1. What does Tommy want?
Tommy was looking for a change, especially since he just finished putting his third and last child through school. Tommy also operated a food section that served breakfast items (other than doughnuts) and hamburgers, which he claimed generated half of the sales. He was interested in buying out the franchise from Dunkin' Donuts. He would take down the Dunkin' Donuts sign and continue to operate the shop under a new store name of his choice. He also planned to negotiate direct lease with the landlord instead of leasing the building and land from Dunkin' Donuts. However, he mentioned to Dunkin' Donuts that he was not interested in pursuing this option.
Tommy seemed to be interested in selling the business to
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To continue with Tommy handling the franchise since the franchise was delivering increasing revenues even if they were not performing according to the Dunkin' Donuts standards. However, this will lead to increasing operational costs of handling customer complaints and might also affect the Dunkin' Donuts as a brand.
4. How do you evaluate the options?
The evaluation of the options can be done on the cost-benefit analysis including long-term implications. Since the first two options above involved heavy transaction costs such as litigation costs, impact on brand, fear in the minds of other franchise owners etc. This might lead to closing down on the operations of Randolph store till the litigation is settled which might lead to loss of revenues from the area where the Randolph store is situated. So, selecting these options have minimum benefits and maximum costs involved.
The last option would also impact the brand of Dunkin' Donuts but would however have a regular stream of revenue from the franchise. However, the problem of low standards, fees not paid on time, handling of customer complaints would entail excess operational costs required to monitor using CSG and responding to customer complaints and avoiding word-of-mouth publicity by giving discounts. Again, this would lead to bringing in a temporary solution and Dunkin' Donuts would have to deal with the problem created even later. The third and the fourth options seem more beneficial than
As the rising District Manager for the new Dunkin’ Donuts stores, many factors must be presented, analyzed, promoted, and executed. Opening new stores requires innovative ideas, being ahead of the game with the newest trends, and stabilizing the stores for the least amount of turnovers. Managing stores also means maintaining respect while coaching is vital. This requires feedback on both upward and downward channels of communication. For the purpose of this paper, Dunkin’ Donuts will be assessed and evaluated based on its job and organizational designs, criteria for recruiting and
Supplier selection and relations ships are also an important part of the code of ethics for Dunkin Donuts. It states in the formal document “When buying products and services, employees have a duty to deal with suppliers fairly and act in compliance with applicable laws and company policies. Suppliers include components and materials vendors, indirect goods and services providers, consultants, and anyone else who provides a product or service to the company.” (Dunkin Donuts’ Code of Ethics, 2011) In other words, when buying goods and supplies for the establishment employees are expected to treat the suppliers with kind actions and not treat them harshly. If said employee does not treat the supplier accordingly, the business supplying the Dunkin’ Donuts establishment would most likely stop because of the way they were treated. Then the restaurant would be without goods and supplies. “When purchasing products or services from suppliers, negotiate fairly to obtain the best pricing. Employees are responsible for working in the best interest of Dunkin’ Brands and the franchisee system and for compliance with applicable laws and the company’s policies.” (Dunkin Donuts’ Code of Ethics, 2011) What this statement mean is, when purchasing goods and supplies for the establishment employees are expected to negotiate fairly and have their best interest in doing good for the establishment and industry. It’s important because if workers and employees do not try their best in helping
Once Job Analysis is complete, the next step is to define the responsibilities of the candidate to meet the needs of the position. Job description is basically a list of the tasks required of the employee holding the particular position defined in the job analysis. A Complete job description will include level of responsibility and the expected outcome. Once these attributes are defined and documented, finding the ideal candidate will become easier and more precise.
The organizational design of Dunkin Donuts already exists as a franchising company using a unitary form of management. Beckman (2009) defines unitary form or U-form organizational design as, “A model in which similar tasks, such as production tasks, are grouped into specialized units creating economies of scale and the familiar functional silos that still exist in many organizations today” (p. 7). The U-form design will have to be used to allow the new locations to function inside the Dunkin Donuts franchise system, but we believe it can be adapted and improved by making a few simple changes and additions. After working with and looking deeper into the current organization design of Dunkin Donuts, we believe it can be improved by simplifying the design of each new store location to a simple structure design. The new store locations need to feel more like locally owned, down home country stores. Every new and existing customer should be able to walk into each of our new location and feel like all the employees have known them for
As the rising District Manager for the new Dunkin’ Donuts stores, many factors must be presented, analyzed, promoted, and executed. Opening new stores requires innovative ideas, being ahead of the game with the newest trends, and stabilizing the stores for the least amount of turnovers. Managing stores also means maintaining respect while coaching is vital. This requires feedback on both upward and downward channels of communication. For the purpose of this paper, Dunkin’ Donuts will be assessed and evaluated based on its job and organizational designs, criteria for recruiting and selecting for
The job design of an organization includes the job analysis, job description and the job specification. As described in “The Five Functions of Effective Management”, the purpose of a job design is “organizing tasks, duties, and responsibilities into a productive unit of work” (As quoted by Baack, 2014, Section 4.2). Analyzing the job requires the human resource department to identify these tasks, delegate who will execute them, and to match the employee to the task. Human Resources collaborate with Dunkin’ Donuts department managers to figure out what will work in the organization design. Often times, this will mean comparing the company with other similar quick service restaurants such as Krispy Kreme or Starbucks to see what works and what
No one wants to spend however amount of money on a cup of coffee for it to taste bad, when paying for coffee you would like to actually enjoy the coffee. Both locations Dunkin’ Donuts and Starbucks have a variety of flavors and options to choose from. In my opinion Dunkin’ Donuts has a very smooth coffee, as Starbucks coffee tends to be more “bold and harsh.” I personally feel that in all my trips to Starbucks, the coffee tends to taste burnt. I myself just do not enjoy that type of coffee, but if you are the type to drink bold and extremely strong coffee, Starbucks is the way to
1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?
Dunkin’ Donuts has over six-thousand locations in the United States and serves over three and a half million customers daily. The biggest competitor for Dunkin’ Donuts are Peet’s Coffee & Tea, Starbucks, and McDonalds. In order to maintain market competitiveness Dunkin’ Donuts must remain driven towards service excellence. This starts by hiring staff members that are eager to provide the best customer service with every interaction they have and be able to produce an excellent product. “Dunkin’ Brand offers a comprehensive series of award-winning training programs for crew members, managers and franchises designed to foster deep connections to our brands’ heritage and improve the guest experience and business results at the restaurant level.” (Schmidt,R.A & Oldfield, B.M. 1999) Bill Rosenberg the founder of Dunkin’ Donuts operates by a simple philosophy but one that is carried through each store. “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern well-merchandised stores” (Dunkin Donuts, n.d., pp. 1) Being a new district manager tasked with opening five new locations will help fulfill Rosenberg’s vision of providing the best product around in a courteous environment both for staff and customers. This paper will focus on job design, organizational design, recruiting and selecting, training personnel and performance appraisal are key elements in the success of opening five new locations.
Research showed that 54% of the Americans over the age of 18 drink coffee everyday and 62% of the regular coffee was purchased from a coffee shop, rather than homemade. For corporation coffee house chain, Dunkin’ Donuts is developing very well in home base country and has its chains everywhere including Asia. That is why it is chosen to study within this industry for its financial performance.
Dunkin also has salads and soups for its clients unlike Starbucks. The baked goods of Starbucks are cooked somewhere else and not in the shop whereas the entire bakery operations of Dunkin Donuts are handled in house only. Apparently, Starbucks products have a regional flavor to them whilst the same does not hold true with Dunkin Donuts. You would find Starbucks offering you entertainment accessories like CDs and books
Socio-Cultural- Due to the numerous cultures present in Dunkin' Donuts' target market, the company as a whole must be in continuous change in order to keep up with its consumers. Dunkin Donuts must keep in mind the age, income, occupation, and most importantly the lifestyles of their customers if they wish to succeed in such a competitive market. As an answer to this problem, the company has implemented several changes aimed at keeping and attracting a new customer base. Many restaurants are looking towards centralized kitchens to maximize space and reduce costs, consequently cutting product costs, thus saving the customer money. The
Founded first as a restaurant called Open Kettle, it was later renamed to Dunkin Donuts in 1950 by William Rosenberg and Stephen So in Quincy, Massachusetts. Dunkin Donuts has become most famous for its donuts over the years, as well as their coffee. They have approximately 3,000 restaurants in the US and around the world, and sell 2.5 million donuts every day. Dunkin Donuts has evolved into one of Forbes magazine “Top 10 Global Fast-Food Chains”, and tops the lists of other noted industry websites and magazines. Recently, Dunkin Donuts has changed the way they want customers to think about them by incorporating the tag line “America Runs On Dunkin”, and adding new menu items, to their marketing
Even though Dunkin Donuts is an international business, each individual store has its own set of goals and missions to achieve success. This is also known as the value chain, which is “the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.” (Oxford) After observing and working for Dunkin Donuts, the business’ success is primarily based off the happiness of their loyal customers and smooth teamwork of their employees. This particular Dunkin Donuts on Western Avenue in Peoria, Illinois is faced with a lot of challenges, but with the right approach to these challenges can make their business even more successful.
In 2003, the U.S. doughnut industry was a $5 - $6 billion market. American households consumed an estimated 10 -12 billion doughnuts annually; this translates into over three dozen doughnuts per capita. In 2002, doughnut industry sales rose by about 13%. Sales from doughnut outlets rose by about 9%, to approximately $3.6 billion, whereas packaged doughnut sales at supermarkets, convenience stores and other retail outlets staggered in the past five years. A study by Technomic confirmed the growth of doughnut shops and identified this segment as the fastest-growing dining category in the country. Further analysis provided by the following figure shows attractiveness and profitability