Chapter 1 and 2

San Beda University
College of Arts and Sciences

San Miguel, Mendiola, Manila
A STRATEGIC MANAGEMENT PAPER OF

GOLDEN DONUTS INC.
Submitted by:
Penesa, Blanche G.
Submitted to:
Prof. Jenny de Guia
Date Submitted:
22 APRIL 2019
EXECUTIVE SUMMARY
This Strategic Management Paper seeks to elaborate alternative strategies in the
operations, production, and marketing of the food and beverages industry; in which Golden
Donuts Inc. may use to further improve and maintain its image as one of the best out there in
the industry. The ultimate success of a company depends on the people chosen to lead the
company. That fact means that it is the organization’s 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. The Functional
structure of Dunkin’ Donuts is made up of their Organization, job design, their competitive
advantage, risk they face, and the working relationship of the organization. Once the difficult
part of determining exactly what one wants to accomplish as an organization is complete, the
next step is the structural setup of the organization. The organization hierarchy is crucial to
the overall success of the organization.
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 visit 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.
I. Introduction
Dunkin’ Donuts was first established in 1950, in Quincy, Massachusetts, by William
Rosenberg. Over the years the company expanded and now is one of the largest coffees and
baked goods chain in the world. They serve over 5,500 retail outlets; selling more than 4 million
doughnuts and 2.7 million cups of coffee daily! Dunkin’ Donuts are famous for their many
varieties of doughnuts and their wide range of bakery products - muffins, bagels and
munchkins® donut hole treats. Their products are represented by more than 6,590 worldwide
points of distribution, including approximately 4,815 units in the United States alone.
For more than 50 years, Dunkin Donuts has offered customers throughout the United
States and around the world, a consistent experience – the same donuts, the same coffee, the
same store décor – each time a customer drops in. Although the chain now offers iced coffee,
breakfast sandwiches, smoothies, gourmet cookies and Dunkin Dawgs in addition to the old
standbys, devoted customers argue that it’s the coffee that sets Dunkin Donuts apart. To keep
customers coming back, the chain still relies on the receipt that founder Bill Rosenberg crafted
50 years ago. Building on the success the company plans to more than triple its current number
of stores, amassing 15,000 franchises by the year 2015.
Dunkin Donuts is a business in food retail. They are the world’s largest coffee and baked
goods chain. Dunkin’ Donuts have been in business since 1950 and have been franchising since
1955. These franchises serve more than 2 million customers a day. Dunkin Donuts sells 52
varieties of donuts and more than a dozen coffee beverages as well as bagels, breakfast
sandwiches and other baked goods. It is important to look at consumer usage and future trends
before entering into the market. Dunkin’ Donuts is part of the snack shop market. The snack
shop market had almost 10 billion in sales worldwide in 2003 alone. Snack shops have an
advantage because they are popular among all consumer groups. Dunkin’ Donuts has retained a
consistent database of customers, while also gaining additional consumers through the
progression of time and emergence of newer markets.
II. Research Design and Methodology

In the formulation of this strategy paper the investigator used data research as the
principal tool to obtain information. Data from various sources were collected for the
formulation of external analysis. It was collected from news items, annual reports, the website of
the company and the sites connected with the company and its competitors. The information
used for the company’s analysis was gathered from Dunkin Donuts annual report. The financial
statements of company were gathered directly from the Securities and Exchange Commission.
2.1 Scope and Limitation

The scope of this paper is only limited to the food and beverages industry in the country.
The study is restricted to the selling of Dunkin Donuts Inc. in the Philippines only. The scope
also covers the operations of the enterprises themselves and therefore, subsidiaries are not
covered. Finally, for the years 2016 and 2017 only the company's financial statement was
achieved.

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San Beda University

College of Arts and Sciences

A STRATEGIC MANAGEMENT PAPER OF

II. Research Design and Methodology

2.1 Scope and Limitation

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