Dunkin '
Dunkin '
Dunkin '
With more than 21,000 points of distribution in more than 60 countries, Dunkin’
Brands is one of the world’s leading franchisors of quick service restaurants
(QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice
cream. Dunkin’ Brands is the parent company of two of the world’s most
recognized and beloved brands: Dunkin’, America’s favorite all-day, everyday stop
for coffee and baked goods, and Baskin-Robbins, the world’s largest chain of ice
cream specialty shops.
Dunkin’ Brands believes being a good corporate citizen is good business. We set
corporate social responsibility (CSR) goals to make continuous progress in the
areas of sustainable sourcing, packaging, energy efficiency, waste reduction,
nutrition, Diversity & Inclusion and other material issues. Additionally, on an
annual basis, our franchisees around the world volunteer their time and donate
product and funds to countless non-profit groups. Most notably through the Joy
In Childhood Foundation (JICF), Dunkin’ and Baskin-Robbins franchisees provide
joy to kids when they most need it.
Organizational structure
The ultimate success of a company depends on the people chosen to lead the
company. That fact means that it is the organizations goal to select the best
quality managers and employees possible that will push the organization to its
goal. The work environment is what will ultimately reflect the employee’s view of
the organization. Dunkin’ donuts team- oriented design has helped them climb
the ranks as one of the leaders in the coffeehouse industry. Although the
company is widely successful now, it has had several organizational redesigns that
have made it into the power house it is today.
Competitive Advantage
The Dunkin' Donuts' organization has a great competitive advantage in the quick
service restaurant market. Not only is the organization doing well with their
coffee sales but they have also branched out the selection of products they offer.
These other products include providing consumers with coffee, baked goods,
sandwiches, and ice cream, to name a few. A key to the competitiveness of the
organization is their service and convenience. The way they treat their customers
is a huge boost to them because they truly value their customers and want a sit to
one of their establishments to be an experience. Another one of the things that
helps is the value perception of Dunkin' Donuts' products. People view their
products as a more premium product compared to some of their competitor's
stores like McDonalds, Panera Bread, and Quick Trip. And it is this value that
people have set in their minds about the product, and when one look how
competitively priced Dunkin' Donut products are, it really gives them a
competitive advantage. Dunkin' Donuts' also uses technology to keep them ultra-
competitive. They use a mobile app as well| as the "DD card" to present their
customers with deals (Dunkin' Donuts). This approach keeps customers engaged
and provides a way to offer them savings while continually marketing products.
This competitive attitude makes Dunkin' Donuts more than just a breakfast
option, but also an all-day eatery.
The way that a particular store may be run causes problems especially with
today's technology and customers outlets to vent their displeasure with a
company can be detrimental. A third risk that the company could face would be
from the competitiveness of the quick service restaurant market or "QSR". They
state this by saying "The QSR segment of the restaurant industry is intensely
competitive. The beverage and food products sold by our franchisees compete
directly against products sold at other QSR...." (Travis). This is one of the biggest
risks they have because this takes away from the uniqueness of the company and
in affect some of their revenue. In the QSR market everyone is fighting for the
same dollar but unique items that are only available at one particular business is
what draws customers, and helps create customer loyalty. purthly a risk for
Dunkin' Donuts would be the substantial indebtedness of the organization. They
are facing very large amounts of debt as stated in their annual report "We have a
significant amount of indebtedness. As of December 28, 2013, we had total
indebtedness of approximately $1.8billion, excluding $3.0 million of undrawn
letters of credit and $97.0 mi of unused commitments under our senior credit
facility." (Travis). This could cause a lot of problems for Dunkin Donuts in the
future because this could affect the willingness of lending institution to lend them
money. This also reduces the amount of capital that they have to fund in new
endeavors themselves because that money has to be put toward debt service
payments.