Dunkin Donuts Business Objectives - Research Paper Example

Dunkin Donuts exam2 Introduction Dunkin’ Brands Group is one of the major and top ranked franchisor of quickservice restaurants. The group mainly specialises in serving cold and hot coffee as well as hard-serve ice cream and baked goods. The group is in operation in nearly sixty countries and has around 18000 outlets. In the year 2013 alone, the group made sales that amounted to around $9.3 billion, which is quite remarkable. Its headquarters are located in Canton, Massachusetts. Current Strategy The Dunkin’ group has developed new strategies that help attract customers. Its products are offered in various flavours and sizes. The customers are also allowed to make decisions and give opinions on the same. The group has also developed a strategy to offer information about nutrition, and avail a wide selection of items on their menus. The group has also introduced great tasting fast foods that take into consideration the kind of lifestyle as well as meeting crucial dietary needs. Dunkin’ Group was among the first to introduce donuts with zero grams Trans fat. Later, they modified their ice cream to be the same. The group also established a board that would help address nutritional matters. The board comprised of experts on nutrition, wellness and health (Dunkin, 2014). They were to help with the development and regeneration of products that would take into consideration the rising needs of the customers. The research helps the company to anticipate and understand wellness and health trends and instils modern nutritional science in the development of the menu. The group has also a strategy to provide health-related information to the public. The group ensures that information on calories is brought out in an easily comprehendible manner. The group has also started using foam cups to serve their coffee. The cup has benefits such as keeping the coffee hotter for longer hours. The group has also resolved to use recycled napkins to reduce waste of napkins. Long-Term Objectives The company has set an objective to concentrate its efforts on making healthier food substances from the items they bake. They do this while focussing on the opportunities the market presents. It is also among the long-term objectives by Dunkin’ Donuts Group to expand their menus so that they can offer non-traditional items such as iced-coffee. The company aims at providing speedy services. They also aim at making products that are of a constant quality and at affordable prices. These are crucial for the company to earn consumer loyalty (Dunkin, 2013). The company is set to go for production methods that are environmental friendly such as use of recyclable products. This will help the company gain public image. The company also objects to serve its customers responsibly, through designing delicious foods and creating nutritional awareness programmes to the public. The group is hoping to achieve a sustainable and steady growth. The group has managed to prove that its strategies are on the right path since its sales have proved better than expected. Organisation Chart: General Manager Secretary Operations Manager Marketing Manager Baker and Janitor Purchasing Officer Research & Development Officer Marketing Assistant Top- Leadership Bio’s: Nigel Travis- Chief Executive Officer and Chairman Nigel Travis was named the CEO in the January 2009. He became Chairman in May 2013. From 2005-08 he was the President and Chief Executive Officer (CEO) of Papa John’s International, Inc., a global pizza chain. He previously had numerous top positions at Burger King Corporation. He is currently a member of the Board of Directors of Office Depot, Inc. He formerly served at the Board of Lorillard, Inc. and Bombay Company. He is a resourceful man in the Dunkin’ Donut’s organisation since he has a deep understanding of the company, and has international and domestic experience with retail and franchising businesses. Raul Alvarez- Lead Independent Director He is a Japanese- based operator of restaurant chains. He is also a director at Lowe’s Companies, Inc. as well as Eli Lilly and Company (Dunkin, 2014). He once served as a director of McDonald’s Corporation as well as KeyCorp up to the year 2009. He had previously worked as the CEO at McDonald’s in North America between the years 2005-06. He has served significantly in the board since he has remarkable experience in the fast food industry. Organisation Culture The Dunkin’ Donuts Group has had it in its traditions to serve the community. Its franchises are dedicated to catering for the social needs of its local communities. Providing food for the hungry, supporting the wellness and health of children and ensuring secure and safe neighbourhoods has been incorporated in the culture of the group. The group has also been actively providing scholarships to college students and high school seniors. It also gives funds to non-profit organisations that support a range of community projects, for example, the American Red Cross, Special Olympics, providing toys as well as funding cancer institutes such as the Jimmy Fund. Since the group was incepted in 2008, it has awarded close to $4.4 million worth of grants, and has campaigned for long-term partnership with the organisation known as Feeding America (Dunkin, 2012). It is, therefore, in the organisations culture to benefit as many people in its society as it can. Current Risks Despite the steady growth rate the Dunkin’ Donuts Group, faces intense competition from other companies such as Starbucks and McDonalds, in both annual revenue and market capitalization. This increases the risk of loss of market to other. The presence of companies that produce substitute products may also risk loss of the strong market presence of the group. Low Barriers to market entry also suggests unexpected increase of competitors. The fact that the company almost entirely relies on the franchise royalties is a risk if for instance the franchises are not successful in their operations. There are also looming litigation risks with franchises (Dunkin, 2013). The company also faces occasional debt control burdens, which could cripple the company’s financial position. This can augment the costs of borrowing, and can limit the ability of the business to borrow additional finances, making substantial amount of cash go to debt payment instead of using it for purposes that are more productive. This can expose the company to adverse alterations in the economic conditions. Top Three Competitors in the International market: Starbucks McDonald’s Krispy Kreme Doughnuts (KKD) Local Competitors Wal- Mart Dairy Queen Burger King References Dunkin B. (2012). Dunkin’ Brand Group. Retrieved from http://economicsfiles.pomona.edu/jlikens/SeniorSeminars/Likens2012/reports/Dunkin.pdf Dunkin B. (2014). Nigel Travis. retrieved from http://www.dunkinbrands.com/Leadership/Nigel-Travis-84.aspx Dunkin B. (2013). Dunkin’ Donuts: 2013 year review. Retrieved from http://www.trefis.com/stock/dnkn/articles/221020/dunkin-donuts-2013-year-in- review/2013-12-31 Dunkin B. (2014). Dunkin Donuts Business objectives. Retrieved from http://dunkindonutsnews.blogspot.com/2014/01/business-objectives.html Dunkin B. (2014). Dunkin Donuts press Kit. Retrieved from http://news.dunkindonuts.com/imagelibrary/downloadmedia.ashx?MediaDetailsID=3 25 Dunkin B. (2014). Dunkin’ Brands Inc. Retrieved from https://www.google.com/finance?cid=6896794 Dunkin B. (2014). Mission goals and objectives. Retrieved fromhttp://www.studymode.com/subjects/visio-mission-goals-and-objectives-of- dunkin-donut-page1.html Dunkin B. (2014). Board of Directors. Retrieved from http://investor.dunkinbrands.com/directors.cfm Dunkin B. (2014). Dunkin’ Donuts to enter so. Cal. Retrieved from http://news.dunkindonuts.com/Featured-News/DUNKIN-DONUTS-TO-ENTER-SO- CAL-70.aspx Dunkin B. (2014). DNKN Stock quote- Dunkin’ Brands Group Inc. Stock Price Today (DNKN:NASDAQ.) Retrieved from http://www.marketwatch.com/investing/stock/dnkn Read More