pizzas. Domino Pizza is the market leader in terms of their pizza delivery services through drones, ordering through apps, customer services and artificial intelligence and virtual reality. Domino Pizza encourages innovation and constant improvement for the enhancement of the lives of the millions of Pizza and Domino food lovers. Thus Domino Pizza wants to provide their customers a world class experience through delivery of their quality products and efficient services. But, currently due to global pandemic Covid-19 there has been lockdown and the business of food delivery and Pizza services of Domino’s has been impacted. This has been reflected in their profits which are much lower than the previous year. Only technological and robotics advanced for fast Pizza and food deliver can help Domino to increase their sales. This is because most customers are hesitating to accept food under human contact because of the deadly disease Corona virus which is transmitted in humans on being in close contacts. Hence, it is imperative for Domino to develop some robotic technology which can deliver foods and Pizza without human contacts. Hence, they want to collaborate with Google for a period of three years where there will be exchange of technologies, knowhow and improvement in customer service, database management and order management system in Domino Pizza. Presently as on 29th May 2020, the share price of Domino Pizza, Australia is trading at AUD$62.33. (WSJ Markets; Domino’s Pizza Enterprise Ltd. DMP (Australia: Sydney)
Domino’s Mission, Vision and Goals
The mission statement of Domino Pizza focuses on to become the leader in home delivery pizza convenience service globally and in Australia. The mission statement can be further segregated into (1) to be passionate about maintaining superior pizza quality and consistent in providing efficient services (2) provide varied products and services to meet the needs of the customers and pizza lovers (3) emphasizing on the safety of the customer, employees and delivery members on a priority basis (4) creating a congenital atmosphere inside the workplace where every employees of the organization feels valued (5) enhancing and maintaining the best relationships between the different franchisees around the world and partners for their contribution and maintaining an efficient distribution network. (References for Business; Domino's Pizza, Inc. - Company Profile, Information, Business Description, History, Background Information on Domino's Pizza, Inc)
The vision of Domino Pizza is to be become the best pizza operator by hiring the best talents in their food and home delivery business. They also states to become the number 1 in pizza taste, quality and service and create a positive impact in the minds of the people through their efficient delivery services.
The goal of Domino Pizza Australia is to deliver faster, fresh and quality foods to the customers. They want to deliver a state of art experience for the customer and pizza lovers through continuous improvement and innovation of their products and services.
Google Australia’s expansion plan in food chain segment
Google has recently introduced an app called “Google Smart Assistance" which has the ability to assist you to order food and pizza delivery services of customer’s choice. This service has been in operations in USA and European Union. In Australia this service is not yet available. The food delivery services which can be ordered by the customers are DoorDash, Slice, delivery.com, Postmates and ChowNow. Also, it can be expected that Google is in collaboration with MenuLog and Uber Eats to drive their businesses online though Google online platform. (PC World from IDG; How to order Pizza using Google Assistant; By Fergus Halliday; 1st Aug 2019)
Therefore, with Google’s partnership and collaboration of Domino’s Pizza Australia there can be tremendous changes and innovation take place between these two companies. There is tremendous opportunity for growth and development in technology, customer, database and order management systems in Domino’s and delivery of service and reaching the maximum number of customers through Google’s.
Strategic Plan of Domino’s Pizza
Domino’s Pizza is one of the best known pizza and food brands in Australia now. In 2010, the share price of Domino’s was just AUD$5.24 and now it has reached AUD$62.33 as of May 2020. This shows that shareholders have shown positive interests in the growth prospects of Domino’s. This has helped Domino’s to increase their sales from AUD$1128 million in 2018 to AUD$1430 million. The percentage increase in sales was by 24.4% in 2019 over the previous year. Although due to slow down and global recession combined with Covid-19 pandemic effects the profits of Domino’s have decreased to AUD$116 million in 2019 from AUD$121 million in 2018.
They were able to surpass the sales growth of Pizza Hut in...